Southeast Asia Masterbatch Market Research Report: Forecast (2023-2028)

Market Definition

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.

Market Insights & Analysis: Southeast Asia Masterbatch Market (2023-28)

The Southeast Asia Masterbatch Market is projected to grow at a considerable CAGR during the forecast period, i.e., 2023-28. The robust presence of automotive manufacturing and the ever-expanding food & beverage processing industry in Southeast Asia have catalyzed the growth of the masterbatch market during the historical years. Besides, the burgeoning construction activities in the region due to infrastructural upgradation initiatives like Thailand Infrastructure Development Master Plan 2015-22, Infrastructure Vietnam 2019 (IVN2019), etc., have accelerated the need for plastic components for flooring, roofing, insulation, piping, etc.

Likewise, the stimulating demand for plastic components for coloring and imparting other properties to the plastic has solidified the presence of plastic component manufacturers in the region like BASF SE, SABIC, LyondellBasell Industries N.V., Kraton Polymers Inc., RTP Company, The 3M Company, among others. As a result, the Southeast Asia masterbatch market witnessed significant growth in the historical timeframe.

Further, Southeast Asia has an established food and beverage processing industry with the presence of companies like Huy Viet Nam Food Processing Co, Mondel?z International, Tetra Pak, Kraft Heinz Company, etc. The food and beverage processing industry require containers of different sizes and shapes for packaging purposes. This has supported the proliferation of food packaging container manufacturers like IML Containers Vietnam, Thai containers Group, Tycoplas, etc., in the region. Consequently, the requirement for filler and color masterbatch for manufacturing containers has supported the market growth during the historical period.

Furthermore, construction activities are expected to rise in the region in the coming years. Countries in the region are investing highly in infrastructural development to increase higher productivity, facilitate trade connectivity, and promote economic inclusion within regions of the nation. For instance, in 2022,

Singapore initiated more than five large construction projects Tuas Biomedical Park New Vaccine Production Facility, Shaw Office Tower Redevelopment, Shaw Office Tower Redevelopment, etc. The rising construction activities in the region would accelerate the need for components like Geo-membranes, Door & Window Components, Potable Water Pipes, Foamed Insulation Boards, Gas Pipes, Roofing, etc. The need for these components would further accelerate the demand for masterbatch from manufacturers.

Southeast Asia Masterbatch Market Key Driver:

Extensive Application of Color and Additive Masterbatch in Textile Industry - The textile industry in the region would flourish during the forecast period as countries like Vietnam, Malaysia, Indonesia, etc., are planning to expand their domestic textile manufacturing capabilities to meet the rising domestic & international demand. Furthermore, the shifting of production units by global textile manufacturers like Nike, Adidas, Uniqlo, etc., from China to Southeast Asian nations such as Vietnam, Cambodia, Indonesia, etc., due to rising wages and declining garment workers in China would also contribute to the growth of the textile industry, thereby influencing the masterbatch industry in the region.

Southeast Asia Masterbatch Market Possible Restraint:

Shift of Several Industries Toward Sustainable Materials & Processes - Most end-users in South-East Asia are switching to renewable products due to growing worries about ever-rising carbon emission levels. This has led to a surge in demand for bio-degradable & compostable masterbatches in recent years. However, the sales of conventional masterbatches have also decreased due to stringent government laws requiring end-users to embrace sustainable practices and produce biodegradable products. Therefore, these issues are anticipated to be significant growth inhibitors for the South-East Asia Masterbatch Market from 2023 to 2028.

Southeast Asia Masterbatch Market Key Trend:

Growing Incorporation in Plastic Packages Exhibited by The Ever-Expanding Food and Beverage Processing Industry - The trend of adopting plastic packages is growing in the region's food and beverage processing industry due to its remarkable benefits, such as extended shelf life, ease of use, and others. Owing to this, flexible packaging methods like shrink wraps, squeezable tubes, foam trays, pouches, cling wraps, bubble wraps, stand-up packets, vacuum bags, etc., are witnessing increased adoption. Since these packaging require masterbatches for their coloring, this would increase the demand for masterbatches during the forecast period.

Southeast Asia Masterbatch Market (2023-28): Segmentation Analysis

The Southeast Asia Masterbatch Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the Product Type, and Application the market has been further classified as:

Based on Product Type,

• Black
• White
• Colors
• Additives

Here, Color masterbatches acquired the highest market share outpacing its peers in the historical period owing to its increasing adoption in textiles and home appliances. It owes principally to their remarkable characteristics, including flame retardation, UV stabilization, optical brightness, surface resistivity, scratch resistance, & prevention of thermal or oxidative degradation in enhancing the performance of polymer materials. Moreover, since the Southeast Asia region has a well-established textile industry with companies like Thygesen Textile Vietnam, Akarat Textile Industry, Toray Industries Malaysia, etc., the adoption of additive masterbatches to improve the brightness of the fabrics has also witnessed a swift surge. As a result, the countries in the region, such as Vietnam, Cambodia, Indonesia, Thailand, etc., are top exporters of textiles.

For instance, in 2020, Vietnam’s textile export value was USD 38.9 billion, which accounted for 5.03% of global export. Therefore, with the significant presence of textile manufacturers in the region, the industry is expected to traverse upward in the coming years.

Based on Application,

• Film Extrusion
• Injection Molding
• Blow Molding
• Roto Molding
• Others (Pipe extrusion, Multifilament etc.)

Blow Molding applications acquired a significant share in the Southeast Asia Masterbatch market during the historical years. It owes principally to its extensive adoption by the automotive sector to gain volume while reducing the weight of the plastic used. The automotive industry in Southeast Asia has skyrocketed during the past few years, majorly in countries like Thailand, Indonesia, Vietnam, and Malaysia, due to increasing domestic demand, which is the result of growing disposable income among people in the region.

Thailand, also known as the ‘Detroit of Asia,’ is one of the primary exporters of automobiles in the region. In addition, the presence of many global manufacturers like Ford, Honda, Toyota, BMW, etc., and local manufacturers like Esemka, Proton, Almazora Motors, etc., has boosted the use of masterbatch for blow molding applications during the historical period.

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