Forecasting the future of the plastic global market – Increasing the consumption of plastics in the construction, automotive, and the electrical industries will lead to the growth of the plastics market.
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The global plastic market value in 2019 has been estimated about $ 568.9 billion And is expected this amount will increase by 3.2% till 2027.
It seems that the increase of plastic consumption in construction, automotive and electrical industries will lead to the growth of the plastic market value in this period.
due to the Regulations of reduce the weight of vehicles to increase the fuel efficiency and consequently reduce the carbon dioxide emissions, consumption of plastic has promoted instead of metals such as aluminum and steel in the manufacture of automotive components. Therefore, it expected that the automotive industry be a major consumer of plastics in the coming years.
Outbreak of COVID-19 virus has led to the halts production, supply and transportation constraints, and recession worldwide and consequently, create the disruption of demand for plastics in the construction, automotive and electrical industries.
In the following have a brief view to the most profitable shares of plastic market based on kind of plastic, Geographical region and usage.
Kind of Plastic
Polyethylene dominated the market with a 25.7% share in 2019. This high share is due to the rise in the demand of the packaging sector, including containers, bottles, plastic bags, and geomembranes.
Polyethylene is mainly divided into two categories: high density (HDPE) and low density (LDPE). High density polyethylene is used in items such as washing powder packaging, milk cartons, kitchen boards and dustbins, Low density polyethylene is used as a raw material in the packaging of consumable products, food and beverages.
It is expected due to the travel restrictions during the Coronavirus outbreak worldwide consume of packaged food and consequently demand for polyethylene will have increased.
Packaging Industry dominated the market with a 36.5 % share in 2019. This high share is due to the vast demand in various consumer industries such as medicine, construction and electronics in emerging economies. It seems due to the outbreak of the coronavirus, the demand for packaging of the health products, food and internet shipping will increase sharply while Demand for luxury, industrial, and some B2B packages, may grow slowly due to numerous constraints, such as suspension of production and urban quarantine.
Asia and Oceania had the most consumption in 2019 with a share of 20.3%. on the one hand Economic development and consequently increasing the consumer expenses in emerging economies such as India, Japan and Southeast Asia along with the Industrialization and increase of skilled labor and growth of the production line has led to the increase in plastic consumption in these areas.
however, with the outbreak of the Corona virus and declining consumer economic power suspension of production as well as supply in many industries, and declining transportation, it seems that growth of the plastics market be slower than expected in the coming years.