The global is highly fragmented with the top 10 companies accounting for only 40% of the overall market in 2015. These companies include Chevron Philips Chemical Company LLC, BASF SE, Eastman Chemical Company, LyondellBasell Industries N.V., and SABIC. Transparency Market Research finds that most market leaders have benefited from experience and have, over the years, developed technical expertise. They have also established high brand equity, making it immensely difficult for new and small players to compete with them.
“The development of new plastic materials and competitive pricing are some of the key strategies though which companies have penetrated the molded plastics market,” the author of the study says. Establishing a wider global presence to respond to emerging trends faster is also being seen as a technique to accelerate growth. BASF is one such company that has strengthened its global network by targeting emerging markets with high growth potential. In October 2015, the company set up an engineered plastics compounding plant in South Korea and plans to expand its existing compound capacities for engineered plastics at its site in Germany by 2017.
The opportunity in the global molded plastics market was pegged at US$124.8 bn in 2015 and is projected to be worth US$202.2 bn by 2024, rising at a CAGR of 5.6% therein. By volume, the market is anticipated to register a 4.3% CAGR from 2016 to 2024.
Decrease in Crude Oil Prices Positively Impacting Molded Plastics Market
The current scenario in the global oil sector, with declining oil prices, has actually driven the petrochemical industry. “Lower oil prices help petrochemical companies improve margins, and it is becoming quite evident that the profit margins of several petrochemical companies have improved quite substantially due to low oil prices,” the lead analyst at TMR observes. The growth of the petrochemical industry is sure to have a positive impact on the molded plastics market.
The rapid growth of the building and construction sector is also driving the market for molded plastics, finds TMR. “The construction sector has evolved over the years and has registered a significant market share as a consequence of continued investment from government clients and private developers in new infrastructure and real estate projects,” the author states.
On the flip side, various environmental issues associated with the use of molded plastics, economic and political instability in several countries, especially in the Middle East, and unpredictable demand patterns in many regions are anticipated to restrict the growth of the molded plastics market during the course of the forecast period.
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Steady Growth in Store for Molded Plastics Market by Value and Volume
Based on material type, the molded plastics market was led by polypropylene. This segment is estimated to account for a 41% share in the overall market by the end of 2016. At present, the demand for polypropylene is higher than any other material. However, polyethylene terephthalate (PET) is anticipated to register the highest CAGR of 8.6% from 2016 to 2024. By technology, injection molding led the molded plastics market in 2015 and the segment is expected to double by 2024. Blow molding is an attractive market with an impressive growth rate, TMR reports.
Based on application, the packaging industry will remain the leading consumer of molded plastics throughout the forecast period. It is also anticipated to generate the highest revenue through 2024. The construction sector is also a key contributor to the growth of the molded plastics market. Geographically, while Asia Pacific is the leading revenue generator in the global market, the Middle East and Africa segment is projected to expand at a fast pace.