The global masterbatch market is expected to hit $8.5 billion by the year 2017. Growth in the masterbatch market will primarily be driven by a resurgence in demand fundamentals, such as, improving income levels, strengthening consumer confidence, growing propensity to spend, continued shift towards packaged products, and increase in the demand for consumer goods, automotives, and electronic appliances among others.

Masterbatches are omnipresent raw materials used as colorant for plastics. Masterbatches follow established consumption patterns, as it is used for a wide range of applications in sectors including sports and leisure, fiber, household, construction, packaging, and automotives. Packaging is a major market for masterbatches, with applications including drums and containers, transport and bottle crates, films, special films, caps and closures, and bottles. In the automotive industry, masterbatches ascertain that the vehicles' exterior as well as interior exude an enhanced aesthetic appeal and at the same time offer resistance against environmental damages. Prime impetus for masterbatch consumption comes from increasing demand in developing countries coupled with growing consumer preference for advanced color formulations. Future growth in consumption will be focused in emerging markets, with India, China, and the Middle East accounting for a sizable portion of the global market demand.

The economic recession elicited a dip in demand for masterbatch, not surprising, given the fact that fortunes in this market are tied to the health of key end-use industries such as the automotive industry, construction, fibers, packaging, household, and electrical & electronic industries. A fall in the business confidence index triggered by falling profits, liquidity constraints, and shortages of credit availability, represented common woes that halved investment plans across all end-use sectors, dragging, in the process, the masterbatch market into the red. The packaging end-use sector remained largely weak during the years 2008 through 2010, further depressing the market for masterbatch.

The Asian automotive sector is forecast to emerge into a strong end-use market for masterbatch, largely due to the mass exodus of production activities (automotive & industrial) from developing countries to low cost Asian countries, ensuing increase in foreign investments, and rise in the number of new manufacturing establishments in Asia-Pacific. Post recession, the demand for masterbatch is slated to make a comeback, with manufacturers expected to expand their product offerings. Innovation and product diversification based on next generation technology will be the most prominent market strategies for manufacturers and suppliers in the post recession period. The field of biopolymers currently flaunts strong opportunities for future growth in the masterbatch market.

According to Global Industry Analysts, Europe and North America account for a major share of the global Masterbatch market. However, with consumption levels for masterbatch in such developed markets nearing saturation, the focus of the global masterbatch industry now shifts towards emerging markets such as Asia-Pacific and Latin America. Developing markets such as Asia, Latin America and the combined market of Middle East & Africa, are projected to display superior growth rates over the analysis period. Rapid pace of industrialization, ballooning production and industrial bases, increased output of plastic components, consumer goods and packaging products and continuing penetration of masterbatch vis-à-vis competing coloring methods remain key growth driving forces in the post recession period. In volume terms, White Masterbatch is the largest revenue contributor. In value terms, global market for Masterbatch in Packaging Sector accounts for a significant share of the market.

Major players in the global marketplace include A. Schulman Inc, Americhem, Ampacet Corporation, BASF, Cabot Corporation, Clariant AG, Colortech Inc, ColorMatrix, Dainichiseika Color & Chemicals Mfg Co Ltd, DIC Corporation, Dow Corning Corporation, Multibase SA, ECM Plastics Inc, Ferro Corporation, GABRIEL-CHEMIE Gesellschaft m.b.H., Hubron (International) Ltd, Ingenia Polymers Inc, Italmaster Belgium, Plastichemix Industries, PolyOne Corporation, PlastiColors, Plastika Kritis, Polyplast Muller Group, RTP Company, TABB Packaging Solutions LLC, The Ravago Group, Teknor Apex Company, among others.

The research report titled Masterbatch: A Global Strategic Business Report provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (In US$ Million; In Thousand Tons) for major geographic markets including North America, Japan, Europe, Asia-Pacific, and Rest of World. End-Use segments analyzed include Automotive, Packaging, Construction, and others. Product segments analyzed include White Masterbatch, Black Masterbatch, Additive Masterbatch, and Color Masterbatch. Global Industry Analysts

Full Report Details: http://www.companiesandmarkets.com/r.ashx?id=03BU37S2X729059