The construction and automotive industries' rising need for polypropylene is anticipated to expand the resin market. The demand for private vehicles was sparked by increased consumer purchasing power, propelling the automotive sector and fostering market expansion. The pharmaceutical, food & beverage, consumer products, and e-commerce industries' rising demand for packaging solutions will fuel the market's expansion. High levels of plastic are used due to changing consumer lives and demanding work schedules. This element offers the market a chance for expansion. The price of resin was affected by changes in crude oil, which will limit market expansion.
Lockdown induced by the COVID-19 pandemic resulted in limited product and resource availability, which severely influenced the producers' supply chain. Raw material shortages were a problem for the producers because of trade restrictions, particularly in China and India. As a result, the enterprises' ability to produce finished goods was constrained, gradually reducing output. A new issue for petrochemical companies was the frequent fluctuations in crude oil prices, which impacted production costs. In addition, resin manufacturers reduced or shut down their production facilities due to supply chain disruptions, labor, and raw material shortages, and stringent governmental regulations. Despite these uncertainties, the pandemic's impact on the market was slowed by the demand for plastic packaging in the food and beverage, pharmaceutical, and e-commerce businesses.
Rapid Expansion of the Packaging Sector will Support Product Demand
To pack various products, plastic is mostly used in films, rigid boxes, foil-sealed bags, corrugated boxes, trays, and poly bags. During the forecast period, the market will be driven by the rising demand for packaging from the food & beverage, pharmaceutical, consumer goods, and e-commerce industries. Additionally, as globalization has grown, import and export activities have increased, leading to higher product consumption. Furthermore, the packaging sector is impacted by the e-commerce sector's explosive growth due to shifting consumer purchasing patterns and rising online shopping preferences. Moreover, flexible packaging is preferred by food and beverage producers, mainly because convenience foods like frozen dinners and ready-to-eat meals are more popular. As a result, these factors will stimulate the market for sustainable packaging solutions and open new avenues for industry expansion.
Crude Oil Prices that Frequently Fluctuate to Impede Growth
Since crude oil and natural gas byproducts are the primary feedstock sources for most plastics, changes in crude oil prices significantly impact resin prices. Oil prices, which are impacted by supply and demand, natural disasters, and changes in production costs, impact feedstock prices. The chemicals used to make plastics also come from fossil fuels like natural gas, coal, and oil, which contribute to pollution. As a result, the market will be impacted by strict environmental laws adopted by national governments to decrease plastic pollution. The market is also constrained by governments' restrictions on excessive crude oil and petroleum use. As a result, it is predicted that these factors will restrain the market growth during the forecast period.
Based on type, the resin market is segmented into polyethylene, polypropylene, polyethylene terephthalate, polyvinyl chloride, acrylonitrile butadiene styrene, polyamide, polycarbonate, polyurethane, polystyrene, and others. The polyethylene category dominated the market in 2021. This increased percentage is attributable to the use of these types in the production of plastic films, food packaging trays, bottles, and other containers. Due to their mold-ability, chemical, electrical, impact, and excellent thermal qualities, the automotive and healthcare sectors also contribute to the demand for PE. Besides, the desire for extremely flexible and recyclable materials from the packaging industry is one factor driving the rise of the PET market at a significant rate. As a result, the use of PET will be encouraged by growing environmental concerns and pollution legislation. The rising preferences for lightweight, durable, and insulating material from electrical & electronics and building and construction industries will surge polyvinyl chloride adoption.
By End Use Industry
By end-use industry, the market is segmented into packaging, automotive & transportation, building & construction, consumer goods/lifestyle, electrical & electronics, agriculture, and others. The packaging category dominated the market in 2021. The need for efficient packaging solutions is increasing across several industries, including consumer products, food & beverage, electrical & electronics, and construction, which is driving this segment's expansion. The inclination for frozen and ready-to-eat foods also contributes to the segment's expansion. Besides, using resins in products ranging from electrical insulation to consumer electronics will lead to growth in the electrical & electronics segment. Changes in lifestyle preferences and rising disposable income are responsible for the growth of the consumer goods and lifestyle segment. The sportswear industry's technological developments are also boosting the market.
Asia Pacific is projected to hold the largest resin market share over the forecast period. The main reason for this is the existence of significant plastic-producing and -consuming nations like China and India. In addition, the area has reasonable access to labor and raw materials, which has encouraged several enterprises to set up production facilities. China is a significant producer of cell phones, televisions, and laptops. The quick movement in customer preferences toward electronics for daily tasks also drives the industry in this area.
On the other hand, the Europe resin market is anticipated to grow significantly over the forecast period because the plastics business in the automobile industry is growing. Due to their beneficial physical characteristics, such as electrical insulation and corrosion inhibition, plastics are employed in automobiles. Regulations governing vehicle emissions have also encouraged automakers to use more plastic in their vehicles, boosting the market's expansion. The region's consumption of cosmetics has increased due to growing beauty and personal care awareness, driving up packaging demand from the cosmetics sector. This increasing packaging demand will provide growth opportunities.
LIST OF KEY COMPANIES PROFILED:
- DuPont (U.S.)
- Arkema (France)
- BASF SE (Germany)
- INEOS Holdings Ltd. (U.K.)
- Hexion (U.S.)
- Invista (U.S.)
- Lyondellbasell (Netherlands)
- Mitsubishi Engineering-Plastics Corporation (Japan)
- Mitsui Chemicals (Japan)
- Nova Chemicals (Canada)
- Qenos (Australia)
- Radici Group (Italy)
- SABIC (Saudi Arabia)
- Repsol (Spain)
- Sumitomo Chemical Co. Ltd. (Japan)
- Teijin Limited (Japan)
- Tosoh Corporation (Japan)
- Toray Group (Japan)
KEY INDUSTRY DEVELOPMENTS:
- December 2021: At its plant in Nansha, China, Arkema increased its capacity to produce UV-curable resins. With this expansion, the business will help meet the rising demand for cutting-edge electronics applications solutions in Asia, driven by 5G and renewable energy technologies.
- February 2021: With post-consumer resin, NOVA Chemicals Corporation created several adaptable film structure designs. The linear, low-density, and post-consumer low-density polyethylene-based film architectures can be customized to meet the needs of different film applications.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Type, By End User, and By Geography|
|By End Use||