Although commodity plastics have a large number of advantages, the most important is their versatility. The increasing need for high standard performance plastic across all modern applications is driving the growth of commodity plastic market, as per Market Research Future. The global commodity plastic market has grown at a CAGR of 4.7% in terms of volume and 5.6% in terms of value, during the period 2016-2022. The factors driving the growth of the global market are advancements in the end user industries of commodity plastics, growing application industries, and increasing demand from Consumer goods and FMCG sectors.
This has also resulted in the development of newer and improved application and performance properties; commodity plastics that are fast, easy, and low cost are in demand. Such newly developed commodity plastic includes fast curing polyethylene and polyurethanes, PVC and PET and others.
Commodity plastics belongs to a superior class of plastic material which are broadly used in large volume in multiple applications which majorly include packaging, consumer goods, electronics, automotive, textile, pharmaceuticals and others. These plastics are used in application industries to enhance their mechanical properties and simultaneously help in reducing the cost of production. However, from the manufacturers’ side, this has created a platform to increase the production capacity to meet the current demand.
Among all the types, polyethylene has accounted the largest market share in 2015, whereas packaging industry has become the leading application industry. The APAC region is the largest consumer of commodity plastic in the world; accounted 47% of commodity plastic market in 2015. Within the APAC region, the commodity plastic market is dominated by China which represents 45% of the total market volume in 2015. Demand for commodity plastic from India accounted for 23% of the total demand, while Japan represents 21% of the market in terms of volume. Because of its strong, growing middle class, the entire region is a significant market for end markets that use commodity plastic, including packaging, consumer goods and FMCG and textile. Japan, Australia, and South Korea are the most developed countries in the APAC region and have mature growth outlooks.
China is the one of the largest economy in the world and is still growing at a rapid pace. China is making deliberate efforts to boost various industries including packaging, consumer good, retail, automotive, automotive and consumer products; growing industrial activity has resulted in increasing demand for commodity plastic. Currently, China is the single largest market for commodity plastic, accounting more than 45% of the total market in APAC.
Although new environmental regulations and the protection of forest resources by the Chinese government are affecting the Chinese commodity plastic market. Moreover, the recession had little impact on various end markets for commodity plastic in China, including packaging, automotive, FMCG and others which continue to drive demand for commodity plastic.