Plasticizers Market Size, Share, Forecast, & Trends Analysis by Type (Phthalate, Non-phthalate, Bio), End-use Industry (Building & Construction {Wires & Cables, Flooring & Wall Coverings, Roofing Membranes}, Automotive, Packaging) - Global Forecast to 2031

The Plasticizers Market was valued at $17.9 billion in 2023. This market is expected to reach $26.9 billion by 2031 from an estimated $18.6 billion in 2024, at a CAGR of 5.4% during the forecast period 2024-2031.

Plasticizers Market Size & Forecast

The growth of the plasticizers market is primarily driven by the increasing construction & infrastructure development in emerging economies and the rising demand for plasticizers in the automotive & consumer goods industries. However, volatile raw material prices restrain the growth of this market.

Additionally, the growing demand for eco-friendly plasticizers and the increasing utilization of plasticizers in the manufacture of packaging materials are expected to create growth opportunities for the players operating in the market. However, stringent government regulations pertaining to plastic products are a major challenge impacting market growth.

Plasticizers Market Growth Drivers

Increasing Construction & Infrastructure Development in Emerging Economies

Rapid urbanization and industrialization are driving an increase in construction & infrastructure development projects in emerging economies, particularly in Asia-Pacific, Latin America, and the Middle East & Africa. Construction and infrastructure development refer to the building and expansion of physical structures and facilities, including residential and commercial buildings, bridges, highways, roads, mass transit facilities, airports, and utilities. Plasticizers are used in the construction and infrastructure sectors to enhance the flexibility, durability, and workability of materials, including concrete, asphalt, and PVC. They are used in applications such as wires & cables, flooring & wall coverings, roofing membranes, and piping systems.

Major players in this market are focusing on the development of bio-sourced admixture solutions to enhance the strength and workability of concrete and contribute to sustainability by reducing the carbon footprint of construction materials. For instance, in January 2023, Cemex, S.A.B. de C.V. (Mexico) launched a range of next-generation bio-sourced admixture solutions that utilize a natural, renewable, and locally sourced raw material to deliver a lower carbon footprint. These admixtures are added to concrete mixes to enhance attributes, including strength, workability, and water demand, which reduces the carbon footprint and promotes more sustainable practices in construction. Such developments, along with the growing demand for high-performance and cost-effective construction materials, increasing government investments in infrastructure, and the increasing use of plasticizers in construction materials to achieve the desired performance characteristics, are driving the growth of the plasticizers market.

Rising Demand for Plasticizers in the Automotive & Consumer Goods Industries

Companies in the automotive and consumer goods industries face several challenges related to product durability and performance, including the products’ ability to withstand extreme temperatures, vibrations, and wear, and product compliance with stringent government regulations. Hence, companies are using plasticizers to address these challenges. Automotive manufacturers use plasticizers to enhance the flexibility of materials, including PVC, to increase the durability of interior & exterior parts and wire & cable insulation, increase the adhesion & elasticity of sealers, prevent brittleness, and ensure reliable product performance under varying temperatures. In the consumer goods sector, plasticizers are used in applications, including footwear, sports equipment, toys, and childcare products, to improve the softness and flexibility of materials.

Major players in this market are focused on enhancing the performance and durability of their plasticizer products to ensure low volatility & high temperature resistance, meet the growing demand for advanced plasticizers, and support innovation in the automotive and consumer goods industries. For instance, in November 2022, Evonik Industries AG (Germany) signed a memorandum of understanding with DEZA, a.s. (Czech) for the production of the plasticizer tri-isononyl trimellitate (TINTM). TINTM is marketed under the brand name ELATUR^® TM and is characterized by a particularly high temperature resistance, low volatility, and low migration behavior. It is suitable for applications including high-temperature cables and automotive interiors. Such developments, along with advances in the automotive sector, such as the increasing incorporation of lightweight and high-performance materials and rising consumer expectations in terms of product quality & performance, are boosting the adoption of plasticizers, driving the growth of this market.

