by Some of the commonly used plastic resins include polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polyethylene terephthalate (PET), polystyrene (PS), and polyurethane (PU). These resins find diverse applications in packaging, construction, automotive, electrical & electronics, and consumer goods sectors due to properties like durability, versatility and moisture resistance. The packaging industry is the largest end-use sector, utilizing plastic resins for flexible and rigid packaging of food & beverages, consumer goods, pharmaceuticals and other products. The rapidly growing e-commerce and food delivery sectors have propelled the demand for plastic packaging materials.
The Global plastic resins market is estimated to be valued at US$ 1,127.35 Bn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the plastic resins market are Dow, DuPont, BASF SE, SABIC, Sumitomo Chemical Co., Ltd., Evonik Industries AG, Celanese Corporation, Eastman Chemical Company, Chevron Phillips Chemical Co., LLC, LOTTE Chemical Corporation, Exxon Mobil Corporation, Formosa Plastics Corporation, TORAY INDUSTRIES, INC., MITSUI & CO. LTD, TEIJIN LIMITED, LG Chem, and Avient Corporation. The growing demand from packaging, automotive, consumer goods and other end-use industries has propelled major players to expand their production capacities globally.
The global plastic packaging market value was estimated at US$ 248.8 billion in 2019 and is projected to grow at a CAGR of 4.25% from 2021 to 2027. This consistent growth in packaging sector demand is driving the plastic resins market upward. Plastic resins find vast usage in flexible and rigid packaging of various consumer goods and industrial products.
Major players in the Plastic Resins Market Demand have undertaken sizeable investments and strategic collaborations to expand globally. For instance, BASF has resin production sites across 30 countries to serve the global demand. Dow and DuPont merged their material science divisions and are focusing on high-performance technologies. These large multinational corporations have production facilities spanning several regions including North America, Europe, MEA, Asia Pacific and Latin America.
Market Key Trends
One of the key trends gaining momentum in the plastic resins market is the rising preference for biodegradable and bio-based resins. Concerns around plastic waste accumulation and strict environmental regulations have prompted leading resin manufacturers to develop sustainable alternatives. Major players like BASF, Avient, Indorama Ventures and Braskem have commercially produced biodegradable resins using biomass sources for applications in flexible packaging, mulch films and compostable bags. The growing focus toward circular economy principles and plastic waste management will further augment the market potential of bio-based resins in the coming years.
Porter’s Analysis
Threat of new entrants: New entrants face high capital requirements for production facilities and distribution networks. Additionally, the large, established players have significant economies of scale advantages over potential new entrants.
Bargaining power of buyers: The plastic resins market has many large buyers that can negotiate lower prices from suppliers. Buyers can also threaten to substitute with alternative materials, increasing their bargaining power.
Bargaining power of suppliers: Several key raw material suppliers like petroleum and natural gas companies have significant influence over plastic resin producers. Suppliers can leverage pricing power in periods of constrained supply.
Threat of new substitutes: Alternative materials like paper, glass, metals and bio-based plastics pose a threat, though plastic resins maintain advantages in terms of cost, weight and durability.
Competitive rivalry: The plastic resins market features firms with global operations competing intensely on price and product development. Maintaining differentiation is difficult due to the commodity-like nature of many resins.
Geographical Regions
The Asia Pacific region accounts for over 50% of the global plastic resins market value, driven by large demand from countries like China, India, Indonesia and Japan. The region is home to a significant manufacturing industry that relies heavily on plastics.
North America is the fastest growing region for the plastic resins market over the forecast period, expanding at an annual rate above 5%. This will be led by the recovering US economy and increasing shale gas production enhancing competitiveness of domestic resin producers.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
