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The commodity plastics market size is forecast to increase by USD 189.5 billion. The market is estimated to grow?at a CAGR of 6.78% between 2023 and 2028. The market refers to the global trade and production of low-cost, widely used plastics. They are extensively used in packaging, consumer goods, automotive parts, and construction materials. The growth of this market depends on several factors, including increasing demand for packaging materials, increasing demand for commodity plastics from developing countries, and diverse applications of plastics. This market research and growth report includes key market drivers, trends, and challenges.
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Bio-based commodity plastics derived from renewable sources like plants and agricultural waste offer solutions for reducing carbon emissions and promoting waste reduction in a circular economy. Advanced technology, including sensors and QR codes, enhances the efficiency of pipes, fittings, and insulation materials for roofing, flooring, and structural components. These innovations ensure corrosion resistance and thermal and acoustic insulation while withstanding harsh environmental conditions. They play a critical role in healthcare infrastructure, minimizing the environmental impact of PVC and improving sustainability in construction.
Increasing demand for packaging materials has increased in various industries such as construction, healthcare, and consumer goods. Demand for flexible plastic packaging from hospitals, pharmaceuticals, and PPE manufacturers in the healthcare industry is expected to remain strong during the forecast period. There is a growing demand for plastics in medical equipment such as laboratory equipment, respirators, syringes, surgical trays, medical bags, and?PPE such as masks, face shields, respirators, goggles, gowns, and gloves. This is due to increased health awareness?and?an increase in the number of COVID-19 cases. Demand for healthcare packaging materials is expected to remain stable during the forecast period. Increasing demand for packaging materials will drive the growth of the?market during the forecast period.?
The growing recycling techniques?are a key trend influencing?the market growth. According to the World Economic Forum, at least 8 million tonnes of plastic enter the ocean each year. This is projected to increase to 2 times per minute by 2030 and 4 times per minute by 2050, with potential environmental impacts. Growing awareness of the environmental damage caused by polymers has led plastic manufacturers to develop recyclable products.
Initiatives taken by the manufacturers and end-users regarding the recycling of plastic products include?product packages and efforts to expand all existing recycling processes,??innovative mobile near-infrared spectroscopy solutions for sorting and identifying different types of plastic waste, and chemical recycling.?Increasing efforts by companies in the?market to recycle plastic-based products will boost?market growth and trends during the forecast period.?
The stringent regulations over the usage of plastics?are challenging?the market growth. Plastic pollution is one of the major environmental problems of the 21st century, causing widespread damage to ecosystems and human health. Also, the majority of manufactured?plastics are?derived from fossil fuels, contributing to climate change and, in turn, having a negative impact on the climate.?Various governments around the world have implemented various regulations on the use of plastics to reduce the impact of climate change. In the United States, the Food and Drug Administration (FDA) regulates the safety of packaging that comes into contact with food. Many are used in food packaging, such as polystyrene and polyethylene. The FDA has a strict approval process?for plastics?used in food contact packaging. The US FDA must approve these packaging materials before placing them on the market and consider them safe for use.
Moreover, the European Union's?single?use?plastics?directive (SUPD)?has also been implemented recently. The law aims to reduce plastic pollution and reduce plastic runoff in order to reduce its impact on the environment and human health. Certain single-use plastic items such as cotton swabs, cutlery (forks, knives, spoons, and chopsticks), plates, straws, stirrers, balloon sticks, oxo-degradable plastics,?and food?containers and cups made from expanded polystyrene (EPS) are banned in the United States.?The directive also requires manufacturers to use 25% recycled content in PET beverage bottles by 2025 and 30% recycled content in all plastic beverage bottles by 2030. To promote recyclability, recycling, and reuse, plastic packaging will be increasingly regulated by local regulations and taxes through?the SUPP?and Packaging and Packaging Waste Directive (PPWD) during the forecast period.?Due?to stringent?regulations imposed by governments around the world, the demand for these plastics in the?market is expected to decline during the forecast period.?
