In a highly fragmented global molded plastics market, in 2015, the top 10 companies held only 40% of the overall market. Some of these are companies are Chevron Philips Chemical Company LLC, Eastman Chemical Company, SABIC, BASF SE, and LyondellBasell Industries N.V. Top companies in this market have established high brand equity due to a long presence in this market, notes a study by Transparency Market Research. This factor, along with the technical expertise of key companies makes it difficult for new and small companies to compete with them.
“Focus on renewable raw materials to manufacture plastics for packaging industries is one of the key strategies that key players in this market have adopted, says the author of this study. Strengthening global presence by targeting emerging markets with high growth potential has also been adopted to accelerate growth. A case in point is BASF SE. In October 2015, the company established an engineered plastics compounding unit in South Korea and have plans to expand its existing engineered plastics compound capacities in Germany by the end of 2017. The global molded plastics marketwas pegged at US$124.8 bn in 2015 and is expected to be worth US$202.2 bn by 2024 at a CAGR of 5.6% therein. The market is expected to display a CAGR of 4.3% between 2016 and 2024 in terms of volume.
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Declining Crude Oil Prices Positively Influencing Molded Plastics Market
In the present scenario, declining crude oil prices have positively impacted the petrochemical industry. The drop in oil prices has improved the profit margins of several petrochemical companies considerably, says analyst at TMR. Hence, the growth of the petrochemical industry is expected to positively impact the molded plastics market.
The flourishing building and construction sector is also fuelling the growth of the molded plastics market, says TMR. With continued investments from government and private developers for infrastructural development and real estate projects, the construction industry has reached new heights.
On the flip side, environmental hazards associated with the use of molded plastics, economic instability and political unrest in several countries predominantly in the Middle East, and unpredictable demand in the Middle East and Europe are expected to challenge the growth of the molded plastics market during the forecast period.
The Middle East and Africa to Display Fast Growth in Future
In terms of material type, polypropylene displays the highest demand accounting for its dominance in the molded plastics market. In 2016, the segment held 41% share in the global market. However, polyethylene terephthalate (PET) is expected to display the highest CAGR of 8.6% between 2016 and 2024. On the basis of technology, in 2015, injection molding led the molded plastics market and the technology segment is expected to increase two times by 2024. Blow molding, on the other hand, is evolving rapidly with an impressive growth rate.
In terms of application, packaging is expected to be leading consumer of molded plastics until the end of the forecast period in 2024. Packaging is expected to generate the highest revenue until 2024. The construction sector contributes a significant revenue to the overall molded plastics market. Geography-wise, while currently, Asia Pacific contributes the highest revenue to the global market, the Middle East and Africa is expected to display growth at a fast pace.
The global molded plastics market is segmented as follows:
Molded Plastics Market, by Material
Molded Plastics Market: By Technology
Molded Plastics Market: By Application
This review of the market is based on a recent market research report published by Transparency Market Research, titled “Molded Plastics Market – GCC Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023.”