North America Plastic Compounding Market size exceeded USD 17.6 billion in 2019 and is projected to witness over 6.2% growth rate from 2020 to 2026.

The market is expected to showcase considerable gains from several end-user industries including electrical & electronics, aerospace, automotive, construction, consumer goods, and others. Innovations, such as 3D printing applications along with innovative packaging techniques for consumer goods, are supporting the industry expansion.

Get more details on this report - Request Free Sample PDF

Plastics compounders play a crucial role in enhancing mechanical, physical, and thermal properties along with optical and functional properties of base plastics with the addition of one or more additives. Additives in the form of flakes, pallets, powder, and others are used in the compounding process. Polypropylene and polyethylene are the most common base polymers used in the plastic compounding process. These additives enable end-users to achieve their requirements in an economical way, such as enhancing flame retardant and antioxidant properties of materials, thereby, improving material safety. Further, some recycled materials can be added as additives, thereby minimizing industrial or consumer waste in landfills and supporting sustainability initiatives of several end-user sectors.

Automotive is one of the key end-users of compounding plastics. Proliferating automotive sales and production across the region are driving the market growth. On an average around 30,000 parts are required in a vehicle, out of which around one-third is made up of plastics. Stringent vehicle emission norms adopted by the U.S. and Canada are pressurizing automotive manufacturers to enhance fuel efficiency of the vehicles. Weight reduction is a key factor in enhancing fuel efficiency, and plastic components enable automotive manufacturers to achieve the target in an efficient way, thereby surging the demand for plastic compounds.

Plastic components are widely used in infrastructure development projects. High strength and directional stability of products are important in several construction products. Development of a wide range of plastic grades is supporting the plastic compounding production consumption in this sector.

North America Market, By Product

The thermoplastic segment dominated the market with around 88% volumetric shares in 2019. Thermoplastic products are highly demanded in automotive production. These polymers can be melted, molded, and remolded without altering the physical properties of the material. Since the matrix can be melted, composite materials are remolded and recycled easily. Thermoplastic materials have low density as compared to thermosets, making them a suitable alternative for weight-critical applications. The proliferating automotive sector in the region and establishment of new automation production facilities will drive the product demand.

North America Market, By Industry

Get more details on this report - Request Free Sample PDF

The consumer goods segment will expand at 6.7% CAGR during the forecast period. Plastics are widely used in several applications including household appliances, furniture, food packaging, footwear, toys, etc. Packaging in now one of the most important marketing strategies for attracting customers. Further, several household appliances, such as television sets, microwave, food processors, and refrigerators, among others, are supporting the demand for plastic components. PVC is largely used in insulating electric wiring, and some grades of thermosetting plastics are used in light fittings, switches, handles, and others.

North America Market, By Country

The U.S. holds majority of the North America plastic compounding market share with the presence of a wide range of end-user industries. The presence of large plastic compounding manufacturers in the U.S. along with a strong distribution network is propelling the market expansion. Further, several manufacturers are establishing new facilities for supporting the demand for plastic from a wide range of end-users. For instance, in February 2020, Albis Plastics announced that the company will manufacture plastic compounding from its new production site in Duncan, SC.

Competitive Industry Landscape

Prominent companies operating in the market include BASF SE, LyondellBasell Industries, Solvay S.A., Aurora Plastics LLC, Kraton Corporation, SABIC, and Foster Corporation, among others. The other notable players in the market include The Dow Chemical Company, Owens Corning Corp, RTP Company, etc.