Innovations and new applications are key to growth in global plastic market

Global plastics market will continue to be stimulated based on the availability of improved materials and increasing demand from existing and niche market applications spanning automotive to pharmaceuticals, computers to packaging, and construction to consumer electronics, as per a report by Global Industry Analysts, Inc. Technological developments, inter-material competition, environmental considerations, legal/regulatory issues and overall health of the economy also impact global plastic demand. Inherent properties and diversity of plastics make them an invaluable packaging material for varieties of industrial and commercial uses. Major polymers used in plastic packaging include polypropylene, polyethylene, in addition to polystyrene, polyvinyl chloride (PVC) and polyethylene terephthalate (PET). Technological advancements including tamper-proof closures, hot-fill packaging, aseptic filling, customized containers, and biodegradable plastics caused steady growth in the plastic packaging market. World demand for plastic pipes is growing rapidly with increase in demand for these products in developing countries along with rise in economies in these regions particularly China. The growing economy, expansion of telecoms networks & water treatment systems, and the growth of the construction sector for residential construction, in developing countries are driving up the demand for plastic pipes in these countries. Moreover, the development of natural gas supplying lines in the world is also adding to world demand for plastic pipes in particular HDPE pipes. Developments in plastics market imprint a strong impression on the global market for plastic additives. Increasing competition, price pressures, consolidation at supplier level and expiring patents are pushing global plastic additives industry towards maturity stage, especially in developed markets such as North America and Europe. Growing inter-segment competition in the plastics industry is another major factor leveraging the market for plastic additives. To effectively combat the growing competition and to sustain in the unfavorable marketplace, manufacturers are widening their product offerings and are offering services such as training, patent support, testing and other internal capabilities. Environmentally friendly products such as non-halogenated flame-retardants, organic heat stabilizers, conductive compounds, wood composites, nanocomposites, fiber-reinforced thermoplastics represent some of the potential growth areas for global plastic additives market. Plastic sector faces challenges from stricter government regulations and environmental policies to minimise the use of non-biodegradable materials. Efforts to reduce the amount of solid waste resources and pollution can further restrain growth of plastic materials. However, plastic recycling to some extent has abated the effects of environmentalist attacks on plastic packaging and services.