Masterbatch is a cost-effective additive made through heating procedures and used for improving the quality & performance of plastic polymers. Due to its easy, dirt-free, & stable application, it helps minimize the safety risks associated with the use of powder pigments. With the ever-increased production of plastics & consumer goods, Indonesia is witnessing a rapidly rising demand for masterbatches.
The Indonesia Masterbatch Market is expected to grow at a CAGR of around 7.2% during the forecast period, i.e., 2023-28. Most of the market expansion would be driven by substantial investments by the government in the packaging, building & construction, and automotive sectors that extensively utilize plastic polymers and, consequently, masterbatches. In addition, the mounting demand for consumer appliances & electronics in the country, alongside the ever-increased government focus on developing various medical tourism destinations, are other crucial aspects expected to boost the masterbatch industry in Indonesia.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Key Companies Profiled||Cabot Corp., Kasakata Chemicals , Plasticolors Eka Perkasa, Dunia Kimia Jaya, Holco Indo Jaya (HIJ ), Halim Samudra Interutama , Berkat Utama, Indonesia Polymer Compound , Takhta Sinar Mulia , Intera Lestari Polimer|
|Unit Denominations||USD Million/Billion|
The rising urban populace in cities like Jakarta, Surabaya, etc., is leading to significant government investments in various construction projects for developing affordable housing units in the country. Besides, growing concerns over overcrowding, pollution, congested roads, etc., in the current capital city, Jakarta, have compelled the government to relocate the capital to Nusantara.
Hence, the development of the new capital city that would comprise the construction of institutional, industrial, & residential buildings would create lucrative prospects for the masterbatch market in the forecast years.
On the other hand, with increasing carbon emissions, more & more automotive OEMs are significantly investing in setting up EV (Electric Vehicle) manufacturing facilities to support both local and export demand. As a result, there's growing utilization of plastics in the sector to make lightweight components like bumpers, dashboards, car batteries, headlamps, wires, seat belts, cables, etc., which, in turn, is accelerating the demand for masterbatches in the automotive sector.
Based on Type:
Of them all, color masterbatches are gaining ground in Indonesia and are projected to acquire a sizeable share of the masterbatch industry during 2023-28. They are being utilized extensively for packaging household appliances, textiles, etc., on account of their benefits, such as superior thermal stability, simple use & handling, impressive color distribution & dispersion, high heat & weather resistance, excellent transparency & opacity of products, etc. Besides, the growing focus of companies involved in manufacturing flexible packaging solutions for food, beverages, & medicines on improving the aesthetic appeal of their product offerings is another prominent aspect driving the demand for color masterbatches in Indonesia.
Color masterbatches help enhance the performance of polymer materials owing to their characteristics, including flame retardation, UV stabilization, optical brightness, surface resistivity, scratch resistance, & prevention of thermal or oxidative degradation. These masterbatches are also added to plastic kitchenware products utilized extensively in homes in order to enhance their anti-microbial properties, make them look vivid & attractive, and protect them from UV rays. Hence, these aspects indicate lucrative prospects for the color masterbatch market in Indonesia over the forecast period.
Based on End-User:
Here, the packaging industry holds a considerable market share, owing mainly to the burgeoning demand for plastics in the sector. Masterbatches are used in raw polymers to ensure desired properties like strength, color, & toughness, which are crucial for plastic to be molded into different shapes & sizes. The ever-increased requirements for packaging in food & beverages, personal care & cosmetics, and pharmaceutical industries, alongside the booming e-commerce sector, are amplifying the demand for masterbatches (both flexible & rigid) for various packaging materials for shipping consignments and, consequently, driving the Indonesia Masterbatch Market.
Flexible packaging is the most prominent application area of plastics in Indonesia, owing to characteristics like convenience, cost-effectiveness, and lightweight. Moreover, this material can be recycled & reused multiple times, which helps store & protect food products along with their enhanced shelf life. In addition, the mounting demand for personal care, feminine cosmetics, & oral hygiene products is also fostering the adoption of flexible packaging and, in turn, stimulating the masterbatch market expansion in Indonesia.
Key Driving Forces
Growth Restraint: Shift of Several Industries toward Sustainable Materials & Processes
With rising concerns over the ever-increased carbon emission levels, most end-users in Indonesia are adopting renewable products, which, in turn, has instigated the demand for bio-degradable & compostable masterbatches in recent years. Alongside this, strict government regulations for end-users to adopt sustainable practices & manufacture biodegradable products have also declined the sales of conventional masterbatches in the country. Hence, these factors are expected to act as major growth restraints for the Indonesia Masterbatch Market during 2023-28.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Indonesia Masterbatch Market is expected to record around 7.2% CAGR during 2023-28.
A. The mounting demand for consumer goods, coupled with massive government investments in the packaging, building & construction, and automotive industries that extensively utilize plastic polymers, are the prime aspects projected to drive the Indonesia Masterbatch Market during 2023-28.
A. Berkat Utama, Cabot Corp., Clariant Masterbatches, Dunia Kimia Jaya, Holco Indo Jaya (HIJ), Halim Samudra Interutama, Indonesia Polymer Compound, Intera Lestari Polimer, Kasakata Chemicals, Plasticolors Eka Perkasa, and Takhta Sinar Mulia are the key companies participating in the Indonesia Masterbatch Market.
A. Polystyrene would emerge as an area of remunerative opportunities for the leading players in the Indonesia Masterbatch Market during 2023-28.