Global Plastic Market - 2024-2031

Global Plastic Market - 2024-2031

Global Plastic Market reached US$ 542.3 billion in 2023 and is expected to reach US$ 708.6 billion by 2031, growing with a CAGR of 3.4% during the forecast period 2024-2031.

Demand for plastic is growing across various industries, including consumer products, automotive, food & beverage, and electrical & electronics. Global product consumption is fueled by the food and beverage industry's growing requirement for packaging. Food makers favor packaging that reduces the deterioration of food quality and prevents contamination. The need is driven by plastic's capacity to operate as a barrier between food goods and the outside environment.

The plastics industry is expanding due to rising building and infrastructure activities and growing demand for strong, lightweight polymers across various end-use sectors. According to a survey by the Federation of Indian Chambers of Commerce and Industry, plastic accounts for more than 40% of India's packaging needs, and its use in various applications is expected to increase.

Asia-Pacific is among the growing regions in the global plastic market covering more than 1/3rd of the market, due to its expanding population, economy, and urbanization, all of which drive large investments in the plastics sector. In addition, the region has become a desirable place to invest in and produce plastic goods due to its easy availability of raw materials, affordable labor, and advantageous government laws. The National Bureau of Statistics (NBS) estimates that over 80 million tons of plastics will be manufactured in China in 2021, which fuels the expansion of the plastics sector in this region.

Dynamics

Plastic demand from the packaging

Product consumption is driven by the increasing requirement for packaging especially in beverage and food sectors. Food companies desire packaging that keeps food from being contaminated or losing quality. The ability of plastic to act as a barrier between food products and the external environment is driving demand. Additionally, the usage of polymers in sports, fashion, polymer clay, and toy manufacturing is growing due to their exceptional resilience and ability to tolerate physical stress.

Furthermore, they may be easily molded, enabling the production of packaging in any size or shape. Its increased flexibility, durability, and improved aesthetic appeal contribute to its growing value in the textile sector. Furthermore, polymers are perfect for packing electrical and automotive replacement components owing to their stiffness. Consequently, the market for plastics is developing as a consequence of the increasing usage of plastics in the consumer goods, automotive, textile, electrical electronics, and food and beverage sectors.

Furthermore, it is estimated by the International Organization of Motor Vehicle Manufacturers that in 2022, 95.63 million cars will be produced. Many auto parts are made of plastics, including polypropylene, polyvinyl chloride (PVC), acrylonitrile-butadiene-styrene (ABS), and polycarbonate. A rise in disposable income has made it possible for more people to purchase automobiles, which has increased car sales all across the world. therefore generating revenue for the plastics industry.

Rising demand for cost-effective, durable, and lightweight materials

Plastic is among the fastest-growing materials globally and cost effectiveness is the major factor contributing to its market growth. Plastics are cost-effective to produce compared to other materials like metals and glass. The relatively low production costs of plastics make them an attractive option for manufacturers looking to reduce production expenses and offer affordable products to consumers. The cost advantage is especially crucial for industries with high-volume production requirements.

Furthermore, the lightweight materials demand has shown a positive impact on the plastics market. Plastics are lightweight materials, which is a significant advantage for various industries. In industries like automotive and aerospace, reducing weight is essential for improving fuel efficiency and overall performance. Lighter components made from plastics help enhance vehicle and aircraft efficiency, leading to reduced fuel consumption and lower greenhouse gas emissions.

The growing demand for materials has encouraged the key players to invest in the business. For instance, on June 19, 2023A polyethylene (PE) factory by BASF SE began construction at its Verbund site in Zhanjiang, China. The brand-new facility, with a yearly capacity of 500,000 metric Tons of PE, will meet China's rapidly expanding demand. In 2025, the plant is expected to begin operations. Furthermore, on June 27, 2023The Swiss startup DePoly SA (DePoly), a producer of sustainable plastic solutions, received an investment from BASF SE Venture Capital GmbH (BVC), the corporate venture firm of the BASF SE Group. DePoly is developing a special chemical recycling technique.

