Westford, USA, Nov. 17, 2022 (GLOBE NEWSWIRE) — Global plastic market is expected to be worth $752.16 billion by 2028, an increase of over 25% from 2021. The key drivers behind this growth are the rising demand for plastics in many industries such as automotive, food and beverage, packaging, and furniture as well as improvements in efficiency and productivity that have led to increased output.
SkyQuest predicts that the automotive and construction equipment markets will account for a majority of plastic manufacturing sales over the next decade. These two markets are expected to experience significant growth owing to their need for a variety of plastic products, such as car parts, construction materials, and window frames. Other dominant sectors include packaging (especially food and beverage), electronics, and building products.
Despite this bullish outlook of the global plastic market, there are several challenges that must be addressed if this growth is to continue. One issue is environmental impact; plastics currently generate more than 17 million tons of GHG emissions annually, which is equivalent to the emissions from 3.5 million cars. Another challenge is availability – some raw materials, such as polypropylene, are becoming increasingly scarce due to increasing demand. To address these issues, SkyQuest recommends continued innovation in technology and processes, as well as research into new applications for plastics that can help reduce environmental impact or preserve resources.
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Consolidation in Plastic Market is Anticipated in Next 10 Years
SkyQuest’s analysis of the plastic industry suggests that over the next 10 years there will be a 35% increase in the demand for plastics, driven by a number of factors such as rapidly increasing population, changing lifestyles and environmental concerns. By 2028, we forecast that total global market revenues for plastics will exceed $752 billion.
To meet this increased demand, the global plastic market will undergo significant consolidation with only a handful of companies commanding a majority market share. This is due to the fact that as new applications for plastics are developed and used more broadly, traditional manufacturers of plastic products will find it harder to keep up with changes in technology. Alongside this consolidation, companies active in the manufacturing of plastic materials to increase their R&D spending in order to stay ahead of the curve. This is likely to result in greater use of artificial intelligence (AI) and machine learning technologies within the plastics industry—two areas where SkyQuest sees considerable potential growth.
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Top Trends in Global Plastic Market: Sustainability and Processing
- Growing demand for sustainable materials: This is based on three customer requirements: greater customer awareness of environmental impacts of materials use; a need for products that have lower environmental impact; and an increase in product categories where customers want eco-friendly solutions. Some companies are already leading the way in meeting these requirements by developing new plastic technologies with lower emissions or sourcing sustainable raw materials.
- Innovation around material compositions and processing techniques: Companies are looking for ways to improve performance or reduce costs while maintaining or improving functionality. For example, some companies are working on new composites based on polymeric blends that can have both lightweight and durability properties.
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Biodegradable Plastic Could to Be Future
SkyQuest’s analysis of biodegradable plastic market production and consumption outlook highlights widespread consumer interest in sustainable products and an increased demand for biodegradable plastics. Biodegradable plastics are made from items such as food or textile waste that can be broken down by natural processes, such as bacteria or fungi, to produce electricity, water, or gas. The global market for biodegradable plastics is estimated to grow from USD 7.23 billion in 2021 to USD 58 billion by 2028. This is due to two key factors: the increasing awareness of environmental benefits and the rising concern over climate change. In addition, the development of new technologies that improve the biodegradation process is also driving growth.
The largest producers of biodegradable plastics in the global plastic market are Europe (44% of global market share), North America (25%), Asia Pacific (20%) and Latin America/Caribbean (10%). The key regions witnessing growth are Europe (due to increasing demand for renewable energy) and Asia Pacific (due to rising GDP). However, Europe is expected to retain its lead in terms of market share during the forecast period.
The key Applications segment contributing most to growth of the plastic market is Food & beverage (~33%), followed by packaging (~21%). Major contributors to the Food & beverage category include clear containers for food items such as drinks and packaged goods, while packaging contributes largely towards increase in gears including jerry cans, and gift boxes.
Plastic Recycling to Generate Revenue of More than $77 Billion By 2028
The world is projected to generate more than 600 million pounds of plastic waste by 2040 from 380 million tons in 2021 in the global plastic market. Of this, only around 30% will be recycled. To put things into perspective, the world currently consumes around 460 million tons of plastic each year. If we continue on our current path, by 2040 there will be more than 2 billion tons of plastic in circulation – enough to circle the earth 9 times!
There is no doubt that recycled plastic can result in the creation of new products, instead of ending up in a landfill where it will take centuries to biodegrade. In 2021, it was estimated that plastic recycling produced oil worth more than 61 million, while preventing 11 million metric tons of CO2 emissions from entering the atmosphere.
The biggest challenge with recycling plastic market is finding a way to make the process economically viable. However, there are strategies that businesses and municipalities can use to increase plastic recycling rates. One important step is to develop effective collection systems for plastics, including curbside pickups and drop-off locations. Another strategy is to create awareness among consumers about the benefits of recycling plastic and encouraging them to recycle when they can.
Despite it being one of the most commonly used materials in the world, recycling tons and tons of plastic isn’t as simple as throwing it all away. In order to properly recycle plastic, it has to be separated into different types: Primary (compostable), Secondary (non-compostable), and Tertiary (specialty). Unfortunately, with so much garbage out there already, this isn’t always easy or convenient.
Top Players in Global Plastic Market
- China National Petroleum Corporation (China)
- INEOS (U.K.)
- SABIC (Saudi Arabia)
- Ducor Petrochemicals (Netherlands)
- Reliance Industries Limited (India)
- Formosa Plastic Group (Taiwan)
- Total S.A. (France)
- Braskem (Brazil)
- BASF SE (Germany)
- Repsol (Spain)
- Borouge (UAE)
- Borealis AG (Austria)
- MOL Group (Hungary)
- Beaulieu International Group (Belgium)
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