Global Commodity Plastics Market Set for Rapid Expansion, Driven by Growing Demand for Plastics in Various Industries

Posted by Jack Martin on April 10th, 2023

Commodity plastics are a class of plastic with many applications and high demand. These plastics are flexible, strong, resistant to chemicals, and heat resistant, among many other qualities. They are perfect for mass production because they are typically inexpensive to create. Polyethylene (PE), polypropylene (PP), polystyrene (PS), and polyvinyl chloride are typical examples (PVC). Products including packaging, car parts, medical equipment, and consumer electronics are all made with commodity plastics. Commodity plastics are in high demand due to their affordability, good performance, and ability to adapt to new technologies. Manufacturers are drawn to them because of their inexpensive cost and broad range of uses.

The global commodity plastics market size is projected to grow from USD 468.3 billion in 2020 to USD 596.1 billion by 2025, at a CAGR of 6.0% between 2020 and 2025. The major driving factors of the market include the growing packaging industry, increased disposable income generating high demand for consumer goods, growing production of lightweight electric vehicles and increasing metal prices. 

The key players in the commodity plastics market are Exxon Mobil (US), LG Chem (South Korea), Sumitomo Chemical (Japan), The Dow Chemical Company (US), SABIC (Saudi Arabia), BASF SE (Germany), LyondellBasell (Netherlands), Sinopec (China), Ineos (Switzerland), Formosa Plastics (Taiwan), Mitsubishi Chemical (Japan), Borealis AG (Austria), Chevron Phillips Chemical (US), ENI SpA (Italy), Reliance Industries (India), Braskem (Brazil), Hanwha Chemical (South Korea), Lotte Chemical (South Korea), Indian Oil (India), Haldia Petrochemicals (India), Nova Chemicals (Canada), Qenos Pty (Australia), Qatar Petroleum (Qatar), Westlake Chemical (US), and PTT Global Chemical (Thailand). These players have adopted various strategies, such as merger & acquisition, investment & expansion, new product launch/development, and partnership, contracts & agreements, a joint venture between 2015 and 2020, to enhance their market shares and expand their global presence. 

Exxon Mobil (US) is a leading manufacturer of commodity plastics and is expected to maintain its market position in the future. The company is constantly strengthening its position in the commodity plastics market by expansion, agreement, and investment strategies. For instance, in 2016, the company increased its PE capacity by 65.0%. In 2017, the company invested USD 20 billion in the US Gulf region to increase its capacity of commodity plastics. The company has a strong geographical presence in APAC, North America, and Europe.

Dow Chemical is one of the largest manufacturers of commodity plastics. With advancements in the development of commodity plastics through R&D activities, the company is expected to maintain its position in the commodity plastics market. The company manufactures commodity plastics under its performance plastics business segment, which is one of the growing segments of the company. It has adopted strategies, such as merger, new product launch, and expansion to lead in the commodity plastics business and increase its sales. For instance, in 2017, the company expanded its production capacities of PE and PP by 400 KT and 750 KT, respectively, through the establishment of production facilities in Texas, US.