ASEAN Plastics Market 2022-2028

ASEAN Plastics Market 2022-2028

ASEAN (Association of Southeast Asian Nations) plastics market is growing at a significant CAGR of 8.9% during the forecast period (2021-2028). The ASEAN plastic industry is expected to reach $50.7 billion in 2028 from $33.6 billion in 2021. The increasing consumption of plastics in various end-user industries, such as food and beverages, automotive, building & construction, electrical & electronics, among others, tend to drive the growth of the ASEAN plastics market.

Further, the growing e-commerce market in ASEAN economies are contributing to the increasing demand for plastics in packaging applications. The e-commerce market is growing significantly owing to the increasing penetration of the internet in the ASEAN countries and improving technological infrastructure. In addition, the increasing need for reducing gross vehicle weight for improving fuel efficiency as well as reducing carbon emissions, the automotive players are using plastics as a substitute to metals, such as aluminium and steel, for the manufacturing of automotive parts. This will further increase the demand for plastics in automotive applications and hence, will drive the market growth during the forecast period. Moreover, the prospect of bio-based polymers is expected to offer growth opportunities to the plastics industry during the forecast period. The rising awareness among consumers and organizations, regarding the environmental impact and sustainability of chemical products, is assisting in minimizing this environmental footprint of chemicals across the globe. Therefore, considerable growth can be expected in the plastics market with the widespread introduction of bio-based polymers in near future.

The packaging, and building & construction sectors, by far represent the major end-user markets for the plastic industry in the region. The growth of the building & construction industry in the ASEAN region has been instrumental in driving the demand for plastics coupled with rapid urbanization. A massive population migrates to urban areas that drives the building and construction domain. Plastics are widely used in the construction industry in various applications such as pipes, conduits, and fittings (including drainage, irrigation, plumbing fixtures, and septic tanks), insulation materials, bathroom units, and others. Moreover, the continuous growth in the demand for packaged food & beverages due to the rising disposable income is supporting the growth of plastics in the packaging industry.

SEGMENTAL OUTLOOK

The ASEAN plastics market is segmented based on type and application. Based on type, the market is broadly categorized into thermoplastics and thermoset plastics. The thermoplastic segment held the largest market share of 77.2% in 2021, generating around $26.0 billion in 2021. This value is projected to exceed $39.6 billion in 2028, exhibiting a CAGR of 9.0% during the forecast period. Thermoplastics have been extensively used in various applications and the increasing demand for automotive and transportation applications is the major factor for the segmental growth of the market. Some of the applications include automotive airbags, automotive electrical and electronics, under-the-hood applications, and others.

REGIONAL OUTLOOK

Geographically, the study of the ASEAN plastics market report covers the analysis of 9 economies including Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Indonesia dominated the market with around 39.7% of the share in 2021, generating around $13.3 billion in 2021. This value is further projected to reach around $20.3 billion in 2028, exhibiting a CAGR of 9.0% during the forecast period. Rapid industrialization in the country coupled with the increased skilled workforce is driving the growth of the manufacturing sector in the region, which in turn, is creating the demand for plastics. Further, the presence of the well-established packaging industry, electrical & electronics, and automotive industry in the region creates the demand for plastics for various applications and hence, drives the growth of the market. Vietnam, which is becoming a manufacturing hub in the Asia-Pacific region especially for electronics is expected to grow at the fastest CAGR of 9.4% during the forecast period. Vietnam's plastic market is expected to reach $12.6 billion in 2028 as compared to $8.0 billion in 2021. Thailand is the third-largest player in the ASEAN market after Indonesia and Vietnam with market revenue of around $5.0 billion in 2021 which is expected to hit $7.7 billion in 2028, growing at a CAGR of 9.1% during the forecast period.

COMPANIES PROFILED

Some of the major players that are contributing to the growth of the global plastics market are covered in the report which include Mitsubishi Chemical Corp., Exxon Mobil Corp., Saudi Basic Industries Corp. (SABIC), Sumitomo Chemical Co., Ltd., the Dow Chemical Co., LG Chem Ltd., Toray Industries, Inc. These market players are contributing to the market by adopting various market approaches including product launch and approvals, merger and acquisition, partnerships, and collaborations, for gaining a strong position in the market. Some of the recent developments in the plastics market include-

 In September 2021, SABIC launched a sustainable packaging solution based on a mono web TF-BOPE film structure for frozen food which combines a new polyethylene (PE) grade with innovative film production technology. Compared to conventional blow PE film solutions, it offers significantly higher throughput, has the potential for down-gauging, making it attractive from both a commercial and sustainability standpoint.