Global Outlook on Masterbatch Industry

Masterbatch production still accounts for about 1.5–2.0 percent of the total plastics production during 2016–2017.

Post 2016, Masterbatch industry witnessed capacity additions in the black segment, while there was no significant events in the color products. Cabot Corporation increased the Black Masterbatch production capacity through the acquisition of Tech Blend, US and through capacity addition in Belgium.

Recent Updates:

  • Black Masterbatch witnessed capacity additions post 2016, where added a new capacity in Pepinster, Belgium. However, exact capacity numbers were not revealed
  • Post 2008, both capacity and demand have grown at strong rates, owing to the increase in consumer base, which makes use of Masterbatch
  • Masterbatch production share out of the total plastics production has increased marginally, mainly driven by the demand from Europe and Asia
  • Increase in Barefoot resins production has paved way for the increase in the use of Masterbatch. Combination of barefoot resins and masterbatch is more economical compared to using other resins and coloronts. Resins that are manfactured without any additives are called as barefoot resins
  • Percentage of the Masterbatch production out of total polymer output is likely to reach 2 percent by 2021, which, in turn, is expected to driven by the conducive pigment inudstries, such as titanium dioxide, carbon black, and other pigment additives

Global Masterbatch – Demand Analysis by Application

Post 2016, increased product innovation and customization attempts were witnessed from the packaging industry, which uses Masterbatch. The food packaging industry was leading the developments in Masterbatch product alterations to suit the evolving needs.

By far, white Masterbatch is the most used and preferred form, which is used across various industry verticals. Use of color and additives Masterbatch are also on the rise, due to the unique properties that Masterbatch offers.

Market Overview and Outlook

  • The packaging industry consumes large volume of color and white masterbatchese every year and is increasing at a strong rate, owing to the frequent innovations in packaging and product shaping
  • The automotive sector extensively used black, white, and color masterbatches, which are generally used in large volume, in order to meet the quality requirements. Use of masterbatch in automotive segment is expected to increase in the years to come, as the plastics have proven to be the best alternative in subsituting heavy weight materails
  • Additive masterbatches are used by food and beverage and specaility packaging industry, where there are unique needs, such as biological, degradable, high flow and climatic properties

Product Updates

Tosaf has developed a new anti-fog Masterbatch

  • Tosaf, a US-based Masterbatch manufacturing company, has developed a anti-fog masterbatch through the changes in surface treatment. This new product will avoid the water clogging in closed food wraps. This innovation is said to be very useful for refridgerated food storage

Colloids has launched high temperature Masterbatch series

  • The UK-based Masterbatch product company, Colliods, has launched two new products T-TEC and E-TEC. These masterbatch products are capable of being used in applications with temperatures around 150°C. These products are desgined to work in carriers, such as PPS, PPSU, PPA, PEEK and with the use of formulated pigments

On a regional demand front, Asia, especially China, still remains as the major demand driver, followed by other developing regions. CAGR of more than 5 percent was witnessed in the region.

North America continues to second the demand table, followed by Europe. Asia, North America, and Europe contributes for about 85 percent of the global Masterbatch demand.

Market Overview and Outlook

  • Asia-Pacific is the largest consumer of Masterbatches, which is followed by Europe
  • In the past, Europe was the largest consumer of Masterbatch, which was then replaced by APAC, due to high growth rates
  • China is the largest consumer of masterbatch, which is followed by the US at a country level
  • Demand growth in regions, like India, South America, China, and Eastern Europe, is expected to increase the demand share in the next five years