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. The UAE is witnessing an extensive demand for masterbatches owing to the ever-increased production of plastics & consumer goods across the country.
The UAE Masterbatch Market is expected to grow at a CAGR of around 20.24% and 8% in terms of revenue and volume, respectively, during the forecast period, i.e., 2022-27. Most of the market expansion would be driven by the booming packaging, construction, automotive, textile, agriculture, & consumer goods industries in the country that massively utilize plastic polymers, which require masterbatches. The increasing number of manufacturing units of companies like Ashok Leyland, Hafilat industries, W Motors, & Zarooq Motors in the UAE is aiding in the expansion of the country's automotive sector and, consequently, positively influencing the demand for masterbatches.
In addition, due to rapidly increasing carbon emissions, more & more electric vehicles are being produced and sold in the UAE, i.e., leading to the growing utilization of plastics in order to make lightweight components like bumpers, dashboards, car batteries, headlamps, wires, cables, etc., which, in turn, is accelerating the demand for masterbatches in the automotive sector.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Eco Batch, EnerPlastics LLC, Polytec Masterbatch LLC, Elite Global Holdings Limited, Astra Polymers, Interplast, Al Saif Plastics LLC, Stylex International FZC, Alitsa Masterbatch LLC, GHAF Polymers|
|Unit Denominations||USD Million/Billion|
On the other hand, the increasing greenfield investments in the UAE are stimulating commercial construction activities associated with hotels, resorts, & shopping malls, as well as the expansion of business parks & trade centers, among others, thereby amplifying the demand for masterbatches in the country. These developments are also being promoted through massive government investments in enhancing the country's overall infrastructure. Subsequently, there's a mounting demand for various plastic components in these sectors, i.e., propelling the production & sales of masterbatches and creating new avenues for the UAE masterbatch market to witness significant expansion over the coming years.
Latest Trend in the UAE Masterbatch Market
In recent years, metallic masterbatches have emerged as a lucrative opportunity for companies operating in the UAE Masterbatch Market. They are being used extensively across industries, such as automotive, packaging, & consumer goods, in order to provide a metallic or glittering finish to final products like premium packaging, containers, cosmetic packaging, automotive accessories, appliances, & housewares.
Companies like Clariant Masterbatches Ltd., BASF, etc., are now offering new plastic performance solutions & have introduced a new translucent chrome color masterbatch, designed principally for PET (polyethylene terephthalate) containers, which makes the contents within visible. Hence, these rapidly evolving industries are creating new directions for metallic masterbatch manufacturers to yield significant profits and propel the overall masterbatch market growth in the upcoming years.
Based on Type:
Of them all, color masterbatches are gaining massive momentum in the UAE Masterbatch Market. They are being increasingly utilized for the production of plastic kitchenware, multilayer bottles, boxes, etc., owing to their benefits, such as superior color distribution & dispersion, simple usage & handling, and excellent control of the product's transparency & opacity, etc.
Besides, the mounting focus of companies operating in 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.
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. With characteristics like flame retardation, UV stabilization, optical brightness, surface resistivity, scratch resistance, & prevention of thermal or oxidative degradation, they aid in driving enhanced performance from polymer materials.
Furthermore, the emerging trend of customized products with specialty colors like fluorescent, pearlescent, metallic, & glow-in-the-dark is also creating new prospects for color masterbatch manufacturers to expand their production capacities & introduce innovative products in order to yield significant profits and boost the UAE Masterbatch Market over the forecast years.
Based on End-User:
Here, the packaging industry, which comprises retail, industrial, & consumer packaging, holds the largest share of the UAE Masterbatch Market. The growing end-user requirements for convenient, protective, sustainable, flexible, & easily traceable packaging of goods, coupled with the mounting consumption of frozen and organic food & beverages in the UAE, are the key aspects driving the demand for masterbatches across the packaging sector.
Many foreign food & beverage producers are entering the UAE and carrying out mergers with local companies, i.e., amplifying the demand for plastic packaging and, in turn, stimulating the expansion of the masterbatch market. For instance:
On the other hand, the booming construction sector in the UAE is emerging as another promising industry for the masterbatch market to expand at a significant growth rate in the coming years. The shifting focus of the UAE government from the oil & gas sector to other industries has resulted in various ongoing & upcoming building & construction projects that massively utilize plastic in different materials. As a result, masterbatches are used extensively to protect these materials from exposure to temperature, moisture, & UV light during their storage and thus enhance their shelf-life.
As a result, the rise in infrastructural development & smart city construction projects in the UAE is aiding in the significant expansion of the building & construction sector and, consequently, driving the masterbatch market. Moreover, the mounting influx of tourists, pilgrims, & migrants into the country has resulted in a dramatic rise in commercial construction activities associated with hotels, shopping complexes, restaurants, malls, healthcare facilities, etc., i.e., another prominent aspect augmenting the growth of the UAE masterbatch industry.
Key Driver: Massive Investments in the Construction Sector across the UAE
The construction industry in the UAE is dramatically expanding with significant investments by both the government & private companies. It is in line with the government's aim to reduce its economic dependence on the oil & gas sector and generate new ways of income from other industries like commercial, tourism, & service sectors. Since the masterbatch is an essential component used in construction activities, its production & sales are skyrocketing in the country, for which the construction of shopping malls, resorts, hotels, corporate spaces, etc., has been the prime contributor. In addition, the mounting influx of medical tourists in the UAE is leading to growing establishments of healthcare facilities. As a result, the ever-increased demand for components like conduits, pipes, HDPE geomembrane sheets, plastic water tanks, and foamed insulation boards, among others, for construction activities is set to drive the UAE Masterbatch Market during 2022-27.
Growth Restraint: Increasing End-User Inclination toward Sustainable Masterbatches
With growing concerns over the alarming levels of carbon emissions in the UAE, most plastic manufacturers are showing active interest in sustainable & renewable products, owing to which bio-degradable & compostable masterbatches have gained immense popularity in the past few years. Coupled with this are stringent government norms for companies to adopt sustainable practices & manufacture biodegradable products, which, consequently, has declined the sales of conventional masterbatches in the country. Hence, these aspects are acting as prominent growth restraints for the UAE Masterbatch Market through 2027.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The UAE Masterbatch Market is expected to record around 20.24% CAGR in terms of revenue during 2022-27.
A. The rapidly increasing construction activities, the flourishing packaging sector, and increased vehicle production are the prime factors set to drive the UAE Masterbatch Market during 2022-27. On the other hand, the most prominent growth challenge for the UAE Masterbatch Market in the forecast period is mounting concerns over the ever-increasing carbon emissions across the country, i.e., infusing the demand for renewable & compostable masterbatches and negatively impacting the sales of conventional masterbatches.
A. The construction sector is emerging as an area of lucrative prospects for the companies in the UAE Masterbatch Market to yield significant profits during 2022-27.