Extruded Plastic Market - Forecasts from 2023 to 2028

The global extruded plastics market is estimated to grow at a CAGR of 6.17% to reach US$310.368 billion by 2028 from US$204.089 billion in 2021.

Extruded plastic are material that is manufactured from the melting and forming of high-volume polymeric material. The extruded plastic takes shape according to the cross-section of the die. The increasing use of extruded plastic in the construction of pipes, windows, doors, and other materials is increasing the market demand for extruded plastic. Furthermore, the demand for packaging of food and beverages increasing, the increasing disposable income, changing lifestyle, and growing working class population tend to have an increased demand for packaged food in the projected period. Various such factors are fueling market growth.

Market Drivers:

• Growing use in packaging application

Packaging is one of the major end-users of extruded plastic and with the bolstering growth in such end-users, the demand for extruded plastic is also projected to increase. For instance, according to the Packaging Industry Association of India, the packaging sector is among the high-growth industries in the country and is developing at 22-25% per annum and the country is becoming the hub for the packaging industry in the coming years.

Additionally, in India according to the Ministry of Statistics and Program Implementation (MoSPI), the employment rate is increasing, indicating the growth of the sector in the country. For instance, in 2019-2020 11.6% of people were employed in construction, which increased to 12.1% in 2020-21, and now has become 12.4% in 2021-22. .

• Booming construction sector.

Extruded plastic finds applicability in the construction sector for protecting electric cables and wires from external factors. With the growing population and infrastructure projects the construction sector is witnessing positive growth in various regions. For instance, according to the European Commission, the construction sector employs 18% of the population and contributes 9% to the GDP of the region. Hence, the two main areas where extruded plastic is highly used are growing at a significant pace and are anticipated to increase the demand for extruded plastic as well.

Growing E-Commerce application.

Extruded plastic owing to its flexibility and durable nature is majorly used in the e-commerce sector for packaging various consumer goods thereby keeping their quality intact. The growing digitization and urbanization, internet penetration has increased e-commerce activities. According to the United States Census Bureau, the e-commerce market is flourishing in the United States. The highest revenue from e-commerce was registered in the fourth quarter of 2022 which was US$3,03,120 million and in the second quarter, the total retail sales from the e-commerce segment was US$ 2,69,517 million. Hence, the increasing demand for plastic packaging products and the growing use of online platforms is one of the major reasons for the market growth of extruded plastic in the forecasted period.

During the forecast period, China is projected to show significant growth.

The country's developing e-commerce sector and shifting customer preferences for online purchasing are the main drivers of the market's growth. Furthermore, polypropylene is the most extensively utilized extruded plastic in China due to its widespread application in the FMCG packaging industry for a wide range of product packaging.

Further, the nation's growing e-commerce industry and shifting customer preferences for online shopping are predicted to fuel the plastic packaging sector, which will in turn drive the expansion of the extruded plastic market. Numerous packaging businesses have been compelled by China's burgeoning e-commerce industry to create more environmentally friendly packaging options, such as using recycled plastics. for instance, as per the International Trade Administration, over 710 million digital purchasers made up China's online retail transaction base, with $2.297 trillion in sales in 2020 and projections of $3.565 trillion by 2024.

High disposable income has also raised demand for frozen or imported food items, which require appropriate packaging and are expected to propel market expansion. For instance, in May 2023, Sulzer and Jindan New Biomaterials (Jindan), a significant manufacturer of lactic acid (LA), announced a deal to facilitate the production of polylactic acid (PLA), a biobased plastic. At its new manufacturing facility in Henan Province, Jindan will make up to 75,000 tonnes of PLA annually, mostly for use in food packaging, moulded goods, and the creation of fibers. The company will do this by utilizing Sulzer's licensed PLA technology. To guarantee a smooth launch, Sulzer will also offer comprehensive service support.

Market Development:

• In October 2022:Delta Electronics launched Compact Modular mid–range PLC, AS 300 series, to connect OT and IT layers. In addition, to the built-in Ethernet upload of the equipment information, the port 2 S485 can facilitate the auxiliary information to different workstations and distribute it into two communication fieldbuses.

Segmentation:

By Type

• Polypropylene (PP)
• Polyethylene (PE)
• LDPE
• HDPE
• Polyvinyl Chloride (PVC)
• Others

By End-User Industry

• Construction
• Electrical and Electronics
• Packaging
• Automotive
• Medical
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• United Kingdom
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Thailand
• Indonesia
• Taiwan
• Others