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The global resin market size was USD 523.80 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a fueling demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a growth of 1.9% in 2020. The market is projected to grow from USD 528.55 billion in 2021 to USD 715.93 billion in 2028 at a CAGR of 4.4% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
The increasing demand for polypropylene from the industries such as automotive and construction has fueled the growth of this market. The growth in the spending capacity of consumers has led to high demand for individual vehicles, thus driving the automotive industry, which, in turn, is supporting the market growth. Moreover, the rising demand for packaging solutions from the pharmaceutical, consumer goods, food & beverage, and e-commerce industries will support the market's growth. Changing consumer lifestyles and busy work life boost the consumption of packaged food resulting in high plastics usage. This key factor provides a growth opportunity for the market. However, fluctuation in the crude oil prices, which further impacts the overall prices of resin, will hamper the market.
Trade Restrictions during the Pandemic Impacted the Supply Chain of the Market
The worldwide lockdown due to the COVID-19 pandemic resulted in the limited flow of products and resources, which further had a significant impact on the supply chain of producers. The resin manufacturers had to face a shortage of raw materials due to trade restrictions, mainly in industrial countries such as China and India. This factor limited the production capabilities of the companies, and the manufacture of end-products gradually decreased.
Additionally, the huge fluctuations in crude oil prices significantly influenced the production costs, posing a new problem for petrochemical companies. Besides, several plastic resin companies had to either decrease or shut down their production facilities due to labor and raw material shortages, supply chain disruptions, and strict government regulations. However, despite the uncertainties during the pandemic, the plastic packaging demand in leading industries such as food & beverages, pharmaceutical, and e-commerce slowed the effect of the pandemic on the market. Furthermore, the large-scale production of face shields, face masks, gloves, and PPE kits surged the consumption of the product.
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Rapid Growth in Packaging Industry to Fuel the Market Growth
Plastics are mainly used in films, trays, corrugated boxes, rigid boxes, poly bags, and foil sealed bags to package various products. The growing demand for packaging solutions from the pharmaceutical, food & beverage, consumer goods, and e-commerce industries will boost the market during the forecast period. Moreover, the rise in globalization has boosted import & export activities, thereby increasing the consumption of the product. Further, the packaging sector is mainly influenced by rapid growth in the e-commerce industry due to changes in consumer buying behavior and increased online shopping. The industries such as pharmaceutical and electrical & electronics have developed online websites to sell the products that are propelling the market. Furthermore, flexible packaging is favored by food & beverage manufacturers, mainly because of 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.
Increasing Demand for Polypropylene to Propel the Market Growth
The market is growing rapidly due to the increasing demand for polypropylene (PP) from the automotive, construction, and medical industries. Polypropylene is used mainly in auto parts in the automotive industry due to its lightweight, chemical resistance, and cost-effective properties. The growing population and developing societies have surged the preference for individual vehicles, which, in turn, is supporting the market progress. Besides, polypropylene is utilized in the medical industry for various medical devices due to its excellent properties such as moisture resistance, high flexural strength and ability to withstand extreme temperatures. Moreover, increasing technological advancement and research and development activities to create more sustainable plastics will drive the adoption of polypropylene. These factors are likely to fuel the market growth.
Fluctuation in the Crude Oil Prices to Hinder Growth
The overall price of resin is highly impacted by the fluctuation in crude oil prices, as the petrochemical feedstock of most plastics is generated from by-products of oil and natural gas. The feedstock prices are influenced by fluctuations in oil prices, which are affected by supply and demand, natural disasters, and fluctuation in production cost. Additionally, plastics are made from chemicals obtained from oil, natural gas, and coal, which are responsible for pollution. Hence, the stringent environmental regulations passed by different governments to reduce plastic pollution will affect the market. Additionally, the ban on the overuse of crude oil & petroleum by governments restricts the market. Hence, these factors are estimated to hamper the growth of the market during the forecast timeframe.
Polyethylene to Remain Leading Segment due to the 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 and polypropylene are the two major types consumed across the globe in 2020. This higher share is owed to the usage of these types in making bottles, plastic films, containers, and food packaging trays. Additionally, PE and PP demand in automotive, pharmaceutical, and healthcare industries is boosted owing to their properties such as mold-ability, excellent heat, chemical, electrical & impact resistance.
