Plastics Market Size was valued at USD 574.50 billion in 2023. The plastics industry is projected to grow from USD 596.41 Billion in 2024 to USD 804.6 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.81% during the forecast period (2024 - 2032). Increasing demand in a variety of end-use industries, as well as increased awareness of the use of bio-based plastics in a variety of industries are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Plastic demand from the packaging industry is driving the market CAGR for Plastics. Product demand is increasing in a variety of industries, including food and beverage, consumer products, automotive, and electrical and electronics.
The growing need for packaging materials from the food and beverage industries is driving product consumption. Food businesses want packaging that prevents food quality decline and contamination. Plastic's capacity to function as a barrier between food goods and the outside environment is driving demand.
Furthermore, polymers' capacity to withstand physical stress and provide high durability is increasing their use in sports, fashion, polymer clay, and toy-making. Moreover, they are simple to mould and allow for the production of packaging in any shape or size. Their utility in the textile industry is increasing due to their great elasticity, durability, and enhanced visual appeal. Furthermore, because polymers are stiff, they are ideal for packaging automotive and electrical spare parts. As a result, the growing use of plastics in the food and beverage, textile, electrical and electronics, automotive, and consumer goods industries is boosting the expansion of the plastics market.
In addition, the International Organization of Motor Vehicle Manufacturers estimates that 95.63 million automobiles will be produced in 2022. Plastics such as polypropylene, polyvinyl chloride (PVC), acrylonitrile-butadiene-styrene (ABS), and polycarbonate are used in many automobile parts. People are now able to buy cars due to an increase in disposable income, resulting in an increase in car sales worldwide. Thus, driving the plastic market revnue.
Plastics Market Segment Insights
The plastics market segmentation, based on type includes Polyethylene, Polyether Ether Ketone. Polyethylene had the largest market revenue share in 2022, accounting for more than 25.0% of total demand. It is largely employed in the packaging industry, where it can be found in containers and bottles, plastic bags, plastic films, and geomembranes. PE polymers are classified into three categories based on their molecular weight: HDPE, LDPE, and LLDPE. Low molecular weight polymers of PE, for example, are used in lubricants; medium molecular weight polymers are utilized as wax that is miscible with paraffin; and high molecular weight polymers are widely used in the plastics sector.
Figure1: Plastics Market, by Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The plastics market segmentation, based on application, includes packaging, automotive & transportation and building & construction. The packaging segment is estimated to hold the leading plastic market share during the assessment period due to the high demand for polyethylene from the food & beverage packaging industry.
The growing use in the production of construction-related products, such as floor covering, films for windows, and fittings & pipes, is surging the product demand from the infrastructure & construction end-use industry. Similarly, the automotive & transportation, and consumer goods/lifestyle end-use industries are expected to contribute substantially to the growth of the market in the forecast period. The increasing use of polymers in the automotive industry to improve vehicle efficiency and the life of vehicle components is driving market growth. These polymers are easily moldable, highly durable, and flexible, making them the preferred material for manufacturing a wide range of products such as iceboxes, containers, housewares, toys, and packaging material.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. North America dominated the plastics market, accounting for more than 44.0% of revenue in 2022. Backed by increasing product demand from the electrical & electronics, healthcare & pharmaceuticals, and packaging industries. Concerns about plastic pollution, as well as the development of recyclable technology, have increased the region's use of recycled plastics.
Further, the major countries studiedin the market reportare The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: PLASTICS MARKET SHARE BY REGION 2022 (%) 
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s plastics markets accounts for the second-largest market share due to increasing demand coming from the automotive sector in that region. Further, the German plastics market held the largest market share, and the UK plastics market was the fastest-growing market in the European region
The Asia-Pacific Plastics Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increased demand from the consumer goods industry for the manufacturing of toys, textiles, and sporting goods. Moreover, China’s plastics market held the largest market share, and the Indian plastics market was the fastest growing market in the Asia-Pacific region.
For instance, China is the region's leading supplier and producer of plastic components. The expansion of the automotive and electronic markets, as well as the accompanying demand for lightweight components to enhance vehicle efficiency and reduce the weight of electronics components, are the key factors contributing to the country's increased demand for plastic.
Leading market players are extensively investing in research and development in order to extend their product lines, which will help the plastics industry grow even further. Market participants are also engaging in a number of strategic initiatives to grow their worldwide presence, with significant market developments including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the plastics industry must provide cost-effective products.
Manufacturing locally to reduce operational costs is a fundamental business strategy utilized by manufacturers in the plastics industry to benefit customers and expand the market sector. The plastics industry has provided some of the most significant benefits to medicine in recent years. BASF SE (Germany), SABIC (Saudi Arabia), DowDuPont (US), and Evonik Group (Germany) are major players in the plastics market. Sumitomo Chemicals (Japan), Arkema Group (France), and others are investing in R&D operations in an attempt to improve market demand.
