Purging compounds are specialty compounds added to extrusion or injection molding equipment to clean out leftover polymer residue or pigment residue to change to new production orders efficiently. Purging compounds offer faster color changeover, improved product quality, reduced waste, and downstream cost savings. They help remove previous materials from barrel, screw, nozzle, and molds to avoid contamination.
 

The Purging Compound Market is estimated to be valued at US$ 596.5 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Purging compounds are gaining popularity due to their mechanical and physical properties that help achieve quick and efficient color changeovers. Their non-abrasive nature allows for easier cleaning of extrusion barrels without damaging screw flights and melt sections. This helps improve equipment life, reduce downtime and maintenance costs. Bio-based purging compounds are also emerging as sustainable alternatives to traditional petroleum-based varieties, with similar purging capabilities. Their renewable content and compostable nature make them environment-friendly. Leading players are focusing on new product innovations, including single-grade and dual-grade purging compounds tailored for specific applications to drive higher consumption.

Porter's Analysis:
Threat of new entrants: The purging compound market requires high R&D investments and customer relationships, which acts as a entry barrier for new players.
Bargaining power of buyers: The presence of several purging compound manufacturers gives buyers the option to negotiate prices downwards.
Bargaining power of suppliers: Since raw materials used in purging compound production such as polyolefins are commoditized, suppliers have moderate bargaining power.
Threat of new substitutes: There exists no close substitute to purging compounds used in injection molding applications and extrusion processes.
Competitive rivalry: Established players compete based on new product innovations, technological advancements and expansion to new regions.

SWOT Analysis:
Strengths: Asahi Kasei Corporation and Clariant A.G. are market leaders with wide geographic presence and product portfolios.
Weaknesses: Small players face constraints in scaling production capacities and enhancing R&D capabilities. High R&D costs also affect profit margins.
Opportunities: Growing polymer and plastics processing industries in Asia Pacific and Middle East provide new growth avenues.
Threats: Stringent environmental regulations on phthalate-based purging compounds act as a challenge. Volatility in raw material prices also impacts costs.

Key Takeaways:
The global Purging Compound Market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing demand from automotive and consumer goods industries across the globe. The Asia Pacific region dominates the market and is expected to grow the fastest due to rapid industrialization and presence of emerging economies such as China and India.