Resin Market Size, Share & COVID-19 Impact Analysis, By Type (Polyethylene, Polypropylene, Polyethylene Terephthalate, Polyvinyl Chloride, Acrylonitrile Butadiene Styrene, Polyamide, Polycarbonate, Polyurethane, Polystyrene, and Others), By End-use Industry (Packaging, Automotive & Transportation, Building & Construction, Consumer Goods/Lifestyle, Electrical & Electronics, Agriculture, and Others), and Regional Forecast, 2022-2029

The global resin market size was valued at USD 528.55 billion in 2021 and is projected to grow from USD 533.55 billion in 2022 to USD 752.26 billion by 2029, exhibiting a CAGR of 4.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with resin experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 1.9% in 2020 as compared to 2019.

The swelling demand for polypropylene from the automotive and construction industries is expected 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 pharmaceutical, food & beverage, consumer goods, and e-commerce industries will boost the market's growth. Altering consumer lifestyles and busy work lives surge packaged food consumption resulting in high plastic usage. This factor provides a growth opportunity for the market. However, fluctuation in crude oil prices impacted resin prices, which will restrict market growth.

COVID-19 IMPACT

Trade Restrictions during the Pandemic Impacted the Supply Chains

Lockdown due to the COVID-19 pandemic caused limited availability of products and resources, which significantly impacted producers' supply chain. The manufacturers faced shortages of raw materials due to trade restrictions, mainly in countries such as China and India. This factor limited the companies' manufacturing capabilities, and the production of end products gradually decreased. Additionally, frequent fluctuations in crude oil prices influenced production costs, acting as a new problem for petrochemical companies. Besides, various resin companies either decreased or closed their production plants due to supply chain disruptions, raw material, and labor shortages, along with strict government regulations.

However, despite these uncertainties, the plastic packaging demand in food & beverages, pharmaceutical, and e-commerce industries slowed the pandemic's effect on the market. Furthermore, the large-scale production of gloves, face masks, face shields, and PPE kits raised product consumption.

LATEST TRENDS

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Swift Growth in the Packaging Industry to Fuel Product Demand

Plastics are mainly used in films, rigid boxes, corrugated boxes, trays, foil-sealed bags, and poly bags to pack a wide range of products. The increasing demand for packaging from the food & beverage, consumer goods, pharmaceutical, and e-commerce industries will propel the market during the forecast period. Moreover, the rise in globalization has grown import & export activities, thereby increasing product consumption.

Further, the packaging sector is influenced by rapid growth in the e-commerce industry due to changing consumer buying behavior and increasing preference for online shopping. The industries, such as pharmaceutical and electrical & electronics, have developed online websites to sell the products, propelling the market. Furthermore, flexible packaging is favored by food & beverage manufacturers, mainly due to the preference for convenience food such as frozen meals and ready-to-eat meals. Hence, such factors will boost the market of sustainable packaging solutions and provide growth pathways for the market.

DRIVING FACTORS

Surging Demand for Polypropylene Owing to its Properties to Propel Market Growth

The market is proliferating due to the increasing demand for polypropylene (PP) from the automotive, medical, and construction industries. Polypropylene is used mainly in auto parts due to its lightweight, chemical resistance, and cost-effective properties. The growing population and developing societies surged the preference for individual vehicles and are supporting market progress. Besides, polypropylene is utilized in the medical industry for various medical devices due to its excellent properties such as moisture resistance, ability to withstand extreme temperatures, and high flexural strength. Moreover, rising technological advancement and research and development activities to create sustainable plastics will drive the adoption of polypropylene. These factors are likely to fuel market growth.

