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The global resin market size was USD 533.55 billion in 2022. The market is projected to grow from USD 559.2 billion in 2023 to USD 787.31 billion in 2030 at a CAGR of 5.0% during the forecast period.
Resin is generally a solid or highly viscous substance either derived from a plant source or manufactured synthetically in a laboratory. These resins are highly employed in various end-use industries, from automotive and electronics to consumer goods and agriculture. The growing demand for the polypropylene from automotive and construction industries is anticipated to fuel the resin market growth. The rise in consumer spending capacity led to the demand for individual vehicles, thus driving the automotive industry and supporting market growth. Moreover, the increasing demand for packaging solutions from the pharmaceuticals, consumer goods, e-commerce, foods and beverages industries will boost the market's growth.
Trade Restrictions during the Pandemic Impacted the Supply Chain of the Market
The rise of COVID-19 pandemic destructively impacted every aspect of life, and the chemical sector is no exception. The lockdown due to the COVID-19 pandemic caused limited availability of products and resources, which created a significant impact on supply chain of producers. The manufacturers faced shortages of raw materials due to trade and transportation restrictions, mainly in countries such as China and India. This factor limited the companies’ manufacturing activities, further decreasing the companies’ production output. Additionally, the recurrent instabilities in crude oil prices influence production costs, resulting in a disturbance in end-product pricing. Besides, several major manufacturers either decreased or closed their production facilities due to supply chain disruptions, labor and raw material shortages, and strict government regulations.
However, despite these uncertainties, the plastic packaging demand in food & beverages, pharmaceutical, and e-commerce industries reduced the pandemic effect on the market. Additionally, the large-scale production of face masks, gloves, face shields, and PPE kits increased consumption.
Rapid Growth in Packaging Industry to Fuel the Market Growth
The rapid growth in the packaging industry and increasing demand for packaging solutions from the pharmaceutical, food & beverage, consumer goods, and e-commerce industries will offer lucrative opportunities for the market during the forecast period. Plastics are highly used in the form of films, trays, corrugated boxes, rigid boxes, poly bags, and foil-sealed bags for the packaging of various products. Globalization has led to increased import & export, where consumers can buy desired products from other countries. Pharmaceutical and, electrical & electronics manufacturers have developed websites to improve customer support and service and sell products, further driving demand for plastic packaging. Additionally, flexible packaging is preferred by food & beverage manufacturers, primarily because of the increasing demand for convenience food such as frozen meals and ready-to-eat meals. Such factors are expected to boost the packaging solutions market, further influencing growth in demand for plastics.
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Growing Demand from End-Use Industries to Fuel the Product Demand
The market is growing rapidly due to increasing demand from several industries such as automotive, construction, packaging, and medical. Owing to its properties including lightweight, chemical resistance, moisture-resistance, thermoforming, high flexural strength, and cost-effectiveness are they highly employed in multiple end-use sectors. For instance, polypropylene offers moisture and chemical resistance and can withstand extreme temperature. Thus, creating demand in the medical industry, where PP is mainly utilized in various medical devices. Further, the packaging sector is experiencing high growth owing to the growing e-commerce industry due to the shifting preferences of customers and the increasing trend of online shopping.
Growing demand for flexible packaging from a wide range of end-user industries is expected to influence market growth. Flexible packagings such as pouches, seals, liners, and bags are manufactured using foils, plastic films, and papers and is predominantly used in packaging of miscellaneous products, edibles and non-edibles, and others.
Fluctuation in the Crude Oil Prices to Restrict the Market Growth
A critical challenge affecting the growth of the market is the fluctuation in crude oil prices, which further impacts the overall prices of resins. Most plastic resins' petrochemical feedstocks are generated as by-products of oil and natural gas production. The cost of these feedstocks is highly impacted by the sharp fluctuation in oil prices. Oil prices are influenced by several factors, which include laws of supply and demand, natural disasters, and fluctuation in production cost. This affects the overall price of resin, thus acting as a risk factor for market growth. The stringent environmental regulations passed by different governments to reduce plastic consumption will hinder market growth. According to the UN Environment Program (UNEP) association, more than 99% of plastics are made from chemicals obtained from oil, natural gas, and coal, all of which are polluting and non-renewable resources. This plastic not only impacts the environment but also adversely affects humans, wildlife habitat, and wildlife.
