December 14, 2024

Commodity Plastic Market is Estimated to Witness High Growth Owing to Rising Construction Activities

Commodity plastics are widely utilized plastics that are produced on a large scale for a wide range of applications. These plastics include polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), polyethylene terephthalate (PET), and polyurethane (PU). Commodity plastics find uses in construction products, packaging, automotive components, electronics, and consumer goods owing to their versatility, durability and cost-effectiveness. The Global Commodity Plastic Market is estimated to be valued at US$ 593.45 Bn in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 To 2031.

Key Takeaways



Key players operating in the Commodity Plastic market are Exxon Mobil, LG Chem, Sumitomo Chemical, The Dow Chemical Company, SABIC, BASF SE, LyondellBasell, Sinopec, Ineos, Formosa Plastics, Mitsubishi Chemical, Borealis AG, Chevron Phillips, Chemical, ENI SpA, Reliance Industries, Braskem, Hanwha Chemical, Lotte Chemical, and Indian Oil. These players are focusing on capacity expansion plans and new product launches to cater to the growing demand.

The rising residential and commercial construction activities globally are presenting lucrative opportunities for commodity plastic producers and manufacturers. The growing use of plastics in piping, insulating films, formwork, sheeting, windows and doors is driving the demand.

Asia Pacific dominated the global Commodity Plastic Market size in 2021 owing to robust industrial development and infrastructure construction activities majorly in China and India. Latin America and Middle East & Africa are also emerging as high growth markets. Key players are making investments and expanding production facilities in developing countries to leverage growth opportunities.

Market Drivers

The continuous growth of the construction industry globally is a major driver of the commodity plastic market. According to industry estimates, construction spending worldwide is projected to grow 85% by 2030. As commodity plastics are massively used in building insulation, piping, roofing, and exterior components, the rising investments in residential and commercial infrastructure will boost plastic consumption. Also, rapid urbanization is prompting new building developments, thereby propelling the demand for construction plastics.

 

PEST Analysis

 

Political: Regulations around plastic recycling and disposal have been increasing to reduce plastic pollution. Many countries have introduced bans or taxes on single-use plastics.
Economic: Global economic growth has increased demand for affordable packaging and construction materials. However, inflation and energy costs impact plastic producer profits.
Social: Growing environmental awareness has led consumers to prefer sustainable and biodegradable alternatives to commodity plastics where possible.
Technological: Advancements in plastic recycling technologies help increase reuse rates though most plastics remain difficult to economically recycle at scale. New plant-based plastics provide more sustainable options.

Europe
Europe has some of the highest recycling rates for Commodity Plastic Market size due to extensive deposit return schemes and strict regulations. Germany, France, and Italy have the largest plastic markets in Europe in terms of value. However, consumption growth is slower than other regions due to sustainable alternatives.

Asia Pacific
China, India, and other developing Asian countries are the fastest growing markets as their economies industrialize and consumers gain access to affordable plastic goods. Increased plastic waste generation in these nations poses new environmental challenges without robust recycling infrastructure.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Ravina
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Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

Ravina Pandya

Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. 

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