Plasticizers and Tackifiers Market - Forecast(2023 - 2028)

Plasticizers and Tackifiers Market Overview

Plasticizers and Tackifiers Market size is forecasted to grow at a CAGR of 5.5% during the forecast period 2021-2026. Globally, the increasing use of additives such as plasticizers and tackifiers in numerous applications has driven the growth of the market. Owing to the low molecular weight property of the compounds, the demand for plasticizers and tackifiers in the building and construction, and automotive has raised the market growth. Increasing usage of plasticizers in the production of durable and flexible plastic polymers such as polyvinyl chloride (PVC) is also estimated to drive the growth of the market. Moreover, the increasing usage of phthalates or phthalate esters as plasticizers is gaining popularity in a variety of end-use industries such as automotive, medical, building and construction, packaging, and others.

Covid-19 Impact

Covid-19 pandemic created disruptions in the growth of the plasticizers and tackifiers market due to the halt in several ongoing construction projects. Also, due to the pandemic the import and export trade disruptions affected the demand of the plasticizers and tackifiers additives which overall affected the growth of the market in the year 2020.

Plasticizers and Tackifiers Market Report Coverage

The: “Plasticizers & Tackifiers Market Report – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the plasticizers & tackifiers market.

By Tackifiers Form: Solid Tackifiers, Liquid Tackifiers, and Resin Dispersion Tackifiers
By Product Type: Plasticizers (Phthalates, Non-Phthalates, and Others) and Tackifiers (Synthetic and Natural)
By Application: Plasticizers (Flooring & Wall Coverings, Wire & Cable, Coated Fabrics, Consumer Goods, Film & Sheet, and Others) and Tackifiers (Pressure Sensitive Adhesives (PSA), Hot Melt Adhesives (HMA), and Others)
By End Use Industry: Building & Construction, Transportation, Electronics & Communication, Medical & Healthcare, Packaging, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia Pacific), South America(Brazil, Argentina, Colombia, Chile, and the Rest of South America), and RoW (the Middle East and Africa)

Key Takeaways

• Asia-Pacific region dominates the plasticizers and tackifiers market owing to the rising usage of plasticizers and tackifiers in the building and construction as well as in the automotive sector in emerging economies such as China, India, Japan, and South Korea.
• Growing popularity of tackifiers and plasticizers in rubber products either to facilitate the handling of the raw material during fabrication or to meet the demands of the end product's application is driving the market growth.
• The increasing adoption of bio-based plasticizers and tackifiers from agricultural by-products and wastes, owing to its low cost is further accelerating the growth of the market.
• Moreover, strict regulations pertaining to the use of phthalates is anticipated to create hurdles in the growth of the plasticizers and tackifiers market over the forecast period.

Figure: Asia Pacific Plasticizers & Tackifiers Market Revenue, 2020-2026 (US$ Billion)

Plasticizers and Tackifiers Market Segment Analysis- By Product Type

Plasticizers held the largest share in the plasticizers and tackifiers market in 2020. Plasticizers are nonvolatile, high-boiling, low-molecular-weight compounds that are applied to a polymer to enhance processability, stability, and stretchability. Primary plasticizers offer low volatility, good permanence, and high performance owing to which it is increasingly used in various floor and wall coverings, and film and sheets. Moreover, the rising usage of phthalates and non-phthalates as plasticizers to make the polymers more durable is estimated to drive the demand of the market. Thus, with an increase in the demand for plasticizers in several applications the market is anticipated to rise in the forecast period.

Plasticizers and Tackifiers Market Segment Analysis- By Application

In the plasticizers segment the flooring & wall coverings sector held the largest share with 24% in the plasticizers and tackifiers market in 2020. Owing to the high performance, increased reliability, enhanced protection, and better aesthetics, the demand for plasticizers in the flooring & wall coverings is estimated to increase over the forecast period. Furthermore, to provide a good balance of processability and efficiency for a variety of flooring & wall-covering applications phthalates are increasingly being. Moreover, the increasing usage of plasticizers for cost savings and better performance of flooring & wall-covering materials is anticipated to drive the growth of the market in the forecast period.

Plasticizers and Tackifiers Market Segment Analysis- By End Use Industry

Building and Construction sector held the largest share in the plasticizers and tackifiers market in 2020 and is projected to grow at a CAGR of 6.2% during the forecast period 2021-2026. Plasticizers and tackifiers play a vital role in the building and construction industry. Growing demand for pressure-sensitive and water-borne adhesives in the building and construction industry for a variety of applications including heating, ventilation, air conditioning, concrete, joint cements, manufactured housing, resilient flooring, and many others will drive the growth of the industry. Also, tackifiers are used in large amounts in these adhesives to strengthen the tack, peel, and bonding of the surface. Moreover, the rising growth of plasticizers in the remodeling and construction activities would further raise the growth of the market. The upsurge in the building and construction industry is thus driving the demand for plasticizers and tackifiers, which is estimated to drive the market growth.

