Plastic Market Analysis APAC, North America, Europe, Middle East and Africa, South America - China, India, Germany, US, Japan - Size and Forecast 2024-2028

Plastic Market Size 2024-2028

The plastic market is estimated to grow by USD 248.2 billion, at a CAGR of 6.78% between 2023 and 2028. The market's growth hinges on various factors, notably the rising demand for packaging materials across diverse industries, particularly from emerging economies. Additionally, the versatility of plastics in various applications contributes significantly to market expansion. The increasing adoption in sectors such as food and beverage, healthcare, and consumer goods underscores its widespread utility. Moreover, the growing emphasis on sustainable packaging solutions further propels the market forward, with biodegradable and recyclable plastics gaining traction. These trends reflect a broader shift towards eco-friendly practices and materials, driven by environmental concerns and regulatory pressures. As such, the market is expected for continued growth, driven by evolving consumer preferences and industry dynamics.

What will be the size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market is a significant industry, encompassing a wide range of plastic resins including Natural rubber, Polystyrene (PS), Polyethylene (PE), Polypropylene (PP), Polybutylene terephthalate (PBT), Polyphenylene oxide (PPO), Polyurethane (PU), Polyvinyl chloride (PVC), Polyethylene terephthalate (PET), Polycarbonate (PC), Polysulfone (PSU), Polyamide (PA), and Polyphenylsulfone (PPSU). The North American market is a major contributor to the global plastic resins industry, with PET being a key player in the packaging sector. Plastics are used in various industries such as automotive, construction, electrical and electronics, packaging, and others. Among these, the packaging sector holds the largest market share due to the increasing demand for lightweight, durable, and cost-effective packaging solutions. However, the production and use of plastic resins have raised concerns regarding carbon emissions and environmental sustainability. Efforts are being made to reduce the carbon footprint of the plastic industry through the use of recycled plastic resins and the development of biodegradable plastics. Some of the key players in the global plastic resins market include BASF SE, LyondellBasell Industries NV, SABIC, and ExxonMobil Corporation. These companies are investing in research and development to innovate and expand their product offerings and improve their market position.

Key Market Driver

Increasing demand for packaging material is notably driving market growth. The market encompasses various types of materials, including Glass, Metals, Wood, Natural rubber, and Plastics. Among these, Plastic resins such as Polystyrene (PS), Polyethylene (PE), Polypropylene (PP), Polybutylene terephthalate (PBT), Polyphenylene oxide (PPO), Polyurethane (PU), Polyvinyl chloride (PVC), Polyethylene terephthalate (PET), Polycarbonate (PC), Polysulfone (PSU), Polyamide (PA), and Polyphenylsulfone (PPSU), have gained significant traction in diverse sectors. In 2020, the North American market witnessed a notable increase in demand for plastics, particularly in the packaging sub-segment, due to the COVID-19 pandemic. The packaging sector experienced a surge in demand for consumer goods, medical equipment, and e-commerce, leading to a rise in the consumption of plastic packaging. This was primarily due to the closure of restaurants and food-service outlets, resulting in consumers resorting to panic buying and bulk stocking of daily staples and fresh food through online channels.

Further, the demand for engineering plastics also increased due to their use in medical devices and the production of Electric Vehicles (EVs) as part of the Clean Seas campaign. Key industry players, such as Arkema and Celanese Corporation, have expanded their production capacities to meet the growing demand. Techniques like Injection molding, Thermoforming, and Blow molding are widely used in the production of plastic packaging. The Building & construction and Medical devices segments are other significant consumers of plastic resins. The price trends of Petrochemical prices and Crude oil prices influence the plastic market. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trend

