Industrial Plastic Market Driven by Rising Demand from Packaging Industry
Industrial Plastic Market Driven by Rising Demand from Packaging Industry
Blog Article
The industrial plastic market comprises a wide range of engineering thermoplastics and thermosetting resins that are extensively used across diverse industrial applications owing to their versatility, durability, and cost-effectiveness. Plastics like polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), polyurethane (PU), and polycarbonate (PC) find widespread adoption in the manufacturing of machine components, electronic equipment, automobile parts, insulation, pipes and fittings, and packaging materials. The global demand for plastics is driven by the growth of end-use industries like automotive, construction, consumer goods, electrical & electronics, and packaging. The packaging industry is one of the major consumers of plastics due to their barrier properties, chemical and corrosion resistance, and light weight compared to traditional packaging materials. The Global Industrial Plastic Market is estimated to be valued at US$ 2.08 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Industrial Plastic Market are BASF SE, Dow Inc., SABIC, DuPont de Nemours Inc., LyondellBasell Industries Holdings B.V., and Covestro AG.
The industrial plastic market is witnessing high growth due to the surging demand from the packaging industry. Plastics have emerged as an indispensable material for the packaging of food & beverages, consumer goods, and industrial products owing to their unique properties. This has compelled packaging manufacturers across the globe to increase plastic consumption.
Geographically, the Asia Pacific region dominates the global Industrial Plastic Market Demand and is expected to witness the fastest growth during the forecast period. Countries like China, India, Japan, and South Korea are witnessing substantial economic development along with heavy investments in the end-use industries. This will significantly propel the regional demand for industrial plastics in the coming years.
Market Key Trends
Bio-based and biodegradable plastics are emerging as one of the key trends in the industrial plastics market. With rising concerns regarding environmental pollution caused by plastic waste, manufacturers are increasingly focusing on developing sustainable and eco-friendly alternatives. Some major players have started production of bioplastics from renewable feedstock like sugars, starch, etc. This is expected to drive the replacement of conventional plastics with their green counterparts in the near future.
Porter's Analysis
Threat of new entrants: The threat is moderate as initial investment is high but growth potential attracts new players. Bargaining power of buyers: Power is moderate to high as buyers can choose from various global and domestic brands and substitute products. Bargaining power of suppliers: Power is moderate as raw material suppliers have established relationship with manufacturers and switching cost is high. Threat of new substitutes: Threat is moderate to high as new alternative materials are emerging but plastic benefits are still leading in industrial applications. Competitive rivalry: Rivalry is high among existing players to gain market share and better negotiate with global buyers and suppliers.
Geographical Regions
North America region accounted for largest market share in terms of value owing to developed industrial and manufacturing sector.
Asia Pacific region is fastest growing market supported by expanding manufacturing hub and rising industrial and infrastructure development activities in countries like China and India.
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