The Plastic Compounding Machinery Market is expected to register a CAGR of approximately 6% during the forecast period (2020 - 2025). The increasing consumption of plastics in various end-user industries such as automotive, oil and gas, and food and beverages, amongst others, is expected to majorly drive the market growth over the forecast period.

- According to PlasticsEurope (PEMRG), the global plastic production in 2018 amounted to 359 million metric tons.
- 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 the platic compounding machinery in the industry.

- The food and beverage industry is expected to exhibit growth in adoption of plastic compunding machinery, owing to the increasing adoption of plastic in the industry, to enable lightweight end-products with a focus on product design.

- Also, plastic compunding machinery is finding its applications in the bioplastics industry. The adoption of bioplastics in various end-user industries is increasing. In 2019, according to the European Bioplastics.org, global production capacities of bioplastics amounted to about 2.11 million tons with more than 53% of the volume destined for the packaging market.

Key Market Trends

Packaging Industry Expected to Show Maximum Adoption\

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- 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, the 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 packaging material itself is also considered essential. According to an international consumer survey commissioned by global chemicals company Kemira, over half of the 4,000 respondents in the United States, China, Germany, and Finland said they would be willing to pay more for renewable food packaging.

- However, the packaging industry is facing several challenges due to the recent coronavirus outbreak globally, which has led to stagnancy in supply chains and has also brought the retail industry to a major halt, especially the e-commerce. Hence, this is expected to impact the industry in general and in turn the plastic compounding machinery market growth.

Asia-Pacific is Expected to Exhibit the Maximum Growth

- The Asia-Pacific region is expected to register the maximum growth rate during the foreccast 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 in turn, is expected to propel the compounding machinery demand in the region. One of the major drivers of the engineering plastics is the growing purchasing power of the consumers in the developing countries/emerging economies.

- With consistent economic growth in the region, the financial status of the consumers is increasing, which in turn is improving their purchasing power. As a result, their demand for and production of automobile 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. For instance, in 2019, a Japanese chemical manufacturer, Mitsui Chemicals Group, introduced a bio-polypropylene project, as a part of its efforts to reduce the environmental impact and achieve sustainable development goals.

Competitive Landscape

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 in a view to capture maximum market share. Also, the companies are involved in expansion of their market presence through global expansion of their operations.

- February 2020 - Yizumi cooperated with Exipnos, to develop a patented Direct Compounding Injection Moulding (DCIM) system. The system was demonstrated at K19 making a multi impression bio-degradable cup on a standard Yizumi UN160A5 moulding machine integrated with their compound delivery system (CDS).

- January 2020 - Grupa Azoty SA announced that a subsidiary operating within its Plastics Business Segment launched a new manufacturing/compounding plant for modified plastics with a production capacity of 50,000 tons per year. By modifying the polyamide produced in Tarnów and other materials at the plant, specialized modified materials will be produced for use in the automotive, machinery, construction, electronics and household goods industries, among many others.

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