Plastics are a wide range of synthetic or semi-synthetic materials that use polymers as a main ingredient.

Their plasticity makes it possible for plastics to be moulds, extrud or presses into solid objects of various shapes.

This adaptability, plus a wide range of other properties, such as being lightweight, durable, flexible, and inexpensive to produce, has led to its widespread use.

Plastics typical are made through human industries systems.

Most modern plastics are derives from fossil fuel-based chemicals like natural gas or petroleum; however, recent industrial methods use variants made from renewable materials, such as corn or cotton derivatives.

Plastic compounding is a technique where plastic is blends and melts with antioxidants, reinforcements, and plastics to enhance plastic materials’ physical, aesthetic, electrical, and thermal characteristics.

The rising demand for plastics from the packages sector is expected to enhance the demand for the product.

Moreover, the rising adoption of plastics from the electrical and electronics industry is expected to enhance the demand for the compounds process.

These factors may incite remunerative opportunities for the industry.

As per Fortune Business Insights™ estimates, the plastic compounding market size is expected to touch USD 87.11 billion by 2026 at a CAGR of 6.5% during the forecast period.

Post COVID-19 Impact on Plastic Compounding 

Rapid Automation in Industries Aided in Plastic Compounding Market Expansion

The industry is slowly reviving amidst the post-COVID-19 phase.

The relaxation of lockdown, the resumption of lockdown, and rapid automation in industries enhanced the demand for the plastic compounding process.

Furthermore, the increasing demand for high-quality plastics from the electronics industry enhanced the adoption of the process.

Moreover, the growing demand for the process from the packaging industry is likely to generate remunerative opportunities.

In addition, extensive demand from the construction and automotive manufacturing industries is expected to enhance the industry growth.

Factors Driving the Industry

Growing Adoption in the Packaging Sector

• The growing demand for the process from the packaging industry is likely to enhance its adoption.
• With increasing demand for ready-to-cook and packaged foods, the demand for effective and robust materials is likely to grow exponentially.
• The packaging material provides extreme rigidity and protects brittle materials from rains and contamination.
• These factors may enhance the industry’s growth in the coming years.

COVID-19 Pandemic to Constitute a Call to Action for the Market

The emergence of the COVID-19 pandemic is compelling the key players to rethink their portfolio priorities & to raise their exposure to the growing channels.

It will necessitate greater use of mergers and acquisitions, as well as dynamic resource allocation for enhancing their portfolios.

The regulatory bodies of several developed and developing nations have implemented stringent lockdown and social distancing measures to prevent transmission of the coronavirus.

Therefore, most of the restaurants are on the verge of shutting down permanently.

Increasing Adoption of Compounded Plastics in the Construction Industry

The rapidly developed construction industry is expects to enhance the demand for better materials.

The integration of the process for the production of pipes, cables, doors, and windows is likely to enhance its demand.

Furthermore, the increasing demand for the process in several residential projects is expects to enhance the industry’s growth.

Furthermore, the increases adoption of the process in commercial projects is expects  to foster the adoption of plastic compounds. Compounded plastics reinforce materials and enhance their strength.

Moreover, the increasing demand for attractive interiors is likely to bolster the adoption of the process.

Strong Demand for Lightweight Materials for Automobile Parts Production

The rising demand for compounded plastics for automobile parts may fuel the industry’s growth.

The increasing demand for lightweight materials required for automotive production may facilitate plastic compounding demand from the industry.

Furthermore, strong demand for fuel-efficient and low-emission vehicles is expects to enhance the demand for the product.

The material is considers to be an ideal alternative to heavyweight materials.

These factors are likely to enhance the industry’s progress.

Key Players Assessment in this Research:

• The report offers detailed analysis of leading companies in the market across the globe.
• It provides details of the major vendors involved in this market
• A comprehensive overview of each company includes the company profile, generates revenue, pricing of goods and the manufactures products is incorporats in the report.
• The facts and figures about market competitors along with standpoints of leads market players are presents in the report.
• The recent developments, mergers and acquisitions related to mentioned key players are provided in the market report.

Factors Hampering the Plastic Compounding  Industry’s Progress

Raw Material Price Fluctuations

• Constant fluctuations in raw materials are likely to hamper the industry’s growth.
• Further, as crude oil and its alternatives act as derivatives for resin production, the adoption of plastic compounding techniques may increase exponentially.
• These factors are likely to act as restraints for the industry.

Strategies Undertaken by Manufacturers

Several manufacturers focus on the development of effective strategies to mitigate challenges.

For example, BASF enhanced the production capacity of its compounding facility situated in Altamira, Mexico, in May 2019.

The rising production capacity may allow the company to meet the global plastics engineering demand. Furthermore, automation has enabled companies to elevate their production capacities.

Moreover, investments in research & development may empower manufacturers to enhance their offerings significantly.

Emergence of the COVID-19 pandemic

The emergence of the COVID-19 pandemic is compelling the key players to rethink their portfolio priorities & to raise their exposure to the growing channels.

It will necessitate greater use of mergers and acquisitions, as well as dynamic resource allocation for enhancing their portfolios.

The regulatory bodies of several developed and developing nations have implemented stringent lockdown and social distancing measures to prevent transmission of the coronavirus.

Few of the most significant trends present in this market are:

• Shifting Demographics
• Altering Tax Regimes
• Concerns Regarding Health & Wellness
• Concentration & Modernization of Trade
• Rising Number of Digital Consumers
• Shift of Consumers towards Organic Products

Robust Demand from Several Sectors Promises Remunerative Growth Opportunities

Rising applications of plastic compounding from the automotive, packaging, and other industries suggest that the industry is guaranteed to grow significantly in the coming years.

The COVID-19 pandemic presented huge challenges.

However, manufacturers devised several strategies to counter the challenges presented and came up with solutions to resume sales and production.

Thus, it can be observs that the strategies implements promise positive growth opportunities.

About the author:

Anirudh Rao is a graduate of Mass Communication and Journalism. He loves writing and watching films.

He has a passion for business studies and expertise in paper research and writing

Besides writing, he loves photography, cinematography, storytelling, music-making, and filmmaking and many more