Plastic Resins Market

Plastic Resins Market Outlook -2027

The global plastic resins market was valued at $403.1 billion in 2019, and is projected to reach $522.5 billion by 2027, growing at a CAGR of 4.5% from 2020 to 2027.

Despite the strong negative effect on the industry owing to COVID-19, recent developments suggest that a solid recovery is ongoing owing to the strength of the housing, construction, and a recovering automotive sector to fuel the demand for plastic resins.

Plastic resins are formed by heating hydrocarbons in a process known as the cracking process. The system breaks down larger molecules from the process of crude oil refining or other forms of hydrocarbons into ethylene or propylene. The amount of these two compounds created depends on the temperature of the crack used. Plastic resin is used in various applications such as automotive, packaging, construction, electrical & electronics, and others.

There is high demand for plastic resins in underground parts, exterior parts, and automotive interiors in the automotive industry. The demand for materials in pipes, windows, wires, storage tanks, and other uses in the construction industry is expected to be driven by strict regulations relating to the recyclability and degradation of traditional materials such as metal and wood. Plastics are robust, cost-effective, energy-saving, and have safe properties that facilitate their use for construction purposes. Furthermore, agencies, such as the National Highway Traffic Safety Administration and the Environmental Protection Agency (EPA), have set favorable federal regulations on carbon emissions along with initiatives by the European Union (EU) to improve plastics’ applications for lightweight and fuel-efficient vehicles. Therefore, this factor is predicted to accelerate the demand for plastic resins. However, the current health crisis and lockdown imposed by different governments to control the spread of the coronavirus have led to a decrease in plastic resin use. Furthermore, it is also expected to have a negative effect on the demand growth in coming years.  

The global plastic resins market is segmented based on product, application, and region. By product, the market is classified into polyethylene terephthalate (PET), high density polyethylene (HDPE), polyvinyl chloride (PVC), low density polyethylene (LDPE), polypropylene (PP), polystyrene (PS), and others. According to application, it is divided into packaging, automotive, construction, electrical & electronics, consumer goods, furniture & bedding, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Some of the key players operating in the global plastic resins market are Arkema S.A., Celanese Corporation, Dow Chemical, DuPont, Evonik Industries AG, Formosa Plastic Group, LyondellBasell, SABIC, Sumitomo Chemical Company, and Toray Industries, Inc.

Global plastic resins market, by product

By product, the polypropylene (PP) segment accounted for the highest plastic resins market share in 2019. PP is a plastic material, which has found growing applications for packaging purposes in the food & beverages industry. PP has been replacing glass in food packaging applications due to its extremely lightweight, simple, and effective transport & shatterproof characteristics.

Global plastic resins market, by application

By application, the packaging segment accounted for the highest global plastic resins market share in 2019. The rising packaging industry is driven by a growing customer desire to consume packaged (food & beverage) goods. In addition, strict guidelines have been laid down by various regulatory bodies for the safe use of plastic products in food and beverage applications.

Global plastic resins market, by region

By region, Asia-Pacific dominated the global plastic resins market due to the presence of growing automotive & transportation and packaging industries in the region. In addition, the presence of large manufacturers of plastic resins, growing economy, and rapid urbanization are expected to drive the use of plastic resins in the building, electrical & electronics, and pipe & tank industries.

Key benefits for stakeholders

• The report provides in-depth analysis of the plastic resins market along with the current & future trends to explain the imminent investment pockets.
• This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period.
• Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the global plastic resins industry for strategy building.
• A comprehensive plastic resins market analysis covers factors that drive and restrain the market growth.
• The qualitative data in this report aims at the plastic resins market dynamics, trends, and developments.

Impact of COVID-19 on the global plastic resins market

• The world is battling the contagious COVID-19 pandemic, which has spread across the globe. 
• The demand-supply gap, disruptions in raw material procurement, price volatility, and many other factors are expected to hamper the growth of the chemical industry during the COVID-19 pandemic.
• The global economy of the plastic resins market has experienced rapid slowdown, owing to economic activity constraints due to the COVID-19 pandemic.
• There has been a rapid and dramatic rise in demand for resin-related consumer goods, including items such as packaging and hygiene products in the initial stages of the COVID-19 pandemic. However, there has been a more protracted and stubborn decline in demand for resin-related consumer products, including those used in automotive manufacturing, construction, and other industrial categories.
• The industry faces constraints regarding environmental protection, issue of climate change, and the instability in the petroleum industry. These factors are expected to continue to affect the industry, despite a positive demand outlook.

 Plastic Resins Market Report Highlights