Getting expensive due to strengthing of regulations

Market growth may be impacted by laws governing the use of products. The increasing worries about the harm polymers do to the environment have led to the implementation of strict government laws and other measures. Numerous governments and businesses have made an effort to employ non-plastic and environmentally friendly substitutes to lessen the damage that plastic use causes to the environment.

For instance, the United Nations Environment Program (UNEP) launched the Clean Seas campaign in more than 50 countries in 2017. It makes a plea to the government to impose laws limiting the use of plastic, to push businesses to reduce the amount of packaging made of polymers, and to alter their offerings. A lot of nations, including India, have also committed to phase out single-use plastics. The global market's growth is restrained by the trend away from plastic and toward sustainable goods.

Tightening regulatory measures due to environmental concerns

Governments and regulatory bodies globally are implementing stricter regulations and measures to address plastic pollution and promote sustainable practices. It includes plastic bans, restrictions on single-use plastics, extended producer responsibility (EPR) programs, and more stringent waste management regulations.

Such measures can impact the demand and usage of certain plastics, decreasing market growth. The focus on sustainability and environmental concerns is prompting the industry to seek alternative materials and adopt more responsible practices to mitigate the impact of regulatory constraints.

Segment Analysis

The global plastic market is segmented based on type, processing, plastic resin, application, end-user, and region.

Rising Demand for Polyethylene (PE) in the Plastic Industry

The Polyethylene (PE) segment is among the growing regions in the global plastic market covering more than 1/3rd of the market. It is mostly utilized in the packaging industry, which includes geomembranes, plastic bags, plastic film containers, and bottles. It is employed in several applications. There are several varieties of polymers of PE, including HDPE, LDPE, and LLDPE, depending on their molecular weight.

For instance, low-molecular-weight polymers of PE are used in lubricants, medium-molecular-weight polymers are utilized as paraffin-miscible wax, and high-molecular-weight polymers are often employed in the plastics industry. According to FICCI research, the adoption rate of polyethylene processing in India was about 52% in 2021 and is projected to rise to 55% by 2024, opening up new potential for the packaging industry.

Because of polyethylene's outstanding rigidity, superior flexibility, high adaptability, sustainability, and durability, its demand has been rising across various industries, including food and beverage, healthcare, consumer products, and more. According to the Indian Institute of Packaging, more than 9 kilograms of packaging will be used per person annually in India by 2021, up 200% over the previous ten years.

Several factors, including growing environmental concerns about the effects of conventional products derived from fossil fuels, government regulations and policies supporting the use of bio-based products, and consumer demand for sustainable goods, are driving the demand for bio-based polyethylene products. According to the European Bioplastic study, 3.6 million Tons (or over 1 percent) of the 367 million Tons of bio-based goods produced yearly will be created in December 2022.

Geographical Penetration

Growing Demand for Building and Packaging Sectors in Asia-Pacific

Asia-Pacific has been a dominant force in the global Plastic Market. Governments in the Asia-Pacific have implemented some measures to encourage industrialization, which is anticipated to increase the region's demand for plastic in the medium and long term. For instance, the Indian government implemented a Rs 3,500 crore (US$ 420 million) production-linked incentive (PLI) plan in early 2023 to promote local toy manufacturing.

China is a large manufacturing hub and the revival of Chinese industrial activity has resulted in substantial demand for different plastics. The manufacturer's PMI index for Caixin China reached a record high of 51.6 in February 2023, marking the first growth in manufacturing activity since the full lifting of COVID-19 limitations in July 2022.

Because of the plentiful supply of low-cost raw resources, China is expected to continue to be the top country in the area. The reduces the obstacles that plastic manufacturers face even further. Strong expansion in the building and packaging sectors is also credited with the expansion in Asia-Pacific. Moreover, it is anticipated that the market in the area would be driven by the expanding consumer products industry demand for the production of toys, textiles, and sporting goods.

Furthermore, it is projected that the well-established electrical and electronics manufacturing bases in Taiwan, China, and South Korea would give the plastic sector even more momentum. The robust chemical manufacturing in India supports the country's plastic output. The drivers driving the expansion of the Asia-Pacific plastic market include rapid urbanization, better economic circumstances, and rising infrastructure activity.

