Technavio Predicts a 6.11% CAGR for Commodity Plastics From 2022 to 2027, Driven by Packaging Demand

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Technavio Predicts a 6.11% CAGR for Commodity Plastics From 2022 to 2027, Driven by Packaging Demand
The commodity plastics market size is expected to grow by USD 159.09 billion at a CAGR of 6.11% from 2022 to 2027, according to the latest research report from Technavio.

The commodity plastics market size is expected to grow by USD 159.09 billion at a CAGR of 6.11% from 2022 to 2027, according to the latest research report from Technavio. The increasing demand for packaging material is driving market growth. The demand for packaging materials has increased in various industries, such as construction, healthcare, and consumer goods, in recent years. During 2020-2021, the demand for consumer goods and medical devices increased during the COVID-19 pandemic. The demand for flexible plastic packaging from the healthcare industry is expected to be high during the forecast period. These factors, in turn, will drive the growth of the commodity plastics market. Make informed business decisions based on qualitative and quantitative evidence highlighted in Technavio reports.

Vendor landscape

The commodity plastics market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market. The global commodity plastics market is characterized by the presence of various large, medium, and small-scale manufacturers. Most large and established players sell and distribute extensively to customers globally, while most smaller players are concentrated in regional markets. These vendors compete based on parameters such as price, quality, innovation, brand identity, and distribution channels. The intense rivalry among vendors compels them to adopt pricing and marketing strategies to retain their existing market share and seize new market opportunities. Hence, it becomes imperative for manufacturers to differentiate their product offerings through a clear and unique value proposition. The key offerings of some of these vendors are listed below:

  • Braskem SA – The company offers commodity plastics such as resins, specialties, solvents, and olefins.
  • Chevron Corp. – The company offers commodity plastics under the subsidiary Chevron Phillips Chemical.
  • Dow Inc. – The company offers commodity plastics such as bottles, caps, and closures.
  • Eastman Chemical Co. – The company offers commodity plastics for coatings, photography, and applications.

Key market segmentation

Product
  • Polyethylene (PE)
  • Polypropylene (PP)
  • Polyvinyl chloride (PVC)
  • polyethylene terephthalate (PET)
  • Polyethylene terephthalate (PS)

The polyethylene (PE) segment will account for a significant share of market growth during the forecast period. Polyethylene (PE) is a lightweight and durable material and one of the most commonly manufactured plastics globally. Polyethylene packaging protects products from the external environment for storage, distribution, and sale. Packaging materials, such as high-density polyethylene (HDPE) and low-density polyethylene (LDPE), are used regularly for such purposes.

Application
  • Packaging
  • Consumer goods
  • Electronics
  • Automotive
  • Others
Geography
  • APAC
  • North America
  • Europe
  • South America
  • Middle East and Africa

Regional market outlook

APAC is estimated to account for 32% of the growth of the global commodity plastics market during the forecast period. China and India are expected to be the key contributors to the growth of the market in this region due to the rapidly expanding e-commerce, fast-moving consumer packaged goods (FMCG), consumer electronics, and personal care industries. The growing population and the increasing demand for goods through online sales channels are driving the growth of the e-commerce industry in APAC. Packaging is essential in e-commerce to protect products from damage. These factors will drive the growth of the market in APAC during the forecast period.

The commodity plastics market covers the following areas:

  • Commodity plastics market sizing
  • Commodity plastics market forecast
  • Commodity plastics market analysis

Companies mentioned

  • BASF SE
  • Braskem SA
  • Chevron Corp.
  • Covestro AG
  • Dow Inc.
  • Eastman Chemical Co.
  • Exxon Mobil Corp.
  • Formosa Plastics Group
  • Hanwha Corp.
  • INEOS Group Holdings SA
  • LG Chem Ltd.
  • Lotte Chemical Corp.
  • LyondellBasell Industries NV
  • Mitsubishi Chemical Corp.
  • OMV Aktiengesellschaft
  • PTT Global Chemical Public Co. Ltd.
  • Reliance Industries Ltd.
  • Saudi Basic Industries Corp.
  • Sumitomo Chemical Co. Ltd.
  • TotalEnergies SE

What’s new?

  • Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession
  • Global competitiveness and key competitor positions
    Market presence across multiple geographical footprints – Strong/active/niche/trivial

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