The market for Asia-Pacific thermoplastics is expected to grow at a CAGR of over 6% globally during the forecast period. Some of the prominent trends that the market is increasing capacity additions in downstream processing and rising applications in the automotive industry.
- Impact of COVID-19 pandemic and various environmental concerns related to thermoplastics are likely to hinder the market's growth.
- China dominated the Asia-Pacific thermoplastics market and is likely to continue its dominance through the forecast period.
Key Market Trends
Packaging Industry to Dominate the Market
- Packaging accounts for the largest application segment in the Asia-Pacific market. The prime reasons for the growing application of engineering plastics, in the packaging segment, are better wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength.
- Some of the major applications of engineering plastics, in the packaging segment, are as follows: packaging of bottled water, flexible packaging, such as sausage skin, flexible foils, such as shopping bag.
- Polyethylene terephthalate (PET) is one of the plastics majorly used for packaging purposes, mostly in the food and beverage industry. Portability, design flexibility, ease of cleaning, light weight, and protection against moisture, are a few properties of PET, which makes 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 oils, shampoo, hand wash, and more products.
- Polyamide is another major engineering plastic that finds major application in the packaging sector. Bi-axially oriented and non-oriented polyamide films are used in medical and food packaging, owing to the former's high impact strength and good heat resistance.
- Increasing household and commercial applications for containers, plastic bags, canisters, and tableware, among others, 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 experience 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 witness greater demand, in the coming years.
China Country to Dominate the Market
- China is a leading consumer of thermoplastics, in the automotive industry, due to the continuous emphasis on efficient vehicles in the country. The regulations regarding emissions have had an impact on the production of motor vehicles in the country, this dip has had an impact on the growth of thermoplastics in the country's automotive sector.
- China is home to manufacturers from different segments, such as equipment manufacturers, material and component suppliers, engine producers, and whole system integrators.
- The country hosts a large number of production bases for aircraft interior components, MRO (maintenance, repair, and overhaul), and lightweight construction materials, largely in Bavaria, Bremen, Baden-Wurttemberg, and Mecklenburg-Vorpommern.
- In the electronics market, China is the largest market in the world, in terms of size. Furthermore, it is expected to remain the leading market over the forecast period, due to the usage of advanced technology, increase in the number of R&D centers, and rising demand from the consumers.
- Such growth in various industries is expected to drive the market for thermoplastics in Asia-Pacific region during the forecast period.
The Asia-Pacific thermoplastics market is fragmented with the presence of numerous players in the market. Some of the prominent players in the market include Asahi Kasei Corporation, LG Chem, DuPont, Mitsubishi Engineering-Plastics Corporation, and TEIJIN LIMITED, among others.
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