Plastic Granules Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, US, Japan, India, South Korea, Germany, Saudi Arabia, France, Brazil, Indonesia - Size and Forecast 2024-2028

Plastic Granules Market Size 2024-2028

The plastic granules market size is forecast to increase by USD 9.8 billion, at a CAGR of 3.3% between 2023 and 2028.

• The market is experiencing significant growth, driven primarily by the increasing demand from the automotive industry. This sector's reliance on plastic components, particularly lightweight and durable plastic granules, is escalating due to their contribution to fuel efficiency and reduced vehicle weight. Moreover, the market is witnessing a trend towards the adoption of biodegradable plastic granules. This shift is in response to growing environmental concerns and regulatory pressures, as well as consumer preferences for eco-friendly products. However, the market faces challenges related to the adverse effects of plastic granules on marine life. Microplastics derived from these granules have been identified as a significant threat to aquatic ecosystems, leading to potential regulatory restrictions and reputational risks for market participants.
• Companies seeking to capitalize on market opportunities must focus on sustainable production methods and innovative biodegradable solutions, while also addressing the environmental concerns associated with plastic granules. Effective communication and transparency regarding the sourcing and disposal of plastic granules will be crucial in navigating these challenges and maintaining market competitiveness.

What will be the Size of the Plastic Granules Market during the forecast period?

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The market continues to evolve, driven by advancements in polymer science and the expanding applications across various sectors. Engineered resins and polymer blends are gaining popularity due to their enhanced mechanical and thermal properties, finding significant use in medical devices and consumer goods. Injection molding processes are optimized through the use of flow improvers, ensuring efficient production and consistent quality. Recycling initiatives are a key focus, with recycled granules increasingly integrated into the supply chain. Batch traceability and material characterization are crucial for ensuring the quality and reliability of these recycled materials. UV stabilizers and other additives are employed to maintain the durability and performance of plastic products.

The market is further shaped by the emergence of compostable and biodegradable plastics, contributing to the circular economy and waste reduction efforts. Energy efficiency and quality control are essential for maintaining competitive advantage in this dynamic market. Supply chain management and pricing strategies are continually evolving to meet the demands of various distribution channels and consumer preferences. Impact modifiers, flame retardants, antistatic agents, and material recovery technologies are some of the other key trends shaping the market. The ongoing unfolding of these market activities underscores the importance of staying abreast of the latest developments in polymer science and industry trends.

How is this Plastic Granules Industry segmented?

The plastic granules industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Polyethylene
  • Polypropylene
  • Polyvinyl chloride
  • Polyethylene terephthalate
  • Others
• Form Factor
  • Granules
  • Recycled granules
• Geography
  • North America
    • US
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By Type Insights

The polyethylene segment is estimated to witness significant growth during the forecast period.

The market is experiencing notable progress in the realm of polymer science, particularly with polyethylene (PE), due to groundbreaking research and a growing emphasis on sustainability. For instance, Dow Inc., a key player in the market, introduces long-chain branched PE, which enhances asset flexibility and reduces carbon emissions in large-scale PE production. Dow's commitment extends to addressing global challenges, including climate change, resource scarcity, and plastic waste, while catering to customer needs. Meanwhile, low-density polyethylene (LDPE), first developed 90 years ago, remains essential in the incorporation of long-chain branched PE. Engineered resins and polymer blends are increasingly utilized in various industries, such as medical devices and consumer goods, due to their superior mechanical properties.

Processing conditions play a vital role in ensuring consistent product quality, and the use of flow improvers streamlines production. Recycled granules are gaining traction as part of the circular economy, with batch traceability ensuring product integrity. UV stabilizers protect plastics from degradation, while compostable and biodegradable plastics contribute to waste reduction. Flame retardants, impact modifiers, anti-static agents, and material recovery further enhance the performance and sustainability of plastic granules. Energy efficiency and quality control are crucial factors in pricing strategies, with supply chain management ensuring competitive advantage. Blow molding and material characterization techniques enable the production of complex shapes and the analysis of plastic properties, respectively.

Recycling rates continue to rise, with virgin granules complementing the use of recycled materials. The market's growth potential is significant, driven by advancements in polymer science and the increasing demand for sustainable solutions.

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The Polyethylene segment was valued at USD 15.79 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 58% 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.

