Global Plastics Market: Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2022-2028: The market will expand due to the growing e-commerce industry leading to increased demand for plastic packaging, and the increasing demand for plastic products in the end-use industries.
Global Plastics Market is valued at USD 638.86 Billion in 2022 and it is expected to reach USD 823.87 Billion by 2029 with a CAGR of 3.70% over the forecast period.
The plastic market is a global industry that encompasses the production, sale, and distribution of various plastic products. Plastic is a synthetic material made from polymers that are derived from petrochemicals. It has become an essential material for many industries due to its versatility, durability, and low cost.
The history of the plastic market can be traced back to the early 1900s, when the first synthetic plastic, Bakelite, was invented. Since then, the industry has grown rapidly and has become an integral part of modern society. The use of plastic increased significantly after World War II due to its lightweight and easy-to-manufacture properties.
The plastic market has a wide range of applications, including packaging, construction, automotive, electronics, healthcare, and consumer goods. Plastic products are used in many everyday items such as water bottles, food containers, toys, and electronics. The end-users of plastic products are diverse and include individuals, businesses, governments, and organizations. Plastic products are used by almost everyone in some form or another, from households to large corporations.
The global plastic market is worth billions of dollars annually, with revenue generated through the sale of plastic products, raw materials, and equipment used in the manufacturing process.
The plastic market has a complex supply chain that includes the extraction and refining of petrochemicals, the manufacture of plastic products, and the distribution and sale of those products. The supply chain also includes the recycling and disposal of plastic waste.
The plastic market's value chain includes the design, development, and manufacture of plastic products, as well as the marketing and distribution of those products. The value chain also includes the recycling and disposal of plastic waste.
COVID-19 has had a significant impact on the global plastics market, with both positive and negative effects. Here are some positive impacts, increased demand for plastic packaging due to a rise in online shopping and home deliveries, as people stay at home more. The pandemic has led to an increased awareness of the importance of hygiene, which has driven the use of single-use plastic products.
However, on the negative side, supply chain disruptions due to factory shutdowns, travel restrictions, and reduced demand for non-essential products. The pandemic has led to increased public awareness of the negative environmental impacts of plastic waste, leading to a push for more sustainable alternatives.
Increasing demand for plastic products in the end-use industries: The packaging industry has a significant demand for plastic products due to their lightweight, durability, and cost-effectiveness. Plastic packaging is extensively used for food and beverage, cosmetics, and personal care products. In the construction industry, plastic products such as PVC pipes, insulation materials, and roofing are widely used due to their durability, versatility, and ease of installation. For example, the European Plastic Pipes and Fittings Association states that plastic pipes and fittings have a market share of 25% in Europe's building and construction sector. Plastic is also widely used in the automotive industry for its lightweight and high-strength properties, which enhance fuel efficiency and reduce emissions. For example, the International Organization of Motor Vehicle Manufacturers (OICA) reports that the production of passenger cars and commercial vehicles worldwide reached 92.1 million units in 2019, with plastic usage increasing due to the trend towards lightweight and fuel-efficient vehicles.
In the electronics industry, plastic products are used for making phone cases, computer parts, and other accessories due to their excellent insulating properties. In the healthcare industry, plastic products such as medical devices, packaging, and disposables are widely used due to their biocompatibility and stabilizability.
Growing e-commerce industry leading to increased demand for plastic packaging: The e-commerce industry has seen exponential growth in recent years, leading to a surge in demand for plastic packaging. Plastic packaging offers a cost-effective and versatile solution to meet the needs of e-commerce companies. Plastic packaging is lightweight, durable, and offers superior protection to products during transit. It also provides an opportunity for brand promotion through the customization and printing of company logos and marketing messages.
Plastic packaging also offers convenience to consumers as it is easy to open and dispose of, making it an attractive option for e-commerce companies to meet customer demands. The United Nations Environment Programme (UNEP) estimates that 95% of plastic packaging material value, or USD 80 billion to 120 billion annually, is lost to the economy after a single use.
Environmental Concerns: Increasing awareness about the negative impact of plastic waste on the environment is leading to a shift in consumer preferences towards more sustainable materials, which can impact the demand for plastic products. For example, Accenture found that 83% of consumers believe that it is important or extremely important for companies to design products that are environmentally friendly and sustainable.
Government Regulations: Governments around the world are implementing regulations to curb the use of single-use plastics, which can have a negative impact on the demand for plastic products. For example, Canada's federal government has announced plans to ban single-use plastics such as straws, plastic bags, and cutlery by the end of 2021. The government estimates that Canadians throw away more than 34 million plastic bags every day. However, in India, the government has implemented a ban on single-use plastics in certain states and cities, including the capital, Delhi. The ban includes items such as plastic bags, cups, and cutlery.
With the growing population and increasing demand for consumer goods in emerging markets, Advancements in plastic processing technology are driving product innovation, The versatility of plastic materials allows for expansion into new applications and markets, such as 3D printing, automotive, and medical devices. The increasing emphasis on recycling and reuse of plastic materials presents opportunities for companies to develop products and processes that facilitate the circular economy.
Product Development: There is a growing trend towards the development of more sustainable and eco-friendly plastic products, such as biodegradable plastics and recycled plastics.
Technology Development: Advancements in plastic processing technology, such as additive manufacturing and 3D printing, are driving product innovation and creating new opportunities for market players.
Customer Trends: Consumer preferences are shifting towards more sustainable and environmentally friendly products, which is driving the development of eco-friendly plastic products and increasing demand for recycled plastics.
Developing Sustainable Products: Companies can differentiate themselves by developing eco-friendly plastic products that are made from renewable resources, have a lower carbon footprint, and are biodegradable or recyclable.
Innovation and Technology: Companies can leverage innovation and technology to develop new products and improve production processes, which can reduce costs and improve efficiency.
Mergers and Acquisitions: Companies can expand their market share and gain a competitive advantage through mergers and acquisitions, which can help to increase economies of scale and access to new markets.
Diversification: Companies can diversify their product offerings to mitigate the impact of changes in demand for specific products or materials. This can involve expanding into new markets or developing products for new applications.
In North America, the plastic market is one of the largest in the world, with the United States being the largest producer and consumer of plastic products in the region. The market is primarily driven by the packaging and construction industries, which account for a significant share of the demand for plastic products.
The North American plastic market is expected to continue growing in the coming years, driven by factors such as the growth of the food and beverage industry, increasing demand for lightweight and durable materials in the automotive industry, and the growing focus on sustainability and eco-friendliness. In the United States plastics industry accounted for $432.3 billion in shipments and employed over 1 million people, the key role that plastics play in the automotive, packaging, and construction industries in North America.
Europe is one of the largest markets for plastics globally and is home to several major players in the industry. The market is primarily driven by the packaging and automotive industries, which account for a significant share of the demand for plastic products. The European plastic market has also been impacted by government regulations aimed at reducing plastic waste and promoting the circular economy.
For example, the European Union has implemented a ban on single-use plastics such as straws and cutlery, which is expected to drive demand for more sustainable alternatives. The European plastics industry directly employs around 1.6 million people and generates a turnover of €340 billion per year.