The growth of the PET segment is associated with the rising demand from the packaging industry for being highly flexible and recyclable materials. Hence, the rising environmental concerns and increasing regulations regarding pollution will favor the use of PET. The increasing preferences for lightweight, durable, and insulating material from building & construction and electrical & electronics industries will raise the polyvinyl chloride adoption during the review 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 of polyurethane in the furniture industry for bedding and cushioning is surging its demand due to its availability in various forms such as fibers, foams, and surface coatings. The 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, dimensional stability, and electrical insulation properties make it a favourable material for safety helmets, bullet-proof glass, car headlamp lenses, and roofing, 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 associated with 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.
The packaging to be the fastest growing end-use industry during the forecast period. The growth of this segment is associated with the rising need for effective packaging solutions from several industries such as consumer goods, food & beverage, electrical & electronics, and construction. Furthermore, increasing consumption of ready-to-eat and frozen foods is supporting the segment growth.
The rising urbanization and infrastructure expansion activities in the developing countries and renovation of existing and old structures are estimated to surge product demand in the building & construction segment. Moreover, resins are used to produce a wide range of building & construction products ranging from roofing to pipes & fittings, which will further drive the market.
The rising incorporation of plastics in automobiles is creating a huge growth opportunity for the market. Plastics are increasingly replacing metal parts & components in vehicles due to their less weight and similar physical properties. Additionally, strict norms regarding the vehicles' emissions have resulted in the adoption of plastic by automotive manufacturers to reduce weight and increase fuel efficiency.
The electrical & electronics segment will witness growth owing to the use of the product for applications ranging from electrical insulation to electronic consumer products. The growth of the consumer goods/lifestyle segment is owed to the rising disposable income and changing lifestyle choices. The increasing technological advancements in the sportswear industry are also contributing to market growth. The agriculture segment is estimated to grow due to the rise in population and urbanization, propelling the demand for foods. Moreover, the rising demand for organic and exotic vegetables & fruits globally is supporting the segment growth.
Asia Pacific Resin Market Size, 2020 (USD Billion)
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The market size in Asia Pacific stood at USD 261.12 billion in 2020. The region occupied the dominant market share in 2020 and is projected to maintain its foremost 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 towards 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 favourable physical properties. Moreover, increasing regulations regarding vehicle emissions have promoted automotive manufacturers to increase the amount of plastic in the vehicles, thereby fuelling the market growth.
The increasing demand for packaging from the food & beverage and cosmetics industries is expected to surge the market in North America. The increasing awareness regarding beauty and personal care has led to the rise in consumption of cosmetics in the region, propelling the packaging demand from the cosmetics industry. This rising packaging demand will provide growth opportunities for the resins product in the North American market.
In the Middle East & Africa, the resins market growth is highly influenced by the demand for packaging from the textile and beverage industries. There is a high dependency on bottled drinking water in the region, thereby augmenting resin for bottle manufacturing. Additionally, increasing demand for lightweight and feasible packaging solutions is aiding the consumption in the region.
Latin America is estimated to grow substantially during the forecast period due to increasing disposable income, rising urbanization & infrastructural development activities, and rising investments in the pharmaceutical industry.
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 towards conversion into new valuable polymers. Furthermore, leading players focus on offering sustainable and solutions to diversify their product range.
An Infographic Representation of Resin Market
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The market research report provides a detailed analysis of the market and focuses on key aspects, such as profiles of leading companies, types, and leading end-use industries of the product. Besides this, it offers insights into the current resin market trends, dynamics and highlights key industry developments. In addition to the aforementioned factors, the market report encompasses several factors that have contributed to the growth of the advanced market over recent years.
Value (USD Billion), Volume (Million Ton)
By Type By End-Use Industry and By Geography
By End-Use Industry
Fortune Business Insights says that the global market size was USD 523.80 billion in 2020 and is projected to reach USD 715.93 billion by 2028.
In 2020, the Asia Pacific market value stood at USD 261.12 billion.
Registering a CAGR of 4.4%, the market will exhibit decent growth in the forecast period (2021-2028).
The packaging segment is expected to lead this market during the forecast period.
Increasing demand for polypropylene globally is the major factor driving the growth of the market.
BASF SE, LyondellBasell, and SABIC are the major players in the market.
Asia Pacific accounted for the dominant market share in 2020.
Changing regulations regarding emissions from vehicles and rapid growth in the packaging industry to drive the adoption.
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