Plastic Industry Overview

In 2023, the global plastic market size was valued at an estimated USD 624.8 billion, with a projected compound annual growth rate (CAGR) of 4.2% from 2024 to 2030. This anticipated growth is largely driven by the increasing substitution of traditional materials like glass, metals, wood, and natural rubber with plastics, offering a lighter, versatile, and often more cost-effective alternative. Additionally, the plastic resins market is among the most highly regulated worldwide, with a large number of players offering a wide range of plastic resins to meet diverse needs. Some of the commonly used plastic resins include polystyrene (PS), polyethylene (PE), acrylonitrile butadiene styrene (ABS), polypropylene (PP), polybutylene terephthalate (PBT), polyphenylene oxide (PPO), polyurethane (PU), polyether ether ketone (PEEK), polyvinyl chloride (PVC), polyethylene terephthalate (PET), polycarbonate (PC), polysulfone (PSU), polyamide (PA), and polyphenylsulfone (PPSU).

Among these, polypropylene is one of the most widely used resins, particularly across industries such as packaging, automotive, toys, and various industrial applications. Known for its strong chemical and electrical resistance, hardness, high melting point, stress resistance, and flexibility, polypropylene is especially popular in the automotive and construction industries. The growing consumer demand for individual vehicles has contributed to a rise in automotive production, further fueling demand for polypropylene and other resins essential for manufacturing automotive components and construction materials.

In North America, the U.S. led the plastics market in 2023 and is expected to maintain this position throughout the forecast period. A significant portion of plastic demand in the U.S. stems from the growing automotive industry and an increase in construction activities. Additionally, capacity expansion and new plant setups by automotive companies in the U.S. are expected to further drive demand for plastic compounding in the coming years.

Polyethylene terephthalate (PET) is forecasted to be one of the fastest-growing resin segments within the U.S. plastics market, primarily due to its high demand in the packaging industry. PET is widely used in the production of bottles, making it a crucial component in the packaging sector and a significant contributor to the overall plastics market. Many PET processors in the U.S. are increasingly adopting Good Manufacturing Practices (GMPs) to optimize resource utilization, enhance conservation, and improve production efficiency. These initiatives are expected to further stimulate PET market growth over the forecast period.

Gather more insights about the market drivers, restrains and growth of the Plastic Market

Regional Insights:

Asia Pacific Plastics Market Trends

• Market Dominance:

• • Asia Pacific dominated the global plastics market in 2023, holding a revenue share of over 22.0%.
  • The region’s dominance is driven by robust industrial growth and expanding end-use markets.

• Key Growth Markets:

• • Asian countries including Vietnam, Indonesia, Thailand, China, Japan, and India are expected to lead the growth in plastics consumption over the forecast period.
  • These countries are experiencing rapid industrialization and urbanization, driving demand across multiple sectors.

• Sector-Specific Demand Drivers:

• • Automotive Sector:
    • Growth in automotive production, particularly in India and China, due to technology transfer from Western markets, is a significant factor.
    • Plastics are increasingly used for lightweight and durable automotive components.
  • Industrial Machinery and Construction:
    • The growing manufacturing sector is boosting the use of plastic compounds in machinery and infrastructure development.
  • Packaging Industry:
    • Rising consumer demand for packaged goods is driving innovation in plastic packaging materials.
  • Electrical & Electronics Industry:
    • A well-established manufacturing base for electronics in Taiwan, China, and South Korea is contributing to the demand for specialized plastics.

• Chemical Manufacturing Strengths:

• • India’s robust chemical manufacturing industry strengthens its plastic production capabilities, catering to both domestic and international markets.

• Other Growth Factors:

• • Rapid urbanization, improving economic conditions, and increasing infrastructural activities across the region are fostering market growth.

North America Plastics Market Trends

• Medical Devices Segment:

• • The rising demand for epoxy polymers in the medical devices sector is a primary growth driver.
  • Plastics are extensively used in manufacturing medical disposables and devices such as catheters, syringes, and surgical instruments.

• Post-Pandemic Growth:

• • The plastics market in North America is expected to grow across multiple application segments post-pandemic, including:
    • Packaging: Increased demand due to the e-commerce boom and food safety concerns.
    • Construction: Use of plastics in insulation, piping, and construction materials.
    • Electrical & Electronics: Expansion in consumer electronics and renewable energy equipment.
    • Automotive: Preference for lightweight materials to improve fuel efficiency.
    • Agriculture: Adoption of plastic films, pipes, and storage containers.
    • Furniture & Bedding: Rising use of durable and cost-effective plastic components.
    • Consumer Goods and Utility: Growth in demand for everyday plastic products driven by lifestyle changes and urbanization.

Browse through Grand View Research's Plastics, Polymers & Resins Industry Research Reports.

• The global polyethylene market size was estimated at USD 155.18 billion in 2023 and is expected to grow at a CAGR of 5.0% from 2024 to 2030.
• The global petrochemicals market size was valued at USD 619.28 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2030.

Key Plastic Company Insights

Key companies are adopting several organic and inorganic growth strategies, such as capacity expansion, mergers & acquisitions, and joint ventures, to maintain and expand their market share.

• In December 2023, Biesterfeld AG and Celanese Corporation announced the expansion of their distribution partnership to boost their respective reach for plastics across the regions including Europe, Middle East & Africa, Southeast Asia, and Brazil.
• In June 2023, MKS Plastics, announced their investment of USD 14 million for the expansion of their production facility in Tangipahoa Parish. The company estimates doubling its production capacity along with catering the customers across petroleum and chemical industry.

Key Plastic Companies:

The following are the leading companies in the plastic market. These companies collectively hold the largest market share and dictate industry trends. Financials, strategy maps & products of these plastic companies are analyzed to map the supply network.

• BASF SE
• SABIC
• Dow, Inc.
• DuPont
• Evonik Industries AG
• Sumitomo Chemical Co., Ltd.
• Arkema
• Celanese Corporation
• Eastman Chemical Company
• Chevron Phillips Chemical Co., LLC
• Lotte Chemical Corporation
• Exxon Mobil Corporation
• Formosa Plastics Corporation
• Covestro AG
• Toray Industries, Inc.
• Mitsui & Co. Plastics Ltd.
• TEIJIN LIMITED
• INEOS Group
• Eni S.p.A.
• LG Chem
• LANXESS
• CHIMEI
• Huntsman International LLC
• Chevron Phillips Chemical Co., LLC
• LyondellBasell Industries Holdings B.V.
• RTP Company

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