Plastics Market Research Report - Global Forecast till 2027

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

ID: MRFR/CnM/6875-HCR | February 2021 | Region: Global | 100 pages

Please note that the assessment period of report has been updated from 2018-2025 to 2020-2027. Cordially fill the sample form for updated data.

Market Synopsis


According to MRFR analysis, the Global Plastics Market is projected to register a CAGR of 4.3% to reach USD 791.2 Billion by the end of 2025.


Plastics are synthetic or bio-based polymer resins made from petrochemicals or bio-based sources such as cellulose, vegetable oils, and starches. Plastics can be classified under two categories, namely thermoplastics and thermosetting. Thermoplastics are amorphous in nature and contain a partial crystalline structure. Thermoplastics typically contain molecular weight between 20 thousand to 50 thousand AMU. Thermosetting plastics, on the other hand, are also amorphous in nature and can also be solidified into permanent shapes.


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. In addition, recycling of fossil fuel-based and bio-based plastics is further boosting the demand for plastics in various end use industries since the past few years.


The increasing need to reduce gross weight to enhance the efficiency of automobiles and stringent regulations pertaining to reduce carbon emission have promoted the use of plastic materials in the automotive industry and this trend is projected to continue during the forecast period. Furthermore, the growing use of plastic materials as an alternative to heavy materials such as metals, ceramics, and glass is further projected to contribute to the growth of the global plastics market during the forecast period.


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. In 2018, the packaging segment held over 35% of the share of the global plastic market. Plastics are extensively used in the packaging applications on account of its superior properties such as performance, durability, cost, and efficiency. However, stringent regulations pertaining to the plastic packaging is projected to hinder the growth of the plastics market in packaging segment over the forecast period. For instance, countries such as the UK, Canada, France, India, Australia, Taiwan, and the US have banned single-use plastics in various application industries in the past few years.


Pricing Analysis


However, volatile raw material prices of plastics are projected to hinder the growth of the global 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 plastics 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 market.



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


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)



Frequently Asked Questions (FAQ) :


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.