Commodity Plastic Market To Grow At Highest Pace Owing To Rising Adoption In Packaging Industry

Global Commodity Plastic Market is Anticipated to Witness High Growth Owing to Growing Construction Industry

The global commodity plastic market is estimated to be valued at US$ 593.45 Bn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period from 2024 to 2031. Commodity plastics such as polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET) are mass-produced plastic materials that are widely used across various industries due to their property to be easily molded into a variety of shapes at low cost. The adoption of commodity plastics is rising in the packaging industry for food, medical and consumer goods packaging due to increased consumer spending and growing urban population.

Key Takeaways

Key players: Key players operating in the commodity plastic market key players are focusing on expanding their production capacities and geographical footprint through acquisitions and partnerships to cater to the growing demand from end-use industries such as packaging, automotive and electronics. For instance, in 2021, Formosa Plastics Corporation partnered with ExxonMobil Chemical to build a new petrochemical complex in Texas with an annual capacity of 1 million metric tons of plastic resins to meet the growing demand in North America.

Growing demand:  commodity plastic market size as demand for commodity plastics is growing rapidly due to the rising adoption in industries such as packaging, automotive, construction and consumer goods manufacturing. In the packaging industry, commodity plastics are widely being used for flexible packaging, bottles, containers and other rigid packaging applications. The global packaging plastic demand is projected to surpass 100 million tons by 2030.

Technological advancement: Manufacturers are focusing on developing novel production technologies to address sustainability challenges and reduce production costs. For example, LyondellBasell, BASF and Neste have commercialized plastic recycling technologies that convert plastic waste back to raw materials to produce virgin-quality plastics. Some companies are also developing bio-based plastic production technologies using agricultural waste as a feedstock.

Market Trends

Increased recyclability: With the growing focus on sustainability and circular economy efforts, plastic product manufacturers and brand owners are collaborating to improve the recyclability of plastic packaging and items. Major plastic commodity producers have set targets to incorporate higher recycled content in plastic resins to reduce dependence on virgin feedstock.

Rising demand in emerging economies: Emerging economies such as China, India, Indonesia, Mexico and Brazil offer significant growth opportunities for commodity plastics due to rapid urbanization, rising incomes and increased consumer spending on packaged food and consumer goods. The per capita plastic consumption in these nations is still lower than developed markets.

Market Opportunities

Bio-based plastics: Commodity Plastic Market Challenges And Opportunities depleting fossil fuel reserves and stricter environmental regulations, bio-based plastics produced using renewable feedstock such as sugarcane, corn starch, agricultural waste offer sustainable alternatives to petroleum-based plastics. Major players have announced capacity expansions of bio-polyethylene and bio-polypropylene production facilities.

Recycled plastics: Improving plastic waste management infrastructure and recycling rates in different regions present lucrative opportunities for recycled plastic resin producers. Investments in advanced recycling technologies for multi-material flexible packaging and composite plastics will further boost market demand for recycled plastic resins.

Impact of COVID-19 on Commodity Plastic Market
The outbreak of COVID-19 has significantly impacted the growth of the global commodity plastic market. During the initial stages of the pandemic, production facilities and manufacturing units across the globe were shut down to curb the rising spread of the virus. This led to disruptions in the supply chain and a decline in demand from the end-use industries such as packaging, consumer goods, automotive, and construction. The strict lockdown measures imposed by various governments worldwide resulted in reduced economic activities and declining discretionary spending by consumers.
However, as countries are gradually lifting lockdown restrictions and industrial activities are resuming operations, the demand for commodity plastics is expected to rise from the packaging industry to meet the growing needs for food delivery and pharmaceutical products. Furthermore, the healthcare sector has witnessed tremendous growth post the pandemic which is further driving the consumption of plastic medical devices, syringes, disposable gloves, face masks, and other protective equipment. The construction industry is also recovering at a fast pace in developing nations which will augment the sales of pipes, fittings, and other ancillary products made using plastics. Overall, the commodity plastic market is anticipated to rebound and surpass pre-COVID levels in the coming years on the back of accelerated vaccination drives and resurgence in construction and automotive manufacturing. Continuous R&D initiatives towards developing bio-based and recyclable plastics will help achieve sustainable growth.

Europe currently holds the largest share of the global commodity plastic market in terms of value. The increasing usage of plastic across industries such as packaging, automotive, consumer goods along with strong regulatory support for recycling is significantly driving the European commodity plastic market. Germany dominates plastic consumption in Europe owing to the large production of machinery, vehicles, and equipment. However, Asia Pacific is poised to become the fastest growing regional market during the forecast period. Rapid urbanization, growing population, and rising disposable incomes are increasing plastic consumption for various consumer products andinfrastructural development in emerging economies such as China and India. In addition, ease of raw material availability and supportive government policies for boosting the manufacturing sector will continue to attract major plastic producers to invest in Asia Pacific.

View More Insights @ commodity plastic market