The global plastic market size was valued at USD 568.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.2% from 2020 to 2027. Increasing plastic consumption in the construction, automotive, and electrical and electronics industries is projected to drive the market for plastic over the forecast period. Regulations to decrease gross vehicle weight to improve fuel efficiency and eventually reduce carbon emissions have promoted the use of plastics as a substitute to metals, including aluminum and steel, for the manufacturing of automotive components. This is further expected to favor the rising demand for plastics in automotive applications over the forecast period.
The growth of the construction industry in emerging markets such as Brazil, China, India, and Mexico has been instrumental in fueling the demand for plastics during 2018 and 2019. However, the recent outbreak of COVID-19 has hampered the demand for plastic in various applications including construction, automotive, electrical and electronics, and consumer goods owing to a halt in manufacturing operations, restrictions on supply and transport, and economic slowdown across the globe.
Growing population coupled with rapid urbanization and industrialization in emerging economies has been impelling federal governments to increase their construction spending to cater to increasing infrastructure needs. Rising construction spending by governments, particularly in China and India, will drive the demand for plastics in infrastructure and construction applications.
Stringent regulations regarding depletion and recyclability of conventional materials such as metal and wood are anticipated to drive the demand for plastic from construction industries in insulation, pipes, cables, floorings, windows, and storage tanks. Polymer fittings are also generally quite simple and easy to install, compared to metals or wood, with a wide range of color combinations, adding to their aesthetic appeal.
In terms of revenue, polyethylene dominated the market with a share of 25.7% in 2019. This high share is attributable to the rising demand from the packaging sector, which includes containers and bottles, plastic bags, plastic films, and geomembranes. Polyethylene is majorly categorized into two types, namely high-density polyethylene (HDPE) and low-density polyethylene (LDPE). Low-density polyethylene is used as a packaging material in consumer goods, food and beverage, and industrial packaging applications. Whereas, HDPE is widely used in laundry detergent packaging, milk cartons, cutting boards, and garbage bins.
Rising demand for packaged food, trays, bottles for milk and fruit juices, crates, caps for food packaging, drums, and other liquid food packaging owing to restrictions on the movement of people to reduce the spread of COVID 19 across the world is expected to drive the demand for polyethylene in the coming years.
In terms of revenue, packaging dominated the market with a share of 36.5% in 2019. This high share is attributable to great demand from various end-use industries including medical, construction, and electrical and electronics in emerging economies. The impact of the coronavirus pandemic on the packaging industry is expected to remain moderate over the forecast period. The demand for packaging for healthcare products, groceries, and e-commerce transportation is expected to increase sharply, while the demand for luxury, industrial, and some B2B-transport packaging might show sluggish growth owing to several restrictions such as stoppage of industrial production and lockdown of cities, imposed by various governments across the world.
In addition, a decline in consumer spending due to the economic slowdown caused by novel coronavirus is further expected to hamper the growth of various end-use industries including construction, automotive, and electrical and electronics in the coming year. This, in turn, is anticipated to hinder the growth of the plastic market over the forecast period.
Asia Pacific dominated the market with a share of 20.3% in 2019, in terms of revenue. This is attributable to the high economic development and consequent rise in consumer spending in emerging economies such as India and Japan along with Southeast Asian countries. Rapid industrialization and an increase in the skilled workforce are benefitting the growth of the manufacturing sector in the region, which in turn, is further fueling the demand for plastics in the region.
However, the recent outbreak of COVID-19 in countries such as China, India, Japan, Australia, Indonesia, Thailand, and others are anticipated to hamper the product demand majorly in construction, automotive, electrical and electronics, and consumer goods applications. The outbreak has resulted in the slowdown or halts in manufacturing operations, restrictions on supply and transport, and infrastructure slowdown, which is expected to negatively impact the demand for plastics in the aforementioned applications in the region in the coming years.
The competitive rivalry among producers is high owing to the presence of several players in the market for plastic. The market is highly fragmented in nature with the larger share occupied by medium and small enterprises engaged in the manufacturing of plastic. The principal strategy employed by market players is increased focus on high margin products.
Companies are heavily investing in capacity expansion coupled with research and development of plastic to have a balanced product portfolio. This is supported by the fact that in March 2017, BASF SE announced to build a new polymer additives plant at its Caojing site in Shanghai, with an investment of USD 217 million. The strategy comes as a part of BASF’s previous announcement to invest over EUR 200 million (USD 213.2 million) to increase its production network for polymer additives.
