Virgin Resin Market Expected to Reach $528.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Virgin Resin Market," The virgin resin market was valued at $375.7 billion in 2021, and is estimated to reach $528.9 billion by 2031, growing at a CAGR of 3.5% from 2022 to 2031.

Virgin resin is the purest and most raw form of plastic. It is effectively used in plastic production. Virgin resin is a small transparent granule mainly obtained from natural resources. Virgin resin exhibits different forms such as PET, polyethylene, polystyrene, polyamide, and others. Virgin resin is resistant to chemicals, and heat, and is a good source of electric conductivity owing to which it is widely used in high-performance applications. In addition, virgin resin possesses mechanical and chemical properties which makes them ideal components in industrial, automotive, building, and construction applications.

Government support for recycled plastic and a sustainable environment has enhanced the performance of virgin resin-based plastic products. For instance, in April 2022, the UK government enforced a plastic packaging tax where states that plastic packaging tax applies at a rate of £200/ton on plastic packaging with less than 30% recycled plastic, manufactured or imported in the UK. This factor has driven the growth of the virgin resin industry during the forecast period.

However, the production of virgin resins products such as epoxy, polyethylene, and polystyrene resins release various toxic chemicals that if exposed beyond the concentration limit it may cause several health-related issues such as irritation in the eye, vision failure, respiratory problems, dizziness, genotoxic, cardiovascular, and gastrointestinal problems. In addition, polyethylene, PET, and other types of plastic resin are non-biodegradable due to which the government has set rules and regulations on using plastic resin-containing products in several countries. This factor is anticipated to hamper the market growth.

Virgin resins are widely used as a substitute over metals in several end-use sectors such as building & construction, electronics, automotive, and other end-use industries. Virgin resins are resistant to corrosion, and it is lightweight material, possess better insulation properties. In addition, factors such as the growing manufacturing industry, availability of raw materials at reduced prices, and the arrival of local players have led manufacturers to offer virgin resin at low prices. This factor is predicted to create remunerative opportunities for the expansion of the virgin resin market in the future.

The virgin resin market analysis is done on the basis of resin type, application, and region. By resin type, the market is segregated into polyethylene, polypropylene, and PET. The polyethylene segment dominated the global market in terms of revenue in 2021, with 30% of the total share. According to data published by the Essential Chemical Industry in April 2017, over 80 billion tons of polyethylene are manufactured each year and making it the world's most important plastic. Moreover, the emergence of the packaging industry has created lucrative opportunities for the polyethylene-based virgin resin market. These factors make virgin resin highly preferred for the plastic processing industry. This is anticipated to increase the sales of polyethylene-based virgin resin; thus, creating lucrative opportunities for the market. The virgin resin market forecast is done on the basis of all these factors.

By application, the market is divided into building & construction, transportation, industrial, and others. The packaging segment dominated the global market in terms of revenue in 2020, with 38% of the total share. This is attributed to the fact that; the well-established food and beverages industry has increased the potential sales of plastic resin during the forecast period. In addition, popular brands such as Coca-Cola, PepsiCo, Nestlé, and others use recycled PET plastic resin for making plastic bottles. This actor will positively aid the market growth in the coming years. Moreover, growing cosmetics, healthcare, electronics, and plastic manufacturing industries have surged the demand for plastic resins. Polystyrene and polyethylene resins are used in making plastic containers plastic devices, cables, wires, and others.

Region-wise, the virgin resin market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific virgin resin market size is projected to grow at the highest CAGR during the forecast period and accounted for a major virgin resin market share in 2021. According to a report published by the United Nations Statistics Division, China witnessed around 28.7% of the global manufacturing output for consumer electronic products in 2019. This factor is expected to drive the growth of the virgin resin market in the Asia-Pacific region. In addition, surge in demand for packaged food and more preferences for continental food and well-established food and beverages industry in the countries such as China, Japan, India, and South Korea has driven the demand for plastic containers, dishes, films, wrappers, and other packaging products. This factor is anticipated to boost the growth of the market in the upcoming years

Key players operating in the global virgin resin market include Anhui Sealong Biotechnology Co., Ltd., Bartek Ingredients Inc., Changmao Biochemical Engineering Company Limited., FUSO CHEMICAL CO., LTD., isegen south Africa (pty) ltd., POLYNT SPA, Prinova Group LLC., Thirumalai Chemicals Ltd., YONGSAN CHEMICALS, INC., and Zhonglan Industry Co., Ltd.

COVID-19 analysis

The COVID-19 had a negative impact on the virgin resin market due to a significant decrease in the potential sales of automotive and building and construction activity. For instance, according to an article published by OICA in 2020, global auto production in 2020 was severely hit by covid-19 crisis with a 16.0% drop in world auto production. However, growing consumer demand for virgin resin from packaging and building & construction industry during the first quarter of 2021 has boosted the virgin resin market.

Key findings of the study

• By resin type, the polyethylene segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 3,7% from 2022 to 2031.
• By application, the packaging segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 3.8% from 2022 to 2031.
• By region, Asia-Pacific garnered the highest share of 49% in 2021, in terms of revenue, growing at a CAGR of 4.0%.