THERMOFORMED PLASTICS MARKET ANALYSIS

The global thermoformed plastics market size was valued at US$ 12.9 Bn in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 2.9% from 2023 to 2030. Thermoformed plastics market witnessing strong growth and this is attributed to the rising demand from automotive, medical, food &beverage, and electrical &electronics sector. Moreover, rapid urbanization and industrialization are playing important in the overall development of thermoformed plastics market. However, fluctuating price of raw materials is expected to restrict market growth over the forecast period.

Global Thermoformed Plastics Market: Regional Insights

Based on geography, the global thermoformed plastics market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, North America is expected to dominate the global thermoformed plastics market over the forecast period owing to the high usage of plastics across automotive, packaging, electrical &electronics, and consumer good appliances. PP is widely used plastics in labeling, textiles, packaging, automotive, stationery, and reusable containers of various types in the region.

Asia Pacific is another key region for thermoformed plastics market due to rapid industrialization and urbanization. Moreover, growing population is also playing a major role in the overall development of regional market.

Figure 1. Global Thermoformed Plastics Market, By Region 2022

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Global Thermoformed Plastics Market Drivers:

Growing demand for food and beverage sector to augment market growth

Thermoformed plastics are used for improved shelf life, secure seals, and quality designs of food packaging. Polyethylene and polypropylene thermoformed molded packaging containers that are widely used for food packaging application. Packaging products produced by using thermoformed plastics are some tubs, blister packages, and clamshells.

Rising demand from medical sector to propel market growth

They are widely used in medical device packaging trays. Thermoformed plastics are gaining demand due to their cost-effectiveness and negligible packaging waste. They enhance the overall quality of medical goods and can be customized to offer packaging solutions, which are air-tight, anti-bacterial, and durable. These products offer protection against infections. Moreover, they are chemical resistant and transparent, thus allow widespread usage in laboratories and hospitals.

Global Thermoformed Plastics Market Opportunities:

Growing popularity of thick gauge thermoforms to offer profitable market opportunities. Thick gauge thermoforms are sturdy and rigid enclosures that can be used to pack electronic equipment. They are used in a wide variety of products such as medical device packaging trays, front and rear bumpers and interior trim components for heavy trucks, enclosures for treadmills and weights, cowlings, dash components, and fenders in the agricultural sector and cab interiors and engine covers in the construction equipment industry.

Growing number of merger and acquisition in the market is expected provide significant growth opportunities. For instance, in July 2020, Anchor Packaging LLC acquired Panoramic INC., Wisconsin based manufacturer of thermoformed products. This merger enables Anchor to serve the combined customer base along with providing more complete outcomes for the entire food industry in North America and other regions.

Global Thermoformed Plastics Market Trends:

Growing trend of lightweight vehicle to augment demand for plastics

Thermoformed plastics are widely used to produce lightweight components of vehicle. According to the International Energy Agency, sales of electric cars reached another record high in 2021 despite the Covid-19 pandemic and supply chain challenges, including semiconductor chip shortages.

Sustainable thermoformed plastics is a new trend

Key players in the market are adopting various strategies to develop sustainable thermoformed plastics. This is expected to fuel market growth. For instance, in March 2023, Neste and ILLIG have joined together in an attempt to promote more sustainable thermoformed packaging options. Using case studies to showcase how renewable and recycled materials can serve as drop-in solutions in demanding applications, the companies recreate value chains on a small scale for demonstration purposes.

Global Thermoformed Plastics Market Restraints:

Fluctuating price of raw materials to restrict market growth

Key raw materials used in production of thermoformed plastics include hydrocarbon fuels such as natural gas, crude oil, and coal. These raw materials are highly susceptible to price volatility due to various economic factors such trade war, law, and policies. This is expected to hamper the market growth.

Strict regulation on usage of plastics to hamper market growth

Plastics have negative impact on environment as well as human health as are difficult to decompose in soil which lead to accumulation of plastics waste on landfill as well as ocean. Government are imposing laws and regulations to reduce the impact of plastic on human health and environment.

Figure 2. Global Thermoformed Plastics Market, By Process 2022

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Global Thermoformed Plastics Market Segmentation:

The global thermoformed plastics market report is segmented into Product, Process, Application, and Region

Based on Product, the market is segmented into Polymethyl Methacrylate (PMMA), Bio-degradable Polymers Polyethylene (PE), Acrylonitrile Butadiene Styrene (ABS), Polyvinyl Chloride (PVC) High Impact Polystyrene (HIPS), and Polystyrene (PS) Polypropylene (PP). Out of which, Polypropylene is expected to dominate the global market over the forecast period and this is attributed to the growing demand for these material for producing food packaging products such as trays, cups, margarine tubs, disposable products, sandwich packs, microwaveable containers, and beverage glasses.

Polymethyl Methacrylate (PMMA) segment is also expected to witness significant growth in the near future and this is owing to their high surface hardness, light transmission, extended service life, high resistance to UV light and weathering properties. 

Based on Process, the market is segmented into Plug Assis Forming, Thick Gauge Thermoforming, Thin Gauge Thermoforming, and Vacuum Snapback. Out of which, Thin Gauge Thermoforming is expected to dominate the global market over the forecast period and this is attributed to the growing demand for this process for producing medical device packaging trays in the healthcare industry.  

Plug Assist Forming segment is also expected to witness significant growth in the near future and this is owing to the growing demand for this process for manufacturing food packaging materials.

Based on Application, the market is segmented into Healthcare & Medical, Food Packaging, Healthcare & Medical, Automotive Construction, and Consumer Goods & Appliances. Out of which, Food Packaging is expected to dominate the global market over the forecast period and this is attributed to the growing use of thermoformed plastic for packaging of vegetables, fruits, confectionery products,  prepared meals, poultry, meat, and fish.

Healthcare & Medical segment is also expected to witness significant growth in the near future and this is owing to the increasing use of thermoformed plastics medical trays, medical devices, pharmaceutical packaging, procedure trays, and protective packaging.

Global Thermoformed Plastics Market: Key Developments

In December 2020, Placon initiated the construction of their medical facility expansion at Elkhart, Indiana, the U.S. The production facility will manufacture custom plastic packaging for medical devices along with other products for the healthcare industry. In addition, the site is designed to perform operations on thermoforming, BargerGrad protective products, in line flexographic lid printing, die cutting, and lift labels.

In March 2021, Anchor Packaging LLC announced the 90,000 square-foot, $21.5 million expansion of its Arkansas manufacturing facility to meet the growing demand for foodservice containers used by restaurants, supermarkets, and convenience stores.

In July 2020, Anchor Packaging LLC acquired Panoramic INC., Wisconsin based manufacturer of thermoformed products. This merger enables Anchor to serve the combined customer base along with providing more complete outcomes for the entire food industry in North America and other regions.

In March 2020, Anchor LLC announced the FryBaby hinged container in its Crisp Food Technologies container line to integrate anti-fog elements in both clear bases & clear lid to keep food looking fresh.

Global Thermoformed Plastics Market: Key Companies Insights

The global thermoformed plastics market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global thermoformed plastics market are Pactiv LLC, Sonoco Products Company, CM Packaging, Placon, and Genpak LLC

*Definition: Thermoforming plastics are manufactured from thermoforming process. It is a simple and economical way of making plastic components which can be used in a wide variety of sectors. The process mainly involves the heating of sheets of plastic until they become malleable and can be molded into various shapes and sizes. This method is highly reliable and provides a cost-effective way of manufacturing plastic parts, particularly for larger components.