The masterbatch market in the Middle East and Africa (MEA) region is projected to grow at a compound annual growth rate (CAGR) of over nine per cent in the next five years amid growing demand from the building and construction sectors besides packaging, said a report.

Masterbatch is a concentrated mixture of pigments and additives encapsulated during a heat process into a carrier resin which is then cooled and cut into a granular shape.

Low production cost of polymers owing to easy availability of raw materials and less per capita plastic consumption are creating numerous opportunities for plastic and polymer manufacturers, consequently boosting the demand for masterbatch across Middle East and Africa, stated Techsci Research in its report.

According to the report, the polymer demand in Middle East region is anticipated to grow at a CAGR of six per cent, in volume terms, during 2016-2020, in order to reach close to 20 million metric tons by 2020.

Moreover, the polymer capacity in GCC is also projected to increase from 13 million tons in 2014 to 29 million tons by 2019, thereby anticipated to provide huge growth opportunities for masterbatch market of MEA region over the next five years, stated the research-based global management consulting firm.

Growth across various end-user industries such as packaging, building and construction, automotive, consumer appliances are also expected to boost the demand for masterbatch in the region, said the research firm in its report.

Moreover, increasing demand for colourful and innovative solutions from packaging industry and growing preference of plastic and polymers for manufacturing light weight vehicles in automotive industry are forecast to boost demand for masterbatch in Middle East & Africa region through 2021.

Due to increasing living standards of consumers, especially those living in Middle East, there is a huge demand for customized decorative materials, consequently aiding the MEA masterbatch market, it added.

The research firm said the masterbatches are manufactured by pigments, additives and carrier resins, and are classified as white, black, color, additive and additive masterbatches.

Out of these, the white masterbatch market in Asia-Pacific region is likely to register the highest growth rate during 2016-2021, on account of its ability to provide opacity and base color to plastic used extensively in food & beverage and pharmaceutical industries.

"Last year, Saudi Arabia had dominated the MEA masterbatch market, and is expected to continue its dominance through 2021, as the country is the largest manufacturer of polyethylene (PE) and polypropylene (PP) chemicals, the basic raw materials used for manufacturing plastics," stated Karan Chechi, the research director with TechSci Research.

"However, during 2016-2021, South Africa is likely to outpace Saudi Arabia in terms of growth, owing to its large polymer production base and largest per capita consumption of plastics in Sub-Saharan Africa region," he added.-TradeArabia News Service