Philippines Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Philippines Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Philippines Plastics Market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

Owing to the COVID-19 impact, various end-user industries such as automotive and transportation, building and construction, consumer goods, and electronics industries have gone into a temporary shut-down phase due to lockdowns and trade issues. However, the packaging industry has shown a significant growth rate owing to the booming e-commerce business and smart packaging market which has prospered more in the food and healthcare industry. Such factors have affected the consumption of plastics in these end-user industries in the Philippines.

Key Highlights

• Over the medium term, growing demand from the end-user industries such as packaging, electrical & electronics, as well as the construction industry is driving the market growth. The booming healthcare industry is also a significant area of application for the plastic packaging industry. Plastic is better than glass when it comes to reducing the probability of damage, leaks, and maintaining hygiene. For instance, plastic packaging is the most preferred option for IV tubes, syringes, IV bags, etc.,
• Over-reliance on imports of raw materials and finished plastics are expected to hinder the growth of the market.
• Innovative applications in electronic products as well as rising usage of bio-degradable plastics are expected to offer various opportunities for the growth of market.

Key Market TrendsInjection Molding Technology to Dominate the Market

• Injection molding is mostly done using virgin or high-quality processing resins. High-performance plastic pallets are usually injection molded. Injection molding is a relatively capital-consuming process, but offers the advantage of high-speed processes.
• Therefore, injection molding is found to be beneficial in the bulk production of plastic pallets. Injection molding processes are used in wire spools, packaging, bottle caps, automotive dashboards, pocket combs, etc.
• The explosive growth of local automotive, packaging, and chemical processing industries, across the world, is expected to provide a favorable market for injection molding.
• Owing to the advantageous geographical location of Philippines, with easy access to the rapidly growing Asia-Pacific end users, the consumption of injection molded plastic pallets is expected to increase drastically.
• Philippines government legislations and recycling reforms, in order to reduce plastic litter, further strengthen the market scenario for injection molding manufacturing processes.
• However, strict measures against the recent COVID-19 outbreak in the country may negatively affect the growth of the end-user industries mentioned above, and as a result, can hinder the market demand over the short-term.
• Owing to the increasing demand from various end-user industries, the market for injection molding is projected to increase later in the forecast period.

Growing Demand from Packaging Industry

• Packaging accounts for the largest application segment in the Philippines plastics market. The prime reasons for the growing application of engineering plastics, in the packaging segment, are better wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength.
• Some of the major applications of engineering plastics, in the packaging segment, are as follows: packaging of bottled water, flexible packaging, such as sausage skin, flexible foils, such as shopping bag.
• Polyethylene terephthalate (PET) is one of the plastics majorly used for packaging purposes, mostly in the food and beverage industry. Portability, design flexibility, ease of cleaning, light weight, and protection against moisture, are a few properties of PET, which makes it suitable for packaging purposes. In addition, low handling hazards, low toxicity, and absence of bisphenol A (BPA) and heavy metals are some of the other factors that allow PET to be used for food packaging.
• PETs are used for making clamshells, bakery and take-out containers, microwaveable food trays, carbonated soft drink bottles, and other packages. Other applications include packaging materials for cooking oils, shampoo, hand wash, and more products.
• Polyamide is another major engineering plastic that finds major application in the packaging sector. Bi-axially oriented and non-oriented polyamide films are used in medical and food packaging, owing to the former’s high impact strength and good heat resistance.
• In terms of food packaging, the growing demand for food in the country is a major driving factor for the packaging sector, which further increases the demand for plastic in the country. The revenue generated by the food industry in the country has increased from USD 11,980 million in 2010 to around USD 20,245 million in 2019, which has led to the growth of food packaging in the country, thereby driving the plastics market demand.
• Increasing household and commercial applications for containers, plastic bags, canisters, and tableware, among others, are expected to drive the consumption demand for plastics in the packaging sector, during the forecast period.
• The usage of plastics for packaging products is expected to experience a fairly steady demand, during the forecast period. Requirements for rubber gloves in the healthcare sector, stretch films, garbage bags, and other medical devices, are anticipated to witness greater demand, in the coming years.

Competitive Landscape

The Philippines plastics market is consolidated with the top five players accounting for a major share of the market. The prominent players in the market include JG Summit Petrochemicals Group, Chemrez Technologies, NPC Alliance Corporation, Petron Corporation, and Philippine Resins Industries, Inc., among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Chemrez Technologies Inc.
Dupont
JG Summit Petrochemicals Group
LyondellBasell Industries Holdings B.V.
Nan Ya Plastics Corporation (Formosa Plastics Corporation)
NPC Alliance Corporation
Philippine Polypropylene Inc. (Petron)
Philippine Resins Industries Inc. (Tosoh Corporation)
SGS Philippines Inc.
Sumitomo Chemical Co. Ltd

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