Egypt Masterbatch Market Research Report: Forecast (2023-2028)
Market Definition
Masterbatch is an additive made through heating procedures and utilized for enhancing the quality & performance of polymers. The application of these cost-effective additives is easy, dirt-free, & stable, which minimizes the safety risks associated with using powder pigments.
Market Insights & Analysis: Egypt Masterbatch Market (2023-28)
The Egypt Masterbatch Market is projected to grow at a CAGR of around 19.99% during the forecast period, i.e., 2023-28. Most of the market expansion can be attributed to the intensifying construction activities for residential buildings, corporate offices, malls, and hotels, among others. According to the Central Agency for Public Mobilization and Statistics (CAPMAS), around 316,027 residential units were built in FY2020-21. Hence, the requirement for storage tanks, pipes, electrical appliances, etc., in the construction of buildings has fueled the demand for masterbatches in the country.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 19.99% |
| Region Covered | East, West |
| Key Companies Profiled | Ascom Carbonate and Chemicals Manufacturing (ACCM), El-Mostafa Master Batch, Integrated Color System for Master Batch (ICS), Gabriel-Chemie Group, New Delta Plastic, Elsewedy Egyplast, Perfecto Plast, MicroMB (INDEVCO Group), Sacom Plast, Memco Plast, Others. |
| Unit Denominations | USD Million/Billion |
In addition, the surging demand for plastic-made or PVC products due to construction has compelled the PVC leaders, such as EGIC, First Pipe, Neisco, etc., to come up with more such products. According to a recent press release TCI Sanmar Chemicals, a polyvinyl chloride (PVC) manufacturer in Egypt, has witnessed a 30% annual revenue hike during 2021 owing to the increased demand for PVC products. Moreover, the surging production & application of agricultural components such as greenhouse covering, irrigation pipes, vermi beds, etc., would augment the Egypt Masterbatch market during the forecast period. Besides, companies such as Hyma Plastic, Alrowadpipes, and others have been contributing to the growth of revenue of masterbatch through producing & selling irrigation pipes and greenhouse covering.
Furthermore, it is anticipated that the Egypt Masterbatch market, would grow considerably during the forecast period, owing to the growing application of masterbatches in the manufacturing of automobile parts & the expansion of agricultural activities in the country. Another factor augmenting the market growth is the igniting plastic-made consumer goods & packaging materials popularity across the country. Since consumer goods or electronic goods such as air conditioners (AC), television, fans, etc., are mostly made of plastic, such massive adoption of these goods paves the way for increased sales for masterbatch in Egypt.
Besides, the Packaging industry, aiding the manufacturing of food packaging films, Flexible Intermediate Bulk Containers (FIBC), jabla bags, liners, and protective films, among others, has the prime consumers of plastic packaging materials in the country. Thus, the food & beverage and the cosmetics industry have projected considerable demand for plastics, owing to the surge in demand for such products in Egypt in the past few years. As such, packaging brands like Elif Global, Huhtamaki, Europack, and others are setting up manufacturing plants in the country, which, in turn, reflects the market growth for masterbatches across Egypt in the coming years.
Key Trends in the Market
Agriculture has been one of the prime occupations for the residents of Egypt. According to the Worldbank data in 2019, approximately 23% of the country's population worked in agriculture & 11% of the economy's revenue came from agriculture. The agriculture sector requires various plastic-made appliances such as agricultural pipes, greenhouse poly films, mulch films, Agri low tunnels, etc. Thus, manufacturing these products has augmented the need for masterbatch in the country during the historical period. Further, the surging initiatives & investments by the government for agricultural expansion have necessitated new irrigation techniques & farming methods. This aspect is likely to elevate the demand for agricultural pipes, greenhouse covering, mulch films, etc., facilitating a considerable masterbatch production. For instance,
In 2021, the Egypt government announced to boost agricultural production by 30% by 2024 & increase the gross domestic product contribution of its agriculture sector to 12% by 2024.
Market Segmentation
Based on Type,
Among all, Color masterbatches have acquired a sizable share of the Egypt Masterbatch Market. They are being increasingly utilized for manufacturing plastic kitchenware, multilayer bottles, boxes, etc. This adoption can be attributed to their benefits, such as superior color distribution & dispersion, simple usage & handling, and excellent control of the product's transparency & opacity, etc. Besides, color masterbatches are added to plastic kitchenware used massively in homes to make them vivid & attractive, enhance their anti-microbial properties, and protect them from UV radiation. Further, the mounting focus of companies operating in the automotive & consumer goods industries, coupled with those involved in making flexible packaging solutions for food, beverages, & medicines, on enhancing the aesthetic appeal of their product offerings is another contributor to the significantly growing demand for color masterbatches.
Based on End Users,
Among all, the Packaging segment is anticipated to lead the market in terms of revenue during the forecast period. Egypt has been a healthy market for utilizing consumer goods such as electrical appliances, cosmetics, furniture, etc. Some of the leading electrical appliances companies, such as El Araby Group, Nouval, Contistahl, etc., have fueled the demand for plastic in Egypt, which ultimately would drive the masterbatch market. Moreover, plastics exhibiting heavier incorporation in manufacturing chairs, tables, buckets, bottles, etc., are likely to augment the demand for masterbatch in the country. Besides, the presence of various plastic packaging companies such as Hyma Plastic, Echem, Egy Mold, Nestle Pure Life, and others bolsters the market expansion. For instance,
Recent Developments in the Egypt Masterbatch Market
Market Dynamics
Key Driver: Elevated Construction Activities Exhibiting Substantial Adoption of Masterbatches
The market is likely to be driven by the expansion of residential & non-residential buildings & infrastructures. The prime factors attributing to the growth of construction activities are the growing population & urbanization. Moreover, Egypt recorded a total population of 104.2 million in 2021, which grew by around 1.84% from 2021. Hence, the requirement for plastic-made appliances, such as PVC pipes, cables, and storage tanks, has boosted the market, which further led to the growing demand for masterbatch in the country.
Growth Opportunities: Soaring Production of Vehicles Across the Country
Masterbatch has been used for manufacturing plastic-made components of automobiles such as dashboards, steering, seat belts, etc. In 2022, Egypt announced the establishment of the joint car manufacturing complex, East Port-Said Automotive Zone (EPAZ), which would manufacture around 75,000 vehicles annually. Thus, the growth in the automobile industry would provide an opportunity for manufacturing automobile parts in the country.
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Frequently Asked Questions
A. The Egypt Masterbatch Market is projected to grow at a CAGR of around 19.99% during 2023-28.
A. Elevated construction activities call for wide adoption of masterbatches, and in turn, drives the Egypt Masterbatch Market during 2023-28.
A. The leading players in the market are Ascom Carbonate and Chemicals Manufacturing (ACCM), El-Mostafa Master Batch, Integrated Color System for Master Batch (ICS), Gabriel-Chemie Group, New Delta Plastic, Elsewedy Egyplast, Perfecto Plast, MicroMB (INDEVCO Group), Sacom Plast, Memco Plast, Others.
A. Color masterbatch segment is anticipated to emerge as an area of remunerative opportunities for the leading players in the Egypt Masterbatch Market during the forecast period.
A. Expanding incorporation of plastics in agricultural components is shaping the growth of the Egypt Masterbatch Market during 2023-28.
A. Soaring production of vehicles across the country emerges as an area of remunerative opportunity for the market players.
