According to a new report published by Allied Market Research, titled, “Global Commodity Plastics Market: Opportunity Analysis and Industry Forecast, 2021–2030,”
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 that are lighter, moisture resistant, durable, structurally stable, and are used in large volumes for regular household applications as well as in clothing, disposables, packaging film, trash containers, photography, and magnetic tapes. These plastics can be easily recycled, shaped, or molded into a variety of shapes or solid objects, such as bottles or food containers, making them highly suitable for packaging applications. The property of these plastics blends with properties, such as low density, transparency, low electrical conductivity, and toughness, allowing the application of these plastics within a wide collection of products.
The increasing product penetration in packaging, construction, medical & pharmaceutical, and consumer durable goods end-use industry is expected to be the major driver of the global commodity plastics market during the forecast period. Commodity plastics are lighter and structurally stable and resistant to abrasion. They can be easily recycled and molded into a variety of shapes, which make them highly suitable for packaging applications. Rising demand for packaging bottles, trays, and crates for food & beverages packaging is expected to drive the demand for commodity plastics in the coming years. Commodity plastics are lighter, structurally stable, and resistant to abrasion. They can be easily recycled and molded into a variety of shapes, which make them highly suitable for packaging applications.
However, harmful effects of phthalates due to its toxicity and development of bio-based alternative of commodity plastics are expected to hamper the growth of the commodity plastics market during the forecast period. Furthermore, growing demand for polyester polyols and rising usage of glass fiber-reinforced polymers are expected to provide growth opportunities for the commodity plastics market during the forecast period.
By type, the global commodity plastics market size is divided into Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), Acrylonitrile Butadiene Styrene (ABS), Polyethylene Terephthalate (PET), and Poly (Methyl Methacrylate) (PMMA). The polyethylene (PE) segment accounted for the largest market share in 2020, owing to rising application in consumer durable products, packaging, and medical & pharmaceutical industries. The polyethylene (PE) segment dominated the global commodity plastics market with more than one-fourth of the total market share in 2020.
By end-use industry, the global commodity plastics market is classified into packaging, automotive, electronics, consumer goods, construction, textiles, medical & pharmaceutical, and others. The packaging segment emerged as the leader in 2020, owing to rising demand for commodity plastics in flexible packaging due to its durability, low cost, and high recyclability. The packaging segment dominated the global commodity plastics market with more than one-third of the total market share in 2020.
Region-wise, the global commodity plastics market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific emerged as the leader in 2020, owing to growing demand for commodity plastic from the packaging and medical & pharmaceutical sector, especially in countries such as China, India, and Japan. Asia-Pacific accounted for a major commodity plastics market share in 2020, and dominated the global market with more than two-fifths of the total market share in 2020.
The major players studied and profiled in the global commodity plastics market are Exxon Mobil, LG Chem, Sumitomo Chemical, The Dow Chemical Company, Sabic, BASF SE, Lyondellbasell, Sinopec, Ineos, and Formosa Plastics.
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 the demand for commodity plastics used in 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 coronavirus/COVID-19 transforms from a China-centric challenge to a global pandemic, the impact on the global electronics supply chains and markets has shifted.
- Advent of global pandemic has 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 the 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 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 findings of the study
- In 2020, Asia-Pacific dominated the global commodity plastics market with around 44.0% share, in terms of revenue. In addition, it is also projected to grow at the highest CAGR of 6.7% in terms of value.
- The polyethylene (PE) segment dominated the global commodity plastics market with around 31.0% of the share in terms of revenue.
- The polyethylene terephthalate (PET) segment is projected to grow at the highest CAGR of 7.5% in terms of revenue.
- The packaging segment dominated the global commodity plastics market with around 35.0% of the share in terms of revenue.
- The construction segment is projected to grow at the highest CAGR of 6.9% in terms of revenue.