Plasticizers Market Opportunities

Growing Demand for Eco-friendly Plasticizers

With the increasing focus on sustainability, companies across industries are facing significant challenges related to environmental protection and regulatory compliance. Plasticizers can have adverse health & long-term ecological impacts if they leach into the environment. These concerns have resulted in stricter regulations and accelerated the enforcement of more sustainable practices. Eco-friendly plasticizers help address environmental and health concerns by offering similar performance characteristics while being more sustainable. Eco-friendly plasticizers are derived from renewable resources and are designed to be less harmful to both human health and the environment. Bio-based plasticizers include eco-friendly options such as citrate esters, Epoxidized Soybean Oil (ESBO), glycerol esters, and succinates. They are used in building and construction materials, automotive components, consumer goods, and medical devices to enhance product performance while ensuring compliance with environmental standards.

Major players in this market are focusing on eco-friendly plasticizers as they are a sustainable alternative to traditional fossil-based plasticizers, minimize environmental impacts, and support greener manufacturing practices. In February 2024, Perstorp AB (Sweden) launched a renewable carbon-based non-phthalate plasticizer called Pevalen™ Pro 100. The new grade of Pevalen features 100% renewable carbon content based on mass balance. It offers a product carbon footprint reduction of approximately 80.0% relative to its fossil-based equivalent from cradle to Perstorp gate. This reduction is achieved by considering the biogenic CO₂ uptake from its renewable raw materials. Such developments, along with the increasingly stringent environmental regulations and rising consumer awareness about sustainability, are expected to generate growth opportunities for market players focused on introducing eco-friendly, bio-based offerings.

Increasing Utilization of Plasticizers in the Manufacture of Packaging Materials

Packaging helps maintain product quality, extends product shelf life, and ensures consumer safety. Packaging ensures that products remain intact throughout the logistics chain from manufacturer to the end user. It protects products from humidity, light, heat, and other external factors. Packaging materials are used to enclose or hold together packaged goods during storage, handling, and transportation. Plasticizers are used in the manufacturing of packaging materials to enhance their flexibility, durability, and performance. They improve the strength, flexibility, and stretchability of films and enhance sealability, softness, durability, and adhesion, resulting in more effective and efficient packaging solutions.

The increasing demand for advanced packaging solutions in the food processing & pharmaceutical sectors, the growing focus on sustainable packaging, advancements in packaging technologies, and the rapid growth of the e-commerce sector are driving the demand for advanced packaging solutions. According to the Census Bureau of the Department of Commerce (U.S.), the total e-commerce sales for 2023 were estimated at $1,118.7 billion, an increase of 7.6% compared to 2022. According to the India Brand Equity Foundation (India), the Indian online grocery market is estimated to reach $26.93 billion in 2027 from $3.95 billion in 2021, expanding at a CAGR of 33%. Also, the Indian e-commerce industry is projected to reach $300 billion by 2030, witnessing significant growth. Hence, as more consumers shift toward online shopping, companies are investing in advanced packaging solutions to meet higher sales volumes and streamline operations. This shift has increased the demand for plasticizers in the manufacture of packaging materials, generating growth opportunities for market stakeholders.

Plasticizers Market Analysis: Key Findings

By Type: The Phthalate Plasticizers Segment to Dominate the Plasticizers Market in 2024

Based on type, the plasticizers market is broadly segmented into phthalate plasticizers, non-phthalate plasticizers, and bio-based plasticizers. Phthalate plasticizers are further segmented into Diethylhexyl Phthalate (DEHP), Diisononyl Phthalate (DINP), Diisodecyl Phthalate (DIDP), Butyl Benzyl Phthalate (BBP), Dioctyl Phthalate (DOP), and other phthalate plasticizers. Non-phthalate plasticizers are further segmented into adipates, benzoates, trimellitates, epoxies, phosphate esters, and other non-phthalate plasticizers. Bio-based plasticizers are further segmented into citrate esters, Epoxidized Soybean Oil (ESBO), glycerol esters, and other bio-based plasticizers. In 2024, the phthalate plasticizers segment is expected to account for the largest share of over 47% of the plasticizers market. The segment’s large market share can be attributed to phthalate plasticizers’ effectiveness in improving the flexibility, durability, and workability of plastics and the growing use of phthalate plasticizers in products such as vinyl flooring, pipes, wiring insulation, and coatings.

However, the bio-based plasticizers segment is projected to witness the highest growth rate during the forecast period 2024–2031. The growth of this segment is driven by increasing regulatory pressures and environmental awareness, the growing consumer preference for eco-friendly and sustainable products, and the increasing use of bio-based plasticizers in food & beverage packaging materials and medical tubing, among other applications.