Moreover, the ban on the overuse of non-renewable resources, including crude oil & petroleum by governments, is restricting the market as resin is produced from non-renewable resources. This is creating a supply-demand imbalance leading to failure in meeting end-user’s demands.
Polyethylene Leads the Segment due to High Demand from Packaging and Automotive Industries
Based on type, the market is segmented into polyethylene (PE), polypropylene (PP), polyethylene terephthalate (PET), polyvinyl chloride (PVC), acrylonitrile butadiene styrene (ABS), polyamide, polycarbonate, polyurethane, polystyrene, and others.
Polyethylene is the major type consumed across the globe in 2022, followed by polypropylene. This higher share is owed to the usage of these types in making bottles, containers, food packaging trays, and plastic films. Additionally, PE and PP demand are boosted by automotive, and healthcare industries owing to their properties such as mold-ability, chemical, electrical & impact resistance, and excellent heat.
The growth of the PET segment is associated with the rising demand from the packaging industry for highly flexible and recyclable materials. Hence, the rising environmental concerns and increasing regulations regarding pollution will favor the use of PET. The rising preferences for durable, lightweight, and insulating material from electrical & electronics and building & construction industries will surge polyvinyl chloride adoption during the forecast period.
The consumption of ABS is growing gradually for being widely used in consumer goods and electrical & electronics industries owing to its properties such as strength, rigidity, and dimensional stability. Polyamide production is gaining traction due to its wide use in textiles, automotive, kitchen utensils, and sportswear for its high durability and strength properties. The increasing incorporation of advanced & high-performance materials in sportswear will boost the demand for polyamide.
The preference for polyurethane in the furniture industry for bedding and cushioning is surging demand due to its availability in various forms, such as fibers, foams, and surface coatings. Population growth and changing lifestyle choices drive the demand for furniture, thereby increasing the consumption of polyurethane. Polystyrene is used in refrigerators, air conditioners, instrument panels, and disposable utensils such as cups, bowls, and plates. Moreover, it is largely used in building insulation and cold chain packaging due to its heat resistance. These factors further propel its demand.
The polycarbonate type is widely used in applications requiring resistance to extreme temperatures owing to its properties such as high performance, amorphous nature, and transparency. Besides, its high impact strength, electrical insulation and dimensional stability properties make it a good material for safety helmets, car headlamp lenses, roofing, and bullet-proof glass, further driving the market.
The others segment includes epoxy, acrylic, and phenolic resins. These segments have major applications in paint, & coatings, adhesives, and sealants. The segment's growth is attributed to the increasing building & construction, and infrastructure development activities globally.
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Packaging to be Fastest Growing Segment Owing to High Product Demand from Food & Beverage Industry
Based on end-use industries, the market is segmented into packaging, automotive & transportation, building & construction, consumer goods/lifestyle, electrical & electronics, agriculture, and others.
Packaging is expected to be the fastest growing end-use industry during the review period. The growth of this segment is linked to the rising need for effective packaging solutions from several industries, such as consumer goods, electrical & electronics, food & beverage, and construction. Furthermore, preference toward ready-to-eat and frozen foods supports the segment's growth.
Infrastructure expansion activities, rising urbanization in developing countries, and renovation of existing and old structures are anticipated to surge product demand in the building & construction segment. Moreover, resins are used in building & construction products ranging from roofing to pipes & fittings, which will further boost market growth.
