Resurgence across end-use markets will drive global plastics boom: report

Shaking off the effects of the Great Recession, global plastics consumption is expected to reach 297.5 million tons by 2015, according to a new report by market research firm Global Industry Analysts, Inc.

“Asia-Pacific is emerging as a prime growth driver for the plastics industry, with China and India expected to foster growth in the medium to long-term period,” the report said. “The market is significantly influenced by the development of new age plastics, emergence of new applications, and the focus on green chemistry due to legislative and environmental requirements.”

In particular, the global packaging sector is expected to boom, and will find increased use in healthcare and personal care products, and packaged foods and beverages markets. “Advancements in packaging material science and mounting demand for product protection and stability are further driving demand for plastic packaging,” the company’s report said.

Bioplastic demand is also on the rise and is expected to grow, owing to novel applications in the packaging industry, primarily for food and beverages. Emerging nations with underdeveloped or no recycling facilities are expected to benefit considerably from bioplastics products and packaging.

The report also forecasts a quickening of the ongoing shift of production bases to low-cost Asian countries. This coupled with increasing foreign investments, and rise in the number of new manufacturing establishments are presenting Asia-Pacific as a prime driver of growth in the plastics industry. “In particular, China and India offer enormous potential due to expanding automobile demand, resurgence in growth fundamentals across all end-use markets, such as rebuilding of consumer/business confidence, increasing income levels, rebound in general production, and rise in capital investments in all end-use sectors,” the report said. “Besides growing demand from the automobile, mining, chemical, construction and agricultural industries, the Asia-Pacific plastics market is propelled by trends such as globalization, demand for durable products and urbanization.”

Demand for polypropylene and polyethylene in Asia is registering rapid growth fueled by rampant industrialization and expanding automotive industry, the report noted.

For more on the report – entitled “Plastics: A Global Outlook” – visit this link.