By End-use Industry: The Building & Construction Segment to Dominate the Plasticizers Market in 2024

Based on end-use industry, the plasticizers market is broadly segmented into building & construction, automotive, consumer goods, packaging, medical devices, textiles, and other end-use industries. The building & construction segment is subsegmented into wires & cables, flooring & wall coverings, roofing membranes, and other building & construction applications. The automotive segment is subsegmented into interior & exterior parts, automotive sealers & adhesives, wire & cable insulation, and other automotive applications. The consumer goods segment is subsegmented into footwear, sports & leisure products, toys & childcare products, and other consumer goods applications. The packaging segment is subsegmented into flexible packaging, rigid packaging, and other packaging applications. The medical devices segment is subsegmented into tubes & bags, IV containers, and other medical device applications. The textile segment is subsegmented into coated fabrics, synthetic leather, and other textile applications. In 2024, the building & construction segment is expected to account for the largest share of over 35% of the plasticizers market. The segment’s large market share can be attributed to rapid urbanization & infrastructure development, and the growing use of plasticizers in the production of vinyl flooring, pipes & tubing, wall coverings, and sealants & adhesives to enhance the flexibility, durability, and workability of these construction materials.

However, the medical devices segment is projected to witness the highest growth rate during the forecast period 2024–2031. The growth of this segment is driven by the increasing demand for plasticizers due to advancements in healthcare, increasing medical needs, the shift toward non-toxic & biocompatible materials, and the growing use of plasticizers in the manufacture of diagnostic tools & equipment, medical tubing, implants, and disposable medical products including gloves, syringes, and blood bags to improve their functionality and ensure safe and reliable performance.

Geographic Analysis

Asia-Pacific to Dominate the Plasticizers Market in 2024

Based on geography, the plasticizers market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of over 53% of the plasticizers market, followed by Europe, North America, Latin America, and the Middle East & Africa. Asia-Pacific's large market share can be attributed to the ongoing industrialization in countries such as China, South Korea, and India, the increasing use of plasticizers to enhance the performance and flexibility of products across various industries, growing construction activities across APAC countries, the rapid expansion of the automotive industry, the increasing demand for advanced packaging solutions in the food processing sector, and the growing demand for consumer goods such as electronics and toys in the region.

Moreover, Asia-Pacific is also slated to register the highest growth rate of over 6.5% during the forecast period. The growth of this regional market is driven by the growing consumer preference for products with enhanced durability, flexibility, and safety and increasing product safety and environmental regulations and standards driving the use of eco-friendly products, such as non-phthalate and bio-based plasticizers.

Plasticizers Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. The key players operating in the plasticizers market include UPC Technology Corporation (Taiwan), Exxon Mobil Corporation (U.S.), BASF SE (Germany), Evonik Industries AG (Germany), Eastman Chemical Company (U.S.), Aekyung Chemical (South Korea), LG Chem, Ltd. (South Korea), DIC Corporation (Japan), Kao Corporation (Japan), Avient Corporation (U.S.), Polynt S.p.A. (Italy), KLJ Group (India), Arkema Group (France), Perstorp AB (Sweden), The Dow Chemical Company (U.S.), and Nan Ya Plastics Corporation (Taiwan).

Plasticizers Industry Overview: Latest Developments from Key Industry Players

• In August 2024, Eastman Chemical Company (U.S.) announced the launch of Benzoflex™ 172, a new plasticizer that can help manufacturers more efficiently reduce viscosity in their Polyvinyl Chloride (PVC) formulations.
• In August 2024, BASF SE (Germany) signed a memorandum of understanding with UPC Technology Corporation (Taiwan) to strengthen strategic cooperation on plasticizer alcohols and catalysts for Phthalic Anhydride (PA) and Maleic Anhydride (MA), along with the development of sustainable solutions to reduce carbon emissions from operations and products.
• In June 2023, KLJ Group (India) announced investing approximately $145.0 million in commissioning a new facility for plasticizer and phthalic anhydride production at the GIDC Jhagadia Industrial Estate, Bharuch, Gujarat. The facility can produce 300,000 MT of phthalate plasticizers, 100,000 MT of phthalic anhydride, 3,500 MT of maleic anhydride, and 700 MT of benzoic acid annually.

Plasticizers Market Research Summary

Key questions answered in the plasticizers market report: