Market Trends of Polymer Processing Aid Industry
Increasing Demand from Blown Film and Cast Film Segment
- A polymer processing aid is used during polymer formulation when molten polymers are subjected to extrusion processes to be formulated into pipes, film, tubes, and other products. Polymer processing aid improves the quality of finished products.
- Polymer processing aids help in increasing film transparency, improving smoothness, improving product appearance, and improving mechanical properties. Owing to these factors, the demand for polymer processing aid is increasing in the blown film and cast film segment.
- According to the Packaging Association and Plastics Industry Association, the global plastic cast film technology market is estimated to be worth USD 14,486.6 million in 2023. The cast film technique is mostly utilized in food and industrial packaging.
- Additionally, the rise in demand for packaging films, agriculture films, and tapes is increasing the demand for polymers such as high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and low-density polyethylene (LDPE) with improved properties such as high mechanical strength and durability.
- According to the International Mining and Resources Conference (IMARC), the global market value of food packaging was USD 363 billion in 2022 and is expected to reach USD 512 billion in 2028.
- Moreover, according to the Plastics Industry Association, the packaging segment of the global plastic film market is predicted to reach 30,280.8 kilotons by 2023. Plastic film packaging is utilized in industries such as food packaging, pharmaceutical packaging, and medical packaging.
- The polymer processing aid market is expected to grow rapidly over the forecast period due to all the abovementioned factors.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for polymer processing aid during the forecast period. Due to the increasing demand for plastics from various end-user industries like packaging, automotive, and building and construction, the demand for polymer processing aid is increasing in countries like China, India, Japan, and South Korea.
- According to the Packaging Association and Plastics Industry Association, the Asia-Pacific plastic cast film technology market is estimated to be worth USD 6,263.6 million in 2023. The cast film technique is mostly utilized in food and industrial packaging.
- China is amid a construction mega-boom. The country includes the largest building market in the region, making up 20% of all construction investments globally. The Chinese government is estimated to include an annual limit for new infrastructure bonds worth CNY 3.85 (~USD 572.49) trillion in 2022, up from CNY 3.65 trillion (~USD 542.75 million) in 2021.
- Polymer processing helps improve product surface quality, eliminate melt fractures, and reduce die deposits. These factors are expected to positively impact the polymer processing aid market.
- Additionally, the demand for polymer processing aid is expected to increase to meet the demand for clean films in food packaging and agriculture sectors in countries like China, India, Japan, and South Korea. It will stimulate the polymer processing aid market in the region.
- Furthermore, the optimum utilization of polymer processing aids can reduce the damage to polyethylene during manufacturing.
- Thus, the rise in demand for polymer products from various applications such as aviation, defense, automobile, telecommunication, scientific research labs, commercial facilities, and others is fueling the demand for polymer processing aid and, thus, propelling its market.
- According to Organisation Internationale des Constructeurs d'Automobiles (OCIA), Asia-Pacific, the largest automotive production region, also witnessed a growth rate of 7% in 2022. The production of motor vehicles increased from 46.76 million in 2021 to 50.02 million in 2022, respectively.
- Moreover, around 27.02 million motor vehicles were produced in China in 2022, compared to 26.12 million motor vehicles produced in 2021, witnessing a growth rate of about 3%.
- According to the Directorate General of Civil Aviation (DGCA), India's aviation sector rapidly expanded. The industry had established itself as a cost-effective and trustworthy alternative to time-consuming and lengthy excursions by road or rail. With a discernible development pattern, India was predicted to become one of the world's major aviation markets by 2034. As of fiscal year 2022, IndiGo was the market leader in the sector, accounting for around 55% of the market.
- The above factors and government support are expected to increase the demand for polymer processing aid during the forecast period.
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