RESTRAINING FACTORS

Frequently Fluctuating Crude Oil Prices to Hinder Growth

The overall price of resin is highly impacted by the fluctuation in crude oil prices, as the feedstock of most plastics is generated from by-products of oil and natural gas. The feedstock prices are influenced by variations in oil prices, which are affected by supply and demand, natural disasters, and fluctuations in production cost. Additionally, plastics are made from chemicals obtained from oil, natural gas, and coal, which are responsible for pollution. Hence, stringent environmental regulations passed by country governments to reduce plastic pollution will affect the market. Additionally, governments' ban on the overuse of crude oil & petroleum restricts the market. Hence, these factors are estimated to hamper the market's growth during the forecast timeframe

SEGMENTATION

By Type Analysis

Polyethylene Remains Leading Segment Owing to Robust 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 and polypropylene were the two major types consumed across the globe in 2020. This higher share is owed to the usage of these types in making bottles, containers, food packaging trays, and plastic films. Additionally, automotive and healthcare industries boost PE and PP demand due 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 pollution regulations will favor PET use. 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 due to its availability in various forms such as fibers, foams, and surface coatings. Population growth and changing lifestyle choices surge 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 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.

By End-use Industry Analysis

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Packaging to be Fastest Growing Segment Owing to High Product Demand from Food & Beverage Industry

Based on end-use industry, 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 the market growth.

The rising incorporation of engineering plastics in automobiles creates a growth opportunity 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 use of resins 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, 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.

REGIONAL INSIGHTS

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The market size in Asia Pacific stood at USD 264.58 billion in 2021. The region held the dominant resin market share in 2021 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 electronics manufacturer of laptops, television, and smartphones. The rapid shift of consumers toward gadgets for daily activities is further driving the market in this region.

The market's growth in Europe is mainly due to the increasing consumption of plastics in the automotive industry. Plastics are used in automobiles owing 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, thereby 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. 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 the product in North America.

In the Middle East & Africa, the market growth is influenced by the packaging demand from 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.

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.

KEY INDUSTRY PLAYERS

Expansion of Businesses to Augment the Presence of Key Players

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. For example, INEOS expanded its business by opening its new advanced polymer pilot plant in Italy, which will divert plastic waste from landfills or incineration toward conversion into new valuable polymers. Furthermore, leading players focus on offering sustainable solutions to diversify their product range.

LIST OF KEY COMPANIES PROFILED:

• DuPont (U.S.)


• Arkema (France)


• BASF SE (Germany)


• INEOS Holdings Ltd. (U.K.)


• Hexion (U.S.)


• Invista (U.S.)


• Lyondellbasell (Netherlands)


• Mitsubishi Engineering-Plastics Corporation (Japan)


• Mitsui Chemicals (Japan)


• Nova Chemicals (Canada)


• Qenos (Australia)


• Radici Group (Italy)


• SABIC (Saudi Arabia)


• Repsol (Spain)


• Sumitomo Chemical Co. Ltd. (Japan)


• Teijin Limited (Japan)


• Tosoh Corporation (Japan)


• Toray Group (Japan)

KEY INDUSTRY DEVELOPMENTS:

• February 2022: DuPont entered into an agreement to divest most of the mobility & materials segment to Celanese. This definitive agreement within the performance resins and advanced solutions business lines represents USD 3.5 billion of net sales. This development will help the company to create a market-leading portfolio and serve the consumer, automotive, and industrial markets with unmatched manufacturing capability, scale, and technical expertise.


• February 2022: BASF launched RegXcellence, a new service for regulatory excellence for plastic additives. RegXcellence simplifies regulatory issue management and offers digital solutions with advisory support to accelerate innovation opportunities. This launch will help to allow targeted access to a range of global regulatory support.


• December 2021: Arkema expanded UV curable resins manufacturing capacity located at Nansha plant in China. With this expansion, the company will support the growing demand in Asia for cutting-edge solutions from electronics applications, driven by renewable energies and 5G technology.


• June 2021: Mitsubishi Engineering-Plastics developed a medical grade polyacetal resin Iupital MA series. This series of products is available in a range of high-rigidity, standard, low-friction grades, high-flow, and enables greater design flexibility for smaller and lighter medical equipment and devices.


• February 2021: NOVA Chemicals Corporation developed a series of customizable film structure designs formulated with post-consumer resin. The film structures, which incorporate linear low-density and post-consumer low-density polyethylene, can be tailored to meet the demands of film applications.

REPORT COVERAGE

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The global resin market research report covers a detailed analysis of the market and highlights key aspects such as profiles of leading companies, types, and end-use industries of the product. In addition, the report offers insights into the current resins market trends, drivers, restraints, and key industry developments. The market report also includes several factors that have contributed to the growth of the market in recent years.

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