Plastic Material and Resins Market Definition
The plastic material and resins manufacturing market consists of the sales of plastic material and resins by entities (organizations, sole traders or partnerships) that produce resins, plastic materials, and non-vulcanizable thermoplastic elastomers and mix and blend resins on a custom basis and/or produce non customized synthetic resins.
Plastic materials refer to a large class of polymers, which consist of a range of synthetic or semi-synthetic compounds that are malleable and can be molded into solid objects of diverse shapes. The basic structure of plastics is given by macromolecule chains formulated from monomer units by chemical reactions. Typical reactions for chain assembling are poly addition (continuous or step wise) and condensation polymerization (poly condensation). The monomer units are organic carbon-based molecules. Beside carbon and hydrogen atoms as main components, the monomer unit may contain elements such as oxygen, nitrogen, sulfur, fluorine or chlorine. The type of elements, their proportion and placing in the monomer molecule give the basis for generating different types of plastics. Plastic materials such as thermoplastics have a high coefficient of expansion and heat resistance and can be melted and recast almost indefinitely. Plastic materials exhibit high insulation properties. The specific gravity (the index of refraction and moisture absorption) of plastics is small, and it varies depending on the character of high polymer, or thermal and mechanical treatment of the plastic. Examples of plastic materials include polyethylene terephthalate, high-density polyethylene, polystyrene and polyvinyl chloride. Plastic materials are widely used in the automotive, building and construction, electronics, healthcare, and packaging industries, due to their relatively low costs, ease of manufacture, versatility, and rigidity properties.
Plastic Material and Resins Market Size
The global plastic material and resins market reached a value of nearly $466.2 billion in 2020, having increased at a compound annual growth rate (CAGR) of 1.2% since 2015. The market is expected to grow from $466.2 billion in 2020 to $659.2 billion in 2025 at a rate of 7.2%. The market is then expected to grow at a CAGR of 3.5% from 2025 and reach $ 784.2 billion in 2030.
Growth in the historic period in the plastic material and resins market resulted from increased demand for industrial packaging products, growth of motor vehicles, and growth in the construction industry. The market was restrained by stringent regulations, and environmental concerns over plastics.
Going forward, new developments in packaging will drive the growth in the plastic material and resins market. Factors that could hinder the growth of the market in the future include oil price volatility, geo-political tensions, and coronavirus pandemic.
Plastic Material and Resins Market Drivers
The key drivers of the plastic material and resins market include:
New Developments In Packaging
New developments in the packaging industry, such as CO2RE foaming technology, big data, IoT integration are expected to drive the plastic material and resins market going forward. Convenience features, such as resalable packs, easy-opening, stand-up pouches and smaller pack sizes for single-servings are being introduced and more promotional packs and brand extensions are being developed to ensure customer loyalty. Similarly, recent development of bio-degradable plastics which degrade naturally from the actions of microorganism such as bacteria, algae and fungi is gaining traction. These developments in packaging will increase the consumption of plastics and will in turn drive the market growth.
Plastic Material and Resins Market Restraints
The key restraints on the plastic material and resins market include:
Oil Price Volatility
Oil price volatility is likely to have a negative impact on the plastic material and resins market as significant decline and increase in oil prices negatively impacts the government and consumer spending. The decline in oil prices is having a negative impact on government spending in countries such as Saudi Arabia, Nigeria and the UAE which are largely dependent on revenues generated through crude oil exports; whereas significant increase in oil prices had resulted in spurt in inflation, current account deficit and fiscal deficit in countries such as India and China, which predominantly import oil. For instance, the Saudi government is expected to cut down its spending from SAR 1.05 trillion ($280 billion) in 2019 to SAR 1.02 trillion ($270 billion) in 2020, to SAR 955 billion ($255 billion) by 2022, due to significant decline in revenues generated from oil exports, thereby affecting the market. This high volatility in oil process is further expected to negatively impact the market going forward.
Plastic Material and Resins Market Trends
Major trends influencing the plastic material and resins market include:
Automation Through Robotics In Factories
Plastic materials and resins companies are increasingly adopting automation and robotics technology to boost efficiency, productivity and responsiveness. Automation is a technique of operating and controlling a process by automatic means or technology by reducing human intervention. Factories are automated with collaborative robots, equipped with vision systems that can be easily trained to perform various tasks from design and development to logistics and control costs. These robots give more flexibility to the manufacturers at the time of production-line design change and provide ability to customize manufactured products. It is stated that by 2020, 180,000 machines will be employed in manufacturing plants for automation purposes.
Use Of Recycled Plastic Products As A Raw Material
Plastic material and resins manufacturers are using recycled plastic products as raw materials to reduce raw material costs, lower carbon footprint, and reduce dependence on other raw materials such as oil and gas. Recycled plastic has properties nearly identical to those of virgin plastic (plastic material which is produced without using any recycled plastic products) and contains only a small percentage of impurities. Additionally, recycled plastic has a carbon footprint 85% smaller than new plastic. Recycled plastic costs 20-25% less than plastic made from virgin raw materials such as oil and gas. For instance, Adidas has collaborated with Parley for the Oceans to produce products made from recovered ocean plastic. The USA based cleaning products maker “Method Products” is using plastic recovered from the ocean and prevents the manufacturing of new plastic by recycling.
Opportunities And Recommendations In The Plastic Material and Resins Market.
Opportunities –The top opportunities in the plastic material and resins market segmented by type will arise in the others segment, which will gain $66.0 billion of global annual sales by 2025. The top opportunities in the plastic material and resins market segmented by end user will arise in the packaging segment, which will gain $65.0 billion of global annual sales by 2025.