In February 2018, SABIC also announced projects in the Netherlands and Asia aimed at expanding its global capacity for two of its high-performance engineering thermoplastic materials, Noryl and Ultem resins. The planned new production facility in Singapore is likely to go online in the first half of 2021. The organization has also proposed to recommission operations at its Netherlands-based Bergen Op Zoom PPE resin plant by the end of this year to produce polyphenylene ether (PPE), which is the base resin for its Noryl resins and other oligomers. Some of the prominent players in the plastic market include:
BASF SE
SABIC
Dow Inc
DuPont de Nemours, Inc
Evonik Industries
Sumitomo Chemical Co., Ltd.
Arkema
Celanese Corporation
Eastman Chemical Company
Chevron Phillips Chemical Co., LLC
Lotte Chemical Corporation
Exxon Mobil Corporation
Formosa Plastics Corporation
Covestro AG
Toray Industries, Inc.
Mitsui & Co. Plastics Ltd.
Report Attribute |
Details |
Market size value in 2020 |
USD 579.7 billion |
Revenue forecast in 2027 |
USD 722.6 billion |
Growth rate |
CAGR of 3.2% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Volume in kilotons, revenue in USD million, and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; China; the Asia Pacific except China; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; France; U.K.; Italy; Spain; Poland; India; Japan; Southeast Asia; Brazil; Argentina; Chile; Colombia; Other CSA; Saudi Arabia; United Arab Emirates; Oman; South Africa; Kenya |
Key companies profiled |
BASF SE; SABIC; Dow Inc.; DuPont de Nemours, Inc; Evonik Industries; Sumitomo Chemical Co., Ltd.; Arkema; Celanese Corporation; Eastman Chemical Company; Chevron Phillips Chemical Co., LLC; Lotte Chemical Corporation; Exxon Mobil Corporation; Formosa Plastics Corporation; Covestro AG; Toray Industries, Inc.; Mitsui & Co. Plastics |
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global plastic market report on the basis of product, application, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Polyethylene (PE)
Polypropylene (PP)
Polyurethane (PU)
Polyvinyl chloride (PVC)
Polyethylene terephthalate (PET)
Polystyrene (PS)
Acrylonitrile butadiene styrene (ABS)
Polybutylene terephthalate (PBT)
Polyphenylene Oxide (PPO)
Epoxy Polymers
Liquid Crystal Polymers
Polyether ether ketone (PEEK)
Polycarbonate (PC)
Polyamide (PA)
Polysulfone (PSU)
Polyphenylsulfone (PPSU)
Others
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Packaging
Construction
Electricals
Automotive
Medical Devices
Agriculture
Furniture & Bedding
Consumer Goods
Utility
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Canada
Mexico
Europe
Germany
France
The U.K.
Italy
Spain
Poland
China
Asia Pacific (excluding China)
India
Japan
Southeast Asia
Central & South America
Brazil
Argentina
Chile
Colombia
Other CSA
Middle East & Africa
Saudi Arabia
United Arab Emirates (U.A.E.)
Oman
Kenya
South Africa
b. The global plastic market size was estimated at USD 568.9 billion in 2019 and is expected to reach USD 579.6 billion in 2020.
b. The global plastic market is expected to grow at a compound annual growth rate of 3.2% from 2020 to 2027 to reach USD 722.6 billion by 2027.
b. Asia pacific dominated the plastic market with a share of 44.3% in 2019. This is attributable to rapid industrialization and increased skilled workforce are benefitting the growth of the manufacturing sector.
b. Some key players operating in the plastic market include Evonik Industries AG; BASF SE; Saudi Basic Industries Corporation (SABIC); DowDuPont Inc.; Arkema SA; Celanese Corporation; and Toray Industries, Inc.
b. Key factors that are driving the market growth increasing plastic consumption in the construction, automotive, and electrical and electronics industries, and growing population coupled with rapid urbanization and industrialization in emerging economies.
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Shipping complications, cancellations, and work from home rules are cascading throughout the plastics industry value chain as a result of the COVID-19 pandemic and, in turn, is expected to negatively impact the global plastics market growth over the near future. The updated report will account for COVID-19 as a key market contributor.