Industry Overview and Market Size

Black masterbatch, a key material for plastic coloring, is composed of carbon black, carrier resin, and additives. It is widely used in plastic products, automotive, cables, and other fields. As the world’s largest producer and consumer, China continues to experience steady market growth.

Market Scale and Output

In 2023, China’s black masterbatch market reached RMB 18.65 billion, with an output of 1.68 million tons, accounting for nearly 40% of the global market share. It is projected that by 2025, the market size will exceed RMB 23 billion, with output reaching 1.95 million tons. The compound annual growth rate (CAGR) from 2021 to 2025 is estimated at 8.5%.

Regional Production Capacity Distribution

Eastern China, leveraging its complete chemical industry chain, accounts for 42.3% of production capacity. Southern China, as a major manufacturing base, holds 28.7%, followed by Northern China. These three regions form a synergistic effect with downstream industrial clusters.

Product Structure Upgrading

General-purpose products still dominate the market (62%), but demand for high-concentration and functional products is growing rapidly. Their share increased from 27% in 2020 to 38% in 2023 and is expected to reach 45% by 2025, indicating a clear trend toward high-end and customized products.

Industrial Chain Structure and Supply-Demand Dynamics

Analysis of Upstream Raw Materials

The domestic production rate of carbon black exceeds 85%, though high-end specialty products still rely partially on imports. Carrier resins are primarily polyethylene (PE, 53.7%) and polypropylene (PP). Under the “dual carbon” policy, the application proportion of recycled resin increased from 7% in 2020 to 14.7% in 2024. The localization of additives is accelerating, while environmentally friendly low-VOC products have become a R&D focus.

Downstream Application Fields

Plastic pipes and profiles are the largest application area (over 35%), while wire and cable sectors are growing rapidly due to new energy industry demand. Film packaging, automotive lightweighting, and electronic appliances also contribute to stable market growth. Consumption is concentrated in Eastern and Southern China, with Central and Western regions gradually unlocking potential.

Market Competition and Technological Development

Competitive Landscape

The industry exhibits a pattern of “emerging leaders with numerous small and medium-sized enterprises.” The top ten enterprises hold a combined market share of approximately 41.6%, indicating increased concentration since 2020. Leading domestic companies are strengthening their positions through capacity and technology layout, while foreign companies retain advantages in the high-end market.

Technological Development Trends

Breakthroughs have been made in high-dispersion and high-concentration product technologies. Bio-based carriers and biodegradable products have achieved application milestones. Intelligent production enhances efficiency, and compatibility with recycled materials meets circular economy demands.

Policy Environment and Development Challenges

Impact of Policies

Environmental regulations are becoming increasingly stringent. The “dual carbon” goals drive green transformation, and policies support the use of recycled materials. Improving industry standards encourage companies to optimize formulations and enhance compliance.

Industry Challenges

Fluctuations in raw material prices create cost pressures. Dependence on imported high-end materials persists. SMEs face dual pressures from environmental upgrades and R&D investments. Homogeneous competition remains intense, while international trade barriers and evolving standards pose export challenges.

Future Outlook and Development Recommendations

Market Prospects

The market is expected to maintain a CAGR of over 7% from 2026 to 2031. Emerging fields such as semiconductor packaging and 5G communication will become new growth drivers, with functional and eco-friendly products gaining increasing market share.

Development Recommendations

Enterprises should increase R&D investment to overcome technical bottlenecks and optimize production layout for greener processes. The industry should improve standard systems and strengthen upstream-downstream collaboration. Policies should support technological breakthroughs and green transformation, particularly for SMEs, to promote domestic substitution.

Report Notes

This report is based on the latest industry data and aims to serve as a reference for corporate decision-making. Data sources include the National Bureau of Statistics, industry associations, and market research. Results are for reference only.