Recommendations-To take advantage of these opportunities, The Business Research Company recommends the companies in the plastic material and resins market to focus environmentally friendly products, invest in automation through robotics, focus on high performance plastics, outsource activities to low-cost countries to save costs, offer competitive pricing, leverage social media platforms, increase visibility through websites, and focus on fast-growing end-use industries.
Plastic Material and Resins Market Segmentation
The plastic material and resins market is segmented by type, by end user industry and by geography.
By Type-
The plastic material and resins market is segmented by type into
- a) Low-density polyethylene
- b) High-density polyethylene
- c) Polypropylene
- d) Polystyrene
- e) Poly-vinyl chloride
- f) Polyethylene terephthalate
- g) Polyurethane
- h) Others
The others market was the largest segment of the plastic material and resins market segmented by type, accounting for 41.8% of the total in 2020. Going forward, the high-density polyethylene segment is expected to be the fastest growing segment in the plastic material and resins market segmented by type, at a CAGR of 13.7% during 2020-2025.
By End User Industry -
The plastic material and resins market is segmented by end user industry into
- a) Packaging
- b) Automotive
- c) Construction
- d) Electrical & electronics
- e) Consumer goods
- f) Furniture & bedding
- g) Others-end user
The packaging market was the largest segment of the plastic material and resins market segmented by end-user, accounting for 33.4% of the total in 2020. Going forward, the consumer goods segment is expected to be the fastest growing segment in the plastic material and resins market segmented by end-user, at a CAGR of 8.5% during 2020-2025.
Segmentation By Geography-The plastic material and resins market is segmented into
- o North America
o Western Europe,
- • UK
- • Germany
- • France
- • Italy
- • Spain
- • Austria
- • Belgium
- • Denmark
- • Finland
- • Ireland
- • Netherlands
- • Norway
- • Portugal
- • Sweden
- • Switzerland
o Asia Pacific
- • China
- • India
- • Japan
- • Australia
- • Indonesia
- • South Korea
- • Hong Kong
- • Malaysia
- • New Zealand
- • Philippines
- • Singapore
- • Thailand
- • Vietnam
o Eastern Europe
- • Russia
- • Czech Republic
- • Poland
- • Romania
o South America
- • Brazil
- • Argentina
- • Chile
- • Colombia
- • Peru
- • Venezuela
o Middle East
- • Israel
- • Saudi Arabia
- • Turkey
- • UAE
o Africa
- • Egypt
- • Nigeria
- • South Africa
Asia Pacific was the largest region in the plastic material and resins market, accounting for 51.6% of the total in 2020. It was followed by the North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the plastic material and resins market will be the Middle East and South America where growth will be at CAGRs of 13.1% and 10.2% respectively during 2020-2025. These will be followed by Africa and Eastern Europe, where the markets are expected to register CAGRs of 9.8% and 9.1% respectively.
Plastic Material and Resins Competitive Landscape
Major Competitors In The Plastic Material and Resins Market are:
LyondellBasell Industries Holdings BV
Total SE
Ineos AG
Lotte Chemical Corporation
BASF SE
Other Competitors In The Plastic Material and Resins Market Include:
Covestro AG
Formosa Plastics Corp.
Huntsman International LLC.
Westlake Chemical Corp
Dow
Jain Irrigation Systems Ltd
Reliance Industries Ltd
Sintex Industries Ltd
VIP Industries Ltd
Xinghua Xinfeng Plastic Co. Ltd
Sumitomo Chemical Company Limited
Plastral
LG Chemical
Australian Vinyls Corporation
Matsui Technologies India Ltd
China Petrochemical Corporation
China National Petroleum Corporation
Yabang Investment Holding Group Co. Ltd. and Zhenjiang Chimei Chemical Co. Ltd. and Sanmu Group.
Dagu Chemical Co. Ltd.
Shanghai Huayi (Group)
Sichuan Jinlu Group Co. Ltd., and Xingda Group
POLYNT SPA
Johannes H. Andress GMBH & CO. KG
BÜFA Composite Systems
Sunstar Engineering Italy S.R.L.
RESITEC PRODUCTION SA
Awgifts Europe
Borealis Group
Formulated Resins Ltd
Nolato
HEKRO PET
BASF
Chevron Philips Chemicals
Dupoint
Huntsman
INEOS Group
Lyondellbasell
Plastic OJSC
Brovary Plastic Plant
Soltex Group
Rosti Poland Sp.
TCR Plastics
Dow Chemical
Exxon Mobil
Chevron Phillips
Eastman Chemical Company
Berry Global Group Inc.
Celanese Corp.
Sealed Air Corp. Silgan Holdings Inc.
Bemis Company, Inc.
PolyOne Corporation
Horizon Plastics International
Glezco Plasticos
SA de CV
Osterman's Latin American Polymers
LLC (LAP)
Messe Brasil
Amcor Plc
Sonoco Products Company
Graham Packaging Company
Braskem
Qatar Petrochemical Company (Qapco)
Abu Dhabi National Oil Company (Adnoc)
Cosmoplast, ENPI Group
GAP Polymers
Advanced Polymer Trading FZC (APT)
Zamil Plastic Industries Ltd
Arabian Plastic Industrial Company Limited
Saudi Aramco
Flowcrete South Africa
Ncs Resins (Pty) Ltd Are Plastocure cc
Northern Vinyl Supplies
SPREA MISR
Black Horse Plastic Products
Geeta Plastic Products