COVID-19 Impact Analysis

The COVID-19 pandemic created various opportunities and challenges for the global plastics market. The COVID-19 pandemic has had a mixed impact on the global plastics market. On one hand, the increased use of single-use plastics, such as personal protective equipment (PPE) and packaging for essential goods, has led to a surge in demand. The pandemic-driven hygiene measures and e-commerce growth have increased plastic packaging requirements.

However, on the other hand, disruptions in global supply chains, reduced consumer spending and economic slowdowns have affected sectors like automotive, construction, and consumer goods, which use significant amounts of plastics. The pandemic has also highlighted the need for sustainable alternatives to single-use plastics, leading to increased focus on plastic recycling and circular economy initiatives.

Russia-Ukraine War Impact Analysis

The Ukraine-Russia war has disrupted energy supply chains and has led to an increase in global oil prices, mainly due to sanctions imposed on Russia, a key energy supplier. Energy inflation has increased significantly in Europe, undermining the competitiveness of various energy-intensive industries such as plastic manufacturing.

Many European plastic manufacturers are contemplating shifting their operations abroad, mainly to Asia-Pacific, to keep production costs under control. It has opened up opportunities for Asia-Pacific manufacturers, especially those in India and China to increase exports to Europe since they have high production capacity and lower costs.

By Type
• Thermoplastic
Conventional

 Polyethylene (PE)

 Polypropylene (PP)

 Polyvinyl Chloride (PVC)

 Polystyrene (PS)

 Polyethylene Terephthalate (PET)

 Polycarbonate (PC)

 Others
Bio-based

 Bio-based Polyamide (PA)

 Bio-based Polypropylene (PP)

 Bio-based Polyethylene (PE)

 Bio-based Polyethylene Furanoate (PEF)

 Bio-based Polytrimethylene Terephthalate (PTT)

 Others
Biodegradable

 Starch-based Polymers

 Cellulose-based Polymers

 Polylactic Acid (PLA)

 Polyhydroxyalkanoates (PHA)

 Polybutylene Succinate (PBS)

 Polyethersulfone (PES)

 Polyethylene Adipate (PEA)

 Polybutylene Succinate-co-Adipate (PBSA)

 Polycaprolactone (PCL)

 Polyvinyl Alcohol (PVOH or PVA)

 Others
• Thermosetting Plastic
Polyester
Polyurethane (PU)
Alkyds
Epoxies
Amino
Phenolic
Vinyl Ester Resin
Others

By Processing
• Injection Molding
• Blow Molding
• Extrusion
• Rotational Molding
• Thermoforming
• Compression Molding
• Others

By Plastic Resin
• Virgin Plastic
• Recycled Plastic

By Application
• Bottles and Containers
• Films and Sheets
• Pipes and Fittings
• Automotive Parts
• Electrical and Electronic Components
• Toys and Games
• Furniture
• Medical Devices
• Others

By End-User
• Packaging
• Automotive
• Construction
• Electronics and Electrical
• Healthcare and Medical
• Agriculture
• Consumer Goods
• Textiles
• Aerospace
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On November 28, 2022, LyondellBasell, a multinational chemical company engaged in plastics production, partnered with the automotive manufacturer Audi to create automotive plastic parts from recycled plastic waste.
• On November 18, 2022, LyondellBasell, a multinational chemical company engaged in plastics production, partnered with the automotive manufacturer Audi to create automotive plastic parts from recycled plastic waste.
• On August 29, 2022, Reliance Industries Ltd, a major Indian plastics manufacturer, announced a new polyethylene terephthalate (PET) bottle manufacturing plant in Dahej, Gujarat, India. The company also pledged to recycle more than 5 million PET bottles annually.

Competitive Landscape

The major global players in the market include ExxonMobil Corporation, Dow, SABIC, LyondellBasell Industries N.V., BASF SE, INEOS Group, TotalEnergies SE, Chevron Phillips Chemical Company LLC, Lanxess AG, and Reliance Industries Limited.

Why Purchase the Report?
• To visualize the global plastic market segmentation based on type, processing, plastic resin, application, end-user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of plastic market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global plastic market report would provide approximately 86 tables, 103 figures, and 223 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies