Plastic Films Market Is Estimated To Witness High Growth
The Plastic Films Market is estimated to be valued at US$ 105.36688 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Plastic films are thin plastic sheets made from materials such as polyethylene, polyvinyl chloride, polypropylene, and others. They have wide applications across various end-use industries such as packaging, consumer goods, construction, pharmaceutical, and others owing to their properties such as lightweight, durability, and low cost. Plastic films help protect goods from dust, air, and moisture and increase shelf life of products.
Market key trends:
Bio-degradable plastic films are gaining immense popularity due to increasing environmental concerns related to conventional plastics. Bio-degradable plastics decompose into water, carbon dioxide or methane without leaving any toxic residues in the environment. Major players are focusing on developing bio-degradable plastic films made from renewable resources such as crops, microbial fermentation and animal fats to replace petroleum-based plastics. For instance, NatureWorks offers Ingeo biopolymer for flexible film applications that decomposes completely without toxic residues. Growing emphasis on sustainability and stringent regulations against single-use plastics are fueling demand of bio-degradable plastic films in the market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the plastic films market requires high capital investment for manufacturing units and R&D. Well established brands have economies of scale which is challenging for new players.
Bargaining power of buyers: The bargaining power of buyers is high as plastic films have numerous applications and buyers can easily switch to substitute products. Buyers can negotiate on price especially if demand falls.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers such as petrochemical companies and resin producers have significant influence over plastic film producers.
Threat of new substitutes: The threat of new substitutes is moderate as alternatives like paper, glass and metals are used instead of plastic films in certain applications based on cost and sustainability factors.
Competitive rivalry: Intense competition exists among key players to strengthen market presence through capacity expansion, mergers and new product development.
SWOT Analysis
Strength: Wide range of applications in packaging, consumer goods, construction and other industries. Growing demand for sustainable and eco-friendly plastic films.
Weakness: Volatility in raw material prices impact production costs. Stringent regulations on use of plastics could reduce demand.
Opportunity: Developing economies in Asia Pacific and Middle East regions to drive market growth. Innovation in barrier films and bioplastics opens new opportunities.
Threats: Substitution threat from alternative materials poses challenges. Environmental concerns and bans on single-use plastics.
Key Takeaways
The Global Plastic Films Market Growth is expected to witness high, exhibiting CAGR of 7.2% over the forecast period, due to increasing demand from the flexible packaging industry for food, beverages and consumer goods. The Asia Pacific region dominates the global plastic films market, with China, India, Japan and South Korea being the major consumers. Regional growth is attributed to rising population, urbanization, increasing disposable incomes and changing lifestyles in emerging economies.
Regional analysis: The Asia Pacific plastic films market accounted for over 40% of global demand in 2023 and is estimated to maintain leadposition over 2023-2030. Rapid industrialization and expanding packaging and construction industries drive marketexpansion, especially in China, India and ASEAN countries.
Key players analysis: Key players operating in the plastic films market are The Dow Chemical Company, DuPont, Eastman Chemical Company, Evonik Industries AG, Amcor Limited, Berry Plastics Corporation, Griffon Corporation Inc., Mitsubishi Chemical Holdings Corporation, Saudi Basic Industries Corporation (SABIC), and Honeywell International Inc.
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