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[Industry Focus]:Analysis of Current situation and development trend of modified plastics industry, the demand for differentiated modified plastics and high-performance environmentally friendly plastics will further increase

Modified plastics refer to the processing and modification of general plastics and engineering plastics through filling, blending, strengthening and other methods to improve flame retardant, strength, impact resistance, plastic products with toughness and other properties. Modified plastics are widely used at present. Home appliances, automobiles, communications, medical treatment, electronics and electricity, rail transit, precision instruments, home building materials, security, aerospace, military industry and other fields.

Current situation of modified plastics industry


from 2010 to 2021, China's modified plastics grew rapidly, from 7.8 million tons in 2010 increased to 22.5 million tons in 2021, the annual compound growth rate is 12.5%. With the expansion of the application field of modified plastics, there is still much room for development of modified plastics in China in the future.

Currently, the demand market for modified plastics is mainly distributed in the United States, Germany, Japan and South Korea. The modified plastics technology in developed countries such as the United States, Germany and Japan is relatively advanced, and the modified plastics are applied earlier. The demand for modified plastics in these regions is far ahead. In recent years, with the progress of China's modified plastics technology and the promotion of the application of modified plastics, the market scale of China's modified plastics is also increasing.

In 2021, the global modified plastic industry change in quantity supplied, about 110 million tons. After the end of the new Crown epidemic, with the recovery of production and consumption, the market demand for modified plastics will be greatly improved, and the market demand growth rate of the global modified plastics industry will be around 3% in the future, it is estimated that the market demand of global modified plastics industry will reach 130 million tons by 2026.

After China's reform and opening up, the application of plastic modification technology has gradually emerged. However, due to the late start time, the domestic plastic modification processing industry has problems of weak technology and small scale, high-end products mainly rely on imports. Data show that in 2019, the output of modified plastics of industrial enterprises above designated size in China reached 19.55 million tons, it is estimated that the modified plastics of industrial enterprises above designated size in China will reach more than 22.81 million tons in 2022.

Development Trend of modified plastics industry


with the development of 3D printing, Internet of Things, 5G communication, artificial intelligence and other technologies, the application scenarios in the downstream fields of modified plastics are constantly enriched and the application scope is continuously expanded, while this brings development opportunities to modified plastics, it also puts forward higher requirements for modified materials.

In the future, the development of China's modified plastics industry will show the following trends:

(1) upgrading and progress in downstream areas will promote upgrading of modified plastics industry

with the rapid development of 5G communication, Internet of Things, artificial intelligence, 3D printing and other technologies, the rise of smart home, new energy vehicles and so on, the market has continuously improved the requirements for material performance, the innovation and development of modified plastics industry will continue to increase. At present, China's high-end modified plastics are still highly dependent on the outside world, and the localization of high-end modified plastics is imperative, with low density, high rigidity, high toughness, high temperature resistance, plastic products with low volatile organic compounds will be more and more widely used.

With new market demands such as new energy vehicles and smart homes, more high-quality modified plastics will be created, differentiated high-end modified plastics will usher in the spring of development.

(2) The progress of modification technology promotes the upgrading of modified plastic materials

with the promotion of application demand, the modified plastic industry is also actively developing new modification technologies and material formulas, which promotes the rapid development of modification technologies. In addition to traditional enhancement, with the continuous development of flame retardant technology, composite modification technology, special functionalization and alloy collaborative application technology will also increase. The modified plastic industry shows the trends of diversification of modification technology, general plastic engineering, high performance of engineering plastics, etc.

General Plastics Engineering means that General Plastics gradually have the characteristics of some engineering plastics through modification, which can replace some engineering plastics, thus gradually seizing the application market of some traditional engineering plastics. High performance of engineering plastics is through the improvement of modification technology, modified engineering plastics can achieve or even exceed part of the properties of metals. In recent years, with the vigorous development of China's information communication and new energy automobile industry, the demand for high-performance modified engineering plastics has risen sharply, and high-performance modified engineering plastics with ultra-high strength, ultra-high heat resistance and other properties that can adapt to harsh working environment will be well applied.

In addition, under the promotion of social awareness of environmental protection and the guidance of national policies, the market's demand for environmentally friendly, low-carbon and energy-saving, recyclable and degradable modified plastics is also increasing, the market demand for high-performance environment-friendly modified plastics is constantly increasing, especially the technical requirements such as low odor, low VOC and no spraying may cover the upstream and downstream of the entire industrial chain.

(3) intensified market competition, industry concentration will be further improved

at present, there are a large number of modified plastics production enterprises in our country and the industry competition is fierce. Compared with large international enterprises, there is still a certain gap in the overall technical capacity of the modified plastics industry in our country. Influenced by many factors such as Sino-US trade war and the outbreak of new coronavirus pneumonia, China's manufacturing industry pays more and more attention to the construction of supply chain, requiring stable and reliable supply chain and emphasizing independent and controllable supply chain, this also creates new opportunities for China's modified plastics industry. With the market opportunities and the support of national industries, China's modified plastics industry will reach a new level, there are a number of outstanding enterprises that can compete with large international enterprises.

Meanwhile, enterprises with homogeneous technology, lack of independent research and development ability and poor product quality will also face the situation of being phased out by the market, and further improvement of industrial concentration will also become the overall development trend.


Source: New Material Research Institute
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