Growing recycling techniques is the key trend in the market. The market encompasses various types of materials, including Glass, Metals, Wood, Natural rubber, and Plastics. Among these, Plastic resins such as Polystyrene (PS), Polyethylene (PE), Polypropylene (PP), Polybutylene terephthalate (PBT), Polyphenylene oxide (PPO), Polyurethane (PU), Polyvinyl chloride (PVC), Polyethylene terephthalate (PET), Polycarbonate (PC), Polysulfone (PSU), Polyamide (PA), and Polyphenylsulfone (PPSU), are extensively used in various industries. In the North American market, PET holds a significant share in the packaging sector due to its lightweight and versatile properties. However, the increasing environmental concerns, particularly regarding carbon emissions, have led to a shift towards recycling and sustainable plastic alternatives. Manufacturers like BASF SE and Celanese Corporation are taking initiatives to address this issue. BASF SE recently introduced PuriCycle, a new line of high-performance products for pyrolysis feed purification. These innovative catalysts and adsorbents enable the selective removal or conversion of impurities in pyrolysis oils, thereby facilitating the downstream processing of circular plastics streams. Similarly, Celanese Corporation has announced its commitment to reducing carbon emissions by 25% by 2030. The packaging sub-segment is a major consumer of plastics, accounting for over 40% of the global plastic demand. However, the building & construction and medical devices segments are also significant users.

For instance, Tangipahoa Parish in Louisiana, USA, uses plastic pipes for its water distribution system. In the healthcare sector, the National Health Service in the UK uses medical devices made of engineering plastics. The cleanliness of plastic waste is crucial for effective recycling. The petrochemical prices and crude oil prices significantly impact the production cost of plastic resins. Arkema, DSM, and other leading plastic manufacturers are investing in research and development to create sustainable plastic alternatives. For instance, Arkema has launched a bio-based PET for use in food-grade packaging. The shift towards electric vehicles (EVs) is expected to increase the demand for engineering plastics in the automotive industry. According to the Clean Seas campaign, by 2050, the plastic waste in the ocean could outweigh the fish. Therefore, it is essential to promote the use of recycled plastics and invest in sustainable alternatives to reduce the environmental impact of plastic production and disposal. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Stringent regulations over usage of plastics is the major challenge that affects the growth of the market. The market encompasses various types of materials, including glass, metals, wood, natural rubber, and plastics. Among these, plastics, specifically plastic resins like polystyrene (PS), polyethylene (PE), polypropylene (PP), polybutylene terephthalate (PBT), polyphenylene oxide (PPO), polyurethane (PU), polyvinyl chloride (PVC), polyethylene terephthalate (PET), polycarbonate (PC), polysulfone (PSU), polyamide (PA), and polyphenylsulfone (PPSU), dominate the packaging sector due to their lightweight, cost-effective, and versatile properties. In the North American market, PET holds a significant share in the packaging sub-segment. Carbon emissions and petrochemical prices, influenced by crude oil prices, impact the plastic industry. Companies like Arkema and Celanese Corporation employ various manufacturing processes, such as injection molding, thermoforming, and blow molding, to produce these plastics. The packaging sector is a major consumer, while building & construction and medical devices segments also contribute to the demand.

Additionally, the European Union's Single-Use Plastics Directive (SUPD) aims to reduce plastic pollution by targeting single-use plastic items, such as cotton bud sticks, cutlery, plates, straws, stirrers, balloon sticks, oxo-degradable plastics, and expanded polystyrene food containers and cups, which were banned from 2021. The Food and Drug Administration (FDA) in the US regulates the safety of food-contact packaging, with a stringent approval process for plastic materials. In the European Union, the National Health Service and engineering plastics manufacturers like DSM are focusing on sustainable solutions, such as those offered by the Clean Seas campaign, to address environmental concerns. The electric vehicles (EVs) industry is also a growing market for engineering plastics. Hence, the above factors will impede the growth of the market during the forecast period

Customer Landscape

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

Global Market Customer Landscape

Who are the Major Market Companies?

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.

Chevron Phillips Chemical Co. LLC - The company offers a wide range of chemicals, including aromatics, drilling specialties, olefins, polyethylene, specialty chemicals, and others. The key offerings of the company include plastic solutions. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Arkema Group
• BASF SE
• Berry Global Inc.
• Celanese Corp.
• Covestro AG
• Dow Inc.
• Eastman Chemical Co.
• Evonik Industries AG
• Exxon Mobil Corp.
• Formosa Plastics Corp.
• Huntsman Corp.
• INEOS Group Holdings SA
• Jain Irrigation Systems Ltd.
• LyondellBasell Industries NV

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.

