The Asia-Pacific (APAC) masterbatch market is projected to grow at a CAGR of 9.7 percent during 2016-2021 driven mainly by the expanding plastic processing industry and surging demand from the packaging sector, according to a TechSci Research report.
Masterbatches are manufactured by the combination of pigments and additives, and are used to impart colour and other desired properties to plastics during manufacturing process. They are broadly classified into four categories, white, black, colour and additive. White masterbatches market in APAC region is anticipated to exhibit highest growth rate during 2016-2021, on account of its ability to provide opacity and base colour to plastic used extensively in food & beverage and pharmaceutical industries.
In Asia-Pacific region, production of plastic materials increased from 103.4 million metric tonnes (MMT) in 2011 to 122.8 MMT in 2015. Increasing number of plastic processing units coupled with growing demand from end use sectors in Asia-Pacific region, especially in China and India is propelling masterbatch consumption. Moreover, increasing demand for colourful and innovative solutions from packaging industry and growing preference of plastics and polymers for manufacturing light weight vehicles in automotive industry is forecast to boost demand for masterbatch in APAC countries through 2021.
“Over the last few years, Asia-Pacific has emerged as the largest masterbatch market, with demand for masterbatch majorly being driven by China and India. In order to sustain in highly competitive Asia-Pacific masterbatch market, leading market players are investing heavily in R&D for introducing technologically advanced masterbatch products as well as to increase product quality, and operational and energy efficiency of existing products. All these factors are anticipated to positively influence the masterbatch market in Asia-Pacific region over the next five years,” said Karan Chechi, research director with TechSci Research.