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2021

Commodity Plastics Market

Commodity Plastics Market Size, Share, Competitive Landscape and Trend Analysis Report by Type and End-Use Industry : Global Opportunity Analysis and Industry Forecast, 2021-2030

MC : Advanced Materials

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Author's: Anil Chaudhary | Eswara Prasad
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The global commodity plastics market was valued at $469.4 billion in 2020, and is projected to reach $858.4 billion by 2030, growing at a CAGR of 6.3% from 2021 to 2030.

Commodity plastics refer to plastics used in large volume for regular household applications. These plastics find use in a wide range of applications such as clothing, trash containers, disposables, packaging film, and others. Commodity plastics are not used in critical service environments, and thus do not require high mechanical strength. Therefore, these plastics are relatively inexpensive and exhibit lower mechanical properties than engineered plastics. Some examples of commodity plastics include polyethylene (PE), polyvinyl chloride (PVC), and polypropylene (PP). These plastics are widely used to manufacture cups, plates, trays, printed materials, toys, and other household products.

Commodity-Plastics-Market-2021-2030

The growing use of plastics in the packaging industry as well as other end-use industries with multiple applications, such as packaging, photographic, electronics, and pharmaceuticals, and increase in demand for consumer goods are the major factors driving the growth of the global commodity plastics market. In addition, rise in disposable income of consumers coupled with increase in production of lightweight electric vehicles and materials in the automotive industry along with increase in metal prices is expected to propel the commodity plastics market growth.

Moreover, the packaging industry is growing at a rapid pace.  The emergence of e-commerce has further boosted the growth of the packaging industry. Packaging became an important necessity for marketing to attract customers. Value-added packaging has emerged in the fast-moving consumer goods (FMCG) sector to prompt customers to buy products.  The global packaging industry, especially the flexible packaging industry, experienced significant growth in 2019, registering higher growth rate than the U.S.GDP. Value-added flexible packaging registered higher growth compared to other segments of the packaging industry in 2019.  Plastic packaging dominates the overall packaging industry, and this trend is expected to continue during the forecast period, thereby driving the market for commodity plastics.

Growing production  of  lightweight  electric  vehicles  and  increasing  metal  prices  surgedthedemand  for commodity plastics across the globe. Several governments across the globe have introduced stringent emission and fuel economy regulations for vehicles. These regulations have increased the production and demand for electric vehicles across the globe and compelled automotive OEMs to increase the use of lightweight materials such as plastics. Advanced plastic materials help increase the fuel economy of a vehicle while ensuring safety and performance. A 10.0% reduction in vehicle mass can improve fuel economy by 6.0% to 8.0%. The use of plastics reduces the consumption of fuel in a vehicle asless weight takes less energy at the time of acceleration. Carbon  emission  in  passenger  cars  can  be  reduced  by  using  greenhouse  gas  (GHG)  reduction  technologies, such as adjustment in valve timing, turbocharging, aerodynamic designing, and introduction of hybrid, plug-in hybrid, &fuel cell systems in automobiles. However, these technologies require modifications in engine design, powertrain systems, and power systems that involve high degree of complexities. Therefore, commodity plastic materials  are  being  extensively  used  for  significant  reduction  of  carbon  emissions,  which  is  comparatively reasonable than the above-mentioned technologies.

The major restraining factor for the growth of the commodity plastics market is concerns over plastic waste. Plastic waste is a major environmental concern due to its low degradation rate. It is either recycled or dumped in  landfills  or  in  the  ocean.  Dumping  plastics  in  landfills  lowers  the  quality  of  the  soil  by  releasing  harmful chemicals into the soil. These harmful chemicals released can come in contact with groundwater and can pose severe  health  hazards.  Plastics  dumped  into  the  ocean  are  very  harmful to  marine  life.  Birds,  fish,  and  other marine  species  can  get  tangled  in  it  or  may  die  from  the  consumption  of  these  plastics. Attributedto  these environmental concerns, many organizations are promoting the use of paper or cloth bags,which are easy to degrade. In view of these concerns, many retail stores are restricted from selling plastic bags or are charging extra for the same. This is a major restraining factor for the growth of the commodity plastics market.

