May 25, 2024

Towards a Circular Plastics Economy: The Purging Compound Market is driven by sustainability concerns

Purging compounds are extensively used in plastics processing applications to improve product quality and operational efficiency. They help remove color variations, contaminated plastic, and degraded material from manufacturing equipment between product changeovers. This reduces defects and waste generation in the production process. Purging compounds provide process optimizers in industries such as automotive, electronics, construction, packaging and others where meeting tight quality specifications is critical. The global purging compound market is witnessing increased focus on bio-based and recyclable variants to lower the environmental footprint of plastics. Sustainable purging solutions that enable the use of recycled resin content and facilitate collection for mechanized recirculation are gaining traction.

The global Purging Compound Market is estimated to be valued at US$ 596.5 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the purging compound market is the rising preference for bio-based and recyclable materials. Purging agents derived from renewable agricultural feedstocks such as corn, sugarcane and vegetables oils are gaining market share owing to stringent environmental norms promoting sustainable material choices. Leading manufacturers are innovating their product portfolios to align with a circular plastics economy vision. Recyclable purging solutions designed for closed loop recycling without the loss of material qualities during mechanical reprocessing are emerging. Such technologies help plastic waste diversion and support carbon emission reduction targets, driving their adoption.

Porter’s Analysis
Threat of new entrants: The purging compound market requires significant investments in R&D and manufacturing facilities which acts as a barrier for new players.

Bargaining power of buyers: The presence of numerous established players helps buyers negotiate lower pricing. However, customized products limit switching to alternatives.

Bargaining power of suppliers: Specialty chemicals and polymers that are key raw materials for purging compounds have few substitutes and suppliers. This gives them stronger bargaining power.

Threat of new substitutes: While alternative technologies exist, purging compounds are trusted solutions for cleaning injection molding machines. New substitutes are yet to prove their efficiency at scale.

Competitive rivalry: The market has few international players with their local presence. However, private label brands from compounders intensify competition.

Key Takeaways

The global purging compound market is expected to witness high growth over the forecast period supported by rapid expansion of the plastic processing industry.

Regional analysis: Asia Pacific accounts for over 40% of the global market. China, India & Vietnam are major consumers due to their fast developing plastics sectors. Southeast Asian countries also contribute significantly to the regional market led by manufacturing hubs in Indonesia, Malaysia & Thailand.

Key players: Key players operating in the purging compound market include Asahi Kasei Corporation, Clariant A.G., CALSAK Corporation, Daicel Corporation, DowDuPont Inc., Formosa Plastics Corporation, Kuraray Co., Ltd. Asahi Kasei, Dow and Clariant products are well recognized globally for quality and consistency.