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.
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.
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.