Plastic Component Market, Type of Plastic (Polypropylene (PP), Polyethylene (PE), Polyvinyl Chloride (PVC), Polystyrene (PS), Acrylonitrile Butadiene Styrene (ABS), and Engineering Plastics, By Application (Automotive, Consumer Goods, Electronics, Packaging, Healthcare, and Others), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Aug 2024

Code : CMI7279

Pages :134

Formats :

Excel and PDF

Industry : Advanced Materials

Market Challenge - Stringent environmental regulations

The global plastic component market is facing challenges due to stringent environmental regulations passed by various governments around the world which aims to reduce the usage of plastics. Governments are concerned over the effects of plastic wastes polluting the environment and harming wildlife. Many countries have either banned or imposed levy on specific plastic products like bags, straws, and cutlery. Manufacturers are finding it difficult to cope up with the frequent changes in regulations. The norms are also requiring plastic product makers to use recycled content in their products. This is increasing the cost of procurement of raw materials. Firms have to invest heavily in research and development of alternatives to virgin plastics and modify their existing manufacturing processes to integrate the recycled plastic content. The regulatory difference across nations also creates compliance issues for companies operating globally. Overall, the stringent rules over plastics pose operational and cost challenges for the plastic component producers.

Market Opportunity - Emergence of bio-plastics for market

The growth of bio-plastics market opens new opportunities for the global plastic component market. Bio-plastics are plastics derived from renewable biomass sources like corn, sugarcane, or cellulosic materials rather than from fossil fuel sources. They are biodegradable and sustainable alternatives to conventional plastics. With the pressing need to shift towards eco-friendly options, more companies are investing in the R&D of bio-plastics. This has led to advancement in bio-plastic technologies, wider availability of bio-plastic raw materials, and fall in their costs. Plastic component makers can leverage the emerging bio-plastic market by developing new products using bio-plastics or replacing a portion of the content with bio-plastics. This will help them comply with sustainability norms and appeal to environmentally conscious customers. The growth in the production of bio-plastics will support plastic manufacturers to mitigate raw material price volatility risks and access sustainable alternatives, allowing them to tap opportunities in both existing and new market segments.