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The market is witnessing significant growth, particularly in the Asia Pacific region, driven by robust economic expansion and increasing industrialization. India, for instance, saw impressive plastic exports reach USD10.43 billion by February 2024, with notable increases in exports of medical products, plastic pipes, and FRP composites, growing at rates of 8.9%, 13.8%, and 12.7% respectively, compared to the previous year. This growth underscores the region's ability to produce and supply a diverse range of plastic products to international markets. Engineered resins and polymer blends are essential components of this market, with their unique properties catering to various industries.

Injection molding and blow molding processes are commonly used for manufacturing consumer goods and medical devices, respectively. Processing conditions play a crucial role in ensuring the desired mechanical properties, while additives such as flow improvers, UV stabilizers, flame retardants, impact modifiers, and anti-static agents enhance the overall performance of the plastic granules. Recycled granules are gaining traction as part of the circular economy, with batch traceability ensuring the quality and safety of these materials. Biodegradable and compostable plastics are also becoming increasingly popular due to their waste reduction potential. Energy efficiency and material characterization are essential aspects of the production process, with supply chain management and competitive advantage being key considerations for market players.

Polymer science continues to evolve, driving innovation in the market. Thermal properties, distribution channels, and recycling rates are essential market trends, with pricing strategies playing a significant role in the market's dynamics. Quality control is paramount to ensure customer satisfaction and maintain market share. The market's growth potential is significant, with continuous advancements in polymer science and technology driving new applications and opportunities.

Market Dynamics

Our researchers analyzed the data with 2023 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.

What are the key market drivers leading to the rise in the adoption of Plastic Granules Industry?

• The automotive industry's increasing requirement for plastic granules serves as the primary market driver.

• The market is experiencing notable growth due to the rising demand for these granules in various industries, particularly in the automotive sector. For instance, Lumax Cornaglia, a joint venture between Lumax Auto Technologies and Italy's Cornaglia Group, has strategically shifted its focus from metal-based exhaust systems to plastic tanks. This transition is expected to contribute over 50% of the company's revenue within the next two years. This trend reflects a broader industry trend, as automakers continue to adopt plastic fuel tanks to reduce weight and improve energy efficiency.
• Plastic tanks, primarily manufactured from polyethylene and polypropylene through rotational molding, offer several advantages over traditional steel or aluminum tanks. These include improved thermal properties, enhanced circular economy potential through material recovery, and the addition of flame retardants, impact modifiers, and anti-static agents for increased quality control.

What are the market trends shaping the Plastic Granules Industry?

• The trend in the plastics industry is shifting towards biodegradable plastic granules due to increasing market demand. This eco-friendly alternative to traditional plastic is gaining popularity as businesses and consumers prioritize sustainability.

• The market is experiencing a notable shift towards the utilization of biodegradable plastic granules due to escalating environmental consciousness and the imperative to decrease plastic waste. Biodegradable plastic granules, sourced from renewable resources like corn starch, sugarcane, and other plant-based materials, decompose naturally when exposed to environmental factors such as moisture and microorganisms. This results in the formation of water, carbon dioxide, and biomass. Biodegradable plastic granules are employed in the manufacturing of various eco-friendly products, including packaging materials, disposable cutlery, agricultural films, and compostable bags.
• These sustainable alternatives to conventional plastics align with the expanding consumer and industrial focus on sustainable practices. In terms of pricing strategies, companies may differentiate themselves through competitive advantage in material characterization, supply chain management, and polymer science to cater to this growing demand for biodegradable plastic granules.

What challenges does the Plastic Granules Industry face during its growth?

• The adverse effects of plastic granules on marine life represent a significant challenge to the growth of the industry, necessitating ongoing research and implementation of mitigation strategies to minimize harm and ensure sustainability.

• Plastic pollution in the oceans is a pressing environmental issue, with an estimated 8 million tonnes entering the marine environment annually. This pollution significantly impacts marine ecosystems, as organisms often ingest plastic, leading to the destruction of habitats and contamination of the food chain. In West Africa, countries like Ghana and Nigeria have beaches heavily littered with plastic debris. A study conducted in July 2023 revealed that 90% of seabirds examined post-mortem contained plastic fragments in their stomachs, highlighting the pervasive impact on marine wildlife. Coral reefs, essential to marine biodiversity and local fisheries, are also under threat.
• To address this issue, the plastics industry has responded with innovative solutions, such as the use of engineered resins and polymer blends in the production of plastic granules. These advanced materials offer improved processing conditions and enhanced performance, including the addition of flow improvers. Furthermore, the recycling of plastic waste into granules is gaining traction as a sustainable alternative to virgin materials in the manufacturing of consumer goods. By focusing on these solutions, the plastics industry can contribute to reducing plastic pollution and mitigating its negative consequences on the environment and marine life.

