Global Plastic Resin Market Size Worth USD 1,209.03 Billion in 2032 | CAGR of 4.5%

Introduction

Plastic resins are manufactured materials derived primarily from natural gas and oil. They are broadly used in various end-use industries such as packaging, automotive, construction, electrical and electronics, logistics, consumer goods, textile and clothing, furniture and bedding, agriculture, medical devices, and others. Polyethene terephthalate, polyvinyl chloride, low-density polyethylene, polypropylene, and other plastic resins are available. These plastic resins have their physical properties, applications, and recyclability levels. One of the more common features is that recycled plastic resin is often unaffected by heat, allowing it to be reclaimed and injection molded into a new form.

Market Dynamics

End-Use Industries and Shifting Trends Towards Replacement of Glass and Metal Drive the Global Market

Compared to traditional materials such as rubber or metals, plastics used in automotive applications help reduce fuel consumption by reducing the density and weight of the vehicle. Increasing consumer safety and health hazards awareness in various industries such as electronics, healthcare, wire and cable, construction, and automotive is expected to drive the plastic products market over the forecast period, resulting in demand for plastic resins.

Demand for plastics in exteriors and interiors and under-hood components is expected to be driven by the rapidly growing automotive industry. Plastics are widely used in under-hood automotive components. They are also used in the building industry for both the inside and outside commercial, residential, and industrial structures. Further, the demand for a safe, lightweight, and affordable multi-utility vehicle (MUV)/sport-utility vehicle (SUV) with high fuel efficiency and an emphasis on comfort and aesthetics is also driving the increased use of plastics in the automotive industry. Plastics' soft-touch and odor-free nature allows for better steering wheels, handles, and interiors in automotive applications.

In addition, plastics are expected to replace glass, wood, natural rubber, metals, and other manufactured materials such as concrete, surging the demand for plastic resins. Olefins, polystyrene, PVC, and other plastics, to name a few, are rapidly replacing most materials in automotive, construction and infrastructure, medical and healthcare, and consumer goods.

Furthermore, rising carbon emissions regulations and public awareness drive the substitution of lightweight plastics for metals and heavy substances, particularly in automobiles and industrial machinery. Density plastics save fuel and improve machinery performance, lowering carbon emissions. Carbon emissions are chemical compounds emitted into the atmosphere due to poorly burned fuels such as natural gas, crude oil, and coal.

Prevalence of Green Building and Technical Advances in Automotive Industry Create Umpteen Market Opportunities

In recent years, green buildings have gained popularity over conventional ones. Green building demand is being driven by lower operating costs, improved air quality, the use of renewable energy, the effective implementation of energy and water, and a lower overall load on metal structures compared to conventional buildings.

Furthermore, the growing influence of social factors such as creating a sense of community, improving occupant health and wellbeing, and encouraging sustainable business practices propels green building growth. Due to the rising demand for green buildings, the market for plastic resin in construction applications is expected to grow significantly during the forecast period.

Lastly, technological advances in the automotive industry, such as self-driving cars and the increasing popularity of electric vehicles, are expected to drive demand for plastic resin in automotive applications. The gradual increase in the number of electric vehicles on the road in the coming years is expected to create lucrative opportunities for plastic resin.

Regional Insights

Europe dominates the regional market. It is expected to reach USD 204 billion by 2030, generating a CAGR of 4.2%. Due to high demand from the automotive, electrical and electronics, packaging, and construction industries, Europe is one of the largest consumers of plastic resins. Plastic resins are used in a broad range of industries due to their versatility, ease of molding, and ability to form desired shapes. Many automobile manufacturers prefer plastic vehicle components, which aids companies in achieving low-cost production and propelling the plastic resins market forward.

North America is the second-largest region. It is estimated to reach a value of USD 130.5 billion by 2030 at a CAGR of 3.5%. The North American market is boosted by the increasing investment in construction in the US. The country has a low-risk environment, a stable economy, and a solid financial sector.

Asia-Pacific is the fastest-growing region. It is estimated to reach a value of USD 205 billion by 2030 at a CAGR of 5.3%. Southeast Asian countries such as Vietnam, Indonesia, Thailand, China, Japan, and India are expected to emerge as the primary growth markets for plastic resins in Asia over the forecast period. The growing manufacturing sector is expected to propel the demand for plastic resins in automotive, industrial machinery, packaging, construction, and electrical and electronics industries.

Key Highlights

• The global plastic resin market size was worth USD 813.56 billion in 2023. It is expected to reach USD 1,209.03 billion in 2032, growing at a CAGR of 4.5% during the forecast period (2024–2032).
• Based on the product, Crystalline Resins acquires the largest share of the market. It is expected to reach USD 648.5 billion by 2030, generating a CAGR of 4.4%. The demand for crystalline resins is expected to heave owing to their properties. They excel in applications involving wear, bearings, and structural loads. They also have superior chemical resistance, which amorphous materials do not have.
• Based on application, Packaging acquires the largest share of the global plastic resin market. It is expected to reach USD 385 billion in 2030, generating a CAGR of 4.2%. Plastics have always been used in the packaging industry. Increasing consumerism in developing and emerging markets is expected to significantly drive plastic demand in packaging applications over the forecast period.
• Based on region, the global plastic resin market is segmented into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa. Europe surpasses other regions in terms of revenue.

Competitive Players

1. BASF SE
2. SABIC
3. Dow Inc
4. DuPont
5. Evonik Industries
6. Sumitomo Chemical Co. Ltd
7. Arkema
8. LyondellBasell Industries Holdings B.V.
9. Celanese Corporation
10. Eastman Chemical Company
11. Exxon Mobil Corporation
12. Formosa Plastics Corporation
13. Covestro
14. Toray Industries Inc
15. Mitsui Co. Plastics Ltd.
16. Teijin Limited

Recent Developments

• April 2022 - Evonik Industries expanded capacities for petrochemical specialties. 
• March 2022 - SABIC completed the acquisition of Clariant's stake in scientific design, giving SABIC full ownership of the catalyst leader. April 2021 - DuPont invested approximately USD 30 Billion to build a new manufacturing facility in Zhangjiagang, Jiangsu Province in East China.
• March 2022 - Consortium Zebra declared a new step forward in their transition project toward a circular economy. They emphasize achieving this by manufacturing the 100% recyclable prototype wind turbine blade made from Arkema's Elium Liquid Thermoplastic Resin and new High-Performance Glass fabrics.
• March 2022 - Celanese Corporation announced the completion of the restructuring of Korea Engineering Plastics Co. Korea Engineering Plastics is a joint venture owned by Celanese Corporation and Mitsubishi Gas Chemical Company, Inc 50% respectively.

Segmentation

1. By Product
   1. Crystalline
   2. Non-Crystalline
   3. Engineering Plastics
   4. Super Engineering Plastics
2. By Application
   1. Packaging
   2. Automotive
   3. Construction
   4. Electrical and Electronics
   5. Logistics
   6. Consumer Goods
   7. Textiles and Clothing
   8. Furniture and Bedding
   9. Agriculture 
   10. Medical Devices
   11. Others