Plastic Compounding Machinery Market

Plastic Compounding Machinery Market Analysis

The Plastic Compounding Machinery Market is expected to register a CAGR of 6% during the forecast period.

• Plastics compounding refers to the process of taking basic, raw plastic material and customizing it with various additives to achieve various properties, colors, and performance requirements. Various physical processes and lab formulations achieve this by combing the necessary additives and color into the plastic resin.
• Various types of machinery are used to achieve the entire process of preparing the formulation plastic by blending and mixing polymers and additives. The rising use of plastic components across various end-user industries drives the demand for plastics. For instance, according to the University of Georgia, the cumulative production of plastic is anticipated to reach 34 billion metric tons by 2050, from a mere 2 billion metric tons in the 1950s.
• Furthermore, the increasing demand for high-strength, low-weight, fuel-efficient, and durable components in the automotive sector, allowing them to comply with environmental and related norms, is expected to boost the adoption of plastic compounding machinery in the industry. Similarly, the food and beverage industry is expected to exhibit growth in the adoption of plastic compounding machinery, owing to the increasing adoption of plastic in the industry, to enable lightweight end-products with a focus on product design.
• Also, plastic compounding machinery is finding its applications in the bioplastics industry. The adoption of bioplastics in various end-user industries is increasing. According to European Bioplastics, the global production of bioplastics is expected to grow from 1,792 thousand metric tons in 2021 to 6,291 thousand metric tons by 2027.
• However, low capacity utilization in the manufacturing Industry owing to slow offtake and the high cost of this equipment are among the major factor challenging the studied market's growth.
• A notable impact of COVID-19 has been observed on the studied market. Asia Pacific region, which is among the major user of plastic compounding machinery owing to the presence of several major players, a higher impact of the pandemic resulted in a slowdown in demand. However, with major end-user industries on their way to recovery, the studied market is expected to witness an upward growth trend during the forecast period.

Plastic Compounding Machinery Market Trends

Packaging Industry Expected to Show Maximum Adoption

• The adoption of plastic compounding machinery is expected to grow significantly in the packaging industry owing to the differential growth across materials and formats, which is significantly driving the fundamental shifts in the packaging industry. These differentials are a by-product of changing consumer behaviors and product innovation within the market.
• Also, packaging is the largest end-user segment for plastic products accounting for more than 40% of the total plastic usage in the world. Also, consumers have exhibited an increasing inclination towards plastic packaging, as plastic packages are light in weight and more comfortable to handle.
• Also, the increasing focus on packaging and the use of packaging material across end-user industries is expected to boost the adoption of plastic compounding machinery in these industries during the forecast period. For instance, when it comes to the features of food packaging, the critical consumer priorities across all markets relate to the hygiene and leak-proof properties of the container, but the packaging material itself is also considered essential.
• Furthermore, in recent years, the growing environmental concern has been driving the demand for bioplastics in the packaging industry, which is expected to create growth opportunities for the studied market. For instance, according to European Bioplastics, in 2022, the total production capacities of bioplastics in the rigid and flexible packaging industry were about 376.1 thousand metric tons and 695.6 thousand metric tons, respectively.
• The growth of the e-commerce industry has also become a key instigator behind the demand for plastics for packaging. According to Oceana, the estimated use of e-commerce plastic packaging is expected to reach 4,533 million pounds by 2025. Such trends create a favorable outlook for the studied market's growth.

Asia-Pacific is Expected to Exhibit the Maximum Growth

• The Asia-Pacific region is expected to register the maximum growth rate during the forecast period, owing to several factors, such as the changing demographics and social factors, such as growing urbanization, aging population, and the rising middle class and their growing aspirations, in countries like China, Japan, and India.
• Strong demand for engineering plastics in Asia-Pacific is likely to boost the plastic compounding industry, which is expected to propel the compounding machinery demand in the region. One of the major drivers of engineering plastics is the growing purchasing power of consumers in developing countries/emerging economies.
• With consistent economic growth in the region, the financial status of consumers is increasing, which in turn is improving their purchasing power. As a result, their demand for and production of automobiles is growing consistently. In addition, with the improvement of their purchasing power, their demand for technologically advanced consumer goods and appliances and electrical and electronic goods is continually increasing, which in turn is boosting the demand for engineering plastics in Asia-Pacific.
• Several countries in the region are taking major steps to introduce solutions and incorporate sustainable processes in the businesses to achieve sustainable development goals, which is expected to have a notable impact on the studied market's growth.
• Furthermore, the growing demand for packaging plastics and other plastic products across various end-user industries is encouraging several players to expand their presence in the region. For instance, Celanese, a leading plastic compounding company, is planning to expand its Nanjing, China, Compounding, and LFT facilities to add approximately 52KT of compounding and long-fiber thermoplastics (LFT) capacity by the second half of 2023.

Plastic Compounding Machinery Industry Overview

The Plastic Compounding Machinery Market is moderately fragmented owing to the presence of various equipment providers globally. The market players are involved in product developments and innovations with a view to capturing maximum market share. Also, the companies are involved in expanding their market presence through the global expansion of their operations. Some key market players include CPM Extrusion Group, Entek Extruders, Farrel Corporation, and Coperion GmbH.

• November 2022 - Brabender launched the new electrically heated twin-screw extruder B-TSE-S 30/40 Big Compounder. According to the company, the extruder was developed as an interface between the pilot plant and the laboratory. Its compact design combines the drive and processing unit, making it suitable for developing formulations and small-scale production of various extrudates made of plastics, food and feed, rubber, and many other extrudable materials.
• July 2022 - Bausano, an Italy-based extrusion machinery manufacturer, introduced its Smart Energy System for cylinder induction heating at K 2022. The product has been designed for both a twin screw extruder Nextmover range and the new single screw extruder E-GO R, which is designed for recycling plastics. According to the company, the product features forced-cooled induction coils with special openings to minimize heat loss. Furthermore, for faster cooling compared to resistive systems, the cooling airflow is channeled directly onto the plasticizing cylinder.

Plastic Compounding Machinery Market Leaders

Plastic Compounding Machinery Market News

• March 2022: Bausano, a leading designer and producer of customized extrusion lines for transforming plastic materials, launched its next-generation single and twin-screw extrusion lines for pipes made of PVC and polyolefins (PO). The company's extrusion technology in its twin-screw MD and single-screw E-GO ranges enables the production of different types of pipes - rigid or flexible, smooth or corrugated, mono or multilayer, for various applications, including construction, medical, and agriculture.
• February 2022: Star Plastics, a leading plastic compounder, installed a new twin-screw extruder at its Ravenswood, WV, facility. According to the company, the 75-mm Leistritz twin-screw extruder is its largest extruder, tripling capacity in anticipation of continued long-term growth. The company is also planning to add a second twin-screw extruder soon.