Plasticizers and Tackifiers Market Segment Analysis- Geography

Asia-Pacific region held the largest share of more than 37% in the plasticizers and tackifiers market in 2020. Owing to the rising remodeling and construction activities and growing production of automotive in emerging economies such as China, India, and Japan is estimated to drive the growth of the market. Asia-Pacific region is expected to dominate the plasticizers and tackifiers market in the upcoming years with the rising building and construction and automotive industries. In the region’s emerging economies such as China, Japan, India, and Malaysia, the automotive and building and construction industries are dominant in their respective markets, which is a key factor for the plasticizers and tackifiers market to expand steadily in the coming years. According to the International Trade Administration (ITA), China is the world’s largest construction market, and the industry is forecasted to grow at an annual average of 5% in real terms between 2019 and 2023. In Japan, also, a 330-meter-tall building is expected to be constructed in central Tokyo by 2023 as part of a skyscraper project by Mori Building Co., as per a news report published in September 2020. Thus, the demand for plasticizers and tackifiers is therefore anticipated to increase in the Asia-Pacific region over the forecast period.

Plasticizers and Tackifiers Market Drivers

Rising Adoption of Bio-Based Plasticizers & Tackifiers

The public awareness of the environmental impact of plasticizers and tackifiers, as well as the depletion of petroleum-based resources has prompted the creation of bio-based plasticizers and tackifiers. When used instead of conventional plasticizers, the increased use of bio-based plasticizers for wire applications will help cable manufacturers and original equipment manufacturers (OEMs) reduce greenhouse gas emissions by up to 40%. Moreover, growth of the market is currently attracted by the use of natural and/or biodegradable plasticizers with low toxicity and good compatibility with a variety of plastics, resins, rubber, and elastomers in place of traditional plasticizers like phthalates and other synthetic conventional plasticizers, as well as the growing global movement towards the use of biopolymers. Furthermore, rising usage of bio-based tackifiers is also anticipated to drive the market growth. Currently, the bio-based tackifiers currently enable packaging adhesive formulators to face their most difficult challenges while minimizing environmental impact. Thus, growing demand for bio-based plasticizers & tackifiers is thus anticipated to boost the growth of the plasticizers & tackifiers market.

Increasing Demand for Flexible Polyvinyl Chloride (PVC)

In general, polyvinyl chloride (PVC) is a rigid thermoplastic polymer. Plasticizers are important for making PVC soft by imparting the requisite flexibility and durability. Flexible PVC refers to PVC that has been softened with plasticizers. Owing to the reliability and high efficiency of up to several years, these versatile PVCs open up new application markets, thus driving the growth of the market. Also, the increasing usage of flexible PVC owing to its excellent water resistance and non-flammable properties, in various applications such as in flooring, wall covering, extruded wires, adhesive films, automotive, synthetic leather coated textiles, and medical devices, has driven the growth of the market. Moreover, the demand for flexible PVC is in high demand due to its longer lifespan as compared to the traditional PVC. Therefore, the increasing consumption of flexible PVC is driving the plasticizers & tackifiers market growth.

Plasticizers and Tackifiers Market Challenges

Stringent Regulations on the Use of Phthalates Plasticizers

Rising shift from phthalates plasticizers as a growing number of studies expose the health risks associated with their use is hindering the growth of the market. Non-governmental organizations (NGOs) such as the United States Green Building Council (USGBC) are also encouraging the use of non-phthalates plasticizers because of their environmental benefits. In several consumer goods, the use of certain phthalates is banned in different countries. Pthalates plasticizers are prohibited in some applications in Europe, according to directives such as the EEC directive 2005/84/EEC, (EC) 10/2011 (Union List), and other regulations. DEHP, DBP, and BBP, three phthalates plasticizers, are banned in children's toys and childcare products by the European Parliament. The use of DINP, DIDP, and DNOP in sensitive applications is also prohibited. These strict regulations are one of the biggest roadblocks to the plasticizers & tackifiers market's expansion.

Plasticizers and Tackifiers Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the plasticizers & tackifiers market. Major players in the plasticizers & tackifiers market are Exxon Mobil Corporation, Arkema, Arakawa Chemical, Yasuhara Chemical Co., Ltd., Eastman Chemical Company, Evonik Industries, BASF SE, Aekyung Petrochemical Co., Ltd, LG Chem, and Shandong Hongxin Chemicals Co. Ltd. among others.

Acquisitions/Technology Launches

• In April 2021, BASF SE has launched Hexamoll® DINCH BMB, Palatinol® N BMB, Palatinol® 10-P BMB, and Plastomoll® DOA BMB, biomass balanced (BMB) plasticizers made from sustainable raw materials. which are derived from organic waste or vegetable oils.

Relevant Reports:

Plasticizers & Tackifiers in Tyres Market - Forecast(2021 - 2026)

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Plasticizers Market - Forecast(2021 - 2026)

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Rubber Additives Market - Forecast(2021 - 2026)

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