As COVID-19 continues to rage through economies, global plastic market has considered its cues in projecting future growth of the industry. In a recent report published, growth rate on global commodity plastic market is projected until 2027. Overall positive growth rate is predicted in the report and is said to have taken into account the current demand and market condition in the changed market scenario.
An overview of Plastic industry
Plastic is a widely used material in different sectors. Because it is lightweight, malleable, a cost-effective, plastic has found extensive use in every industry. Commodity plastic market caters to a wide range of manufacturing demand that includes common household appliances, fashion, trash cans, disposables, packaging, films, and many more. Commodity plastics represent a broad market as these are relatively inexpensive and don’t require high-end machinery like engineered plastic. Different types of plastic fall into this category, such as
- Polyethylene (PE)
- Polyvinyl chloride (PVC)
- Polypropylene (PP)
The recent report on future of plastic industry until 2027 has analysed demand for each of these categories across different market segments. It suggested that increasing household disposable income, coupled with high demand for consumer goods, will play a significant role in increasing demand for commodity plastic.
Key highlights from the global report
- 2016 has been considered the base year for the report and projections were made till 2027
- Global commodity plastics market is expected to reach USD 651.80 billion by 2026
- It is expected to grow at 6.6 percent CAGR from USD 340.99 Billion in 2016 to USD 493.74 Billion by 2022
- A sectorial rise in demand is expected in food and beverage, electrical and electronics, and packaging
- Emerging market in the developing nations will make a significant contribution to global demand. Asia-Pacific, especially markets in China, Japan, and India will dominate global demand during the period
- Global demand will also see a rise due to an increase in metal price
- Positive growth is projected in other plastics segments too. Antibacterial plastics market will see a boost amid COVID-19 outbreak
How is the market changing amid COVID-19 condition?
Production in the plastic sector suffered due to blanket suspension of work and lockdown. But still many units remained open and operated overtime to keep supply up for protective gears, PPE suits, and other essentials in battling the COVID-19 pandemic.
The current epidemic has helped to change the perception of the industry as a whole. Due to the virus’s highly infectious nature, there is a significant rise in demand for plastic raw material to use in producing protective equipment. There is also an increase in demand for plastic ventilator components and single-use packaging for medical equipment.
Demand for buying pre-packed food items like fruits and vegetables, pulses, and meat products has also spiked amid fear of contamination.
Single-use plastic: the unlikely hero in the time of crisis
Single-use plastic has emerged as the unlikely hero amid the crisis. Before Coronavirus pandemic general public sentiment was to reduce use of single-use plastic and go plastic-free. But the nature of the virus and fear of contamination has helped to shift the attention towards benefits of using single-use plastic. Many have advocated that plastic offer safer and cheaper protection against contamination.
There are both increases in demand and usage to contribute positively to the growth of the industry. The ongoing crisis has presented three unique advantage of plastic over other materials.
- Adaptability to discreet needs
- Preventing contamination
- Productive friendliness
Growing environmental concern over increasing use of plastic
The industry came under scrutiny over the rising environmental concerns. Plastic has proved to be an environment menace in degrading the overall living condition. The growing medical waste due to the Coronavirus outbreak is also posing a concern. Commercial recycling dropped by 50% due to business closure. In this condition, the US Department of Homeland Security has announced recycling and essential industry. There is also a rise in interest in recycling items to reduce environmental impact.
Overall the trends are positive for commodity plastic market. But a lot can change as the world gradually come out of COVID-19 condition. We can expect that some industries will see permanent changes in the post-COVID world, and it will also impact the industries associated with them. Clarity will only emerge with time.
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