Market Trends of Masterbatch Industry
Packaging Segment Dominates the Market
Masterbatches are utilized in a variety of packaging applications, including rigid packaging (RIBC, Blow-molded containers, etc.) and flexible packaging (food packaging films (mono/multi-layer), FIBC, FMCG Packaging, etc.).
White masterbatches are important in imparting qualities to plastic objects because of their numerous advantages. These masterbatches deliver high-quality finished goods, are simple to use, have great dispersion, have excellent color performance, and are safe for food packaging.
The demand for packaged food is increasing in Asia-Pacific because of changing lifestyles, rising disposable income, a growing number of working professionals, and a growing preference for fast food.
Furthermore, the market for food packaging in North America is thriving due to people's excessive reliance on packaged foods and the food processing industry's stronghold. Large food processing corporations like PepsiCo, Tyson Foods, and Nestle require a lot of packaging materials.
Moreover, according to Statista, the European plastic packaging industry will grow at a CAGR of 4.4% between 2022 and 2026, reaching a value of more than USD 112 billion. This is projected to increase the demand for masterbatch in the coming years.
Owing to all these factors, the masterbatches market will likely grow globally during the forecast period.
Asia Pacific Region to Dominate the Market
The Asia-Pacific region is expected to dominate the market. In the region, China is the largest economy in terms of GDP. China and India are among the fastest emerging economies in the world.
Asia-Pacific accounts for more than 70% of the global electronics production, with counties like South Korea, Japan, and China involved in manufacturing various electrical components and supplying to various industries globally. Additionally, India is expected to become the world's fifth-largest consumer electronics and appliances industry by 2025.
China has one of the largest food industries in the world. The country is expected to witness consistent growth during the forecast period, due to the rise of customized packaging in the food segment, like microwaveable foods, snack foods, and frozen foods, along with increasing exports. The use of masterbatch is expected to increase in the future.
Moreover, China is the world's largest plastic producer by far. According to the national bureau of statistics, in 2021, China produced 82.33 million metric tonnes of plastic products, up by 5.16% from 78.08 million metric tonnes in 2020.
Furthermore, according to the India Brand Equity Foundation, the Indian e-commerce industry is likely to increase by 21.5%, reaching USD 74.8 billion in 2022. Furthermore, the country's e-commerce industry is expected to reach USD 350 billion by 2030. The rising trend in the e-commerce sector is likely to enhance the demand for packaging, which will, in turn, augment the demand for the studied market in the country.
Due to all such factors, the market for masterbatch in the region is expected to have a steady growth during the forecast period.
