Plasticizers Market and its key opportunities and challenges

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Plasticizers Market and its key opportunities and challenges

November 03
10:02 2019
Plasticizers Market and its key opportunities and challenges

Browse 84 tables and 29 figures spread through 126 pages and in-depth TOC on “Plasticizers Market”
Plasticizers Market by Type (Low Plasticizers Market by Type (Phthalates, Non-Phthalates), Application (Flooring & Wall Covering, Wire & Cable, Coated Fabric, Consumer Goods, Film & Sheet), and Region (Asia Pacific, Europe, North America)

The Plasticizers Market was valued at USD 11.67 Billion in 2016 and is projected to reach USD 16.15 Billion by 2022, at a CAGR of 5.7% during the forecast period, as per a report by MarketsandMarkets. 

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How emerging demand for eco-friendly plasticizers presents good opportunity?

The stringent regulations along with a supply of harmful phthalates, such as DOP, DBP, BBP, and DEP. have led to the development of eco-friendly plasticizers as a replacement to the traditional phthalates. Approximately 90.0% of all plasticizers are consumed by PVC manufacturers to modify the property of their PVC products according to the requirement of the end user. Plasticizers are the key component used to make soft PVC where flexibility and durability are essential properties required. They are used in a variety of applications, such as flooring, automotive interiors, cables, and toys. The plasticizers industry is focused on introducing safer alternatives with the most recent focus on bio-based and renewable feedstock that provide a more favorable environmental footprint. Due to their harmful nature and various legislations, phthalates plasticizers are being replaced with alternatives, such as bio-based plasticizers. Hence, suppliers are introducing bio-based alternatives to serve the demand for environmentally friendly plasticizers. Thus, bio-based plasticizers are expected to be a crucial opportunity for the market players to capitalize.

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Why intense competition from large-scale players is a key challenge?

The concept of economies of scale states that as the number of goods produced increases, production efficiency increases with a decrease in the average total cost of production. Typically, large-scale production companies lower their average selling price per unit and increase their salability by offering products at a competitive price in the market. The consumption trend of plasticizers in end-use industries such as construction and automotive has changed, and the same is reflected in the plasticizers demand. Plasticizers producers with small-scale production capacities are unable to meet economies of scale due to shrinking margins that are driven by the effect of the recession on end-use industries.

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