This market report and analysis includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Commodity Plastics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BASF SE: The company provides different types of commodity plastics for footwear, automotive, and electronic applications.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the polyethylene (PE) segment will be significant during the forecast period. Polyethylene (PE) is a lightweight, durable thermoplastic with a variable crystal structure. It is one of the most commonly manufactured plastics in the world. Polyethylene packaging refers to the technology of packaging or enclosing products to protect them from the external environment for the purpose of storage, distribution, and sale. Generally, packaging materials such as high-density polyethylene (HDPE) and low-density polyethylene (LDPE) is used on a regular basis.
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The polyethylene (PE) segment?was valued at?USD 109.80?billion?in 2018. ?Polyethylene packaging refers to the technology of packaging or enclosing products to protect them from the external environment for the purpose of storage, distribution, and sale. Polyethylene packaging uses packaging materials such as HDPE, LDPE, and Linear?Low-Density?Polyethylene (LLDPE). Polyethylene is a product chemically?synthesized from?ethylene and is widely used in the production of plastics. Products based on polyethylene are easy to mold and are widely used for applications such as plastic sheets and plastic bags. Demand and consumption of packaging materials are increasing, which is leading to the growth of the polyethylene segment in the?market.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in the?APAC region?is?growing rapidly. Emerging markets such as China and India are anticipated to be major revenue contributors to the?market in this region during?the forecast period. This is primarily due to the rapidly expanding e-commerce, fast-moving consumer packaged goods (FMCG), consumer electronics, and personal care end-use industries. Asia Pacific is a growing e-commerce industry, especially in countries such as China, India, and Japan.
Moreover, the growth of the e-commerce industry in APAC has been attributed to the growing population of the region, increasing the overall demand for goods through online sales channels. The fastest growing e-commerce market in the Asia-Pacific region?is due to its huge customer base, increasing?number of?internet and smartphone users,?and rising?trend of online shopping within the country. Packaging is a very important aspect of e-commerce, as products are easily damaged during transportation. Also, the rise of counterfeit goods in the e-commerce industry in countries such as China and India has increased the demand for its for packaging.? ?
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
RFID tags enhance the consumer experience by ensuring product's freshness and authenticity while improving inventory management. The use of antimicrobial commodity plastics in high touch surfaces like countertops and door handles supports better sanitation. Novel recycling technologies, such as depolymerization, are revolutionizing waste management processes and promoting the use of recycled materials in high demand plastics and packaged items. With the expanding middle class population and urbanization, the plastic industry is innovating with eco-friendly alternatives and bio-based plastics. The Global Commodity Plastics Market is expanding rapidly, driven by increased demand in sectors such as clothing and the growing adoption of antimicrobial plastic market solutions for enhanced product safety and durability. Material science advancements are leading to new packaging designs and the creation of new commodity plastic. Historical materials like Bakelite and conventional materials like glass, metal, and wood contrast with modern synthetic polymers and thermoplastics. Regulatory compliance and stringent norms guide the plastic compounding market and conductive plastic market, driving recycling methods and functional additives. In building and infrastructure development, thermal insulation and thermally conductive plastics optimize the weight of components and operational costs. Modern consumers and changing consumer tastes fuel evolving market dynamics in luxury goods industries and convenience products.
Market Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 189.5 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
China, US, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Braskem SA, Chevron Corp., Covestro AG, Dow Chemical Co., Eastman Chemical Co., Exxon Mobil Corp., Formosa Plastics Group, Hanwha Corp., INEOS AG, LG Chem Ltd., Lotte Chemical Corp., LyondellBasell Industries N.V., Mitsubishi Chemical Corp., OMV Aktiengesellschaft, PTT Global Chemical Public Co. Ltd., Reliance Industries Ltd., Saudi Basic Industries Corp., Sumitomo Chemical Co. Ltd., and TotalEnergies SE |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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