Global Sustainable Masterbatch Market Research Report: Forecast (2021-2026)

Market Definition

Sustainable Masterbatch is a concentrated combination of product innovation polymers like Polyethylene (PE), PP, and Polyethylene Terephthalate (PET) sourced from household & industrial waste and mixed into the existing waste recycling centers. These masterbatches are used vastly across different end-user verticals in various applications, mainly for replacing harmful plastic & other materials.

Market Insights

The Global Sustainable Masterbatch Market is projected to grow at a CAGR of around 9.5% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the alarming concerns associated with the rapidly depleting environmental conditions & an escalating need to address these issues caused by the excess use of non-bio-degradable elements like plastic, i.e., instigating the demand for sustainable practices & products. 

It, in turn, is promoting the adoption of sustainable masterbatches as an alternative resource in industries like automotive, packaging, healthcare, & agriculture, among others, and driving the global market. Besides, the stringent regulations & laws imposed by governments of different countries worldwide toward encouraging the adoption of sustainable masterbatch & limiting the production of plastic are further augmenting the market growth. Moreover, increasing government investments in the research & development of sustainable solutions in masterbatches are also projected to fuel the overall market growth in the years to come.

Key Trend in the Market

• Rising Demand for Sustainable Masterbatch for Building & Construction Industry

The construction industry is emerging as one of the largest consumers of sustainable masterbatches, owing principally to the rapidly increasing construction activities across residential, commercial, industrial, and other infrastructure-related projects. The growing demand for sustainable masterbatches is in applications like the production of geo-membranes, door & window components, gas pipes, foamed insulation boards, potable water pipes, & roofing, among others.

Impact of Covid-19 on the Global Sustainable Masterbatch Market

The Covid-19 pandemic in 2020 had a decelerating effect on the Global Sustainable Masterbatch Market. The imposition of stringent restrictions & frequent lockdowns by governments of different countries worldwide resulted in the shutdown of manufacturing units due to a swift shortage of raw materials & human power. Additionally, supply chain disruptions led to delayed deliveries of pre-produced sustainable masterbatch materials, which caused massive financial losses to the leading market players.

However, since 2021, with a swift decline in Covid-19 cases, governments uplifted the restrictions and allowed the recommencement of business operations. It encouraged the market players to develop & enhance the production of sustainable masterbatches, which, in turn, would enable them to recover from financial losses in the coming years.

Market Segmentation

Based on Products:

• Polylactic Acid (PLA)
• Polybutylene adipate-co-terephthalate (PBAT)
• Polyethylene Terephthalate (PET)
• Starch Blends
• Polyethylene (PE)
• Others (PBS, PHB, PHA, PP, and Others)

Of them all, Polyethylene acquired the largest share in the Global Sustainable Masterbatch Market in recent years & shall prevail the same trend over the forecast years. It owes principally to its increasing application across different end-user verticals like packaging, building & development, automotive, etc., due to its flexibility & versatility, along with its availability in multiple forms, viz., low-density polyethylene, high-density polyethylene, & linear low-density polyethylene.

Based on the Application:

• Packaging
• Medical
• Automotive
• Agriculture
• Others (3D Printing, Textiles, and Consumer Goods)

Of them all, the Packaging sector is dominate the Global Sustainable Masterbatch Market during 2021-26, principally due to the rapidly growing packaging industry worldwide entwined with an escalating need for reusable packaging of products in line with curbing the effects of plastic from the environment. Besides, the burgeoning awareness about benefits like enhanced visual appeal for brand promotions with attractive packaging to attain a greater customer base is another crucial aspect fueling the demand for sustainable masterbatches across the packaging industry.

Moreover, the food & beverage sector is among the largest consumers of sustainable masterbatches across the packaging industry. It owes to the accelerating demand for sustainable masterbatches for packing food products to increase their shelf life & sustain their quality for a longer time.

On the other hand, the Global Sustainable Masterbatch Market is expecting considerable growth across the Medical sector during the forecast period. It owes principally to the growing need for safely packing medical equipment & drugs, displaying a massive dependency on the plastic for packaging, labeling, preserving, & marketing, among others & enhancing patient protection.

Besides, properties like high dimensional stability, moisture barrier, low water absorption, clarity, high impact strength, stress resistance, heat & flame resistance, among others, are further augmenting the demand for sustainable masterbatch in multiple medical applications.

Nonetheless, the Automotive sector is expected to demonstrate the fastest market growth during the forecast period. It owes principally to the rapidly increasing automotive sales across regions like Asia-Pacific & Europe, i.e., leading to the mounting demand for sustainable masterbatch to build vehicle components & replace metal with lighter alternatives like sustainable plastics and, in turn, significant growth opportunities for the leading market players in the coming years.

Regional Landscape

Geographically, the Global Sustainable Masterbatch Market expands across:

• North America
• South America
• Europe 
• Middle East & Africa
• Asia-Pacific

Here, Asia-Pacific is likely to continue its market dominance with the largest share during the forecast period. It attributes principally to the mounting awareness among people about the harmful effects of non-bio-degradable plastic entwined with a rapidly expanding packaging industry, especially across countries like India & China.

Besides, improving economic conditions & purchasing power of people are contributing to the burgeoning sales of packed products & stimulating the demand for sustainable masterbatches across the region. Moreover, the automotive industry in Asia-Pacific is expanding extensively and is among the largest consumers of sustainable masterbatches for the production of automotive components.

On the other hand, Europe is projected to witness significant market growth during 2021-26. It owes principally to the soaring automotive sales across the region, especially in countries like the UK, Germany, & Italy, coupled with stringent regulations & laws by governments of different countries for curbing the increasing emission levels & adopting sustainable practices & products.

Moreover, the growing need for lighter materials to substitute metal and add visual appeal with designs & benefits like reliability, flame retardance, & corrosion resistance is another crucial aspect expected to fuel the regional market growth through 2026.

Recent Developments by Leading Companies

• In October 2019, Cabot Corporation launched a series of new black industrial polymer masterbatches produced from black & recycled carbon, mainly to enhance the properties of plastics & meet sustainability targets across different industries.

Market Dynamics:

Key Driver: Increasing Adoption of Sustainable Masterbatch across the Automotive Sector

With the rapidly expanding automotive industry & improving economic conditions & purchasing power of people, vehicle sales are growing substantially worldwide. As a result, the demand for lightweight vehicles and a critical need to address the rapidly increasing environmental concerns is escalating significantly.

It, in turn, is infusing the demand for sustainable masterbatch to replace metal with plastic while manufacturing lightweight vehicles & their components, thereby driving the Global Sustainable Masterbatch Market during 2021-26. Additionally, increasing customer preferences toward visually appealing vehicles is another crucial aspect instigating the application of sustainable masterbatch across the automotive industry & augmenting the overall market growth through 2026.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Sustainable Masterbatch Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Sustainable Masterbatch Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Sustainable Masterbatch Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Global Sustainable Masterbatch Market study?