The global masterbatch market is projected to register a CAGR of 7.1% between 2014 and 2019 to reach US$12.1 bln, as per Reserach and Markets. The packaging segment, that uses masterbatch, is witnessing a CAGR of 7.5% and constitutes a significant part of the overall masterbatch market. However, the automotive segment is projected to grow at a high CAGR of 8.5% by 2019. Major end-user industries for masterbatch include packaging, building & construction, automotive, consumer goods, textiles, agriculture, and furniture. Steady economic growth, rapid pace of industrialization, increasing production of plastic products and components, packaging products and continuous penetration of masterbatch vis-a-vis competing coloring methods remain the key driving forces in the market. Region-wise, Asia-Pacific and South America are leading the global market. Growth in Asia-Pacific is led by rising demand for refined raw materials and products among the regions plastic processors. Due to the regions favorable prospects, several companies are expanding in Asian countries to benefit from the low-cost structures and growing local demand for plastics and packaging. Packaging represents the largest end-use market for masterbatch. Manufacturers of consumer products are increasingly seeking packaging materials that facilitate low cost production and ensure effective storage and transportation. Demand is therefore expected to grow for advanced masterbatch that offer both functional performance and aesthetic appeal.
