Molded plastics are the type of polymers, which can be molded into any size and shape for the use in commercial applications. The use of pigments and other additives enhances the quality of the molded plastics. Molded plastics are used in various end-use industries, owing to their characteristics, such as durability, lightweight, and high chemical resistance. The automobile industry uses molded plastic for manufacturing of airflow ducts, engine cover, wheel wells, car fascia, grilles, bumpers, and other components.
The global molded plastic market is estimated to surpass US$ 258.7 billion by the end of 2028 in terms of revenue, exhibiting a CAGR of 6.10% during the forecast period (2021 to 2028).
The Middle East and Africa are expected to have a steady growth in the molded plastic market, owing to the increase in the building and construction in the regions. The Middle East has seen a growth in construction with Qatar and Saudi Arabia, which is the major driver for the growth of molded plastic market. This is primarily due to the upcoming FIFA World Cup 2022 in Qatar, which is likely to bring millions of people to the country. Construction of stadium, hotels, malls, and public infrastructure is driving the growth of the global molded plastic market. Moreover, the recent Africa Construction Summit 2020, an event for southern Africa’s construction industry will also act as a positive impact on the global molded plastic market.
Among region, Asia Pacific is expected to be the largest and fastest growing region for molded plastic market witnessing the highest CAGR of 6.7% during the forecast period and market share of 38.6% in 2020. The growth of various end-use industries such as packaging, construction, and automobile has surged the demand for molded plastic. Furthermore, the growing population and increasing disposable income of the consumers in emerging economies such as China and India, are major factors responsible for the growth of the molded plastic market in the Asia Pacific. In addition, the growth in the electrical and electronic industry in the region is also surging the market positively. The shift of manufacturing hubs towards countries like China, India, Indonesia, and Malaysia due to economic growth and rise in population is expected to drive the market growth in the Asia Pacific region.
Figure 1. Global Molded Plastic Market Revenue Share (%), By Region, 2020
Naphtha, crude oil, natural gas are prominent feedstock used in the production of primary petrochemicals, which are, in turn, used as raw material for the production of different types of molded plastics. Plastic manufacturers further process resins and then use them by formulators to manufacture plastic parts that are used in the construction industries, automotive, and packaging. Hence, the price changes in crude oil, directly affect the prices of molded plastics, because of which the costs get spread across the entire value chain of the molded plastics market. The fluctuating feedstock’s prices have a direct affect the profitability of molded plastics suppliers,
|Base Year:||2020||Market Size in 2021:||US$ 170.9 Bn|
|Historical Data for:||2017, 2018, and 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||6.10%||2028 Value Projection:||US$ 258.7 Bn|
BASF SE, Eastman Chemical Company, SABIC, Huntsman Corporation, LyondellBasell Industries N.V, INEOS Group AG, Chevron Phillips Chemical Company LLC, Reliance Industries Limited, Obeikan Investment Group (OIG), and Takween Advanced Industries.
|Restraints & Challenges:||
Extensive expansion and development in the construction, automotive, and packaging industry is expected to drive the growth in molded plastics market, globally. For instance, according to Organization Internationale des Constructeurs Automobiles (OICA) member represents the global auto industry that drives economic progress, the automotive industry increased with a growth rate of 4.9% during the period 2020-2021. Molded plastics are used in manufacturing automobiles that are environmentally sustainable and have low-carbon emission vehicles, which are increasingly in demand. The rapid modernization in emerging economies such as India, China, and Brazil has led to increasing expansion of packaging industry owing to high outflow and inflow of fast moving consumer goods. Furthermore, electrical and electronic industry has a high demand for molded plastics as it is used in the manufacturing of electronic devices such as laptops, televisions, computers, and mobile phones.
Figure 2. Global Molded Plastics Market Revenue Share (%), By End Use Industry, 2020
Based on the End Use Industry, packaging is the largest segment accounting for 52% of the market share in 2020.Packaging segment is expected to grow at a CAGR of 5.9% from 2021-2028. Packaging industry accounted for the largest market share due to the increased use of light weight packaging in various industries, such as pharmaceuticals, electrical, and electronics.
Global Molded Plastics Market - Impact of Coronavirus (COVID-19) Pandemic
Since the outbreak of the coronavirus has turned into a pandemic, the debates over how packaging plays a role in the spread of the virus have been on the rise worldwide. Though governing bodies such as the U.S. Food and Drug Administration (FDA) have disputed the fact in 2019 that plastic packaging can spread the novel coronavirus, the concerns of customers have had a significant impact on the adoption of plastic packaging materials.
Major players operating in the global molded plastic market include BASF SE., Eastman Chemical Company, SABIC, Huntsman Corporation, LyondellBasell Industries N.V, INEOS Group AG, Chevron Phillips Chemical Company LLC, Reliance Industries Limited, Obeikan Investment Group (OIG), and Takween Advanced Industries.
The process of using a rigid frame or mold for shaping of plastic is called plastic molding. The mold used in the process gives the desired shape and is made of steel or aluminum. Plastic molding helps in creation of objects of all sizes and shapes using both simple and complex designs. Molded plastics are synthetic compounds that can be made and molded into a variety of shapes depending on their utilization. The polymers in these molded plastics can be customized by adding colors and pigments. Molded plastics are used to increase its durability, extend the shelf life of a product and protect it from damage. Molded plastics have desirable qualities that are required in car components and construction materials. Polyvinyl chloride is used to make insulation tapes, cable insulation and other building materials. Polypropylene and Polyethylene are used to make rainwater, and sewage pipes, plumbing, gas distribution pipes, windows, door and flooring tiles, and other products.
Government initiatives like taxation benefits and budgetary plans in regions like India and China to expand the Foreign Direct Investment (FDI) stream has helped in building up the molded plastics market. These regions also offer low-cost labor, which further helps in reducing the overall manufacturing cost for manufacturers of molded plastic. However, this shift has led to an overutilization of various plastic products, thereby affecting their prices. Instability in prices of petrochemical raw materials like styrene, ethylene, and propylene benzene associated with growing environmental concerns with their disposal, may hinder the market sustainability.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.