MOSCOW (MRC) -- The masterbatch market is estimated to have accounted for USD8.35 bln in 2014 and is projected to reach USD12.61 bln by 2020, registering a CAGR of 7% between 2015 and 2020. The market is largely driven by the increased demand from the end-use industries such as packaging, consumer goods, and others, as per Plastemart with reference to MarketsandMarkets.
Color masterbatch is the most popular type of masterbatch. The demand of color masterbatch is mainly driven by the need of end-use industries such as packaging, consumer goods, textiles, and automotive to differentiate their products in the market. These end-use industries rely heavily on color for their marketing and branding strategies.
Color masterbatch offers these companies the option of using customized colors. It is the largest segment of the masterbatch market, in terms of volume and value. The demand of color masterbatch can be attributed to the growing need of end-use industries to make their products visually appealing for customers.
The increase in movement of goods owing to globalization, liberalization, changing consumer lifestyles, and economic development has led to the increase in demand for better protection and handling of goods. The availability of wide variety of plastics and their adherence to regulatory standards make plastics the most extensively used material in packaging.
Plastics also help provide better aesthetics to packaging as they offer ease in providing the required color, shape, size, utility, printing, weight, protection, and others. The growth of plastics in the packing industry is driving the demand of masterbatch. It is widely used in the plastics industry for coloring. The growing importance of color in marketing and branding activities is further fueling growth of the masterbatch market.
We remind that, as MRC wrote previously, Materials firm A. Schulman Inc. plans to spend 5 million to EUR7 mln (USD5.5 mln to USD7.7 mln) on a new masterbatch facility in Turkey, to tap into market growth in the region. The facility, in the greater Istanbul area, will have annual production capacity of about 40 million pounds of the company’s additive, white and breathable masterbatches for the food and industrial packaging markets, the company said. It’s expected to be in production at the end of the Fairlawn, Ohio-based company’s 2016 fiscal year, which closes Aug. 31, 2016.
Besides, Clariant Masterbatches Saudi Arabia, a joint venture (JV) between Clariant and Rowad National Plastic Company, has started construction of a new masterbatch production unit in Yanbu, Saudi Arabia. Being built on a 38,000 sq. m area, the new unit will be located in Yanbu Industrial Zone 2 and is scheduled to be commissioned by early next year. The new facility, which will be the second manufacturing site of the company in Saudi Arabia, the other being situated in Riyadh, will manufacture white masterbatches.
MRC