Modified Plastics | Growing Demand, Bright Prospects

National policies strongly support.

Polymer modified materials are an important branch in the field of new materials and a key area of technological development in China. They are an essential part of the strategy for becoming a manufacturing powerhouse and the strategy for innovation-driven development.

In recent years, government authorities have introduced a series of industrial policies to encourage the development of the polymer modification materials industry. Aligning with the trends of high-performance, multifunctional, and green development of new materials, these policies aim to promote the sustainable development of new materials with unique resources, strengthen the layout of advanced materials, and optimize the industrialization and application environment of new materials based on the needs of strategic emerging industries and major projects. Additionally, they focus on strengthening the construction of new material standards, improving the application level of new materials, and advancing the integration of new materials into the high-end manufacturing supply chain.

Therefore, as a key industry encouraged and developed by the country, polymer modified materials have received support from various national industrial policies in recent years, which is beneficial for the overall development of the industry.

The downstream application fields are continuously expanding.

Modified plastics are an important branch of polymer modified materials and are currently widely used in many national pillar industries and emerging sectors, such as home appliances, automotive, communications, electronics and electrical, medical, rail transportation, precision instruments, home building materials, security, aerospace, and military industries. Among these, home appliances and automotive are currently the most important downstream application industries for modified plastics.

Furthermore, modified plastics, with their characteristics of being lightweight, corrosion-resistant, flame-retardant, heat-resistant, and insulating, are increasingly being applied in various fields of society. In the field of health protection, modified plastics can be used in scenarios such as food packaging and medical protection. In the rail transit field, modified plastics can be used in interior and exterior decorations, structural components, and cushioning materials. In the home building materials field, modified plastics are also an important component of products such as bathroom accessories, electric tools, and security equipment. In the aerospace and military fields, modified plastics also have a wide range of applications.

The demand for import substitution is increasing.

The modified plastics industry has a development history of many years in many developed countries. Large international chemical companies such as BASF, Dow, DuPont, SABIC, etc., have significant advantages in raw material supply, business scale, and technological accumulation. They are at the forefront in the formulation research, processing manufacture, and brand quality of high-performance specialized modified plastics, and their products are widely used in high-end fields.

In contrast, domestic modified plastics companies have mostly emerged after the development of the domestic home appliance and automotive industries. Although they have grown rapidly in recent years, their overall competitiveness still lags behind that of large international chemical companies. Currently, the high-end modified plastics market in China is still dominated by imports, and there is a significant demand for import substitution.

In recent years, large-scale domestic enterprises in the industry have continuously increased their investment in research and development, gradually narrowing the technological gap with large international companies. Some companies are using functionalized and high-performance products as a breakthrough to steadily advance into the high-end market. Meanwhile, upstream petrochemical enterprises in China are continuously strengthening their independent research and development efforts, which has positively accelerated the overall pace of innovation in the domestic modified plastics industry.

In the process of vigorously promoting economic transformation and industrial upgrading in our country, the demand for import substitution of mid-to-high-end modified plastics is becoming increasingly urgent. This situation creates an excellent development opportunity for leading domestic companies with strong technical capabilities, helping them achieve new breakthroughs and growth in market competition.