On the contrary, the  market  for  commodity  plastics  is  dominated  by  the  U.S.,  China,  India,  and  Germany.  Brazil,  China,  South Africa,  and  Argentina  present  significant  growth  opportunities  for  the  commodity  plastics  market.  Growing economic activities, such as rapid industrialization and urbanization, are driving the demand for these plastics in these developing countries. For instance, the construction industry contributes 10.0% to India’s GDP. The end-use   industries,   including   automobile,   construction,   packaging,   consumer   goods,   and   medical   & pharmaceutical are rapidly growing in these countries.

The global commodity plastics market is segmented on the basis of type, end-use industry, and region. By type, it is divided into Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), Acrylonitrile Butadiene Styrene (ABS), Polyethylene Terephthalate (PET), and Poly (Methyl Methacrylate) (PMMA). By end-use industry, it is classified into packaging, automotive, electronics, consumer goods, construction, textiles, medical & pharmaceutical, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

However, increased environmental concerns over plastic waste and government regulations on the use of plastics for packaging is expected to hamper the growth of the commodity plastics market during the forecast period. Furthermore, growing demand for commodity plastics from developing countries, such as China and India, is expected to provide growth opportunities for the commodity plastics market during the forecast period.

The global commodity plastics market size is segmented on the basis of type, end-use industry, and region. By type, it is divided into Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), Acrylonitrile Butadiene Styrene (ABS), Polyethylene Terephthalate (PET), and Poly (Methyl Methacrylate) (PMMA). By end-use industry, it is classified into packaging, automotive, electronics, consumer goods, construction, textiles, medical & pharmaceutical, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major key players operating in the global commodity plastics industry include Exxon Mobil, LG Chem, Sumitomo Chemical, The Dow Chemical Company, Sabic, BASF SE, Lyondellbasell, Sinopec, Ineos, and Formosa Plastics. Other players operating in this market include Borealis, Chevron Phillips Chemical, Eni SPA, Reliance Industries, and Braskem.

Global Commodity Plastics Market, By Region

Asia-Pacific accounted for a major share in the commodity plastics market 2020, owing to growing demand for commodity plastic from the packaging and medical & pharmaceutical sector, especially in countries such as China, India, and Japan. Furthermore, economic and healthcare development in Asia-Pacific countries and rising investments in the construction industry are major factors that are expected to surge the demand for commodity plastic in the region during the forecast period.

Commodity Plastics Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit an CAGR of 6.7% during 2021-2030

Global Commodity Plastics Market, By Type

The polyethylene (PE) segment accounted for a major share in the commodity plastics market in 2020, owing to rising application in consumer durable products, packaging, and medical & pharmaceutical industries. In addition, use of PE in the manufacturing of other advanced polymers, such as High-Density Polyethylene (HDPE), Polyethylene Terephthalate (PET), and Extended Polyethylene (EPE), which are used in high-performance applications, is expected to propel the product demand in the coming years. The  demand  for  polyethylene  is  gaining  momentum  in  various  industries  such  as  automotive,  electrical  and electronics,  food &beverages,  and  consumer  goods.  In  addition,  good  moisture  and  chemical  resistance  of polyethylene hasbecome the focal point for many industries. Attributedto this,the demand for polyethylene is anticipate to surge during the forecast period. In addition, properties,such as high rigidity, light in weight, easy process ability, sealing and stiffness properties,make polyethylene suitable for industrial uses, mainly for packaging of automotive and electrical spare parts. In the  automotive  industry,  manufactures  are  focusing  on  increasing  the  efficiency  of  vehicles  by  reducing  the weight of vehicles. In the packaging industry,polyethylene continues to be the most widely used plastic resin in  the  world,  benefiting  from  its  versatility,  easy  processability,  and  recyclability. Technological R&D,  raw material  availability, and plastics  demand are  some  of  the  factors  augmenting  the  demand  for  polyethylene globally.

