LONDON--(EON: Enhanced Online News)--Technavio’s latest research study covers the present scenario and growth prospects of the global plastic resins market for 2016-2020. Some of the top global suppliers listed in the report include Lyondell Basell Industries, Dow Chemical Company, BASF SE, Bayer Corporation, and Arkema.
Market at a glance
The plastic resins industry is expected to reach a value of USD 600 billion by 2019, primarily due to the increasing demand from key industry sectors such as packaging, construction, FMCG, and automotive.
According to Angad Singh, a category spend intelligence specialist, “APAC produced the most amount of plastic in the world, accounting for more than 45% of the global market in 2015, with China being the world leader in the production and conversion of plastic resins. However, with 67% of the global oil reserves and 45% of the gas reserves being in the Middle East, the region has the opportunity to be a global plastic-producing hub.”
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Global Plastic Resin Industry Segmentation by End-user 2015
The global packaging industry is the largest end user, accounting for 42% of the market. The global plastic resins market is closely linked to the growth of the packaging industry, and the latter is expected to grow at a CAGR of 4% to reach a valuation of USD 975 billion by 2018. Additionally, the growth of the global construction market (expected to grow at a CAGR of 4.2% and reach a value of USD10.4 trillion by 2020) is driving the growth of the plastic resins market.
The engineering plastics industry in APAC is expected to reach USD 45 billion by 2018, driven by increased investments in infrastructure and increased demand for high-performance thermoplastics in the automobile sector (to reduce overall vehicular weight).
Competitive supplier landscape
The production of plastic resin is a capital-intensive process, plant operators are required to have specific skillsets to operate high-tech and computerized equipment. Therefore, fixed (including capital costs such as cost of polymerisation reactors) and labor costs together accounted for 60%–70% of the total production costs in 2015. Many suppliers are innovating and developing processes and catalysts that can reduce the number of steps involved in production and increase the process efficiency by 20%–30%.
APAC emerged as the largest market for plastics, accounting for more than 46% of the total market volume in 2014, due to the growth of major end-user industries such as packaging, construction, and automotive.
Europe is home to more than 62,000 plastics-related companies including raw material producers, plastic converters, and plastics machinery manufacturers. This region has made significant progress in plastic recycling and energy recovery. Around 70% of the plastic waste was recovered from landfills in 2014.
North America is a relatively mature market and is expected to grow at a CAGR of 3.5% during the period 2015–2020. The market is mainly driven by new technology and innovations in the field of bio-based and sustainable alternatives. Central and South America are the fastest growing markets and are expected to grow at a CAGR of 6.3% during the same period. This is mainly driven by the growth of end-user markets in countries such as Brazil and Argentina.
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