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The Global Plastic Contract Manufacturing Market size is estimated to grow by USD 11,818.05 million at a compound annual growth rate (CAGR) of 11.22% between 2022 and 2027. The growth of the market depends on several factors, including a surge in demand for electronic devices, rising demand for rigid plastic packaging from the food and beverage industry, and the growing introduction of additive manufacturing.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising demand for rigid plastic packaging from the food and beverage industry is notably driving market growth. As food is a perishable product, its contamination during storage is a major concern of the food industry. The nutrients present in food are affected by factors such as temperature and moisture. This can be prevented to a certain extent by using appropriate packaging material, which will also extend the shelf life of the food product.
This encourages various Companies to offer rigid plastic packaging to enterprises in the food and beverage industry, which in turn drives the demand. For instance, Sonoco Products Company offers hinged and lidded containers, such as salad containers for food products, to keep them fresh, natural, and healthy. These containers help maintain the quality and freshness of food for a long period. They provide an option for integrated film lidding, which provides consumers with an easy-to-open and reseal facility. Moreover, they have side venting, which enables cooling and moisture management. Therefore, these factors will aid in the growth of the global market during the forecast period.
The increasing demand for bio-based plasticizers is an emerging market trends. Petrochemical-based plasticizers, such as phthalates, are crucial in the manufacture of plastics, especially PVC. Phthalates-based plasticizers dominate the global plasticizer market. The rising stringent environmental regulation and increasing health concerns associated with the application of plasticizers are inspiring the demand for bio-plasticizers globally. Owing to these factors, there is an expansion in demand for safe, non-phthalate, bio-degradable, and bio-based plasticizers.
The growth in end-user industries in emerging nations, such as India and China, is likely to drive the growth of the bio-plasticizer market during the forecast period. Moreover, the ban on phthalates in food packaging materials, consumer goods, medical devices, and soft toys are other factors propelling the adoption of plasticizers. In addition, bio-based plasticizers, such as sebacates and epoxides, sales are likely to grow at the highest rate owing to their significant properties, such as high efficiency, nontoxic nature, improved heat stability, and lower volatility. These materials are successfully used in automotive, paints and coatings, and various other industrial applications. Hence, such factors are anticipated to drive the market growth and trends during the forecast period.
The concerns related to the use of medical plastics are major challenges impeding the market. A large quantity of plastic waste is being generated at healthcare facilities across the world. However, only a small fraction of plastic was recycled in recycling plants. The used plastics are disposed of in landfills or inadequately incinerated. These practices have an adverse effect on the environment. Additionally, the mismanagement of medical plastics can cause serious health issues and can be a reason for long-term pollution.
There are several concerns related to the biodegradability and recycling of medical plastics. These plastics cannot be degraded as easily as naturally occurring organic matter. Some medical plastics degrade in the presence of oxygen and ultraviolet radiation, and the litter left out will not degrade. These cannot be decomposed fully. The decomposition process takes many years to complete and releases toxic chemicals into the environment. Furthermore, the toxicity of the chemical additives used in medical plastic production has created health concerns among consumers. In addition, the complex processes involved in isolating medical plastic materials from disposal sites based on the resin type may reduce the demand for medical plastics. Thus, the concern related to medical plastics will negatively impact the market in focus during the forecast period.
The market growth analysis report includes the market's adoption lifecycle, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
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.
Baytech Plastics Inc. - The company focuses on providing full-service solutions manufacturing moulded plastic components and assemblies.
The market forecasting 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 polypropylene segment will be significant during the forecast period. Polypropylene plastics are used in packaging, household goods, and automotive components. Excellent rigidity, stiffness, load-bearing capacity, and melt strength make them suitable for these applications.
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The polypropylene segment was valued at USD 6,796.22 million in 2017 and continued to grow until 2021. Polypropylene is one of the low-density plastics (0.895 g/cm-0.92 g/cm) used for producing food containers. Polypropylene resists chemical corrosion and moisture and prevents the leaching of chemicals into food products. The increase in the number of small and medium-sized enterprises in the food and beverage industry is expected to drive the demand for polypropylene services. Most importantly, the rising use of polypropylene to produce bottles owing to its strength and lightweight is expected to drive the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 38% 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.
APAC is considered the largest producer and consumer of plastic products in the world. Some of the key factors driving the growth of the market are the increase in the regional population and the increase in disposable income among the regional population. In addition, the high production volume and consumption of consumer electronics in the region are expected to strengthen the market in APAC during the forecast period. Many economies in this region, especially China, India, and Malaysia, are recording improvements in the telecom sector. The availability and increased use of affordable 4G- and 5G-enabled smartphones, coupled with the high demand for IP-based voice, data services, and video, are fueling the need for consumer electronics in the region, which, in turn, is driving the market for the market in the region. Thus, owing to such factors the segment is expected to grow during the forecast period.
The market is witnessing exponential growth driven by the increasing demand for components in various industries such as household appliances, electronics, and healthcare services. With the rise of the work-from-home culture, there's a surge in demand for user-friendly and better-quality products, especially in the electronics industry. Manufacturers are leveraging innovations in molding facilities and manufacturing technologies to meet consumer attention while ensuring cost savings. New players entering the market bring technical know-how and expertise in handling raw materials like polystyrene and polyurethane. Customized products tailored to specific size, quantity, and design specifications are gaining traction, prompting manufacturers to invest in certifications and knowledge base expansion. The penetration of plastics into products like TVs, cameras, laptops, and recorders highlights their versatility and chemical resistance, further driving market growth.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Plastic Contract Manufacturing Market Scope |
|
Market Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.22% |
Market growth 2023-2027 |
USD 11,818.05 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.32 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aztec Plastic Co., Baytech Plastics Inc., C and J Industries Inc., Coarc Manufacturing Inc., Dielectric Manufacturing Inc., EVCO Plastics, Gregstrom Corp., IAG Holdings Ltd., Intertech Machinery Inc., Lakshmi Machine Works Ltd., Mack Molding Co., McClarin Plastics LLC, Natech Plastics Inc., Permian Plastics LLC, Plastikon Industries Inc., PTI Engineered Plastics Inc., RSP Inc., Stevanato Group S.p.A, Tessy Plastics Corp., and Toward Zero Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market trends and analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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