Masterbatches are raw materials used as colorants for plastics which find applications in almost all areas of plastic processing as a standard method of adding colorant to bulk and uncolored resin
JEDDAH — The masterbatch market in Saudi Arabia is projected to reach $167 million by 2020, according to recently released TechSci Research report titled "Saudi Arabia Masterbatch Market Forecast & Opportunities, 2020". The masterbatch is a solid or liquid mixture of pigments or additives used as a raw material in plastic processing in order to impart color or other special characteristics to processed goods. Increase in number of plastic processing facilities in Saudi Arabia coupled with growing demand from end use sectors is forecast to propel growth in the country's masterbatch market over the next five years. The domestic market is highly consolidated and is characterized by the presence of domestic as well as international players that operate in collaboration with domestic players. Few of the major masterbatch companies operating in the country include Clariant Masterbatches (Saudi Arabia), Astra Polymers, Ingenia Polymers, Juffali PolyOne Corporation and Cabot Corporation. Majority of the plastic processing plants in Saudi Arabia are concentrated in the Eastern and Western regions of the country, and consequently these two regions account for a lion's share of the masterbatch market in Saudi Arabia. The downstream industry in the country has witnessed rapid expansion over the past few years, which has created new opportunities for the growth of masterbatch market in Saudi Arabia. Surge in demand from end use industries such as packaging, building and construction and appliances, among others have steered masterbatch market in the country over the past few years, and the trend is projected to continue through 2020. Packaging sector is forecast to remain the largest end use application for masterbatch in Saudi Arabia over the next five years. “The Saudi Arabia masterbatch market is forecast to demonstrate promising growth prospects, on account of supportive initiatives undertaken by the government of Saudi Arabia. The government has planned huge investments in petrochemical and plastics sector in order to encourage and catalyze industrial diversification in the country and reduce dependence of the economy on oil exports. The government aims to place Saudi Arabia among the top ten global plastics exporters by 2020. This is expected to directly boost the masterbatch demand in the country over the course of next 5-10 years,' said Karan Chechi, Research Director, with TechSci Research, a research based global management consulting firm. “Saudi Arabia Masterbatch Market Forecast & Opportunities, 2020” has analyzed the potential of the masterbatch market in Saudi Arabia and provides statistics and information on market size, consumer behavior and trends. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers and key challenges faced by the masterbatch industry in Saudi Arabia. Global market for masterbatch is projected to reach $11 billion by 2020, driven by rising demand for colorful plastics from end-use markets such as packaging, and consumer goods, among others. Product innovation and differentiation are among the key strategies adopted by masterbatch manufacturers to gain a competitive edge in the market. Key innovations which have benefited the market, over the past few years, include anti-shrinkage masterbatch, flame-retardant masterbatches for PP pipes and PC sheets, anti-fog masterbatches for food packaging, anti-microbial and odor managing masterbatches, and masterbatches for biopolymer and biodegradable resins. Future growth in the market is forecast to come from emerging economies, and the growing demand from end-use markets for sophisticated color formulations. China and India, especially, stand out as noteworthy markets, given the mass exodus of production activities to low-cost Asian countries. Increase in foreign investments, and rise in the number of new manufacturing establishments are key factors encouraging Asia's rise to prominence in the masterbatch market. Technology advances that help impart desired color and property to plastics while simultaneously reducing cost, is also expected to turbocharge growth in the coming years, especially against the backdrop of evolving demand for high performance and functional products from various end-user markets. This demand for improved performance will continue to push manufacturers to invest in R&D in efforts to improve product capabilities. With manufacturers of consumer products seeking packaging materials that facilitate low cost production, and ensure product protection during storage and transportation, demand is expected to rise for advanced masterbatches that offer functional performance as well as aesthetic appeal. The market is expected to gain strongly from automotive as well as consumer goods industries. Europe represents the largest market worldwide. Asia-Pacific is forecast to register the fastest CAGR of 5.7% over the review period led by increased plastic processing activity. Color masterbatch, which finds application in the production of plastics for appliances, food and beverage, automotive and pharmaceutical packaging, accounts for the largest share of the global market, in volume terms. Additive masterbatches are forecast to witness the fastest growth driven by increased demand in personalized plastic products. — SG
