The commodity plastics market is projected to grow from USD 359.42 Billion in 2017 to USD 493.74 Billion by 2022, at a CAGR of 6.6% during the forecast period.
This growth is primarily driven by an increase in the applications of plastics in the packaging industry and rise in demand for consumer goods. Increased demand for flexible packaging in packaging industry due to its low cost, durability, and availability is also a major growth factor for the commodity plastics market. The increasing concerns over the development of light weight electric vehicles is further driving the growth of the commodity plastics market. The consumption of commodity plastics in both developed and emerging countries, such as China, India, Mexico, and Brazil has been increasing in recent years.
The commodity plastics market has been segmented on the basis of type into Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), Poly(methyl methacrylate) (PMMA), and others. The PE segment accounted for the largest share of the commodity plastics market in 2016, in terms of volume. It is also expected to be the fastest-growing type segment of the commodity plastics market. This growth can be attributed to the high demand for PE commodity plastics in the packaging application owing to the increased demand for packaged food & beverages.
Based on application, the commodity plastics market has been segmented into packaging, consumer goods, construction, automotive, electronics, textiles, medical & pharmaceutical, and others. The packaging application segment accounted for the largest share of the commodity plastics market in 2016. This application segment is projected to grow at the highest CAGR during the forecast period, in terms of both value and volume. The rising demand for flexible packaging is driving the growth of the commodity plastics market for the packaging application.
Asia Pacific, North America, Europe, South America, and the Middle East & Africa are considered as the key regions for the commodity plastics market. Asia Pacific is the largest market for commodity plastics. Economic development in the Asia Pacific countries and increased investments in the construction industry are key factors projected to drive the growth of the commodity plastics market in this region. The commodity plastics market in China, India, Mexico, and Brazil is also witnessing growth, owing to the increased consumption of consumer goods and packaged foods. However, growing concern over plastic waste is acting as a restraint to the growth of the commodity plastics market.
Key players operating in the commodity plastics market include Dow Chemical (US), Exxon Mobil (US), SABIC (Saudi Arabia), BASF (Germany), and Sinopec (China). These players are focused on the adoption of key growth strategies such as expansions, new product launches, acquisitions, mergers, and joint ventures to strengthen their market position and widen their customer base.
For instance, in 2017, Dow Chemical merged with DuPont (US) to form DowDuPont (US) to cater to the increased demand for commodity plastics from various applications. Dow Chemical also launched two PE commodity plastics in 2017 for various packaging applications. These developments undertaken by companies have contributed to the growth of the commodity plastics market.