The primary and most obvious use of color masterbatches is to add color to the film. This can be done for branding, product differentiation, or aesthetic purposes. Different colors and shades can be achieved by using different color masterbatches. Color masterbatches can be used to make the film more opaque or translucent, depending on the application. For example, in food packaging, an opaque film can help protect the contents from light exposure, while a translucent film may be used for display purposes.

Color-coding can be used for easy identification of different products or packaging types within a production line or inventory. Color masterbatches can be used to enhance the film's resistance to chemicals, which is important in industries where the film may come into contact with aggressive substances.