The demand for masterbatch in Saudi Arabia is set to hit a new high with the market projected to cross $159.32 million over the next five years, said a report.

Masterbatch is a solid or liquid additive for plastic used for colouring plastics (colour masterbatch) or imparting other properties to plastics (additive masterbatch). These are important components in polymer processing value chain as they provide colour and functional properties to finished plastic materials.

During the last decade, domestic consumption of masterbatch in Saudi Arabia remained muted due to limited number of manufacturers active in the country, according to a report by TechSci Research, a global management consulting firm.

With increasing investments in downstream petrochemical industry, polymer processing sector is set to witness a robust growth in the coming years, which in turn, would drive the demand for masterbatches in Saudi Arabia, stated the research firm in its “Saudi Arabia Masterbatch Market Forecast & Opportunities, 2019” report.

The masterbatch market in Saudi Arabia was projected to witness a compound annual growth rate of 6.3 per cent during 2014-19 in terms of volume consumption.

The expansion of masterbatch production and processing in the country is expected to pave way for the entry of various global leaders in masterbatch production, it said.

Besides the global manufacturers, domestic masterbatch manufacturers are also expected to boost their production capacity in order to address the increasing demand for masterbatches in the country, it added.

The growth in major end user industries like packaging, automotive, appliances and textiles is expected to garner the demand for masterbatch in the country, said the report by TechSci Research.

Packaging films, however, form the fastest growing segment for masterbatches consumption in Saudi Arabia in volume terms. Although a large number of small-size domestic masterbatch manufacturers have operations in the country, the overall market is largely consolidated among three global manufacturers, it stated.

Karan Chechi, the research director with TechSci Research, pointed out that over the coming years, Saudi Arabia’s masterbatch market was expected to benefit from large scale construction projects in pipeline, growth in lightweight vehicle production and steady growth in plastic packaging industry.

"Heavy investments in petrochemical industry by both public and private sectors is creating expansion opportunities for plastic processors, compounders and masterbatch manufacturers in Saudi Arabia," remarked Chechi.

The government, said the official, was also planning to make significant investments in downstream petroleum industries to diversify its economic dependence on oil export.

"Consequently, polymer processing is emerging as one of the major hotspots for masterbatch manufacturers existing or targeting to enter Saudi Arabia," he added.-TradeArabia News Service