ID: MRFR/CnM/6875-HCR | 100 Pages | Published By Anshula Mandaokar on April 2023
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
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.
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.
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).
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.
|Market Size||2027: USD 791.2 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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)|
|Key Market Opportunities||Volatile raw material prices|
|Key Market Drivers||
The plastics market is expected to advance at a rate of 4.3% in the coming period.
By the end of 2025, the market value is anticipated to be USD 791.2 Billion.
The growth of the plastics market can be primarily attributed to the increasing plastic consumption in various end-use industries especially building & construction, automotive & transportation, electrical & electronics, packaging, and consumer appliances.
The packaging was the largest end-use segment of the global market in 2018 and is projected to continue to follow the trend over the forecast period.
North America has a well-developed automotive sector, and greatly focuses on the use of renewable energy sources, which helps with the market growth in the region. In addition, increasing reconstruction activities is likely to boost the product demand in the regional market.