The global plastic market was valued at USD 591.28 billion in 2021 and is projected to reach USD 827.84 billion by 2030, registering a CAGR of 3.81% from 2022 to 2030.
Plastics, which are often referred to as polymers, are utilized in the production of a broad variety of goods, ranging from paper clips to spacecraft, due to the adaptability of the material, its ease of manufacture, its ability to be molded, its low cost, and the fact that it is waterproof. Natural gas and petroleum are the two primary sources from which they are historically derived. The makers have been urged to embrace renewable sources because traditional polymer sources are running out. Bioplastics are plastics that are made from renewable biomass sources such maize starch, sawdust, vegetable fats and oil, and food waste. Examples of bioplastics are PLA (polylactic acid), PET (polyethylene terephthalate), and PP (polyvinyl chlor In addition, the growing awareness among manufacturers regarding the damage polymers do to the environment affects the development of items that can be recycled. One of the most important factors driving the market is the rapidly growing need for high-performance plastic packaging solutions for the protection of products.
The product demand is growing in many other industries, including the food and beverage industry, the consumer products industry, the automobile industry, and the electrical and electronics industries. Consumption of products all over the world is being pushed forward by an uptick in demand for packaging material from the food and beverage industry. The packaging that is used by food makers is often one that protects the product from becoming contaminated and causes the least amount of quality loss possible. The need is being driven by the fact that plastic has the capacity to serve as a barrier between food goods and the environment outside the product.
In addition, the capacity of polymers to resist the effects of physical stress and to provide a high level of durability is contributing to an increase in their application in the fields of athletics, fashion, polymer clay, and toy manufacturing. In addition, they are simple to form and allow the versatility to make packaging in any size or shape imaginable. Their increased usefulness in the textile industry can be attributed to their high level of elasticity, increased durability, and improved aesthetic appeal. In addition, the rigidity of polymers makes them an ideal choice for the packing of spare parts for automobiles and electrical equipment. As a result, the expansion of plastics' use across industries such as food and beverage, textile, electrical and electronics, automotive, and consumer products is contributing to the growth of the plastics business.
The demand for the product has increased because engineering polymers are stronger and more durable than standard ones. They are significantly lighter and more affordable while offering greater thermal and mechanical qualities. The growing demand for better polymer solutions for various applications, including building, machinery, and componentry, also supports the market. Additionally, the expanding need for metal substitutes drives an expansion of the use of engineering polymers across a range of industries. In various industries, including automobile engineering, building, solar, and water, these materials provide certain advantages over metal constructions. According to DSM, several international OEMs are substituting engineered plastic materials and components for metal parts. For instance, polymers are now used to manufacture Volkswagen's crankshaft covers, which were previously composed of aluminum. As a result, the part's weight was reduced by 40%.
Plastics are replacing metals like iron and aluminum, promoting market expansion. Due to their high strength, exceptional flexibility, and continuous reliability, advanced and cost-effective plastics are increasingly being employed in various industries, helping the market grow. Additionally, plastic may be manufactured with better physical and chemical qualities than metal with specialized design processes; this is anticipated to support industrial expansion further. Since plastics are so lightweight, they are frequently utilized in transportation, including as glazing, dividers, light diffusers, and headliners. This improves fuel efficiency, which in turn stimulates market growth.
Regulations governing product application are anticipated to have an impact on the market growth rate. In response to growing worries about the environmental damage caused by polymers, stringent government laws and other measures have entered the scene. Numerous firms and governments have adopted greener and non-plastic alternatives in an effort to mitigate the environmental damage caused by the usage of plastic. For instance, the United Nations Environment Program (UNEP) launched a Clean Seas campaign in over 50 countries in 2017 to urge governments to impose plastic reduction measures, encourage industry to decrease polymer-made packaging, and reform products. In addition, some nations, like India, have pledged to eliminate single-use plastics from the market by 2022. The transition toward non-polymer items and restrictions on plastic use together operate as a market growth restraint.
In addition, in March 2022, at the UN Environment Assembly held in Nairobi, heads of state, environment ministers, and other delegates from 175 nations endorsed a historic resolution to eliminate plastic waste and establish a legally enforceable international agreement by the end of 2024.
Demand prospects for plastics are being created as a result of the expansion of the construction industry in emerging economies such as Brazil, China, India, and Mexico. These countries are among those with the highest growth rates. Increased foreign investment in these domestic construction markets can be linked to simplified FDI norms and requirements for improved public and industrial infrastructure. This has led to an improvement in the total market, which can be credited to the progress that has been made.
