Masterbatch is a concentrated mixture made through heat treatment & using high-shear extruders to mix colors & additives into a polymer carrier. The mixture is cooled, cut, & formed into granules using a pelletizer. The mounting demand for plastics & consumer goods has propelled the need for color masterbatches in the Middle East. The extensive application of masterbatches in automotive, textile, agriculture, consumer goods, packaging, & construction sectors, among others, are generating lucrative opportunities for the masterbatch industry across the Middle East.
The Middle East Masterbatch Market is projected to grow at a CAGR of around 7.11% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the rapidly increasing demand for plastics & consumer goods across a wide range of applications. Moreover, the surging requirements of different industries like automotive, packaging, & construction to replace metals with plastics owing to the latter's better sustainability, safety, & design are also driving the masterbatch market in the Middle East.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Country Covered||Saudi Arabia, UAE, Qatar, Kuwait, Oman, Turkey, Egypt, Jordan|
|Key Companies Profiled||Clariant Masterbatches (India) Ltd., Ingenia Polymers Co. Ltd., LyondellBasell, Ampacet Corporation, Cabot India Ltd., Alok Masterbatches Pvt Ltd, Poddar Pigments Limited, Plastiblends India Limited, Blend Colors Pvt. Ltd., Orbit Masterbatches Pvt. Ltd.|
|Unit Denominations||USD Million/Billion|
Additionally, the burgeoning use of masterbatches in wires, cables, & electronic products like televisions, computers, & other home appliances is also augmenting the overall market growth. Moreover, the continuous demand for lightweight materials across the automotive sector, coupled with the mounting need for consumer goods like footwear, kitchenware, toys, household articles, etc., with enhanced appearance attainted through color masterbatches, are other crucial aspects projected to drive the market in the coming years.
Impact of Covid-19 on the Middle East Masterbatch Market
During Covid-19, the Middle East Masterbatch Market was exposed to numerous severe challenges and witnessed massive revenue losses due to suspended production & manufacturing activities across the region. Additionally, the market growth got further slow with the halt of foreign investments in the Middle East.
Furthermore, the unavailability of raw materials and disruption of the supply chain contributed to a severe downturn in the market. Nevertheless, with the gradual upliftment of restrictions, the masterbatch market across the Middle East is expected to regain its usual pace, recover from the loss, and create remunerative growth opportunities for the leading industry players over the forecast years.
Based on Application:
Here, the demand for masterbatches for the Blow Moulding application is projected to attain the fastest market growth in the forecast period. It owes to its increasing use, particularly in the automotive industry, to increase volume & reduce the weight of plastic. Furthermore, as blow molding adds brightness and a finished look to various elements, the demand for masterbatches across the Middle East has significantly boosted in recent years. In addition, the ability to improve transparency, reduce cycle time, & improve the dimensional stability of end products are other crucial aspects fueling the demand for masterbatches for the Blow Moulding application across the Middle East.
Based on End-User:
Of them all, the Packaging sector is more likely to dominate the market with the largest market share in the forecast period. A growing awareness of health has led to a rise in demand for packaged foods across the region. Hence, the rapidly expanding food & beverage sector and increasing number of pharmaceutical companies have driven the growth of the packaging industry, which, in turn, has fueled the growth of the Middle East Masterbatch market. When used in packaging, masterbatch extends a product's shelf life by preventing it from getting wet & scratched.
Geographically, the Middle East Masterbatch Market expands across:
Amongst all countries across the Middle East, Saudi Arabia dominates the Masterbatch Market with the largest market share. It attributes primarily to the rising population, combined with the increasing industrial & construction activities. Saudi Arabia is one of the major producers of crude oil, so the availability of raw materials has resulted in a significant increase in plastic production & consumption. In addition, it is largely ascribable to the packaging sector, which drives the demand for different types of flexible packaging films. The Saudi Arabian automotive industry is also contributing to the expansion of the masterbatch market with the ever-increasing production of passenger & commercial vehicles.
Moreover, rapid urbanization will continue to remain a prevalent aspect contributing to the market growth in Saudi Arabia. The various initiatives by the Saudi government to promote the real estate market in the Middle East will positively impact the masterbatch market in the country over the coming years. In addition, Saudi Arabia has launched its National Industrial Development and Logistics Program (NIDLP), one of the most important programs of Saudi Vision 2030, which aims to move the country to the ranks of leading industrialized nations. It is expected to stimulate the growth of the masterbatch market during the forecast period.
Key Driver: Mounting Demand for Plastic from Different End-user Industries
The increasing demand for plastics across the construction & automotive industries is projected to drive the Middle East Masterbatch Market through 2026. Since metals are heavyweight & costly, plastics are used extensively as their replacement. As a result, masterbatches are becoming more popular due to their ability to improve polymer physical properties. Furthermore, a rise in automotive production is also increasing the use of plastic polymers in bumpers, instrument panels, & other automotive components, which, in turn, is contributing to the market growth. Furthermore, the low cost of raw materials (petrochemicals) utilized in plastic production is driving the plastic industry in the Middle East and, in turn, resulting in a higher demand for masterbatches across the region.
Possible Restraint: Volatility in Prices of Raw Materials and Increasing Environmental Concerns
Masterbatch can add stiffness & color to plastic, although the fact that it is not biodegradable is a severe concern for the Middle East Masterbatch Market. It is composed of polymers like polyvinyl chloride, polyethylene tetrafluoroethylene, etc., which are harmful to both human health & the environment. Further, the volatility in crude oil prices might also adversely impact the masterbatch market in the coming years. In addition to geopolitical issues & the Covid-19 pandemic, crude oil prices have fluctuated, which has affected production & sales of masterbatch and resulted in a slowdown in market growth.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Middle East Masterbatch Market is expecting around 7.11% CAGR during 2021-26.
A. The Packaging sector is projected to emerge as an area of remunerative opportunities for the leading players in the Middle East Masterbatch Market through 2026.
A. The extensive application of masterbatch is accelerating the demand for plastic across multiple end-user industries in the Middle East. It owes to their burgeoning use in products like wires & cables, electronic gadgets like TV & computers, home appliances, etc., i.e., a key growth opportunity projected to drive the Middle East Masterbatch Market through 2026.
A. The unavailability of raw materials & supply chain disruptions severely affected the Middle East Masterbatch Market. However, the upliftment of restrictions has gradually benefitted the market growth. Moreover, massive investments from the leading companies are likely in the coming years, which would enable the market to regain its usual pace & witness significant growth opportunities.