The market for Polymer Processing Aid is expected to grow at a CAGR of over 5% during the forecast period. Major factors driving the market studied are increasing demand for polymer processing aid in blown film & cast film and rising demand from wire & cable segment. On the flipside, quality issues and high cost of the product owing to dependence of polymer processing aid on type of polymer used during extrusion process and unfavourable conditions arising due to COVID-19 outbreak are the major restraints, which are expected to hinder the growth of market.
- Growing demand for polymer processing aid in fibers & raffia segment is expected to offer various lucrative opportunities for the growth of market.
- By application, blown film & cast film segment is expected to dominate the market owing to the increase in the production of food & non-food packaging, agriculture films, and tapes.
- Asia-Pacific region dominated the polymer processing aid market across the globe with the largest consumption from countries such as China, India, and Japan.
Key Market Trends
Increasing Demand from Blown Film & Cast Film Segment
- Polymer processing aid is used during polymer formulation, when molten polymers are subjected to extrusion process so that they can be formulated into pipes, film, tube, and other products. Polymer processing aid improves the quality of finished products.
- Polymer processing aid help in increasing film transparency, improving smoothness, improving product appearance, and improving mechanical properties. Owing to these factors, the demand of polymer processing aid is increasing in blown film & cast film segment.
- Additionally, rise in demand for packaging films, agriculture films, and tapes is increasing the demand for polymers such as high density polyethylene (HDPE), linear low density polyethylene (LLDPE), and low density polyethylene (LDPE) with improved properties such as high mechanical strength and durability. Due to this, the demand of polymer processing aid is expected to rise, which would stimulate its market.
- The market for cast film is expected to grow at a CAGR of over 3% and the market for multi-layer blown films is projected to grow at a CAGR of over 6% during the forecast period. These markets are anticipated to provide ample opportunities for the growth of polymer processing aid market during the forecast period.
- Owing to all the above-mentioned factors for polymer processing aid, its market is expected to grow rapidly over the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for polymer processing aid during the forecast period. In countries like China, India, Japan and South Korea, owing to increasing demand for plastics from various end-user industries like packaging, automotive, and building & construction, the demand for polymer processing aid has been increasing in the region.
- The use of polymer processing aid helps in improving the surface quality of products, eliminate melt fractures, and reduce die deposits. These factors are expected to positively impact the polymer processing aid market.
- Additionally, the demand for polymer processing aid is expected to increase to meet the demand of clean films in food packaging and agriculture sectors in countries like China, India, Japan, and South Korea, which will stimulate the polymer processing aid market in the region.
- Furthermore, the optimum utilization of polymer processing aid can reduce the damage done to polyethylene during the manufacturing process. Also, the usage of polymer processing aid is economically beneficial as it helps in reducing the production costs of polymers due to enhanced efficiency and high quality of product. Thus, the rise in demand for polymer products from various applications such as aviation, defense, automobile, telecommunication, scientific research labs, commercial facilities, and others is fueling the demand of polymer processing aid and therefore, propelling its market.
- The blow molded plastics market in China is projected to register a CAGR of over 5% during the forecast period and is expected to reach USD 16 billion by 2025. This is likely to provide lucrative opportunities for the polymer processing aid market.
- Some of the major companies operating in Asia-Pacific region are - 3M, Daikin America, Inc., and Fine Organics.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand forpolymer processing aid during the forecast period.
The Polymer Processing Aid market is fragmented with top players accounting for a marginal share of the market. Some of the key companies in the market include 3M, Arkema Group, LyondellBasell Industries Holdings B.V., Daikin America, Inc., and Fine Organics.
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