Global Plastics Market Information: By Type (Polyethylene, Polyether Ether Ketone) and By Application (Packaging, Automotive & Transportation, Building & Construction) - Forecast to 2027

Plastics Market Overview

The plastics market can project expansion at a rate of 4.3% over the analysis period (2020 to 2027), says Market Research Future (MRFR). The market size can touch USD 791.2 Billion by 2027-end, expects MRFR.

Surge in plastic use in industries such as automotive, electrical & electronics and construction encourage significant growth of the plastics market. Regulations focused on reducing the total vehicular weight for higher fuel efficiency and lower carbon emissions are fostering the plastic consumption rate as replacement of various metals, such as steel and aluminum. Plastics market are increasingly being used to manufacture a number of automotive components. The construction sector’s booming expansion in emerging countries including Brazil, India, Mexico, and China, has been pivotal for the plastics industry as well. This can be the result of the rise in foreign investments in these construction markets owing to the ease of FDI norms as well as need for better industrial and public infrastructure.

Having said that, the halt of the production activities following the COVID-19 outbreak has induced major losses for several end-use sectors including automotive, utility, consumer goods and packaging. Needless to say, the demand for different plastics has gone down as well. However, rapid rise in COVID-19 cases worldwide has raised the need for plastics in several medical devices, including ventilators, testing equipment, syringes, gloves, medical bags, and surgical trays. In a few ways, COVID-19 has emerged as a significant opportunity for the plastics industry and will continue to give rise to growth avenues.

Key Players

• BASF SE (Germany)


• SABIC (Saudi Arabia)


• DowDuPont (US)


• Evonik Group (Germany)


• Sumitomo Chemicals (Japan)


• Arkema Group (France)


• Celanese Corporation (US)


• Eastman Chemical Company (US)


• Chevron Phillips Chemical Co. LLC (US)


• Lotte Chemical Corporation (South Korea)


• ExxonMobil (US)


• Formosa Plastics (Taiwan)


• Covestro AG (Germany)


• TORAY Industries (Japan)


• Mitsui Plastics (Japan)


• Teijin Plastics (Japan)

Pricing Analysis

However, volatile raw material prices of plastics are projected to hinder the growth of the plastics market over the forecast period. Plastic materials are largely manufactured from petroleum products; therefore, the price of crude oil is one of the major factors that affect the price of plastic. In addition, capacity constraints and stockpiling from the end users are also factors that are making plastic prices volatile in the global market.

In 2018, the polypropylene (PP) resin was priced around USD 1,067 to 1,225 per tons, across the globe. Plastic resin producers have increased the prices of their products after the increase in crude oil prices. Increase in the plastic resin prices may hit the profitability of the end users from various industries such as automotive, construction, and packaging.

Market Drivers

• Increasing demand in several end-use industries


• Rising demand for lightweight materials in the automotive industry and stringent regulations pertaining to reduce carbon emissions


• Increasing usage of the plastics market as an alternative to other heavy materials such as metals, ceramics, and glass


• Growing awareness regarding the usage of bio-based plastics in several industries

Market Restraints

• Volatile raw material prices

Segmentation

By Type

• Polyethylene (PE): Polyethylene (PE) product segment held the largest market share of more than 30%. PE resin are extensively used in the packaging applications on account of their superior properties such as durability, cost, and efficiency.


• Polyether Ether Ketone (PEEK): The product segment is projected to register significant CAGR over the forecast period.

By Application

• Packaging: The largest application segment and the high demand in the packaging industry on account of robust growth in the packaging applications in various industries such as healthcare, food & beverage, cosmetics, personal care, consumer goods, and home appliances is driving the demand.


• Automotive & Transportation: The increasing production of automobiles is expected to fuel the growth of the segment. The segment is projected to witness significant growth over the forecast period on account of increasing demand for lightweight materials to reduce the gross weight of automobiles. Moreover, plastic materials help to reduce the carbon emission from vehicles.


• Building & Construction: The increasing residential and non-residential construction activities coupled with infrastructure development across the world are factors fueling the demand for plastics in the building & construction industry.

By Region

• North America


• Europe


• Asia-Pacific


• Latin America


• Middle East & Africa

Regional Analysis

• North America: A well-established automotive industry and high emphasis on renewable energy sources are propelling the growth of the North American market. In addition, increasing reconstruction activities is likely to boost the product demand in the regional plastics market.

• Europe: Presence of major automotive manufacturers and OEM players is expected to result in the steady plastics market growth over the forecast period.

• Asia-Pacific: Held the largest market share, over 50%, in 2018 and is projected to retain its dominance during the forecast period. The region is also projected to witness the fastest growth over the forecast period owing to high demand in various end-use industries, especially automotive, electrical & electronics, consumer appliances, and construction. Robust growth of the end-use industries in major economies such as China, India, and Japan coupled with emergence of end use industries in Southeast Asian countries in these is further projected to fuel the demand for plastics over the forecast period.

• Latin America: Rapidly expanding automotive and construction industries is expected to boost the growth of the plastics market in the region. The consumer electronics sector is expected to witness robust growth in the region over the forecast period.

• Middle East & Africa: Ready supply of crude oil and expansion of the building & construction industry is expected to contribute to the growth of the regional plastics market over the forecast period.

Recent Development

February 2022

3D Systems will be acquiring Kumovis, the German 3D printer developer for medical applications and Titan Robotics, an industrial 3D printer manufacturer. Both the companies are known for their advanced tools in the 3D printing space. Kumovis develops machines primarily for precision printing of high-performance, medical-grade polymers including polyether ether ketone (PEEK).

March 2022

The Compound Co., a developer of plastic compounds based in Netherlands, has acquired the product portfolio, customer base as well as production site for Exxelor polymer resins from ExxonMobil’s unit Esso Deutschland GmbH in Cologne, Germany. This acquisition will help foster the worldwide manufacturing capacity of The Compound Co. to around 70,000 tonnes per year and substantially bolster the company’s reach into markets like plastics.

In November 2019, FMCG companies in India, have decided that they would use 100% reusable plastics market for packaging. This intent is to highlight the initiatives taken by the Government of India and would see companies like  Pepsi-Co, Nestle India, Marico, Hindustan Unilever, Coca-Cola, Future Consumer, and Parle Agro taking active steps.