The market was negatively impacted due to COVID-19 outbreak in 2020

New York, May 05, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Plastic Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06067782/?utm_source=GNW
COVID-19 exposed several challenges for various industries. The world apparently moved into lockdown to curb the transmission of the COVID-19 virus, the uncertainty and constraints hindered markets. Additionally, the pandemic lead to decreased investment, and also lead to postpone of the ongoing projects in all the countries across the world. With manufacturing activities being halted across the world, the demand for plastic including plastic additives, were impacted from almost all industries across the world. However the conditions are expected to recover in 2021, which will restore the growth trajectory of market studied.

- Over the medium term, the replacement of conventional materials by plastics in several applications and increasing demand for plastics due to rapid urbanization and rising purchasing power among consumers are expected to drive the market’s growth.
- On the flip side, stringent governmental regulations on plastic usage and impact of COVID-19 pandemic are restraining the growth of the plastics industry, globally, which is directly affecting the plastic additives demand on the global front.
- By plastic type, polypropylene is likely to be the fastest-growing segment among others.
- By geography, Asia-Pacific dominated the market, with largest consumption coming from countries such as China, India, and Japan.

Key Market Trends
Packaging Segment to Dominate the Market

- The packaging industry mostly relies on polymers for the packaging and decoration of its end-user products. Factors leading to the increased application of polymers in the packaging industry are certain properties of polymers, including lightweight, availability in different colors, low reactivity, chemical, and moisture resistance, etc.
- The usage of suitable plastic additives contributes toward extended lifetime, appearance, thermal protection, clarity, low haze, and improved mechanical properties, which are the most important factors for packaging.
- Major forms of plastics used in the packaging industry are polyethylene terephthalate (PET/PETE), high-density polyethylene (HDPE), polyvinyl chloride (PVC), low-density polyethylene (LDPE), polypropylene, polystyrene, etc.
- One of the main applications of packaging is in the food and beverage industry. With the increase in the awareness toward hygiene and health among the global population, the packaging industry is also growing at a steady pace.
- Packaging of food items is a process that continually responds to the changes in demand and supply, which are the results of adaptations to the varying demands of the consumers, changes in retail practices, technological innovations, and new developments in legislation, especially, with respect to environmental concerns.
- A wide range of additives is available for enhancing the performance and appearance of food packaging, where polymer additives are important areas of innovation for packaging materials.
- The revenue from the global food and beverage industry is expected to grow at a CAGR of over 8% during the forecast period and reach a market volume of around USD 380 million by 2025. This is expected to provide lucrative opportunities for the growth of market studied during the forecast period.
- All the aforementioned factors, in turn, expected to increase the demand for the plastic additives during the forecast period.

Asia-Pacific Region to Dominate the Market

- Asia-Pacific region dominated the global market share. China is one of the lucrative markets for plastic additives, due to the availability of low-cost raw materials and labor. All plastics products are made from essential polymers, mixed with a complex blend of materials, collectively known as plastic additives. China is one of the largest producers of plastic materials in the world, accounting for ~30% of the global plastics production.
- Packaging is the largest end user for the plastics industry, accounting for more than one-quarter of total plastics usage. The rapid development of e-commerce has greatly promoted the development of the packaging industry in the country. With the rise in demand for lighter, cheaper, and more convenient packaging from consumers, the packaging sector in China is set to experience rapid growth, during the forecast period, which, in turn, is expected to boost the plastic additives market.
- For roughly three decades, China’s booming economy has offered consumer product companies some of the world’s greatest growth opportunities. Attracted by the huge potential of Chinese consumer goods market, many foreign companies have entered China and set up production units. With the growth of consumer goods production, plastic additive consumption may also see increased demand.
- As living conditions continue to improve in China, people are becoming increasingly willing to invest in home decoration. Consumers’ increasing purchasing power has majorly boosted the furniture market. Chinese furniture market is increasing, with the emergence of the new middle class population. Plastic additives are used to manufacture plastic furniture.
- In India, according to OICA, the country produced a total of 2.16 million vehicles till Q3 (January to September) of 2020 which declined by 38.4% compared to 3.51 million vehicles during the same period previous year. The automotive industry which was facing a critical situation and is hard hit by the corona virus’s spread. However, the government’s reforms such as “Aatma Nirbhar Bharat” and “Make in India” programs are likely to boost the automotive industry.
- The government of India is pushing huge projects in the next few years. The government’s ‘Housing for All’ initiative aims to build more than 20 million affordable homes for the urban poor by 2022. Smart cities mission is another major project undertaken by the government which will construct more than 100 smart cities all over the country to achieve rapid urbanization in the country. In 2021-22 budget, smart cities mission has been given INR 6,450 crore as against INR 3,400 crore in the 2020-21 revised estimates.
- All the aforementioned factors are expected to drive the demand of plastic additives from various applications in consumer goods, construction, automotive and others over the forecast period.

Competitive Landscape
The market for plastic additives is fragmented in nature, as the top ten leading players account for only 40% of the market. Due to the intervention of small- and medium-scale manufacturers in the additives market, the market share of global producers has constricted at huge extent. Major players of the market are BASF SE, ExxonMobil, Evonik Industries, DowDuPont, and Nouryon, among others.

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- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p06067782/?utm_source=GNW

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