The global special effect masterbatches market value was US$ 2.7 billion in 2020. The global special effect masterbatches market value is forecast to reach US$ 5.1 billion by 2030, with a growing compound annual growth rate (CAGR) of 6% during the forecast period from 2021-2030.

The use of special effect materials can increase consumer appeal, provide beneficial properties, mimic other materials, and increase the visual impact of plastic products. The main purpose of special effect masterbatches is to achieve visual effects such as metallic, pearlescent, sparkle mist, fluorescence, and transparency. These masterbatches consist of pigments and additives encapsulated in plastics that allow manufacturers to manufacture plastic goods. With the help of special effect masterbatches, polymers can be colored and added to finished products with special effects. With the help of special effect masterbatches, polymers infuse with various special effects that will improve the appearance of polymers or end-products.

Factors Influencing Market Growth

Consumers' desire for longer shelf lives of food products increases the demand for top barrier films. Polymer nanocomposites are being engineered to improve barrier properties of packaging films, thereby enhancing the laminate structure. As a result, there will be an increase in demand for special effects masterbatches during the forecast period because of the high demand for masterbatches in the region.

There are many applications for color masterbatches, such as blow molding, film extrusion, injection molding, rotational molding, and more. In addition to electronics and automotive, there are other industries that use color masterbatches, such as textiles, food & beverage, medicine packaging, and packaging for packaging. Thus, the increase in the end-user application of color masterbatches drives the growth of the global special effects masterbatches market.

The fluctuating price of crude oil directly affects the cost of plastics and also their use. Therefore, an increase in plastic prices will lead to a rise in the price of masterbatches, thus slowing down the growth of the global special effect masterbatches market.

Impact Analysis of COVID-19

The outbreak of COVID-19 has negatively impacted several industries. Due to the measures are taken by governments around the world to curtail the spread of the virus. The lack of raw materials and transportation, low labor availability, and decreased demand for special effect masterbatches were all factors that affected production across various industry verticals. A decline in the growth of several end-use markets such as automotive, packaging, and food & beverage has negatively impacted the global special effect masterbatches market, causing many tier-3 masterbatches manufacturers to close down their facilities to survive. Additionally, using special effect masterbatches manufacturing medical packaging and medical equipment has provided limited support to the market growth for special effect masterbatches during the pandemic period. During the pandemic, the industry for special effect masterbatches experienced a decline.

Regional Insights

The Asia-Pacific region dominates the market for special effect masterbatches. Due to an increase in the use of color masterbatches in the food packaging industry, the regional market anticipates growing during the analysis period. Advancements in blow molding technology in rapidly developing countries, including China and India are expected to boost the regional contribution.

Leading Competitors

The leading prominent companies profiled in the global special effect masterbatches market are:

Ampacet Corporation
Avient Corporation
Broadway Colours
Clariant Ag
Dk Polymers
Frilvam S.P.A.
Gabriel-chemie AG
Kandui Industries Pvt Ltd.
Micro Poly Colours India
Minocha Enterprises Pvt. Ltd.
Real-time Transport Protocol (RTP)
Other Prominent Players
Scope of the Report

The global special effect masterbatches market segmentation focuses on Effect Type, Application, and Region.

Segmentation based on Effect Type

Appearance Effects
Metallic
Edge Glow
Pearlescent
Transparent
Sparkle Mist
Iridescent
Fluorescent
Material Effects
Functional Effects
Segmentation based on Application

Packaging
Consumer Care
Food & Beverage
Industrial
Others
Hygiene & Baby Product
Automotive
Homecare & Household products
Consumer appliances
Sports and Leisure
Other Applications
Segmentation based on Region

North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America