Thermoformed plastics refer to plastics which are molded into different shapes using application of heat. Commonly thermoformed plastics includes polymers like polystyrene, polypropylene, polyethylene terephthalate, polyvinyl chloride and polycarbonate. Thermoforming plastics provides advantages like being lightweight, durable and environmental friendly. With growing demand for convenient packaging from food & beverage industry, there is increasing need for thermoformed containers, trays, cups and lids. The global thermoformed plastics market is estimated to be valued at US$ 12.9 Bn in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The increasing demand from food packaging offers high growth potential for thermoformed plastics market. Food packaging requires materials which can provide durability as well as maintain freshness of food items. Thermoformed plastics forms an ideal packaging material owing to its tolerance to heat sterilization process and moisture barrier properties. The growing popularity of ready-to-eat meals and convenience foods is fueling the consumption of thermoformed plastic food containers and packaging. As more people prefer packed meals and snacks over homemade options, the demand for effective and environmental friendly food packaging like thermoformed plastics is expected to rise significantly over forecast period.
Porter's Analysis
- Threat of new entrants: The threat of new entrants in the thermoformed plastics market is moderate. Significant capital investments are required for setting up manufacturing plants. However, the availability of raw materials and growing end-use industries provide opportunities for new players.
- Bargaining power of buyers: The bargaining power of buyers in the thermoformed plastics market is high. The presence of several suppliers provides options to buyers. Buyers can negotiate on price and demand customized products.
- Bargaining power of suppliers: The bargaining power of suppliers is moderate. The key raw materials include plastics such as PVC, EPS, PET, PP, PE, and PS. The availability of raw material substitutes provides less bargaining power to suppliers.
- Threat of new substitutes: The threat of substitutes is low to moderate. Alternatives include injection molding. However, thermoforming offers design flexibility and lower costs for medium to high volume production.
- Competitive rivalry: The competition is high among established players to strengthen their market position. Players differentiate by offering customized solutions, digital manufacturing, and value-added services.
SWOT Analysis
- Strengths: Ability to manufacture complex designs, cost-effectiveness for medium to high volumes, recyclability, and extensive end-use applications.
- Weaknesses: Lack of design flexibility for low volumes, initial setup and tooling costs, and dependency on plastic prices.
- Opportunities: Growth of medical, food, and electronics industries, replacement of traditional materials, and automation/digitization scope.
- Threats: Stringent environmental regulations, substitution threat from alternative processes, and volatility in raw material prices.
Key Takeaways
The global thermoformed plastics market is expected to witness high growth over the forecast period supported by growth in the packaging, medical, electronics, and automotive industries.
The North America region dominates the thermoformed plastics market with the United States being the major market. Growth in pharmaceuticals and food packaging industries drives the North America thermoformed plastics market.
Key players operating in the thermoformed plastics market are Pactiv LLC, Sonoco Products Company, CM Packaging, Placon, and Genpak LLC. Pactiv LLC specializes in thermoformed packaging for foodservice markets. Sonoco Products Company provides thermoformed rigid plastic containers, lids, and trays for food, medical, and industrial applications.
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