Plastic Market Size, Share & Trends Analysis Report By Product (PVC, PET, ABS, PBT), By End-use (Packaging, Construction), By Application (Injection Molding, Calendering), By Region, And Segment Forecasts 2023 - 2030

Report Overview

The global plastic market size was valued at USD 609.01 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 3.98% during the forecast period. Increasing plastic consumption in the construction, automotive, and electrical & electronics industries is projected to support market growth over the forecast period. Regulations to decrease gross vehicle weight to improve fuel efficiency and eventually reduce carbon emissions are driving product consumption as a substitute for metals, including aluminum and steel, for the manufacturing of automotive components. Moreover, the growth of the construction industry in emerging markets, such as Brazil, China, India, and Mexico, has been instrumental in fueling product demand.

The growth of the market can be attributed to increased foreign investment in these domestic construction markets, as a result of easing FDI norms and requirements for better public and industrial infrastructure. The market demand in the U.S. was valued at USD 87.93 billion in 2022. The high market share of the country is attributed to the presence of well-established automotive, aerospace & defense, and electronics industries. The country is characterized by a low-risk environment, a stable economy, and a robust financial sector. These factors have provided a multitude of opportunities for investors in recent years, which are likely to trigger infrastructure spending in the country.

This, in turn, is projected to positively impact the demand for plastics in the U.S. construction industry. Growing population coupled with rapid urbanization and industrialization in emerging economies has been impelling federal governments to increase their construction spending to cater to rising infrastructure needs. Increasing construction spending by governments, particularly in China and India, will drive the product demand in infrastructure and construction applications. Stringent regulations regarding the depletion and recyclability of conventional materials, such as metal and wood, are anticipated to drive product demand from the construction industries in insulation, pipes, cables, floorings, windows, storage tanks, and others.

Moreover, polymer fittings are generally quite simple and easy to install, compared to metals or wood, with a wide range of color combinations, adding to their aesthetic appeal. Plastics have 85% less specific gravity compared to metals. When used in the automotive and construction industries, they enable approximately 80% weight savings and 30% to 50% cost savings in individual components. Furthermore, the increasing positive cases of COVID-19 across the globe due to new variants is positively influencing the product demand in medical devices, such as testing equipment, ventilators, gloves, syringes, surgical trays, and medical bags.

Product Insights

In terms of revenue, polyethylene held the largest market share of more than 25.28% in 2022. It is primarily used in the packaging sector, which includes containers & bottles, plastic bags, plastic films, and geomembranes. It is used in various applications. Based on its molecular weight, there are different types of polymers of Polyethylene (PE), such as HDPE, LDPE, and LLDPE. For instance, low molecular weight polymers of PE find use in lubricants; medium molecular weight polymers are used as wax miscible with paraffin; and high molecular weight polymers are commonly used in the plastic industry. Rising demand for packaged food, trays, bottles for milk & fruit juices, crates, caps for food packaging, drums, and other liquid food packaging owing to the reduced spread of COVID-19 across the world is expected to drive the demand for PE in the coming years.

Acrylonitrile Butadiene Styrene (ABS) is one of the promising product segments in the market. ABS is widely used in consumer goods and electrical & electronics applications and is gaining popularity owing to its excellent rigidity, high strength, and dimensional stability. It is a tough material and is resistant to corrosive chemicals, physical impact, and heat. Thermoplastic, such as ABS, allows itself to be easily injection-molded and recycled. However, ABS is not used in high-heat situations because of its low melting point. LEGO toys and computer keyboards are also significant applications for ABS compounds. Moreover, it is used in manufacturing drain-waste-vent pipe systems, plastic clarinets, golf club heads, musical instruments, enclosures for electrical & electronic assemblies, automotive trim components, protective headgears, etc.

Application Insights

In terms of revenue, the injection molding application segment held the largest market share of over 43.38% in 2022. Injection molding is a commonly used method for producing custom plastic parts. It is a discontinuous process as the plastic parts are produced in molds and are required to be cooled before being removed. This process requires an injection molding machine, molds, and plastic materials. The molten plastic is injected into a mold cavity and then cooled to create the final product. It is generally used in the production of automobile parts, containers, and medical devices among others.

