Global plastics market was worth US$381.83 bln in 2013, as per Grand View Research, Inc.
The global industry is administered by the application of end-use industry. Forthcoming technologies which recycle plastics are projected to be the major driving force behind the growth of global market. Key manufacturers of plastics are investing into joint ventures and pooling resources with biotechnology companies so as to produce bio-based plastics.
Polyethylene was the largest plastic type which accounted for over 30% of the market in 2013. Growing demand from several end-use sectors including injection molding, food & beverage packaging, film/sheet and pipes led to the high market share. Several disposal norms and environmental regulations are projected to create major hindrances for the global polyethylene market.
Polyethylene terephthalate (PET) plastic type is likely to witness significant gains at a CAGR of 8.5% from 2014 to 2020. The packaging industry of carbonated soft drinks is witnessing an increased demand for PET type of plastic. This growing demand is anticipated to drive the global market over the next few years.
PET application in films and sheets accounted for over 40% of the overall share in 2013. Films and sheets are majorly used in pharmaceuticals and food packaging industry. This is expected to drive its huge demand. Application in plastic pipes is anticipated to witness the substantial gains, at an anticipated CAGR of 5.7% from 2014 to 2020. Factors such as the increase in construction activities, rising population levels, increasing rate of urbanization, infrastructural development and replacement of old pipes made with outdated materials are expected to drive the demand for plastic pipes application.
Asia Pacific contributed to over 40% of the global plastics market in 2013. Emerging economies of India and China are witnessing a significant increase in key end-use industries. This is projected to provide the region with an upper hand in the near future. Central & South American plastics market is expected to exhibit the highest growth rate, an anticipated CAGR of 6.3% from 2014 to 2020. The increase in construction and automobiles industry in Argentina and Brazil is likely to be the driving factor for plastics demand in this region.
The global market is integrated with a few companies dominating the market. Major players in the plastic market include Dow Chemicals, BASF SE, Saudi Basic Industries Corporation and E.I. du Pont de Nemours and Company. Other players in the market include ExxonMobil, Total SA, Indorama Corp., M&G Chemicals, Nan Ya Plastics, LyondellBesell, Formosa Plastic, Bayer Material Science, DAK Americas and Octal Petrochem.