Plastic Resins Market is expected to reach $522.5 billion by 2027

According to a new report published by Allied Market Research titled, “Plastic Resins Market by Product, Application, and Region: Opportunity Analysis and Industry Forecast, 2020–2027,”  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.

Plastic resin has flexibility, strength, and recyclability properties. It is a cost-effective and energy-efficient packaging material that is used in various applications such as packaging and textiles. Increase in use of plastic resins in construction, automotive, electrical, and electronics application is anticipated to propel the market growth.

Polypropylene (PP) was the industry's largest segment, and holds a substantial market share. Moreover, it is expected to experience exponential growth in the coming years. In 2019, the polypropylene (PP) segment held the maximum share of 28% in the plastic resin market, and is expected to maintain its dominance over the forecast period. Polypropylene (PP) resin accounted for a large share in the product category due to the surge in demand for food packaging, stretch wrap, hygiene, and medical applications.

The rising packaging industry is driven by the growing customer desire to consume packaged (food & beverages) goods. In addition, strict guidelines have been laid down by various regulatory bodies for the safe use of plastic products in food & beverages applications. In the coming years, the automotive application sector is expected to witness significant growth, supported by increased use of plastics in automotive components coupled with increased production of passenger cars and heavy-duty vehicles, particularly in Asia-Pacific and Central & South America.

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.

Key findings of the study

• Based on product, the polypropylene (PP) segment emerged as the global leader with more than 28% share in 2019. This is highly attributed to the high demand for polypropylene in various applications.   
• By application, packaging segment dominated the global plastic resins market with around 34% global market share in 2019.
• Countries, such as the U.S., China, and India, are emerging as an investment centric hub due to wide scope in the manufacturing sector.

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.