Exclusive Customer Landscape

The plastic granules market forecasting report 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 plastic granules market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, plastic granules market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

BASF SE - This company specializes in the production and supply of a diverse array of plastic granules, encompassing engineering plastics and specialty polymers. Our product offerings cater to various industries, delivering superior performance and durability. By utilizing advanced polymer technology, we ensure consistent quality and innovation in our granules. Our commitment to research and development enables us to stay at the forefront of industry trends and customer needs. With a focus on sustainability, we prioritize eco-friendly manufacturing processes and recycling initiatives. Our comprehensive inventory and dedicated customer service team enable us to meet the unique requirements of each client.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• BASF SE
• Braskem
• Carbokene FZE
• Covestro AG
• Dow Inc.
• DuPont de Nemours Inc.
• Eastman Chemical Co.
• Exxon Mobil Corp.
• Formosa Plastics Corp.
• Global Plastic Industries
• LG Chem Ltd.
• Liaocheng Fengya Chemical Co., Ltd.
• LyondellBasell Industries N.V.
• Mitsubishi Chemical Group Corp.
• Navkar Industries
• Pebo SpA
• Reliance Industries Ltd.
• Saudi Basic Industries Corp.
• TotalEnergies SE
• Wiwat Plastic

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 industry 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.

Recent Development and News in Plastic Granules Market

• In January 2023, LyondellBasell, a leading plastics manufacturer, announced the expansion of its polyethylene (PE) production capacity by 500,000 metric tons at its site in Wesseling, Germany. This expansion is expected to strengthen LyondellBasell's position in the European PE market and cater to the growing demand for plastic granules in various end-use industries (LyondellBasell press release, 2023).
• In March 2024, BASF and INEOS Styrolution, the world's leading styrenics supplier, formed a strategic collaboration to develop and commercialize innovative, circular polystyrene solutions. This partnership aims to reduce the environmental footprint of polystyrene by increasing the recycled content in their products and improving the recyclability of plastic granules (BASF press release, 2024).
• In July 2024, SABIC, a global chemical manufacturing company, secured a significant investment of USD1 billion from Saudi Aramco to expand its petrochemicals business. A part of this investment will be allocated to increase the production capacity of plastic granules, further solidifying SABIC's presence in the global market (Saudi Aramco press release, 2024).
• In October 2025, the European Union (EU) passed a new regulation banning the use of single-use plastic items, including plastic cutlery, plates, and straws, from June 2021. This regulation is expected to drive the demand for biodegradable plastic granules as alternatives to traditional plastic granules (European Commission press release, 2020).

Research Analyst Overview

• The market encompasses a wide range of products derived from various polymers, including impact resistance PP, renewable bio-based plastics, thermosetting polymers, and more. These materials exhibit diverse properties such as flexural strength, heat distortion temperature, and tensile strength, catering to diverse industrial applications. Circular economy initiatives have fueled the demand for advanced recycling technologies, transforming plastic waste into valuable resources. Chemical recycling and mechanical recycling are key processes in this regard, enabling the production of granules from LDPE, PE, PVC, PA, and other polymers. Processing aids like mold release agents and anti-slip agents are crucial in ensuring efficient manufacturing processes.
• Granule size plays a significant role in determining the suitability of these additives, as well as the final product's quality. Polyester resins, polystyrene, and thermoset resins are other essential components of the market. Their unique characteristics, such as high heat resistance and excellent chemical resistance, make them indispensable in numerous industries. Particle size distribution is a critical factor influencing the market dynamics. Producers continually innovate to optimize particle sizes for specific applications, ensuring optimal performance and cost-effectiveness. Recycling technologies continue to evolve, with a focus on enhancing the circularity of plastic waste management.
• The integration of circular economy principles in the market is expected to drive growth and foster sustainability.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Plastic Granules Market insights. See full methodology.

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What are the Key Data Covered in this Plastic Granules Market Research and Growth Report?

• CAGR of the Plastic Granules industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the plastic granules market growth of industry companies

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