The rising incorporation of engineering plastics in automobiles creates growth opportunities for the market. Plastics are gradually replacing metal parts & components in vehicles due to their lower weight and similar physical properties. Additionally, strict norms over vehicles' emissions have resulted in plastic adoption by automotive manufacturers to reduce weight and increase fuel efficiency.
The electrical & electronics segment will witness growth due to product usage in applications ranging from electrical insulation to electronic consumer products. The progress of the consumer goods/lifestyle segment is owed to changing lifestyle choices and increasing disposable income. Further, the technological advancements in the sportswear industry are contributing to market growth. The agriculture segment is estimated to grow due to the rise in population and urbanization, propelling the demand for food. Moreover, the rising demand for organic and exotic vegetables & fruits globally is expected to support the segment growth.
Asia Pacific Resin Market Size, 2022 (USD Billion)
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The market size in Asia Pacific stood at USD 268.20 billion in 2022. The region held the dominant market share in 2022 and is projected to maintain its prominent position throughout the upcoming years. This factor is primarily attributed to the presence of major plastic-producing and consuming countries such as China and India. In addition, the region has availability of labor and raw materials at affordable cost, leading to several manufacturers establishing manufacturing units. China is a major manufacturer of electronics such as laptops, television, and smartphones. The rapid shift of consumers toward gadgets for daily activities is further driving the market in this region.
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The market's growth in Europe is mainly due to the increasing consumption of plastics in the automotive industry. Plastics are used in automobiles due to their properties, such as corrosion inhibition, electrical insulation, and other favorable physical properties. Moreover, regulations regarding vehicle emissions have encouraged automotive manufacturers to increase the volume of plastic in their vehicles, fueling the market growth.
The swelling demand for packaging from the food & beverage and cosmetics industries is anticipated to surge the market in North America. Due to the rising demand to manufacture packaging materials, electronics devices, consumer goods, and other products, the region is set to experience considerable growth. This, along with a growing economy within the region supported by technological advancement, is driving the market growth. The rising awareness regarding beauty and personal care has led to an increase in cosmetics consumption in the region, impelling the packaging demand from the cosmetics industry. This increasing packaging demand will provide growth opportunities for end products in North America.
Latin America is estimated to grow considerably during the forecast period owing to increasing disposable income, rising investments in the pharmaceutical industry, and rising infrastructural development activities. In the Middle East & Africa, the market growth is influenced by the packaging demand from the beverage and textile applications. The high dependency on bottled drinking water in the region is augmenting the use of resin for bottle manufacturing. Additionally, the swelling demand for lightweight and feasible packaging solutions is aiding consumption in the region.
Business Expansion is Strategic Initiative Implemented by Companies
The competitive landscape of the market is fragmented. Key players are expanding their production capabilities for high-performance polymers and compounds to increase their regional presence. In addition, these players have adopted strategies such as new product developments, collaborations, agreements, and research activity expansions to gain market competence.
The research report provides comprehensive market analysis and emphases on crucial aspects such as leading companies, types, applications, and products. Also, it provides quantitative data regarding volume and value, market analysis, research methodology for market data, and insights into market trends and highlights vital industry developments and competitive landscape. In addition to the abovementioned factors, the report encompasses various factors contributing to the market's growth in recent years.
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Value (USD Billion) Volume (Million Ton)
CAGR of 5.0% during 2023-2030
By End-use Industry
Fortune Business Insights says that the global market size was USD 533.55 billion in 2022 and is projected to reach USD 787.31 billion by 2030.
In 2022, the market value stood at USD 533.55 billion.
Growing at a CAGR of 5.0%, the market will exhibit rapid growth in the forecast period (2023-2030).
The packaging segment is expected to lead the market during the forecast period.
Rising demand from the various end-use industries is a crucial factor driving the market growth.
Asia Pacific held the highest share of the market in 2022.
Dupont, BASF, Arkema, INEOS, Toray Industries, Lyondelbasell, Mitsui Chemicals, are the leading players in the market.
The growing demand from various end–use industries is anticipated to boost the consumption of the product.
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