The masterbatch market is valued at USD 11.6 billion in 2021 and is poised to grow at a significant CAGR of 5.4% over 2022–2028. Applications for biodegradable masterbatch are rapidly expanding in everyday consumer goods, particularly in the food packaging sector. In the packaging industry, an additive masterbatch is utilized with bio-based resins whose materials include soybean, wood pulp, sugarcane, coffee, castor, plant seeds, and corn. In conventional masterbatch, the waste disposal of petroleum-based carrier polymers is a significant challenge. Conventional polymers take several hundred years to decompose. Use masterbatch that complies with US FDA regulations when making food plastics. Due to the strict rules and demand from developed countries, the packaging industry’s masterbatch market will have an opportunity. Price increases have also been influenced by the emergence of higher-value products that offer better performance and quality. Additionally, the creation of bio-based masterbatches for various applications, significant investments in R&D, and cutting-edge technologies are raising masterbatch production costs and driving up product prices. Engineering plastics and masterbatches have benefited from technological developments in the plastics sector, changing vehicle designs and displacing traditional metal parts like fuel tanks. Plastics are used in automotive components to cut production costs and vehicle weight, forcing polymer producers to increase their production capabilities. The masterbatch industry is tremendously fragmented, with many small and medium-sized businesses operating worldwide. The producers are concentrating on creating new technologies and expanding their service offerings to meet the rising demand for masterbatches. The two most important initiatives in the global masterbatch market are the improvement of the product landscape and strategic alliances. In the future, it is expected that a rising trend of urbanization will boost the demand for plastic goods. Urbanization will also result in significant infrastructure growth, stimulating the building and construction sector and raising the need for high-performance plastic goods.