Commodity Plastics Market
By Type
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Polyethylene is projected as the most lucrative segment.

Global Commodity Plastics Market, By End-use Industry

The packaging industry accounted for a major commodity plastics market share in 2020, owing to rising demand for commodity plastics in flexible packaging due to its durability, low cost, and high recyclability. Furthermore, the development in packaging materials technology and increasing use of renewable plastics for packaging are anticipated to propel the segment growth in the coming years. 

PET is widely used in packaging of food products. According to the British Plastic Federation (BPF), over 70.0% of  soft  drinks  in  the  global  market  are  being  packaged  in  PET  plastic  bottles  while  only  30.0%  of  them  get packed across other a variety of packaging materials, such as glass bottles, metal cans, and paper-based cartons.Food packaging is one of the largest users of commodity plastics. The demand for rigid plastic packaging for the food industry is witnessing demand, as it isincreasingly replacing traditional materials,such as paperboard, metals, and glass, owing to their beneficial properties such as lightweight and reduced cost. Food packaging includes  packaging  solutions  for  sauces  and  condiments,  dairy  products,  pickles  and  syrups,  jam,  processed vegetables and fruits, and baby food. In 2020, continued transparency in food packaging wastrending. Going beyond  just  the  listed  ingredients  on  the  label,  consumers  also  want  to  see  the  physical  product  before purchase. Polyethylene  terephthalate  (PET)  bottles  are  taking  over  glass  in  single-serve  ketchups,  condiments,and barbecue  sauce  markets.  Consumers,  especially  millennials,  are  becoming  more  aware  of  the  impact  of  food production, food packaging, and food waste on the environment. According to a Stora Enso survey, 59.0% of millennials think that packaging should be sustainable throughout the value chain. This is expectedto drive the demand for commodity plastics during the forecast period.

Commodity Plastics Market
By End-use Industry
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Packaging is projected as the most lucrative segment.

COVID-19 analysis:

The global commodity plastics market is expected to witness moderate decrease in its growth rate in 2020-2021, as commodity plastics used in automotive, construction, textiles, and electronics will witness significant decline in its demand. However, there will be an increase in demand for commodity plastics used in the packaging, consumer goods, and medical & pharmaceutical industries during COVID-19.

A resoundingly positive thing to observe in this crisis has been the swift response by the packaging industry. Many companies are continuing their operations as they supply packaging for essential products. Fundamental redesign and innovation are required to make types of packaging viable amid the pandemic to provide healthy packaging of products for customers. Single-use, disposable food packaging appears to have made a comeback due to the COVID-19 pandemic, as many consumers believe this to be safer and/or more hygienic

Automobile companies are witnessing a decrease in sales due to fewer customers visiting their physical storefronts and travel restrictions. Automakers in China, the U.S., and European countries have suspended plant operations, which disrupted production, and consumer demand has waned. Due to the negative impact of COVID-19 on sales, many companies are scrapping their outlook plans for the second quarter in 2020 and through the rest of the year.

The electronics industry consists of various sectors, such as the semiconductor sector, which has annual sales of over $481 billion as of 2017-18. The largest sector is e-commerce, which generated over $29 trillion in 2017; consumer electronics, mobile technology, and handset manufacturing are the major sectors in the electronics industry. With huge size of the global electrical & electronics industry, China is the major manufacturer and supplier of raw materials and parts required for global players. The industry is largely dependent on China, and thus the occurrence of COVID-19 has caused disruption in the electrical & electronics industry. The main disruption is in the supply chain. As the COVID-19 transformed from a China-centric challenge to a global pandemic, the impact on the global electronics supply chains and markets shifted.

