Plastic Market Drivers: Growing Focus on Lightweight

• Posted by Karls Scott November 19, 2024 Filed in Business #Plastic Market  23 views
  click to rate

  The global plastics market was valued at approximately USD 624.8 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2030. This growth is largely driven by the increasing replacement of traditional materials like glass, metals, wood, and natural rubber with plastics. The plastic resins market, being one of the most heavily regulated globally, consists of numerous players offering a wide range of resins. These include materials such as 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).

  Polypropylene, a widely used resin, finds applications in industries such as packaging, automotive, toys, and industrial components due to its favorable properties like chemical resistance, electrical resistance, hardness, high melting point, stress resistance, and flexibility. The rising demand for polypropylene in the automotive and construction industries is expected to fuel growth in the resin market. Increased consumer spending has bolstered the demand for individual vehicles, driving growth in the automotive industry and contributing to market expansion.

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

  In 2023, the U.S. led the North American plastics market and is likely to maintain its dominant position throughout the forecast period. The robust demand for plastics stems from the growth of the automotive sector and an uptick in construction activities. Further, capacity expansions and plant upgrades by automotive manufacturers in the U.S. are set to boost demand for plastic compounding.

  Polyethylene terephthalate (PET) is anticipated to be one of the fastest-growing resin segments in the U.S., primarily driven by its application in the packaging industry, such as bottle production. Many PET manufacturers in the U.S. are adopting Good Manufacturing Practices (GMPs) to optimize resource utilization, improve efficiency, and enhance production. These efforts are likely to support the growth of the PET market in the coming years.

  The increasing adoption of plastics as alternatives to materials like glass, metals, natural rubber, and wood is propelling the global plastics market. Products such as olefins, PVC, polystyrene, and PET are increasingly replacing traditional materials in automotive, medical, construction, and consumer goods applications. Additionally, the growing emphasis on reducing carbon emissions and favorable regulations are encouraging the use of lightweight plastics over heavier materials like metals, especially in automotive and industrial machinery.

  However, the market faces challenges due to the volatility of petrochemical prices, which are influenced by fluctuations in crude oil prices, a key raw material for plastics. This price instability is expected to impact the market's overall cost dynamics.

  Plastic Market Regional Insights:

  In 2023, the Asia-Pacific region held the largest market share, accounting for over 22% of the global revenue. Countries like Vietnam, Indonesia, Thailand, China, Japan, and India are anticipated to drive regional growth. The manufacturing sector's expansion in these nations is fueling demand for plastic compounds in industries such as automotive, construction, packaging, industrial machinery, and electronics. India and China, in particular, have experienced significant growth in automotive production, supported by technology transfers from Western markets.

  Additionally, the well-established manufacturing bases for electronics in Taiwan, China, and South Korea are expected to further support the growth of the plastics market. India's strong chemical manufacturing infrastructure, rapid urbanization, and growing infrastructural projects are contributing factors to the regional market's expansion.

  In North America, the plastics market is primarily driven by the growing demand for epoxy polymers in medical devices, including disposable items and surgical instruments. Post-pandemic recovery in application segments like packaging, construction, automotive, electronics, and consumer goods is further expected to drive growth.

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

  • Adhesion Promoter Market: The global adhesion promoter market size was estimated at USD 5.21 billion in 2024 and is projected to grow at a CAGR of 9.6% from 2025 to 2030.

  • Bio-based Polyurethane Market: The global bio-based polyurethane market size was estimated at USD 39,694.98 thousand in 2024 and is expected to grow at a CAGR of 8.99% from 2025 to 2030.

  Key Companies & Market Developments

  Major companies in the plastics industry are employing strategies such as capacity expansion, mergers and acquisitions, and joint ventures to enhance their market presence.

  • In December 2023, Biesterfeld AG and Celanese Corporation expanded their distribution partnership, aiming to increase their reach in regions such as Europe, the Middle East, Africa, Southeast Asia, and Brazil.
  • In June 2023, MKS Plastics invested USD 14 million to expand its production facility in Tangipahoa Parish, aiming to double its production capacity to serve petroleum and chemical industries effectively.

  Key Plastic Companies:

  • 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

  Order a free sample PDF of the Plastic Market Intelligence Study, published by Grand View Research.