Calendering is one of the potential application segments in this market. It is used to process thermoplastic materials into films and sheeting. It is mainly used for Polyvinyl Chloride (PVC) as well as certain other modified thermoplastics. The process consists of five steps: pre-blending, fluxing, calendering, cooling, and winding up. It allows specialty surface treatments of films or sheets, such as enhancing or embossing the physical properties or in-line lamination. The rapidly expanding packaging industry is driving the demand for films and sheets which, in turn, is further creating growth opportunities for the calendaring segment.

End-Use Insights

The packaging end-use segment held the largest market share of more than 36.26% of the overall demand in 2022 in terms of revenue. Packaging is a high-potential end-use segment with moderate penetration. Plastic has been an integral part of the packaging industry. Furthermore, the advent of bio-based plastic has also played a significant role in food, pharmaceutical, and beverage packaging applications. Plastics, such as Polyethylene Terephthalate (PET) and polycarbonate (PC), are increasingly being used in the packaging of beverages, consumer goods, appliances, toys, and apparel. Packaging of appliances is expected to offer lucrative opportunities for market growth.

The demand for packaging for healthcare products, groceries, and e-commerce transportation has increased sharply post-pandemic, while the demand for luxury, industrial, and some B2B transport packaging declined owing to the suspension or slowdown of industrial production. Moreover, the product demand in consumer packaging is expected to shift toward food packaging owing to the shutdown of restaurants and food service outlets during the pandemic. The stockpile and panic purchases of food, groceries, and other homecare necessities are further expected to boost the aforementioned trend.

Regional Insights

Asia Pacific (including China) dominated the global industry and accounted for over 45.15% share of the global revenue in 2022. The growing manufacturing sector is expected to propel the demand for plastic in the automotive, construction, packaging, and electrical & electronics industries. In the recent past, India and China have witnessed a spike in automotive production owing to technology transfer to the sector from the Western markets. In addition, a well-established manufacturing base for electrical & electronics in Taiwan, China, and South Korea is anticipated to provide further impetus to the market.

India has a strong chemical manufacturing industry base, which strengthens its plastic production. Rapid urbanization, improving economic conditions, and increasing infrastructural activities are the factors supporting the growth of the market in Asia Pacific. China is the largest supplier and producer of plastic components in this region. The growth of the automotive and electronics markets, and subsequent demand for lightweight components to improve the efficiency of the vehicle & reduce the weight of electronics components, are the major factors contributing to the product demand in the country.

Key Companies & Market Share Insights

The global market is highly competitive and fragmented with the presence of major players, such as SABIC, BASF SE, Dow Inc., Evonik Industries DuPont, Arkema, and Celanese Corp., as well as a few medium- and small-scale regional players operating in different parts of the world. Capacity expansions, strategic partnerships, and new product developments are popular strategies adopted by the majority of companies. For instance, in May 2023, LyondellBasell acquired a 50% share of its plastic recycling joint venture (JV) with Veolia Belgium. This acquisition will help LyondellBasell to meet the growing demand for sustainable products and solutions. Some of the prominent players in the global 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 Plastic Corporation

• Covestro AG

• Toray Industries, Inc.

• Mitsui & Co. Plastic Ltd.

Plastic Market Report Scope

Global Plastic Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the plastic market based on product, application, end-use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • 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, 2018 - 2030)

  • Injection Molding

  • Blow Molding

  • Roto Molding

  • Compression Molding

  • Casting

  • Thermoforming

  • Extrusion

  • Calendering

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Packaging

  • Construction

  • Electrical & Electronics

  • Automotive

  • Medical Devices

  • Agriculture

  • Furniture & Bedding

  • Consumer Goods

  • Utility

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Poland

    • Spain

  • China

  • Asia Pacific (excluding China) 

    • India

    • Japan

    • Southeast Asia

  • Central & South America

    • Brazil

    • Argentina

    • Colombia

    • Chile

    • Other CSA (Costa Rica, Cuba, Peru)

  • Middle East & Africa

    • Saudi Arabia

    • United Arab Emirates (UAE)

    • Oman

    • Kenya

    • South Africa