Plasticizers Procurement Intelligence Report 2025-2030

Plasticizers Demand Overview

Construction activities worldwide, particularly in China, the United States, and India, drive the market forward. Buyers use plasticizers as flexible and long-lasting materials to make insulation, wall coverings, and flooring. In 2022, the global construction market was valued at USD 9.7 trillion; by 2037, it is predicted to reach USD 13.9 trillion. 

Plasticizers Cost Structure

As per the plasticizers procurement report, key factors driving the cost modeling of production are raw materials, energy, catalysts, operational expenses, and regulatory compliance. Among these factors, raw materials are the most expensive. Phthalate esters are the principal feedstock for the esterification process, which is one of the prime determinants of the entire pricing model in the market.

Moreover, production cost involves a significant proportion of energy costs, as the process involves energy-intensive polymer processing. As per the plasticizers procurement report analysis, costs include labor, plant maintenance, and overheads. Automation and efficient plant management can, however, bring these costs down. Further, transportation and distribution expenses depend directly on the proximity of its sources to raw material sources and end-use markets since plasticizer usually comes in chemical tankers.

Finally, the plasticizers procurement report indicates that prices increase when environmental standards are followed, particularly in areas with stringent emission controls. Manufacturers are being forced to provide environmentally safe substitutes for phthalate-based plasticizers as a result of stricter environmental laws. The industry's entire pricing strategies are impacted by these sustainable formulations, which frequently have higher production costs.

Plasticizers Pricing Trends

Raw material cost variations, changes in energy prices, and supply-demand dynamics affect the pricing trends in the plasticizer procurement market. Particularly, the availability of three raw materials including phthalic anhydride, adipic acid, and alcohols significantly determines plasticizer costs. These raw materials are derived from petrochemicals and hence are easily affected by crude oil price volatility, geopolitical issues, and even supply-chain mishaps. In addition, according to the plasticizers procurement report, disruptions in supply, increased energy cost, and regulation compliance could trigger price hikes. However, advancements in bio-based production and capacity expansions are expected to stabilize prices in the long term.

Plasticizers Procurement Best Practices

Best practices for plasticizers sourcing include securing supply chains, cost optimization, and ensuring quality. Long-term contracts with suppliers for the supply of raw materials and energy inputs should help smoothen out price volatility from the buyer’s end. Moreover, having more sources for raw materials from suppliers will decrease dependency on regions in the case of a disruption. Moreover, the plasticizers procurement report indicates that environmental compliance among suppliers ensures their alignment with the sustainability objectives. Logistics and inventory management will also play an important role as plasticizers need careful transportation and storage. Advanced procurement tools, like market intelligence and digital platforms, improve forecasting and cost management capabilities to enhance the overall resilience of a supply chain.

Key Players in the Plasticizers Industry

Recent Developments in the Plasticizers Industry

• In October 2024, Evonik Oxeno announced its plans to expand its production capacities for the INA-based plasticizers, ELATUR CH (DINCH) and ELATUR DINCD for its Evonik Oxeno customers. The capacity expansions will be integrated into the existing network of C4 plants in Marl.
• In August 2024, BASF and UPC Technology Corporation signed a MoU to strengthen their partnership through long-term regional cooperation. The agreement focuses on supplying plasticiser alcohols and catalysts for phthalic and maleic anhydride production, alongside advancing sustainable solutions to lower carbon emissions in operations and products.
• In December 2022, South Korean consumer goods company Aekyung Chemical acquired VPCHEM, the Vietnam subsidiary of LG Chem Ltd., a company engaged in the production and sale of plasticizers. It aims to boost VPCHEM's annual plasticizer production capacity from 550,000 tons to 660,000 tons.