The market is categorized by type as follows: polyethylene, polyethylene terephthalate, polyvinyl chloride, polypropylene, polyamide, acrylonitrile butadiene styrene, polycarbonate, polyurethane, polystyrene, and others. Due to rising demand from packaging and automotive end-users, polyethylene and polypropylene (PP) are the most common forms of plastic. Several firms utilize polymers for product packaging because they are durable and function as a barrier between the product and moisture. Utilization is increasing in the automotive industry as manufacturers reduce vehicle weight to improve fuel economy and reduce carbon emissions.
Polyvinyl chloride (PVC) is mostly utilized in the production of pipes and fittings due to its multiple favorable qualities, such as high modulus of elasticity, electrical insulation, chemical resistance, and thermal insulation. The building sector utilizes PVC goods such as doors, windows, and frames due to their durability, aesthetic appeal, and availability of raw materials. Large quantities of polyethylene terephthalate (PET) are utilized for packaging and bottling purposes. As it is non-toxic, lightweight, durable, and recyclable, it has been in great demand in the food and beverage industries for packaging. PET is also the material of choice for 3D printing due to its durability and flexibility.
Polyamide is widely utilized in the textile industry due to its rigidity and flexibility. It has excellent flexibility, a high tensile strength, and is wrinkle-resistant. These advantages make it appropriate for use in clothing, rugs, and other items. In the furniture and automobile industries, polyurethane in foam form is in high demand. Due to its strong electrical insulation capability, polycarbonate is mostly employed for electrical and electronic applications.
Acrylonitrile Butadiene Styrene (ABS) is a hard and durable polymer that offers chemical resistance. As a result, it is utilized in camera bodies, appliance housings, packing crates, and luggage. As a result of its insulating and cushioning characteristics, polystyrene is in high demand in the electronics and packaging industries.
Automotive & Transportation, Packaging, Consumer Goods & Lifestyle, Infrastructure & Construction, Healthcare & Pharmaceutical, Electrical & Electronics, Textile, and Others. Due to the food and beverage packaging industry's high demand for polyethylene, it is anticipated that the packaging sector would hold the largest plastic market share during the assessment period. The increased use in the production of construction-related items, such as floor covering, window films, and fittings & pipes, is increasing the infrastructure & construction end-use industry's product demand.
Similarly, the automotive & transportation and consumer goods & leisure industries are anticipated to contribute significantly to the market's growth over the forecast period. The market expansion is a result of the increasing use of polymers in the automotive industry to boost the efficiency of automobiles and the durability of vehicle components. These polymers are easily moldable, extremely robust, and flexible, making them the material of choice for the production of a variety of products including iceboxes, containers, kitchenware, toys, and packaging material.
The rising use of polymers in the healthcare industry can be attributed to their feature of functioning as a barrier against pollutants. Several polymers are used to create healthcare-related products such as gloves, syringes, bandage strips, blood bags, and prosthetics. Due to their insulating qualities, they are employed in the electrical and electronics industries to manufacture home appliances, switches, and light fixtures.
The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.
During the period covered by the forecast, it is anticipated that Asia and the Pacific would hold the greatest market share. As a result of the ample supply of raw materials at competitive prices, it is projected that China will continue to hold the position of the most powerful nation in the region. The obstacles that are involved in the production of plastic are being reduced even further as a result of this. The building and packaging industries are also experiencing robust growth, which is contributing to Asia Pacific's overall economic expansion. The market in the region is anticipated to be driven by the increased demand from the consumer goods industry for the manufacturing of toys, textiles, and sporting goods.
The United States held the greatest market share in North America, which was supported by the growing demand for products from the industries of healthcare and pharmaceuticals, packaging, electrical and electronics, and electrical and electronics. The usage of recycled plastics in the region has increased as a result of rising concerns over the pollution caused by plastics as well as the development of technologies that can recycle plastics.
It is projected that the market for polymers would experience significant expansion in Europe as a result of the increasing demand coming from the automotive sector in that region. In addition, the adoption of polymers in Europe is supported by qualities such as superior heat resistance, electric insulation, corrosion inhibition, and low density.
The rising demand from the textile and packaging industries will be the primary element that drives expansion in the Middle East and Africa. The regional market is expected to expand as a result of the rising demand for lightweight packaging as well as the usage of polymers rather than glass and metal. In addition, the growth of Latin America is anticipated due to the region's increasing urbanization and the expanding number of businesses that specialize in providing solutions for industrial packaging.
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