The growing manufacturing sector, rise in use of polymer products in industries and increasing consumption of end products by the excessively large middle class of India were the key factors driving growth of polymer additives market in India.
India Polymer additives market is concentrated with the presence of few organized players which manufacture in India as well as import polymer additives from other countries. Many of these companies have multiple manufacturing plants located all across the globe. The companies (indigenous as well as MNCs) which have made a foothold in the Indian market are namely BASF, Baerlocher India, Adeka India, KLJ Group, HPL Additives, Payal Group, Amines and Plasticizers and others. These companies compete on the basis of price, quality, just in time delivery and the range of products that they offer. There are several unorganized players as well which mainly import additives from other countries. These players largely serve the medium and small scale polymer manufacturers in the vicinity of their location. The major players of the market have their own distribution channel with sales team and offices in different zones of the country.
The polymer additives market is highly dependent on the oil and gas industry for raw material and the polymer industry (especially plastic) for demand. Any fluctuation in these industries leads to a huge effect on the polymer additives industry. Fluctuation of the crude oil prices in recent years had an effect on the overall growth rate of the market, but the promising future in the automobile, electronic, construction and other industries have been the key drivers of the overall growth of the industry. The growth in these industries is a result of the growing demand of the consumer products by the middle class as well as the rapidly growing manufacturing sector in India.
The report titled “India Polymer Additives Market by Type (Stabilizers, Plasticizers, Antioxidants, Flame Retardants and Modifiers), by Application (PVC, Polyolefin and Other) – Outlook to 2022” by Ken Research suggested a positive CAGR of 8% in terms of total revenue of polymer additives in the next 5 years with plasticizer expected to contribute over 58% in revenue by 2022.
According to Ken Research, the dependency of the Indian market on imports is still high. On the basis of value in FY’2017, around 30% of additives were imported. The Chinese additives available in the market are cheap with low quality. Companies are importing these products without considering the negative effect these low quality additives will have on the industry. Additionally, these additives do not comply with environmental regulations and standards and pose a great danger to the environment.
For more information on the market research report please refer to the below link:
Ankur Gupta, Head Marketing & Communications