Advent of global pandemic resulted in creating a global crisis in the FMCG industry. Impacting over 195 countries across the global, the pandemic has already created economic backdrop across the globe, thereby hinting for the next global recession. Strong initiatives are undertaken by different governments for containing the outbreak. However, social distancing has made a drastic negative impact on the FMCG industry. Logistic issues, lack of adequate labor force, and operations limiting to production of only essential items are some of the few examples most FMCG companies are facing across the globe.
The impact of COVID-19 on the global construction business is detrimental. Contractors are at the forefront as they are service and product providers at the same time. The virus affects material and labor, the key cost components of construction projects, which is a challenge for on-going project delivery, companies’ liquidity and whole business models.

The demand for textile products abroad and domestic sales have come down to a grinding halt due to the panic situation created by the COVID-19 outbreak. Due to the lockdown, all sorts of textile-related factories are closed. The business community is alarmed on account of cash crunch, supply chain disturbance, and manpower-related issues.

The coronavirus pandemic could catalyze a new wave of management and investors may show interest in improving the transparency of medical supply chains. The healthcare industry has so far held up relatively well in the recent market sell-off, although there is no guarantee it will continue to do so in the future. Product governance scores can help investors select companies that are relatively well-positioned to manage regulatory pressures in the race to develop vaccines and treatments for COVID-19. 

COVID-19 Analysis:

  • The global commodity plastics market is expected to witness moderate decrease in its growth rate in 2020-2021, as commodity plastics used in automotive, construction, textiles, and electronics will witness significant decline in its demand. However, there will be an increase in demand for commodity plastics used in the packaging, consumer goods, and medical & pharmaceutical industries during COVID-19.
  • A resoundingly positive thing to observe in this crisis has been the swift response by the packaging industry. Many companies are continuing their operations as they supply packaging for essential products. Fundamental redesign and innovation are required to make types of packaging viable amid the pandemic to provide healthy packaging of products for customers. Single-use, disposable food packaging appears to have made a comeback due to the COVID-19 pandemic, as many consumers believe this to be safer and/or more hygienic.
  • Automobile companies are witnessing a decrease in sales due to fewer customers visiting their physical storefronts and travel restrictions. Automakers in China, the U.S., and European countries have suspended plant operations, which disrupted production, and consumer demand has waned. Due to the negative impact of COVID-19 on sales, many companies are scrapping their outlook plans for the second quarter in 2020 and through the rest of the year.
  • The electronics industry consists of various sectors, such as the semiconductor sector, which has annual sales of over $481 billion as of 2017-18. The largest sector is e-commerce, which generated over $29 trillion in 2017; consumer electronics, mobile technology, and handset manufacturing are the major sectors in the electronics industry. With huge size of the global electrical & electronics industry, China is the major manufacturer and supplier of raw materials and parts required for global players. The industry is largely dependent on China, and thus the occurrence of COVID-19 has caused disruption in the electrical & electronics industry. The main disruption is in the supply chain. As the COVID-19 transformed from a China-centric challenge to a global pandemic, the impact on the global electronics supply chains and markets shifted.
  • Advent of global pandemic resulted in creating a global crisis in the FMCG industry. Impacting over 195 countries across the global, the pandemic has already created economic backdrop across the globe, thereby hinting for the next global recession. Strong initiatives are undertaken by different governments for containing the outbreak. However, social distancing has made a drastic negative impact on the FMCG industry. Logistic issues, lack of adequate labor force, and operations limiting to production of only essential items are some of the few examples most FMCG companies are facing across the globe.
  • The impact of COVID-19 on the global construction business is detrimental. Contractors are at the forefront as they are service and product providers at the same time. The virus affects material and labor, the key cost components of construction projects, which is a challenge for on-going project delivery, companies’ liquidity and whole business models.
  • The demand for textile products abroad and domestic sales have come down to a grinding halt due to the panic situation created by the COVID-19 outbreak. Due to the lockdown, all sorts of textile-related factories are closed. The business community is alarmed on account of cash crunch, supply chain disturbance, and manpower-related issues.
  • The coronavirus pandemic could catalyze a new wave of management and investors may show interest in improving the transparency of medical supply chains. The healthcare industry has so far held up relatively well in the recent market sell-off, although there is no guarantee it will continue to do so in the future. Product governance scores can help investors select companies that are relatively well-positioned to manage regulatory pressures in the race to develop vaccines and treatments for COVID-19.

