Global Plastics Market - 2023-230

Global Plastics Market - 2023-230

Global Plastics Market reached US$ 525.5 billion in 2022 and is expected to reach US$ 676 billion by 2030, growing with a CAGR of 3.2% during the forecast period 2023-2030. One of the most critical emerging applications for the Global Plastics Market is the rise of 3D printing. Many manufacturers have started designing production units around additive manufacturing.

The Global Plastics Market is expected to witness rising demand from advanced technology industries as new plastic composite materials are increasingly utilized in aerospace, biomedical and automotive engineering fields. For instance, in November 2022, the automaker Audi announced that seatbelt buckles in its Q8 e-tron electric vehicle will be manufactured from recycled plastics.

One of the major shifts likely to occur in the global market, is the increased adoption of circular economy. In May 2023, the United Nations (UN) released a report targeting an 80% reduction in global plastic pollution by 2040. The report states that an estimated savings of US$ 1.2 trillion could be achieved through a switch to a circular economy.

Market Dynamics

Rising Global Demand for Cheap Consumer Goods

As the global population increases, so does the demand for various goods and services. Urbanization is closely linked to population growth, as more people are moving to cities for better opportunities and improved living standards. Rising income levels have created a demand for cheap and economical consumer goods from the newly emerging middle class in developing countries.

Plastics play a crucial role in meeting these demands as they are the prime material used in modern consumer goods. Manufacturers typically use plastics instead of metals since they are more ductile, chemically resistant and easier to process. Toys, houseware items, clothing items, and low-value home appliances are some of the major consumer goods that extensively use plastics.

Increasing Concerns about Plastic Pollution

Plastic pollution has increased significantly in recent years. The United Nations Environment Programme (UNEP) estimates that 75-199 million tonnes of plastic waste is currently found in the oceans. Furthermore, UNESCO estimates that nearly 8-10 million tonnes of plastic ends up in the ocean annually. Increasing awareness of the negative impacts of plastic waste on ecosystems, marine life and human health has led to a shift in consumer attitudes and government regulations.

Governments globally are implementing measures to address plastic pollution, including plastic bans, restrictions on single-use plastics, and promoting recycling and circular economy practices. For instance, the Indian government banned single-use plastics nationwide in July 2022. In November 2022, China unveiled plans to eliminate various plastic items from daily life by 2025 completely.

The actions aim to reduce plastic consumption, encourage sustainable alternatives and improve waste management. Consumer preferences are also changing, with a growing demand for eco-friendly options and sustainable products. Many consumers now actively seek alternatives to single-use plastics and prioritize environmentally conscious choices.

COVID-19 Impact Analysis

The COVID-19 pandemic had a mixed impact on the global plastics market. Initially, there was a surge in demand for certain plastic products such as personal protective equipment (PPE), medical supplies and packaging materials for essential goods. The increased need for single-use items to ensure hygiene and safety temporarily boosted the plastics market.

However, the pandemic also presented challenges for the plastics industry. Disruptions in global supply chains, factory shutdowns and reduced consumer spending affected the demand and production of non-essential plastic products. Industries such as automotive, construction and consumer goods experienced a significant decline, leading to decreased demand for plastics.

AI Impact

The impact of artificial intelligence (AI) on the Global Plastics Market will be mainly felt in improvements of manufacturing techniques. Advanced machine-learning algorithms can optimize manufacturing processes to reduce plastic waste, thereby mitigating the impact of plastic pollution to some extent.

Another possible application for AI in the plastics industry could be for the development of new bioplastics derived from sustainable feedstock. Currently, commercial bioplastic production is limited due to relatively high energy usage. AI can help to modify and optimize the production process to make large-scale commercial production of bioplastics viable.

Ukraine-Russia War Impact

The Ukraine-Russia war and geopolitical tensions indirectly affect the global plastics market. The conflict disrupted certain global supply chains, particularly for petrochemical feedstocks, as Russia is a significant producer of chemical raw materials. Disruptions in feedstock availability have led to price volatility in the European market. Furthermore, disrupting Russian energy supplies have also led to drastic increase in production costs for European plastic producers.

The current situation presents an ideal opportunity for Asian producers to expand their market share. Asian plastic producers have some of the lowest production costs and have large production capacity. However, volume of exports will mainly depend on spare production capacity utilization, since most Asian plastic production is used to meet domestic and regional demand.

Segment Analysis

The global plastics market is segmented based on type, end-user and region.

Rise in Global E-Commerce Activities helps Packaging to Achieve a Significant Share in the End-User Segment

The growth of online shopping has created a surge in demand for packaging materials to protect and deliver goods to consumers worldwide. E-commerce packaging serves several purposes, including product protection, branding and customer experience.

Plastics are widely used in e-commerce packaging due to their durability, lightweight nature, versatility and cost-effectiveness. It offers advantages such as resistance to moisture, flexibility in design and the ability to incorporate branding elements.

Plastic packaging materials commonly used in e-commerce include polyethylene (PE) bags, bubble wraps, air pillows, shrink films and polyethylene terephthalate (PET) bottles. The materials help safeguard products during transportation, reduce the risk of damage and enhance the overall customer experience. The growth of global e-commerce, especially in emerging countries, is expected to increase demand for plastic packaging articles further.

Geographical Analysis

North America is Expected to Occupy a Significant Share of the Global Plastics Market

North America has a robust manufacturing base, advanced technologies and a strong focus on innovation. Although many manufacturing industries have been outsourced to Asia-Pacific, the region still retains significantly advanced manufacturing capabilities in the automotive, aerospace and defense industries.

The automotive industry is a major demand generator for the North American plastics market and has undergone dramatic changes in recent years. U.S. automakers are increasingly shifting to electric vehicle (EV) production on the back of government subsidies. For instance, in 2023, the U.S. government announced a US$ 5 billion discretionary grant for setting up electric vehicle infrastructure nationwide.

Many automakers, such as Tesla, GM and Ford, have launched electric vehicle models. Multinational automakers such as Volkswagen, BMW and Mercedes Benz are also launching new electric vehicles for the North American market. The demand for electric vehicles (EVs) and advanced technologies in the automotive sector presents further opportunities for using plastics in battery casings, interiors and exterior parts.

The defense industry is also generating demand for advanced plastics components, mainly due to the production expansion of combat and surveillance unmanned aerial vehicles to cater to export orders. For instance, in February 2023, India initiated talks with the U.S. to acquire 18 MQ-9B predator drones worth US$ 3 billion.

Competitive Landscape

The major global players include BASF SE, LyondellBasell Industries Holdings B.V., INEOS, SABIC, Borouge, Borealis AG, Reliance Industries Ltd, Braskem, Exxon Mobil Corporation and Formosa Plastics Corporation.

Why Purchase the Report?
• To visualize the global plastics market segmentation based on type, end-user and region, and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of plastics 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 Plastics Market Report Would Provide Approximately 50 Tables, 59 Figures And 195 Pages.

Target Audience 2023
• End-User Industries
• Plastics Manufacturers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies