Plastic resins are the generic base plastics used to manufacture various plastic products. The major types of plastic resins used are polyethylene, polypropylene, polyvinyl chloride, polystyrene, polyethylene terephthalate, and polyurethane. Plastic resins find widespread application in packaging, consumer goods, construction, automotive, electrical & electronics, and other industries owing to their properties such as moisture resistance, high strength-to-weight ratio, durability, and low cost. The growing demand for packaged food & beverages and e-commerce is fueling the demand for plastics in the packaging industry. The increasing consumption of plastic resins in various applications is expected to drive the growth of the global plastic resins market.
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 for packaged food & beverages from the rising population is driving the plastic resins market. Plastic resins provide cheap and efficient packaging solutions to various industries. Manufacturers are also focusing on developing bio-based and recyclable resins to cater to the rising environmental concerns regarding plastics.
The major plastic resin consuming regions include Asia Pacific, North America, and Europe. However, the demand is growing fast in developing countries of Latin America and Middle East & Africa. The market players are expanding their manufacturing facilities and presence in these emerging markets to leverage high growth opportunities.
Market Key Trends
One of the key trends gaining traction in the Plastic Resins Market Size is the increasing preference for bio-based and recyclable resins. Plastic waste has become a major environmental issue creating a need for alternatives to conventional plastics. Major companies like Dow, BASF, and Eastman are investing heavily in developing bio-based resins from renewable feedstocks like sugarcane, corn, and wood. They are also focused on advancing plastic recycling technologies and incorporating recycled content in resins to achieve circular economy goals. The rising adoption of sustainable resins will be a defining trend that shapes the future outlook of the plastic resins industry.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the plastic resins market is highly capital intensive industry. Large investments are required to enter the market which acts as a deterrent for new companies.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as plastic resins have applications across diverse industries. Buyers can negotiate on price depending on their volume of purchase and substitute availability.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials for plastic resins such as naphtha, natural gas are commoditized. Suppliers have minimum product differentiation.
Threat of new substitutes: The threat of substitutes is moderate as there are substitutes available such as paper, glass, metal but plastic resins still have advantages over substitutes in terms of properties, price and processing.
Competitive rivalry: The competitive rivalry is high due to presence of large number of global and regional players competing on basis of product quality, price and innovation.
Geographical regions: North America holds the largest share in the global plastic resins market in terms of value owing to high demand from packaging and construction industries in the US and copyright.
Asia Pacific is projected to witness fastest growth during the forecast period due to rapid industrialization and urbanization along with rising disposable incomes in emerging economies such as China, India. Growth in packaging, automotive and infrastructure industries will drive the plastic resins consumption in the region.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)