By Technique

The market share growth by the injection molding segment will be significant during the forecast period. The market encompasses a wide range of applications, from heavy substances in automobile manufacturing to lightweight plastics in various industries. Petrochemical prices and crude oil prices significantly impact the production of raw materials, such as plastic polymers, used in injection molding machines to create automotive parts, medical devices, containers, and more. Injection molding is a versatile process used to manufacture various products, including automotive components, microtubes, nozzles, emission pipes, and plastic films. Moisture loss and soil temperature are crucial factors affecting yields in agriculture and building insulations.

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The injection molding segment was valued at USD 216.80 billion in 2018.  Automotive manufacturers relies heavily on these materials for producing fuel-efficient parts, such as drippers, nozzles, and emission pipes, while insulation properties are essential for refrigeration and building insulations. Environmental concerns continue to drive innovation in technologies, leading to advancements in heat transfers, vacuum forming, and thermoforming. The packaging industry utilizes various processing techniques, including blow molding for hollow plastic parts, thermoplastic sheet for pressure forming, and injection molding for creating containers. These films are used extensively for packaging and moisture barrier applications. Injection molding machines use molds to create complex shapes, such as automobile parts, while thermoforming and vacuum forming are used for producing large, hollow parts, like containers and tubes. The market continues to evolve, offering numerous solutions for various industries and applications. Thus, the growing use of injection molding in manufacturing products will drive the growth of the segment in the global market during the forecast period.

By Region

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APAC is estimated to contribute 51% 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 automobile industry in both India and China has seen significant growth, with China selling approximately 20 million automobiles and India selling around 3 million in 2020. This expansion has led to an increased demand for lightweight plastics as substitutes for heavy substances like aluminum and steel. The use of these in automotive manufacturing is influenced by petrochemical and crude oil prices, making plastic a cost-effective alternative for raw materials. These polymers have become essential in automotive applications due to their insulation properties, which contribute to improved fuel efficiency and vehicle weight reduction. They are also used in various automobile parts, such as drippers, microtubes, nozzles, emission pipes, and plastic films.

In the context of environmental concerns, plastic materials offer advantages like moisture loss prevention and temperature control in refrigeration and building insulations. However, the production and disposal of plastic raise concerns regarding heat transfers and sustainability. These materials are used extensively in various industries, including automotive, medical devices, packaging, and containers. Techniques like injection molding, thermoforming, and blow molding are employed to create various plastic parts, such as molds, tubes, cans, and hollow plastic parts. Thus, the demand is expected to increase in the region during the forecast period.

Segment Overview

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.

• Technique Outlook 
  • Injection molding
  • Blow molding
  • Roto molding
  • Casting
  • Others

• End-user Outlook 
  • Packaging
  • Consumer goods
  • Automotive
  • Electrical and electronics
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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Market Analyst Overview

The market is a significant industry, encompassing various types of plastics such as polystyrene (PS), polyethylene (PE), polypropylene (PP), polybutylene terephthalate (PBT), polyphenylene oxide (PPO), polyurethane (PU), polyvinyl chloride (PVC), polyethylene terephthalate (PET), polycarbonate (PC), polysulfone (PSU), polyamide (PA), and polyphenylsulfone (PPSU). Plastics have gained popularity due to their lightweight, durability, and versatility, replacing traditional materials like glass, metals, and wood in numerous applications. Plastic resins, including PS, PE, PP, PET, and PVC, are the primary building blocks of the plastic industry. The packaging sector is a major consumer of plastics, particularly PET and PVC. However, the use of plastics in the building & construction and medical devices segments is also growing. The North American market is a significant contributor to the global plastic market, with PET dominating the packaging sub-segment. The use of plastics in the packaging sector has been under scrutiny due to concerns over carbon emissions and petrochemical prices.

However, the industry is exploring sustainable alternatives, such as natural rubber and biodegradable plastics. Major players in the plastic industry include Arkema, Celanese Corporation, and DSM. Injection molding, thermoforming, and blow molding are common manufacturing processes used in the production of plastic products. The use of plastics in engineering applications, such as in the production of electric vehicles (EVs), is also increasing. The Clean Seas campaign, led by the National Health Service in Tangipahoa Parish, aims to reduce plastic waste and promote the use of sustainable alternatives. The future of the plastic industry lies in balancing the need for sustainable production and consumption with the demand for innovative and cost-effective plastic solutions.

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What are the Key Data Covered in this Market Research Report?

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

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