COMMODITY PLASTIC MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The commodity plastic market is estimated to be valued at USD 593.45 Bn in 2024 and is expected to reach USD 898.24 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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The market is expected to witness positive growth over the forecast period due to increasing applications of plastics in industries. The demand for plastics is driven by its versatile properties and lower production costs. Various products across industries such as packaging, automotive, electronics, healthcare and others use plastics extensively. The rising population and urbanization in developing countries are further fueling the demand for plastics. Additionally, innovations in polymer formulations to reduce plastic waste and the development of bio-based plastics are expected to offer opportunities for market growth during the forecast period. However, stringent regulations around plastic usage and awareness regarding environmental pollution caused by plastics may hamper the market growth to some extent.

Expanding Applications of Plastic in Various Industries

The use of plastics has been increasing exponentially in various industrial applications over the past few decades. While plastics were initially mainly utilized for packaging and consumer goods, engineers and manufacturers have increasingly found innovative ways to leverage the unique properties of plastics including their light weight, durability, and versatility. Plastics are now increasingly replacing traditional materials like metals, wood, and glass in many applications. In the automotive industry, plastic usage has risen dramatically as auto manufacturers look to reduce vehicle weight and improve fuel efficiency. Modern vehicles now contain numerous plastic components such as parts for the interior, exterior body panels, fuel systems, electrical components and more. Even complex structural parts that were traditionally made of heavier metals are now being produced using advanced lightweight plastics. The aerospace industry has also embraced plastics to produce light yet durable components for aircraft interiors and exteriors. This trend is driven by the need to reduce aircraft weight and boost fuel efficiency. 

As the world population climbs towards the 9 billion mark over the next couple of decades, there will be significant rise in the demand for basic consumer goods and services that require plastics in their production and packaging. Plastics are commonly used in industries like consumer durables, food and beverages, personal and healthcare due to their low cost and versatility. As populations grow, consumption of such goods is projected to see exponential uptick. This burgeoning demand is further bolstered by improving economic conditions. Regions like Asia Pacific, Africa, and Latin America that constituted the bulk of global population increase in recent years have also witnessed strong GDP growth rates. As household incomes grow in developing nations, spending capacity on basic necessities as well as discretionary items increases substantially. This promotes the use of affordable yet functional plastic alternatives over traditional materials. For instance, rising affluence has hugely boosted packaged foods and bottled beverages consumption in countries like India, Indonesia, and Nigeria which rely heavily on plastics for packaging. According to the United Nations Department of Economic and Social Affairs data, though population grew across all regions between 2015 and 2020, Africa saw the highest annual rate of change of around 2.5%. This translates too many new consumers being added each year who will contribute to higher penetration of goods packaged in plastics. Similarly, the World Bank figures show average incomes increasing in lower-middle income economies like Vietnam, Philippines, and Kenya during the 2020-22 time period amid post pandemic recovery, signifying greater demand potential.