Key benefits for stakeholders

  • The global commodity plastics market analysis covers in-depth information of major industry participants.
  • Porter’s five forces analysis help analyze potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
  • Major countries have been mapped according to their individual revenue contribution to the regional market.
  • The report provides in-depth analysis of the global commodity plastics market forecast for the period 2021–2030.
  • The report outlines the current global commodity plastics market trends and future scenario of the global commodity plastics market from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets. 
  • Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global commodity plastics market study.

Commodity Plastics Market Report Highlights

Aspects Details
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By Type
  • Polyethylene (PE)
  • Polypropylene (PP)
  • Polyvinyl Chloride (PVC)
  • Polystyrene (PS)
  • Acrylonitrile Butadiene Styrene (ABS)
  • Polyethylene Terephthalate (PET)
  • Poly (Methyl Methacrylate) (PMMA)
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By End-Use Industry
  • Packaging
  • Automotive
  • Electronics
  • Consumer Goods
  • Construction
  • Textiles
  • Medical & Pharmaceutical
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

SABIC, EXXON MOBIL CORPORATION, SUMITOMO CHEMICAL, FORMOSA PLASTICS, SINOPEC, THE DOW CHEMICAL COMPANY, INEOS, LG CHEM, BASF SE, LYONDELLBASELL

Analyst Review

The global commodity plastics market is anticipated to witness growth during the forecast period due to increasing penetration of product in packaging, medical & pharmaceutical, and consumer durable goods. Commodity plastics are widely used in mass-produced items and products of a single-use nature such as films for packaging or drinking bottles. However, these materials can also be used in various other industries such as automotive, building and construction, and electronics. Increasing demand for commodity plastics in consumer durable goods, including containers, weather-resistant clothing, disposable utensils, and packaging materials for foods, pharmaceutical products, bottles, and beverages, and personal care products is expected to propel the market growth during the forecast period.

However, increased environmental concern over plastic waste and government regulations on the use of plastics for packaging is expected to hamper the growth of the commodity plastics market during the forecast period. Furthermore, growing demand for commodity plastics from developing countries, such as China and India, is expected to provide growth opportunities for the commodity plastics market during the forecast period.

 

Author Name(s) : Anil Chaudhary | Eswara Prasad
Frequently Asked Questions?

Growing packaging industry, Increasing disposable income generating high demand for consumer goods, Growing production of lightweight electric vehicles and increasing metal prices and Developing countries offering significant growth opportunities are the driving factors and opportunities in the commodity plastics.

Investment, business expansion and agreement are the key growth strategies of commodity plastics players.

Asia-Pacific region will provide more business opportunities for commodity plastics in future.

Exxon Mobil, LG Chem, Sumitomo Chemical, The Dow Chemical Company, Sabic, BASF SE, Lyondellbasell, Sinopec, Ineos, and Formosa Plastics are the leading global players in the commodity plastics.

Polyethylene segment holds the maximum share of the commodity plastics.

Packaging, automotive, electronics, consumer goods, construction, textiles, medical & pharmaceutical companies across the globe are the potential customers of commodity plastics industry.

The global commodity plastics market was valued at $469.4 billion in 2020, and is projected to reach $858.4 billion by 2030, growing at a CAGR of 6.3% from 2021 to 2030.

The global commodity plastics analysis covers in-depth information of major industry participants, Porter’s five forces analysis help analyze potential of buyers & suppliers and the competitive scenario of the industry for strategy building, major countries have been mapped according to their individual revenue contribution to the regional market, the report provides in-depth analysis of the global commodity plastics forecast for the period 2021–2030, the report outlines the current global commodity plastics trends and future scenario of the global commodity plastics from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets, and key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global commodity plastics study.

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Commodity Plastics Market

Global Opportunity Analysis and Industry Forecast, 2021-2030