PLASTIC BAG AND SACK MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

Declining prices of oil & gas around the globe

Declining prices of oil & gas around the globe are projected to drive the market growth of the plastic bag and sack. According to a report by the Energy Information Administration (EIA), the global crude oil inventory rose by around 500 barrels in 2022 that translated to 40% drop in oil prices from US$ 46 per barrel in 2021 to US$ 33 per barrel in 2022. Therefore, the declining price of oil & gas is encouraging manufacturer to use these raw materials for the production of plastic bags.

Growing focus of manufacturers to use plastic bags as a marketing platform for the brand is estimated to foster the market growth of plastic bag and sack during the forecast period. For example, printed plastic bags are providing excellent marketing tool to promote and create brand awareness, across various end use industries such as apparel, consumer products, food & beverage, bakery, and others. Therefore, using plastic bags as a form of brand promotion among various companies is expected to fuel the market growth of plastic bag and sack. 

Market Restraints

Government Taxation and extra charges

In order to reduce the usage of single-use plastic bags, various governments around the globe are increasing taxation and also putting extra charges on the usage of plastic bags. Growing implementation of such initiatives by the government is expected to reduce the consumption of thin single-use High-density polyethylene (HDPE) plastic bags, which is projected to hinder the market growth of plastic bag and sack over the forecast period.

Increasing adoption of paper bags or with other effective substitutes of plastic bag is projected to hinder the market growth over the forecast period. Growing awareness regarding the harmful impact of plastic bag among consumer is encouraging manufacturer to opt for eco-friendly packaging products. Aforementioned factors are projected to restrict the market growth of the plastic bag and sack over the forecast timeframe.

Market Opportunities

Increasing focus of manufacturers for producing innovative plastic bags will favor the market growth in the near future. For instance, in May 2022, Interplast Group introduced a new and extensive line of industrial can liners developed for environmentally-focused businesses and industries. The product is ideal for diverse applications and is available in High-density polyethylene (HDPE) and Linear low-density polyethylene (LLDPE), in a wide range of sizes and gauges.

The growing introduction of biodegradable plastic bags is expected to impact the market growth positively over the forecast period. For instance, in June 2022 LyondellBasell has joined forces with a Finland-based energy company to produce two forms of plastics made from renewable sources instead of fossil fuels. The company has partnered with Neste, an oil refiner, and producer of renewable diesel, to create a new bio-based polypropylene and low-density polyethylene products, two of the most common types of plastics.