Plastic Materials And Resins Market Definition
The plastic materials and resins market consists of the sales of plastic materials and resins by entities (organizations, sole traders or partnerships) that manufacture plastic materials, resins, and nonvulcanizable thermoplastic elastomers, and mix and blend resins on a custom basis and/or manufacture noncustomized 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. Resins are organic compounds consisting of a non-crystalline or viscous liquid substance. Natural resins are typically fusible and flammable organic substances that are transparent or translucent and are yellowish to brown in color.
Plastic Materials And Resins Market Size
The global plastic material and resins market reached a value of nearly $490.5 billion in 2018, having declined at a compound annual growth rate (CAGR) of more than -0.4% since 2014.
Growth in the historic period resulted from the increased demand for industrial packaging products, growth of key end-use markets for plastics, and technological developments. Factors that negatively affected growth in the historic period were environmental concerns over plastics, and changes in regulations.
Going forward, new developments in packaging and growth in emerging markets will drive growth. Factors that could hinder the growth of the plastic material and resins market in the future are price pressures in the industry due to the increasing raw material prices, and reductions in free trade.
Plastic Materials And Resins Market Drivers
The key drivers of the plastic materials and resins market include:
Increased Demand For Industrial Packaging Products – The demand for industrial packaging products has increased recently, particularly in emerging economies such as China and India. As the size of the middle-class grew in these countries, the consumption of processed foods, poultry, meat and agricultural products increased. According to the World Bank, China’s Gross Domestic Product (GDP) per capita increased from $7587 in 2014 to $7924 in 2015 and India’s GDP per capita increased from $1576 in 2014 to $1581 in 2015. The increase in per-capita income in these economies resulted in the emerging middle-class purchasing more packaged goods. The demand for packaged goods increased the consumption of plastic for their packaging, driving the market.
Plastic Materials And Resins Market Restraints
The key restraints on the plastic materials and resins market include:
Changing Regulations – Stringent regulations on plastic materials were a major restraint on the plastic materials and resins market. Many of the products in the plastic materials and resins industry are potentially hazardous during the manufacturing stages because the manufacturing processes involve reactions that can be dangerous unless controlled carefully. In addition, some of the manufactured plastic products can have an adverse impact on both living organisms and the environment. Government agencies and regulators are strictly assessing and managing the risks involved in the production and use of plastics. Plastic material and resin manufacturers are instructed to be compliant with complex regulations that govern labeling, handling, manufacturing and shipping and storage of the product, leading to an increase in compliance costs for the manufacturers.
Plastic Materials And Resins Market Trends
Major trends influencing the plastic materials and resins market include:
Use Of Recycled Plastic Products As Raw Material – Plastic material and resin 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 few percents of impurities. Additionally, the recycled plastic has a carbon footprint 85% smaller than new plastic. Recycled plastic costs 20-25% less than the plastic made from virgin raw materials such as oil and gas.
Environmentally Friendly Products – The world population is increasingly becoming aware about the adverse impact of plastic materials on the environment. This has led to a rapid increase in demand for eco-friendly plastics: bioplastics that are manufactured from polymer resins derived from plants and plastics that can be decomposed with the help of bacteria. For instance, global bio plastics production capacity was estimated to be around 6.2 million tons in 2017, and the global market for bio plastics and biopolymers is expected to be around $5.0 billion in 2021, indicating high demand for eco-friendly plastic products.
Opportunities In The Plastic Materials And Resins Market
Opportunities – The top opportunities in the global plastic materials and resins market will arise in the others segment which will gain $31.83 billion of global annual sales by 2022. The plastic materials and resins market size will gain the most in China. Plastic materials and resins market-trend-based strategies include focus on research and development, recycling plastic products, adoption of automation. Player-adopted strategies in the plastic materials and resins market industry include investments for the purpose of geographic wise expansion and product portfolio expansion.
Plastic Materials And Resins Market Segmentation
The plastic materials and resins market is segmented by type of product
By Product Type -
The plastic materials and resins market is segmented by product type into
Others segment was the largest segment in the global plastic materials and resins market by type of product in 2018, accounting for 39.4% of the market. Acrylic polymers, polyethers, polyamide, epoxide resins, amino resins, polycarbonates, elastomeric resins, vinyl acetate copolymers are the major plastic materials and resins within the others segment which constitute around 70% of the others segment.
- a) High-Density Polyethylene
- b) Polypropylene
- c) Low-Density Polyethylene
- d) Polystyrene
- e) Poly-Vinyl Chloride
- f) Polyethylene Terephthalate
- g) Polyurethane
- h) Plastic Materials And Resins
- i) Others
By Geography - The plastic materials and resins market is segmented into
Asia-Pacific is the largest market for plastic materials and resins, accounting for 50.1% of the global market in 2018. It was followed by North America, Western Europe and then the other regions. Going forward, Africa and the Middle East will be the fastest growing regions in the plastic materials and resins market, where growth will be at CAGRs of 7.8% and 5.2% respectively.
- o North America
- o Western Europe
- o Asia Pacific
- Hong Kong
- New Zealand
- South Korea
- o Eastern Europe
- Czech Republic
- o South America
- o Middle East
- Saudi Arabia
- o Africa
- South Africa
Plastic Materials And Resins Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • LyondellBasell Industries
- • Total SA
- • Ineos AG
- • Formosa Plastics Group
- • Covestro AG
- • Exxon Mobil
- • Chevron Phillips
- • Eastman Chemical Company
- • Celanese Corp.
- • PolyOne Corporation
- • Glezco Plasticos
- • BÜFA Composite SystemsGibson Dunn
- • Sunstar Engineering Italy S.R.L.
- • Borealis Group
- • Formulated Resins Ltd
- • Solvay S.A
- • Reliance Industries Ltd
- • Xinghua Xinfeng Plastic Co. Ltd
- • Sumitomo Chemical Company Limited
- • Plastral
- • LG Chemical
- • Australian Vinyls Corporation
- • Xinjiang Zhongtai Chemical
- • Shanghai Bluestar
- • Plas Soltex Grouptic OJSC
- • Messe Brasil
- • Braskem
- • Qat Abu Dhabi National Oil Company (Adnoc)ar Petrochemical Company (Qapco)
- • Cosmoplast
- • GAP Polymers
- • Advanced Polymer Trading FZC (APT)
- • Saudi Aramco
- • Flowcrete South Africa
- • Ncs Resins (Pty) Ltd Are Plastocure cc
- • Northern Vinyl Supplies
- • SPREA MISR
- • Black Horse Plastic Products