Trends Moving (Slowly) N.A. Market for Plastics Compounding

March 05, 2018

WELLESLEY, Mass., March 05, 2018 – The growing consumption from downstream industries such as building and construction, electrical and electronic, automotive, and packaging are driving growth in the North American plastic compounding market. In a new report, The North American Market for Plastics Compounding, BCC Research estimates this market will reach 92.9 billion pounds in 2017 and 104.5 billion pounds by 2022, indicating a compound annual growth rate (CAGR) of 2.4%.

This comprehensive analysis updates the 2015 BCC Research report on the North American market for plastics compounding by including specialty engineering resins such as polyamides (nylons) and polycarbonates. It also introduces newer biopolymers made from biological instead of petrochemical feedstocks, as well as thermoplastic elastomers. The report analyzes the compounding of major thermoplastic resins, engineering thermoplastics, nylons, polycarbonates, thermoplastic elastomers, some biocompounds, specialties like polyacetals and polysulfones, and acrylonitrile-butadiene-styrene (ABS) terpolymer.

Bioplastic resin suppliers are expanding the raw material supply in expectation of strong demand. Plastic additive producers are increasing capacity to meet the growing demands of the North American and global plastic compounding markets. In addition, leading masterbatch producers continue to launch new product lines to strengthen their leading positions in the markets. The trend for resin producers to compound internally should remain relatively stable and with lower growth than processors or independents. The trend for processors to compound fillers should continue, as prices remain stable and relatively high for major polyolefins.

Research Highlights

  • Bioplastic companies are developing new routes for making bioplastics from different types of raw materials.
  • Carbon fiber reinforcement demand will continue to grow at double-digit rates, led by industrial (including automotive/energy) applications.
  • Calcium carbonate will remain the dominant thermoplastics filler with almost 80% of the filler market by volume.

“One of the major industry-wide trends in the compounding business, which is also occurring in other aspects of the plastics industry, is backward integration,” said Jason Chen, BCC Research analyst and author of the report. “By integrating backward, a company can reduce the number of operations in the production chain. Large processors like the idea of direct in-line compounding in their plants, in which they buy neat resin, place it directly into the compounding system, and then directly transfer the compounded resin to its extrusion or other processing machinery. This activity diminishes the role of the resin producer more than the compounder in most cases.”

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The North American Market for Plastics Compounding( PLS018F )
Publish Date: Feb 2018    

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