With the plastic industry's exponential demand, masterbatches have become crucial, with manufacturers prioritizing sustainability and product innovation. Consumer goods and packaging are the major factors driving the global market. According to Polaris market research, the masterbatch market size was valued at USD 6.26 billion in 2023. The market is anticipated to grow from USD 6.63 billion in 2024 to USD 11.06 billion by 2032, exhibiting a CAGR of 6.6% during this time frame. The main segment is represented in the manufacturing industry, which includes commercial, industrial, and consumer goods, as well as flexible and rigid options.
The worldwide masterbatch market was valued at USD 4.85 billion in 2022 and is expected to grow at a CAGR of 6.6% between 2023 and 2030—substitute metals and plastics in end-use industries such as automotive, transportation, construction, and construction.
The demand for packaging is increasing due to the growing number of urban dwellers who want packaged products. Consumers wish affordable, durable, flexible, secure, and easy-to-find packages. Here are a few investments made by manufacturers to capitalize on this growing demand.
According to the statistics mentioned earlier. The market is highly fragmented, and picking a target industry and catering to it is vital. Investment in research is shown to be a key strategy in this endeavor.
For Example, Hubron International is one of the largest communities for graphene research. Its strong affinity to graphene development and production and housing the most outstanding academics and scientists has secured it a strong position in the masterbatch market. It has the technological backbone to manufacture and process 2D solid materials, which is a base for strong yet lightweight products.
Conduct educational programs and workshops to raise awareness among manufacturers about the benefits and applications of additive masterbatches. Position your company as an industry leader by sharing knowledge and expertise.
"Market research answers “why” while analytics tells you “what happens and what will happen.” Both market research and analytics cannot be utilized well without having the right business questions at the starting point," Mint Charoenporn Kaewmanorom, Head of Marketing and IoT Operations, True Digital Group.
Investments in research and development are seen as the most common denominator among dominant manufacturers who deliver groundbreaking innovative products compared to those who are seen to invest strongly in other divisions. Developing masterbatch formulations that cater to the evolving market needs is a proven and tested strategy to stay relevant. Partnerships with research institutions and suppliers are one way of staying at the forefront of technological advancements.
Cabot Introduced their ISCC plus certified black masterbatch products with EVOLVE sustainable solutions. This was a 100% attribution to recycled content. This masterbatch is made of reclaimed carbons from end-of-life tires and recycled polythene. This assists in reducing greenhouse emissions by 60% compared to standard black masterbatches.
"Knowing what to invest in and ensuring that new methodologies are launched accurately and quickly comes down to three things – what you have, what you know, and who you know," Zoya Brar, Founder, CORE Diagnostics.
Ensuring the highest quality standards of your masterbatches should be one of the priorities that should not be overlooked. It is paramount that the respective authorities should vouch for the quality of the products. This is the commonly followed step to secure the trust of all the required parties.
ISCC regularly participates in benchmarking processes comparing different systems for sustainability certification. It uses the results of those processes and the feedback provided to learn and improve continuously. It has been selected as a system of choice by various initiatives from different market segments.
"In today’s market, an organization can only thrive by offering high-quality products on the shelves. Otherwise, it only takes days for businesses to fail in the market," Ignacio Adrada, CEO, PTS Global Quality Solutions
Optimization of the supply chain should not be overlooked on the road to innovation. Improving the efficiency of the production process, raw material procurement, and regular communication with the suppliers is to be reflected upon. Opportunities for global market expansion must be explored with the demand for additive masterbatches growing internationally. Establishing footholds in key markets is a strategic move for organic and sustained business growth.
Educational programs and workshops should be conducted to raise awareness among manufacturers on how it can benefit their applications. Cementing yourself as an industry leader by sharing your knowledge and expertise is a beneficial move.
"Customer expectations have risen dramatically, and demand for different products is dynamic. In this scenario, an out-of-stock product means a loss in revenue to the business," Vickram Srivastava, Head Of Planning - Global Supply Chain, Sun Pharma
The escalating demand for additive masterbatches presents a golden opportunity for professionals in the plastics industry. By embracing innovation, sustainability, and strategic partnerships, professionals can position themselves to not only meet current market demands but also to shape the future of this dynamic and evolving industry.
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