Commodity Plastics Market size was valued at USD 490.6 billion in 2023 and is poised to cross USD 698.5 billion by the end of 2036, expanding at more than 3.5% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of commodity plastics is evaluated at USD 503.5 billion.
The growing use of commodity plastics for manufacturing disposable cups, polyester-based textiles, reusable bags, and magnetic tapes is a primary factor driving market expansion. Commoditized plastic products are produced in large quantities based on the high demand from various industries, including packaging, photography, electronics, and pharmaceuticals. These plastics are easily recycled, making them ideal for sustainable packaging applications. For instance, in February 2023, Total Energies and Ecolab collaborated to introduce recycled plastic packaging, aiming to accelerate the transition to a circular economy in industrial verticals that heavily rely on packaging. This has fostered adoption of post-consumer recycled (PCR) plastic for the packaging of highly concentrated cleaning products.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
3.5% |
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Base Year Market Size (2023) |
USD 490.6 billion |
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Forecast Year Market Size (2036) |
USD 698.5 billion |
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Regional Scope |
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Product Type (Polyethylene, Polypropylene, Polyvinyl Chloride, Polyethylene Terephthalate, Polystyrene, Poly Methyl Methacrylate)
Polyethylene (PE) segment is set to account for around 45.0% commodity plastics market share by 2036. The market for PE is predicted to grow due to its increasing use in the packaging, medical, consumer durable goods, and pharmaceutical industries. In addition, market players are forming alliances to recycle the polyethylene form of plastic, for instance, in June 2024, The Dow Chemical Company announced the acquisition of Circulus, a North American polyethylene recycler to advance its mechanical recycling offerings.
End-use (Building & Construction, Packaging, Electrical & Electronics, Automotive & Transportation, Medical & Pharmaceutical, Textile)
By 2036, packaging segment is expected to capture over 49.0% commodity plastics market share. The increasing availability of flexible packaging solutions, the surging shift towards eco-friendly packaging options, and the expanding demand for food and beverage packaging drive this segment's growth. In November 2023, Fresh Del Monte Produce Inc. announced a strategic partnership with Arena Packaging to introduce bananas reusable plastic containers (RPCs). The innovative technology intends to improve food waste, and manage carbon emissions and operational expenses.
Our in-depth analysis of the global commodity plastics market includes the following segments:
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Product Type |
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End-Use |
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APAC Market Analysis
Asia Pacific region in commodity plastics market is projected to account for more than 50.2% revenue share by the end of 2036. Investments are being made by the government of emerging countries including China and India to build a strong base of skilled laborers for plastic manufacturing companies. This enables the key players to manufacture their products at a lower cost in this region. Therefore, the presence of countries with the cheapest manufacturing costs is set to drive the commodity plastics market expansion in the Asia Pacific region.
Rapid industrialization and urbanization in India are leading to the production of plastics in large volumes for various applications such as household products, packaging, and others. In addition, the rising investment in the construction sector under the automatic route is one of the major factors for commodity plastics market growth in the upcoming years. For instance, 100% foreign direct investment in the construction sector under the automatic route in India is permitted for the operations & management of malls, townships, and business construction.
The growing e-commerce sector, which uses plastics for shipping and packaging, is expected to boost the commodity plastic market growth in China. The well-established automobile industry in China will increase demand for commodity plastics as manufacturers use cheap plastics to make lightweight exterior, interior, and fuel-efficient components.
Japan’s retail growth, driven by changing consumer preferences and a strong tourism sector, is expected to increase commodity plastics consumption. The growing need for polymers in the packaging and medical & pharmaceutical industries, together with economic and healthcare advancements, are significant factors that are anticipated to elevate the expansion of the market in Japan.
North America Market Statistics
By the end of 2036, North America region in commodity plastics market is anticipated to dominate around 25.3% share, owing to the growing need for innovative and renewable packaging materials. The increasing demand for specialized commodity plastics in the healthcare industry, specifically for the production of medical masks, gowns, and other safety kits, is also anticipated to drive commodity plastics market growth in the future.
The development of innovative packaging materials and the increased demand for sustainable packaging materials boost revenue growth in the United States. In addition, companies in the United States are introducing eco-friendly packaging in the market.
Innovations in the food and beverage industry across Canada are increasing demand for commodity plastic packaging solutions to meet tight standards, improve shelf life, and maintain safety. In addition, the changing consumer lifestyle along with the surging disposable income in the country is set to strengthen the market expansion.
Competition in the commodity plastics market is intense, with significant competitors using new product lines, collaborations, and investments to grow. These major firms invest in R&D to develop new and improved products that meet consumer needs. To stay competitive, companies prioritize technical advancements and sustainable packaging solutions to meet the growing demand for eco-friendly products.
Author Credits: Rajrani Baghel
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