Global Commodity Plastic Market Robustly Flourishing: Expected to Reach USD 689.05 Billion in 2027
Published | 03 September 2021
The global commodity plastic market is being driven by the widespread use of commodity plastic in packaging, consumer goods, electronics, automobiles, and other industries. The global market is also expected to grow due to an increase in demand for use-and-throw plastics and personal protective equipment kits...
A study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the global commodity plastic market reached USD 466.40 billion in 2020. According to the study, the market is anticipated to reach USD 689.05 billion by 2027 growing at a CAGR of 6.1% during the forecast period (2021-2027). The growth of the market is primarily driven by the increased demand for plastic in packaging, food, beverage, pharmaceuticals, automotive and electronic applications. Furthermore, the rise of e-commerce has sparked a growth in the packaging industry due to properties such as flexibility, cheapness, and strength. These properties have a significant impact on the packaging industry, thus driving the growth of the global commodity plastic market. The COVID-19 pandemic has also influenced market growth, as there has been a surge in demand for use-and-throw plastic material and PPE kits across the globe, which has organically affected the growth of the commodity plastic market worldwide.
Packaging Industry Driving Market Demand
The packaging industry thrives on properties like flexibility, affordability, low maintenance costs, and resistance to adhesion. For instance, PET (Polyethylene Terephthalate) is a moisture-free, airtight, and flexible material used in the food and beverage industries. PET bottles are used to ship alcoholic beverages, juices, water, and soft drinks around the world. A high level of growth in the food& beverage industry drives the development of the commodity plastics market. A report from the US Department of Agriculture shows that food and beverage plants account for 15.8% of the total shipments, and 14.7% of Americans work in these plants.
Growing Demand for Medical and Pharmaceuticals Favoring the Market Growth
The advancements in engineering and the increasing demand for recyclable products in the medical and pharmaceutical industry have been favoring the growth of the global commodity plastic market. Gloves, masks, pharmaceutical packaging, and personal protective equipment kits are all made of commodity plastics also known as commodity polymers. Commodity plastics are becoming more popular as they provide higher optical clarity, biocompatibility, and cost savings.
As a result of COVID-19, the demand for medical equipment and personal protective equipment (PPE) is increasing globally, driving up demand for commodity plastic. A variety of plastics, including polystyrene and polyethylene, are blended to achieve desired properties in medical devices, fueling commodity plastic market growth. According to India Brand Equity Foundation, India has 3000 drug companies and 10,500 manufacturing Units. India is also the largest manufacturer of vaccines in the world. The Ministry of Health and Family Welfare has been allotted USD 10.35 billion in the Union Budget 2021 for the development of the healthcare sector, while the Department of Health Research has been allocated USD 365.68 billion.
Polyethylene will Dominate the Market in the Coming Years
Plastics made from polyethylene (PE) are widely used as raw materials for commodity plastics around the world. The market growth of this segment is expected to be driven by PE's use in durable consumer goods, packaging and medical & pharmaceutical applications.PE is also used in the manufacturing of other advanced polymers such as polyethylene. Additionally, the use of PE in HDPE and PET bottles, which are used worldwide for packaging and shipping, promotes the growth of the commodity plastic market across the globe.
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Impact of COVID-19 on the Global Commodity Plastic Market
The COVID-19-induced pandemic has shaken the core of every industry, including automobile, textile, construction, and others. These industries contribute significantly to the economies of many countries in the world. Because of the considerable impact of COVID-19, the commodity plastic market’s pace of growth of the has decreased. Additionally, nationwide lockdowns imposed by the governments of different countries have adversely affected construction sites, raw material manufacture, supply chains, and logistics, thus delaying the growth of the commodity plastic market.
Global Commodity Plastic Market: Regional insights
Based on regions, the global commodity plastic market can be categorized into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Among these regions, the Asia-Pacific is likely to dominate the market during the forecast period. A significant contributor to the region's economic growth is the rapid advancement of the pharmaceutical industry in developing countries like India, China, and Japan. The growing investment in the construction sector region is yet another factor that can drive the regional market during the forecast period.
The leading players in the global commodity plastic market are Exxon Mobil (US), LG Chem (South Korea), Sumitomo Chemical (Japan), The Dow Chemical Company (US), SABIC (Saudi Arabia), BASF SE (Germany), LyondellBasell (Netherlands), Sinopec (China), Ineos (Switzerland), Formosa Plastics (Taiwan), Mitsubishi Chemical (Japan), Borealis AG (Austria), Chevron Phillips Chemical (US), ENI SpA (Italy), Reliance Industries (India), Braskem (Brazil), Hanwha Chemical (South Korea), Lotte Chemical (South Korea), Indian Oil (India), Haldia Petrochemicals (India), Nova Chemicals (Canada), Qenos Pty (Australia), Qatar Petroleum (Qatar), Westlake Chemical (US), and PTT Global Chemical (Thailand).The market players compete based on the quality of the given products and the cost-effectiveness of the new manufacturing processes, thus allowing them to improve yields and optimize processes for more and better production.
The report's in-depth analysis provides information about growth potential, upcoming trends, and statistics of global commodity plastic market size & forecast. The report promises to provide recent technology trends of the commodity plastic market and industry insights that help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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