Borouge is a polyolefin producer. It is a partnership between the Abu Dhabi National Oil Company and the Austrian company Borealis. It was created in 1998 and has two complementary ventures: Abu Dhabi Polymers Co Ltd (Borouge), an Abu Dhabi-based production firm, and Borouge Pte Ltd, a Singapore-based venture. Hazeem Sultan Al Suwaidi serves as CEO of Abu Dhabi Polymers Co Ltd (Borouge). Rainer Hoefling is the president and CEO of Borouge Pte Ltd. Polyolefin polymers (polyethylene and polypropylene) are provided by the corporation. With Borstar Enhanced Polyethylene made in Abu Dhabi, UAE, and the Borealis portfolio of specialty products, they focus on unique high end applications in the Middle East and Asia Pacific. In February 2022, Borouge opened their fifth polypropylene plant (PP5) in Ruwais, UAE. By growing polypropylene manufacturing, the company will be able to service infrastructure, recyclable advanced packaging, and other industrial sectors.
ExxonMobil firm is an American oil and gas firm headquartered in Spring, Texas. It is the largest direct descendent of John D. Rockefeller's Standard Oil, and was created on November 30, 1999, by the merger of Exxon and Mobil, both of which are utilized as retail names for fueling stations and downstream products today, alongside Esso. The corporation is vertically integrated across the whole oil and gas industry, and it also has a chemicals division that manufactures plastic, synthetic rubber, and other chemical goods. ExxonMobil is headquartered in New Jersey. In February 2021, ExxonMobil has completed the first step of a plant trial of a proprietary enhanced recycling technology in Texas, United States. This method will be used to turn plastic waste into raw materials for the manufacture of polymers. This advancement represents the company's efforts to reduce plastic waste in the environment and boost resource recovery.
BASF SE (Germany)
SABIC (Saudi Arabia)
DowDuPont (US)
Evonik Group (Germany)
Sumitomo Chemicals (Japan)
Arkema Group (France)
Celanese Corporation (US)
Eastman Chemical Company (US)
Chevron Phillips Chemical Co. LLC (US)
Lotte Chemical Corporation (South Korea)
ExxonMobil (US)
In November 2023, LyondellBasell revealed its intentions to establish advanced recycling facilities in Germany, with the goal of eliminating 50,000 tons of waste plastic each year. When the construction ends in 2050, the plant is expected to bring in a lot of revenue from the plastic sector of LyondellBasell’s portfolio during the upcoming years.
In July 2023, TACOIL joined forces with Spanish company Plastic Energy to search for solutions that would cater to the plastic waste recycling problem. Under the stipulations of the agreement, TACOIL will sell the plastic product TACOIL that was manufactured in a factory controlled by plastic energy business in Spain. Thanks to this partnership, it is projected that over 15 kilotons of waste plastic that would normally be thrown away each year will instead be repurposed as recycled plastic.
In May 2023, TotalEnergies Enhanced Iber Resinas’s plastic recycling initiative across Europe to penetrate the market further. The company aims to establish the key presence of circular polymers in Europe while extending the network of suppliers through Iber Resinas to facilitate increased offering of recycled products.
In April 2023, LyondellBasell reported plans to supply bioplastic with ISCC PLUS certification to produce a bio-based raw material mass balance for certified mass production. The bio-circuits polymer CirculenRenew that LyondellBasell just launched will replace other polymer materials used in the manufacture of medical equipment.
In March 2022, The United Nations (UN) hosted the Kenya meeting where several environment ministers and delegates from 175 countries together endorsed a ground-breaking motion declaring total war against plastic wastes and pledged to put together an international legally binding instrument by the year 2024.
In February 2022, Borouge initiated its fifth polypropylene facility PP5 plant in Ruwais, UAE. This PP plant will empower the company to support infrastructure, recyclable advanced packaging and other industrial sectors by increasing polypropylene capacities.
Plastics Market Type Outlook
Polyethylene
Polyether Ether
Ketone
Plastics Market Application Outlook
Packaging
Automotive & Transportation
Building & Construction
Plastics Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 574.50 billion |
| Market Size 2024 | USD 596.41 billion |
| Market Size 2032 | USD 804.6 billion |
| Compound Annual Growth Rate (CAGR) | 3.81% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BASF SE (Germany), SABIC (Saudi Arabia), DowDuPont (US), Evonik Group (Germany). Sumitomo Chemicals (Japan), Arkema Group (France), Celanese Corporation (US), Eastman Chemical Company (US), Chevron Phillips Chemical Co. LLC (US), Lotte Chemical Corporation (South Korea), ExxonMobil (US), Formosa Plastics (Taiwan), Covestro AG (Germany), TORAY Industries (Japan), Mitsui Plastics (Japan), Teijin Plastics (Japan). |
| Key Market Opportunities | Volatile raw material prices |
| Key Market Dynamics | Increasing usage of plastics as an alternative to other heavy materials such as metals, ceramics, and glass. |
Plastics Market Highlights:
Frequently Asked Questions (FAQ) :
The plastics market size was valued at USD 574.50 Billion in 2023
The market is projected to grow at a CAGR of 3.81% during the forecast period, 2024-2032
North America had the largest share of the market
The key players in the market are BASF SE (Germany), SABIC (Saudi Arabia), DowDuPont (US), Evonik Group (Germany). Sumitomo Chemicals (Japan), Arkema Group (France)
The packaging plastics category dominated the market in 2023
The Polyethylene had the largest share of the market
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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