The Philippine plastics market is projected to register a CAGR of over 5% during the forecast period (2022-2027).
Due to the COVID-19 impact, various end-user industries, such as automotive and transportation, building and construction, consumer goods, and electronics, went into a temporary shut-down phase due to lockdowns and trade issues. However, the packaging industry showed a significant growth rate due to the booming e-commerce business and smart packaging market. It saw increased growth in the food and healthcare industry. Such factors have affected the consumption of plastics in these end-user industries in the Philippines.
The Philippine plastics market is consolidated, with the top five players accounting for a major market share. The prominent players in the market include JG Summit Petrochemicals Group, Chemrez Technologies, NPC Alliance Corporation, Petron Corporation, and Philippine Resins Industries Inc.
This product will be delivered within 2 business days.
Due to the COVID-19 impact, various end-user industries, such as automotive and transportation, building and construction, consumer goods, and electronics, went into a temporary shut-down phase due to lockdowns and trade issues. However, the packaging industry showed a significant growth rate due to the booming e-commerce business and smart packaging market. It saw increased growth in the food and healthcare industry. Such factors have affected the consumption of plastics in these end-user industries in the Philippines.
Key Highlights
- Over the medium term, growing demand from end-user industries, such as packaging, electrical and electronics, and construction, is likely to drive the market’s growth. The booming healthcare industry is also a significant application area for the plastic packaging industry. Plastic is better than glass when reducing the probability of damage and leaks and maintaining hygiene. For instance, plastic packaging is the most preferred option for IV tubes, syringes, IV bags, etc.
- Over-reliance on imports of raw materials and finished plastics is expected to hinder the market's growth.
- Innovative applications in electronic products and the rising usage of biodegradable plastics are expected to offer various opportunities for the market’s growth.
Key Market Trends
Injection Molding Technology to Dominate the Market
- Injection molding is a method to obtain molded products by injecting plastic materials molten by heat into a mold and then cooling and solidifying them. The method is suitable for the mass production of products with complicated shapes and forms a large part of plastic processing.
- Injection molding is mostly done using virgin or high-quality processing resins. High-performance plastic pallets are usually injection molded. Injection molding is a relatively capital-consuming process. However, it offers the advantage of high-speed processes.
- Therefore, injection molding is beneficial in the bulk production of plastic pallets. Injection molding processes are used in wire spools, packaging, bottle caps, automotive dashboards, pocket combs, etc.
- The rapid growth of local automotive, packaging, and chemical processing industries worldwide is expected to provide a favorable market for injection molding.
- Due to the advantageous geographical location of the Philippines and easy access to the rapidly growing Asia-Pacific end users, the consumption of injection-molded plastic pallets is expected to increase drastically.
- The Philippine government’s legislation and recycling reforms to reduce plastic litter further strengthen the market scenario for injection molding manufacturing processes.
- However, strict measures against the recent COVID-19 outbreak in the country may negatively impact the growth of some of the end-user industries, thus hindering the demand for plastics over the short term.
- Due to the increasing demand from various end-user industries, the market for injection molding is projected to grow during the forecast period.
Growing Demand from Packaging Industry
- Packaging is the largest application segment in the Philippine plastics market. The primary factors for the growing application of engineering plastics in the packaging segment are better chemical and wear resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength.
- The major applications of engineered plastics in the packaging industry include packaging of bottled water, flexible packaging (such as sausage skin), and flexible foils (such as shopping bags).
- Polyethylene terephthalate (PET) is a plastic that is mostly used for packaging purposes in the food and beverage industry. Portability, design flexibility, ease of cleaning, lightweight, and protection against moisture are a few properties of PET, making it suitable for packaging purposes. In addition, low handling hazards, low toxicity, and absence of bisphenol A (BPA) and heavy metals are some of the other factors that allow PET to be used for food packaging.
- PETs are used for making clamshells, bakery and take-out containers, microwaveable food trays, carbonated soft drink bottles, and other packages. Other applications include packaging materials for cooking oil, shampoo, handwash, and more products.
- Polyamide is another major engineering plastic that has applications in the packaging sector. Bi-axially-oriented and non-oriented polyamide films are used in medical and food packaging due to the former’s high impact strength and good heat resistance.
- Rising demand for packaged and processed foods and soft drinks in portable and convenient formats is driving the use of rigid plastic containers. The high popularity of cans in food and non-alcoholic beverages industries for their portability and convenience may continue to drive the demand for this packaging material.
- The food industry characterized the most use of packaging in the Philippines, accounting for a 39.5% market share. It was followed by non-alcoholic beverages and ‘other industries’, with shares of 37.5% and 11.4%, respectively.
- Flexible packaging was the most consumed pack material in the Philippine packaging industry, accounting for a market share of 35.4% in 2020. It is expected to reach 37.1% by 2025. Flexible packaging and rigid plastics were popular packing materials.
- Increasing household and commercial applications for containers, plastic bags, canisters, and tableware, are expected to drive the consumption demand for plastics in the packaging sector during the forecast period.
- The usage of plastics for packaging products is expected to witness a fairly steady demand during the forecast period. Requirements for rubber gloves in the healthcare sector, stretch films, garbage bags, and other medical devices are anticipated to boost the demand in the coming years.
Competitive Landscape
The Philippine plastics market is consolidated, with the top five players accounting for a major market share. The prominent players in the market include JG Summit Petrochemicals Group, Chemrez Technologies, NPC Alliance Corporation, Petron Corporation, and Philippine Resins Industries Inc.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Companies Mentioned
A selection of companies mentioned in this report includes:
- Chemrez Technologies Inc.
- Dupont
- JG Summit Petrochemicals Group
- LyondellBasell Industries Holdings BV
- Nan Ya Plastics Corporation (Formosa Plastics Corporation)
- NPC Alliance Corporation
- Philippine Polypropylene Inc. (Petron)
- Philippine Resins Industries Inc. (Tosoh Corporation)
- SGS Philippines Inc.
- Sumitomo Chemical Co. Ltd
Methodology
LOADING...