Plastic Resins Market Trends

Growth Drivers

• Emergence of rotomolding, 3D printing, and thermoplastic resin in aerospace industry: The aerospace sector’s relentless pursuit of efficiency and enhanced performance is fostered by innovative, advanced, and nimble manufacturing techniques. However, manufacturing complexities and part weight can challenge this pursuit. The weight of each component has significance since every ounce of weight shaved off an aircraft adds to sustainability goals by optimizing fuel consumption. Thermoplastic resin have emerged as the key raw material used to produce lightweight parts for aircraft.
  
  Two processes that leverage thermoplastic are additive manufacturing and rotational molding for component design and fabrication. A closer examination reveals its durability and potential applications within the aerospace industry. Additive manufacturing, also known as laser sintering and 3D printing, represents the epitome of component design innovation and is divergent from conventional manufacturing. In traditional machining of aluminum, 90% of the original metal piece is discarded for each finished product. On the contrary, 3D printing fabricates objects by stacking a 0.005-inch layer of material using a predefined computer-aided design (CAD) model, in turn, optimizing the use of raw materials.
  
  Ductwork and several aerospace components rely on specific classes of polymers that exhibit the characteristics desired for abrasive environments and chemical exposure. These comprise polyamide 11 (nylon 11 and 12) and glass- and fiber-filled polymers, rendering preferred characteristics such as temperature and corrosion resistance, flame retardance, and ductility. Their lightweight nature facilitates fuel efficiencies and reduces carbon footprint. Rotomolded fuel tanks are a key alternative to fluorinated counterparts, in the wake of the decision to halt the production of fluorinated coatings for high-density polyethylene (HDPE) containers by the Environmental Protection Agency (EPA) owing to poly- and perfluoroalkyl substance (PFAS) contamination.
  
  The inherent flexibility of rotomolded components allows the aircraft to withstand aerodynamic stress and vibrations during take-offs and landings. Rotomolded parts showcase the ability to flex and withstand an accidental drop. The aerospace sector is marked by continuous merger & acquisition (M&A) activities. In April 2023, Persico SpA acquired U.S.-based rotomolding service provider, Precision Mold Services Inc. Subsequently, a new rotomolding subsidiary was established in Blaine and proliferated Persico’s geographical expansion.
• Government regulations to focus on the circularity of plastics: As of early 2023, four states in the U.S. passed laws promoting the use of post-consumer recycled (PCR) resin in packaging to stabilize recycled markets, provide an environment for end-market investment, and level the competitive playing field. There are broad-scale ongoing proposals under development in the European Union and Canada. The Association of Plastic Recyclers (APR) provides a PCR certification program for a robust and trusted recycling system.
  
  CalRecycle adopted permanent policies to implement Assembly Bill 793, effective from January 2024. It caters to the accountability of the volume of post consumer recycled plastic and virgin plastic beverage containers sold in California and determines [PRC Section 14575(g)(3)(A)] by beverage manufacturers in the state.The circularity of plastic resin limits the use of disposable plastics and has the potential to alter the paradigm of manufacturing processes.
  
  Plastic resin such as polyethylene and polypropylene are mandated compliance with Sections 311 and 312 of EPCRA and facilities that use hazardous chemicals as defined by the Occupational Safety and Health Act’s (OSHA) Hazardous Communication Standards (HCS). Some plastic resin are classified as combustible dust in Safety Data Sheets (SDS) by OSHA’s Combustible Dust National Emphasis Program (NEP). Onsite presence of polypropylene and polyethylene combustible dust requires the facility to maintain an SDS and is subject to EPCRA Sections 311 and 312. Stringent regulations have been put in place to streamline manufacturing and operations of heavy-duty industries.
• Adoption of plastic resin in construction industry: Construction activities constitute one of the main sectors and activities with the biggest carbon footprints. Ongoing government efforts to structure a variety of standards, methods, and instruments that aim to control the industry's greenhouse gas emissions. Among these efforts are the creation of various grading systems, the notion of green buildings, and sustainable building materials. According to the American Chemistry Council, using plastic for building and construction conserved more than 465 trillion BTUs of energy compared to alternative materials. Therefore, the plastic resin market is predicted to expand.
• Rising demand for consumer electronics: Nearly every piece of electronics requires electricity to operate. However, it also increased the possibility of fatality. Hence, plastics are employed in many different applications in which their insulation qualities are required since they do not conduct electricity. Electric wiring is frequently insulated with PVC, and switches, light fixtures, and grips are composed of thermosets—which can tolerate high temperatures. Plastics are particularly appropriate for housings for equipment including food mixers, electric razors, and hair dryers as they shield users from the possibility of electric shock.

Challenges

• Growing price of raw materials: Plastic resin is made from hydrocarbon fuels, including sand, salt, coal, natural gas, and crude oil. However, all these resources on account of extensive use are getting depleted. Due to this, P.E. manufacturers compete intensely, maintaining tight margins in the resin market and exporting substantial volumes. Supply and demand gaps are also anticipated to maintain the fluctuation of plastic resin prices worldwide. The majority of raw materials are produced by petrochemical downstream processes. Climate change, political unpredictability, and mismatches in supply and demand all contribute to the unpredictability of crude oil prices. As a result, the plastic resin market is expected to be hindered over the forecast period.