Commodity plastics are plastics produced for applications such as packaging, food containers, household products, etc. Commodity plastics are inexpensive and have weak mechanical properties as compared to the engineering plastics. Polyethylene, polypropylene, polystyrene are some examples of commodity plastics.
The global commodity plastic size is expected to escalate during the forecast period. Due to the covid-19 pandemic, the market witnessed a slight downfall in textile, automotive and electronics market but the escalation in pharmaceutical sector and medical sector helped the market to sustain.
Growing Packaging Industry to Create Significant Opportunities
Emergence of e-commerce has made a positive impact on packaging industry. Owing to the rise in population, changing lifestyle among consumers, packaging for essential products like food, pharmaceutical industry and hygiene products is driving the market for commodity plastics globally.
Growth Opportunities in Developing Industries
In developing industries like India, China, owing to the rapid industrialisation and urbanisation, packaging has become a need for food, transportation, beverages, essential and non-essential commodities and thus, plastics market is expecting profitable growth.
Evolving Regulations by Governments Against Plastics Driving Growth
Being non-biodegradable, plastics are a huge threat to environment. Numerous restrictions are imposed by the government for banning the plastic materials and fines are also placed to the people who use plastics in various countries.
Commodity Plastics Market-Competitive Landscape
Prominent market players in the sector are:
- LyondellBasell (Netherlands)
- The Dow Chemical Company
- Sinopec (China)
- Mitsubishi Chemical (Japan)
- Borealis AG (Austria)
- Reliance Industries (India)
- Hanwha Chemical (South Korea)
- Indian Oil (India)
- Nova Chemicals (Canada)
- Qatar Petroleum (Qatar)
- PTT Global Chemical (Thailand)
Recent developments by the companies include:
- In May 2020, Sumitomo announced investing in a Israel based start-up company NanoScent for developing a diagnostic sensor for covid-19.
- In December 2020, LyondellBasell’s Polypropylene Technology was selected to build a new facility in Wenzhou, Zhejiang Province, China by Blue Sky Energy.
- In March 2020, INEOS made an agreement with Spirit Energy, a UK based company for acquisition of two noncore Danish assets for Spirit Energy.
Commodity Plastics Market-Regional Outlook
Asia-Pacific continues to dominate the commodity plastic market being one of the largest consumers of electronic products such as wires and other accessories. Demand from packaging, medical and pharmaceutical sector especially in China, Japan and India is a key growth prospect for holding the largest share. Rising habits for packaged foods in consumer goods industry and plastic use in pharmaceutical industry is escalating the growth.
Commodity Plastics Market-Segmentation
- Consumer Goods
- Medical & Pharmaceuticals
- Agricultural firms
- Stationary items
- Bike spare parts
- North America
- Middle East and Africa
- South America
Which segment is expected to hold leading share in commodity plastic market?
PET, plastic resin is the most commonly used plastic material for consumer products, beverages, and food items and thus, expected to fuel the market.
Which is the most lucrative market for commodity plastics?
Asia-Pacific is expected to have the highest market due to rapidly increasing population and urbanisation.
How has covid-19 affected demand for commodity plastics?
Covid-19 has caused a huge negative impact on the economy of developing as well as developed countries. The commodity plastic market also saw a slight decline from electronics and textiles industry but the pandemic outbreak led to panic buying of products which escalated the growth of plastics eventually driving the market.
Which are the major companies manufacturing commodity plastics?
Major companies include Mitsubishi Chemical (Japan), Borealis AG (Austria), Reliance Industries (India), Hanwha Chemical (South Korea), Indian Oil (India).
What are the factors restraining the growth of commodity plastics?
Environmental safety factors and government rules regarding ban of plastics may lead the market towards slight downfall.
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