January 10, 2017
Wellesley, Mass., Jan 10, 2017 – Trends in thermoplastic compounding include double-digit growth rates in carbon fiber reinforcement demand and compounding by processors should grow faster than that by producers or independent compounders. BCC Research reveals in its new report that these and other trends are pushing solid growth in the plastics compounding market outside North America.
Thecompounding of plastic resins is the addition of other materials to neat resins (essentially pure compounds consisting only of the molecules of the polymer produced) in order to add desirable properties or to make them more processable. This type of operation is conducted by three types of companies: resin producers; plastics processors (such as injection and blow molders, thermoformers, extruders and film/sheet producers); and independent compounders, or companies that make plastic compounds and masterbatches, but not resins or molded plastics products.
The global market for thermoplastic compounds should reach 544.0 billion pounds by 2021, up from 431.9 billion pounds in 2016, reflecting a five-year compound annual growth rate (CAGR) of 4.7%. The resin producers market should reach 276.9 billion pounds and 344.5 billion pounds by 2016 and 2021, respectively, growing at a five-year CAGR of 4.5%. The processors market should grow from 116.3 billion pounds in 2016 to 150.1 billion pounds in 2021, at a five-year CAGR of 5.2%.
Over the years, the compounding growth rate for resin producers has generally been slower than that of processors and compounders, as these latter companies take a bigger role in markets where significant proprietary technology is involved. Compounding trends are also highly dependent on different economic scenarios; for example, when polyethylene (PE) prices are high, PE bag makers and other large processors often compensate by increasing the addition of (that is, compounding with) cheaper calcium carbonate filler.
The trend for resin producers to compound internally should remain relatively stable and with lower growth than processors or independents. The trend for processors to compound fillers should continue, as prices remain stable and relatively high for major polyolefins. Calcium carbonate will remain the dominant thermoplastics filler with almost 80% of the filler market by volume. Carbon fiber reinforcement demand will continue to grow at double-digit rates, led by industrial (including automotive/energy) applications.
"Other industry trends include double-digit growth in global sales of carbon-nanotube-reinforced polymers through 2021, but probably more slowly than in the recent past,” says BCC Research analyst Jason Chen. "Also, natural-fiber–plastic composites should continue growing at a five-year CAGR over 10%, led by construction-molded applications."
The Plastics Compounding Market Outside North America (PLS083A) analyzes the major thermoplastic resins, thermoplastic elastomers and biocompounds. The report also examines major resin producers, key plastics processors, and independent compounders, along with activities, product lines, and estimated sales for the major independent compounders. Global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.
Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.
The Plastics Compounding Market Outside North America( PLS083A )
Publish Date: Jan 2017
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