The demand for biodegradable plastics and products is booming in the country and is inducing the requirement for the black, white, and colored masterbatches which are mainly used for the purpose of fabricating consumer goods, toys, and packaging of food. Moreover, the increasing initiatives by the government to encourage the use of biodegradable masterbatches is projected to positively impact the growth of Saudi Arabia masterbatch market in the forthcoming period. In 2017, the Saudi Arabian government made it mandatory for utilizing biodegradable masterbatches known as Oxo-biodegradable masterbatches.
According to MarkNtel Advisors’ research report titled “Saudi Arabia Masterbatch Market Analysis, 2020”, the masterbatch market is projected to grow at a CAGR of around 6% during 2020-25. The surging construction activities for the establishment of residential buildings is expected to drive the demand for consumer household appliances which would further bolster the growth of plastic and packaging industry. Hence, this is projected to surge the demand for masterbatches in the forecast period.
Saudi Arabia Masterbatch Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decision, hotspots and growth opportunities available for masterbatch firms across the country. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
The Packaging Segment Acquired the Highest Market Share
Based on end user, the packaging segment acquired the highest market share in the Saudi Arabia masterbatch market in 2019. This due to the growing consumption of polyethylene in the packaging industry. The Saudi Arabia Standards Organization (SASO) taking into consideration the health and the environmental risks, mandated the use of Oxo-biodegradable material for the plastics manufactured in the country. Therefore, the utilization of Oxo-biodegradable products would further boost the demand for masterbatches.
Moreover, the agriculture sector captured a significant market share in the Saudi Arabia masterbatch market. In the agricultural sector, the masterbatches hold a strong demand from mulch films, greenhouse sheets, and crop protection sheets. The products manufactured for agriculture purposes offer UV resistance, anti-fogging, UV stabilizing, anti-microbial properties.
As per MarkNtel Advisors’ study, the major players who acquired a considerable market share in the Saudi Arabia masterbatch market include Clariant Masterbatches, Ingenia Polymers, Astra Polymers, LyondellBasell, Ampacet Corporation, PolyAlwan Plastic Factory, etc.
Key questions answered in the study