Projected to reach US$ 798.38 billion in 2023, the plastic resins market is poised for substantial growth, with expectations to soar to US$ 1,239.86 billion by 2033. Throughout the forecast period, sales of plastic resins are anticipated to experience robust expansion at a noteworthy Compound Annual Growth Rate (CAGR) of 4.5%. This remarkable growth trajectory reflects the enduring demand for plastic resins across diverse industries, driven by their versatility, durability, and widespread applications in packaging, construction, automotive, and consumer goods sectors. The projected CAGR underscores the resilience and adaptability of the plastic resins market amidst evolving market dynamics and regulatory landscapes.
In 2020, Asia Pacific held a substantial share of about 45% of the global plastic resins market revenue, firmly establishing itself as the market leader. This trend is anticipated to persist during the forecast period. China, a dominant force within the Asia Pacific region, played a pivotal role in this achievement by contributing approximately 35% to the worldwide plastic resins market. This substantial market share is largely attributed to China’s extensive production capacity and a high concentration of plastic manufacturing facilities. With more than 15,000 plastic manufacturers, China boasts roughly one-fourth of the world’s plastic production capacity. These factors collectively underscore Asia Pacific’s leadership in the global plastic resins market.
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Plastic resins, fundamental in multiple industries, offer a plethora of applications and material options vital for manufacturing processes, given their versatility and diverse properties as polymers. With the automotive sector witnessing a surge in demand, the utilization of plastic resins in manufacturing automotive components has become widespread, attributed to their lightweight nature, durability, and adaptable designs. Additionally, heightened emphasis on enhancing fuel efficiency and reducing emissions has further accelerated the integration of plastic resins within the automotive industry. Meanwhile, in construction, plastic resins are indispensable for various applications like pipes, cables, and insulation materials, owing to their corrosion resistance, thermal insulation properties, and ease of installation.
The electrical and electronics industry extensively utilizes plastic resins for the production of components, casings, insulation materials, and wiring. Also, the increasing demand for consumer electronics, appliances, and electrical devices drives the demand for plastic resins in this sector.
Furthermore, the packaging industry is a significant consumer of plastic resins. Plastic resins offer various advantages in packaging applications, including flexibility, durability, lightweight, and cost-effectiveness. Moreover, the rise in e-commerce, food and beverage consumption, and the need for efficient and sustainable packaging solutions contribute to the demand for plastic resins in the packaging industry.
Crystalline resins hold a high revenue share of over 62% in the global plastic resins market, with Polyethylene (PE) resin being a significant contributor due to its demand in food packaging and stretch wrap applications. On the other hand, the non-crystalline resin market accounted for around 20% of total sales in 2021 but is expected to decrease in demand due to the rising use of alternative polymers.
Business Growth Drivers:
- Increasing Demand in End-Use Industries: Plastic resins find extensive applications across sectors like packaging, automotive, construction, electronics, and healthcare, where there is a consistent demand for lightweight, durable materials.
- Innovation and Technological Advancements: Continuous advancements in polymer chemistry, manufacturing processes, and material science contribute to the development of novel plastic resins with enhanced properties, catering to specific industry needs.
- Growing Popularity of Bioplastics: With increasing environmental concerns and regulations, the demand for biodegradable and renewable plastic resins derived from biomass sources such as corn starch, sugarcane, and cellulose is on the rise.
- Expansion in Emerging Markets: Rapid industrialization and urbanization in emerging economies drive the demand for plastic resins, as these countries witness increased consumption in various applications due to infrastructural development and rising disposable incomes.
- Customization and Functional Properties: Manufacturers focus on offering tailor-made solutions to meet specific end-user requirements, such as improved strength, flexibility, heat resistance, and recyclability, thus expanding their market presence.
- Cost-Effectiveness and Versatility: Plastic resins are preferred over traditional materials like metal and glass due to their lower production costs, ease of processing, and ability to be molded into complex shapes, driving their adoption across diverse industries.
Industry Restraints:
- Environmental Concerns and Regulations: The growing awareness of plastic pollution and associated environmental hazards has led to stricter regulations on plastic usage, disposal, and recycling, impacting the market growth of conventional plastic resins.
- Volatility in Raw Material Prices: Fluctuations in crude oil prices, as plastic resins are primarily derived from petrochemical feedstocks, pose challenges to manufacturers in terms of cost management and profit margins.
- Shift Towards Sustainable Alternatives: Increasing consumer preferences for eco-friendly packaging materials and government initiatives promoting the use of biodegradable plastics have led to a shift away from conventional plastic resins, affecting market demand.
- Recycling Infrastructure and Technologies: Limited recycling infrastructure and inefficient recycling processes hinder the widespread adoption of recycled plastic resins, despite the growing emphasis on circular economy principles and sustainability.
- Health and Safety Concerns: The use of certain plastic resins, especially those containing hazardous additives like phthalates and bisphenol A (BPA), raises health and safety concerns, prompting regulatory interventions and consumer backlash.
- Global Economic Uncertainties: Economic downturns, trade tensions, and geopolitical instability can impact industrial activities and consumer spending, thereby affecting the demand for plastic resins across various end-use sectors.
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Key Takeaways:
- In terms of application, the packaging category dominates the plastic resins market with a revenue share of over 36% in 2021. In addition, the growth of the packaging industry and the increasing demand for packaged goods and beverages contribute to the market’s performance.
- In North America, the plastic resins market is witnessing growth due to the region’s development, industrialization, and advancements in packaging technology. Further, the demand for plastic packaging is expected to increase in response to demographics and customer preferences.
- Asia Pacific leads the global plastic resins market with around 45% of the revenue share in 2020, and it is projected to maintain its dominance.
- China plays a significant role in the region, accounting for around 35% of the global plastic resin market. The country’s substantial production capacity and high density of plastic manufacturing facilities contribute to its market leadership.
Recent Developments
- BASF began marketing polyamide (PA) and polyphthalamides (PPA) grades in Europe on February 1, 2022, as part of its acquisition of Solvay’s PA66 business. Under humid and high-temperature situations, Ultramid® One J (PA66/6T) offers good mechanical and dielectric qualities.
- Companies have also launched several initiatives in response to the worldwide epidemic. Eastman Chemical Company, for example, gave around 1,000 feet of PETG film to Austin Peay State University in Clarksville in March 2021 for the creation of 3D-printed face shields.
The Major Key Players Are:
- SABIC
- BASF SE
- Dow Inc.
- Sumitomo Chemical
- Evonik Industries
- Arkema
- Teijin Limited
- Eastman Chemical Company
- Celanese Corporation
- Chevron Phillips Chemical Co., LLC
- Exxon Mobil Corporation
- Lotte Chemical Corporation
- Formosa Plastics Corporation
- Toray Industries, Inc.
- Covestro AG
- Mitsui & Co. Plastics Ltd.
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Key Segmentations:
By Product:
- Crystalline
- Non-crystalline
- Engineering Plastic
- Super Engineering Plastic
By Application:
- Packaging
- Automotive
- Construction
- Electrical & Electronics
- Logistics
- Consumer Goods
- Textiles & Clothing
- Furniture & Bedding
- Agriculture
- Medical Devices
- Others
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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