In the past decade, the demand for masterbatch in Saudi Arabia has been slowing down because domestic manufacturers are limited and not active. As investment in the downstream petrochemical industry increases, the polymer processing sector will witness strong growth in the next few years, which in turn will boost demand for masterbatch in Saudi Arabia.
Saudi Arabia's domestic masterbatch expansion and processing will pave the way for the world's leading masterbatch producers to enter the local market. In addition, in addition to global manufacturers, in order to cope with the rising domestic demand, domestic manufacturers will also increase the production capacity of masterbatch.
According to a recent report released by research firm TechSci Research, Saudi Arabia's demand for masterbatch will increase at a compound annual growth rate of 6.3% between 2014 and 2019. The main areas of demand include packaging, automotive, home appliances and the textile industry. The demand for masterbatch in packaging film will increase at the fastest rate. Although there are many small masterbatch manufacturers in Saudi Arabia, most markets are dominated by three global manufacturers. In the next few years, Saudi Arabia's masterbatch market will benefit from pipeline laying in large construction projects, increased light vehicle production and steady growth in the plastic packaging industry.
“The large investment in the petrochemical industry by the public and private sectors will provide opportunities for Saudi Arabian plastics processors, compounding producers and masterbatch manufacturers. The Saudi government also plans to increase investment in the downstream petrochemical industry to reduce the degree of dependence of the domestic economy on oil exports. As a result, the polymer processing industry is gradually emerging, receiving widespread attention from masterbatches manufacturers that are either existing or targeted to enter the Saudi market,” said Karan Chechi, research director at TechSci Research.