Global Commodity Plastics Market Report 2022: Increased Demand from the Packaging Industry Bodes Well for Future Growth - Forecasts to 2028

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Jan 06, 2023, 11:00 ET

DUBLIN, Jan. 6, 2023 /PRNewswire/ -- The "Commodity Plastics Market- Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Type (Polyethylene, Polyvinyl Chloride, Polystyrene, Polypropylene, and Others), By Applications, By Region, and Competition" report has been added to ResearchAndMarkets.com's offering.

Global Commodity Plastics Market is projected to grow at an impressive rate through 2028 due to increasing demand in packaging industry. China's overall production of plastic products amounted to 80 million metric tons in 2021.

Commodity plastic is used in many applications, including the mass production of items and goods for single use, such as packaging film, bottles, bags, and cutlery.

In addition to single-use plastic, commodity plastics are also utilized in mass-produced objects like electrical product casings and children's toys. The product demand in the packaging sector is anticipated to increase due to the growing demand for flexible packaging due to its robustness, affordability, and high recyclability.

Additionally, it is projected that the segment growth in the upcoming years will be fueled by advancements in packaging materials technology and increased usage of recyclable plastics for packaging. They are also chosen when a plastic's particular mechanical characteristics have no detrimental effects on the functionality or performance of the object in question. Some examples of commodity plastics are Polyethylene, Polyvinyl Chloride, Polystyrene, and Polypropylene.

Promising demand from the packaging industry

According to the World Packaging Organization, the Global Packaging Market is growing at 5.5%. The increased need for packaging is due to rising health concerns, concern about hygienic packaging, and growth in the urban population, which has resulted in rising demand for FMCGs, pharmaceutical supplies, and other consumer durables.

Flexible packaging is mainly used for food, which accounts for more than 60% of the market, according to the Flexible Packaging Association. The flexible packaging market is expanding quickly because it has the potential to include fresh approaches to numerous packaging problems.

IBEF also reports that with 70% of revenues coming through retail, one of the most significant industries in India is the food processing sector, which accounts for 32% of the nation's total food market and ranks fifth in production, consumption, and exports.

Low-Cost Substitute for Metal

Aluminum, steel, and glass can all be replaced with polymeric materials. They contain both amorphous and semi-crystalline polymers.

Due to their exceptional strength, stiffness, impact resistance, temperature resistance, and fire resistance, these plastics are widely employed in applications in the automotive, transportation, appliance, electronics, communications, and aerospace industries. Commodity plastics include polymers, Polyethylene, Polyvinyl Chloride, Polystyrene, Polypropylene, and polymethyl methacrylate. With plastic, approximately 40% cost reduction is possible, which helps in the competitive price of the product.

Growing Technological Advancement for Sustainable Development

Over the forecast period, sustainability trends are expected to rise. Due to the nature of plastic production, sustainability will always be a concern. However, development and recycling streams will help balance out such sustainability challenges.

For instance, the Coca-Cola European partners committed to recycle 50% of the plastic used in PET bottles by 2025 and collecting 100% of the packaging plastic in Western Europe. PepsiCo set an interim goal of roughly 45% by 2025 and a long-term goal of using 50% recycled plastic in its bottles throughout the European region by 2030.

Additionally, several significant food producers are working to reconsider their use of plastic packaging and transition to a `circular economy.

Competitive Landscape

Company Profiles: Detailed analysis of the major companies in Global Commodity Plastics Market.

ExxonMobil Corporation
BASF SE
Chevron Phillips Chemical Co., LLC
Dow Inc.
SABIC
LyondellBasell Industries N.V.
Reliance Industries Limited
Chevron Phillips Chemical Co., LLC
Lotte Chemical Corporation
Hanwha Solutions Corporation

Report Scope:

In this report, Global Edible Packaging Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

Global Commodity plastics market by type: