South America Engineering Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South America Engineering Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for South America Engineering Plastics is expected to grow at a CAGR of more than 5% globally during the forecast period.

Key Highlights

• Growing purchasing power in the developing countries and engineering plastics replacing traditional materials are driving the market growth.
• Volatility in raw material prices is expected to hinder the market growth.
• Introduction of green vehicles as a key to future growth is expected to increase the opportunity for the market.

Key Market TrendsPolyethylene Terephthalate (PET): The Most Used Engineering Plastic

• Polyethylene terephthalate (PET) is a thermoplastic polyester engineering resin. PET resins are known for their excellent melt flow characteristics, close molding tolerances, and high productivity from multi-cavity molds. Due to its broad mechanical and electrical properties, PET is often used to replace metals in motor housings, switches, sensors, and other electrical applications.
• PET and polyolefins are the most widely used materials in the plastic packaging industry. Some of the major properties of PET as a packaging material are recyclability, strength, and versatility, which drive the demand for these products.
• These products mainly include take-out containers, frozen foods, carbonated drinks and juices, ketchup, bottled water, jars, and baked good containers. They are also used in the food industry for clamshells, deli containers, as well as microwave food trays.
• PET also has great barrier properties that protect and preserve the contents of the product. PET maintains the fizz in carbonated soft drinks, the vitamins in juices, and the color in ketchup. In other words, it protects products and keeps them on the shelves and out of the rubbish bin, for a longer period.
• With an increasing demand for beverage packaging and a lack of better substitute for PET resin for this application, the demand for PET is projected to increase over the forecast period.

Brazil Country to Dominate the Market

• Construction of new hotels, coupled with extension of the existing hotels, is likely to boost commercial construction in Brazil. With the positive growth of the construction industry, the engineering plastics market is expected to grow throughout the forecast period.
• The country’s infrastructure sector is currently under flux. Recently launched program for infrastructure worth USD 120 billion is focused on leveraging private sector logistics investment. It is going to be a key test for national and international confidence on the Brazilian infrastructure market and the country’s investment policies.
• Sales of consumer electronics appear to have reached saturation in the country. Consumers are more careful while buying expensive products and this trend is expected to continue in the upcoming years. The production of electronics and optical products has decreased by 4% in the country, which has declined the consumption of engineering plastics in the country.
• The production of packaging materials in Brazil is increasing at a steady rate, reaching a value of approximately USD 71.5 billion, witnessing an increase of 5.1%. Electronics and construction products are exhibiting robust demand for packaging, in turn supporting the consumption of engineering plastics in near future.
• Overall, the market for engineering plastics is projected to expected to grow at a moderate rate during the forecast period.

Competitive Landscape

The South America engineering plastics market is partially fragmented in nature with the presence of many players in the market. Some of the major companies in South America engineering plastics market includes BASF SE, SABIC, Solvay, Covestro AG, and DuPont, among others.

Additional Benefits:

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

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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