Extruded Plastics Market Expected to Reach $289.2 Billion by 2030

According to a new report published by Allied Market Research, titled, "Extruded Plastics Market by Material Type, Application, and End use: Global Opportunity Analysis and Industry Forecast, 2021–2030," the global extruded plastics market size was valued at $185.6 billion in 2020, and is projected to reach $289.2 billion by 2030, growing at a CAGR of 4.6% from 2021 to 2030.

Extruded plastics are materials obtained through extrusion of polymeric materials such as polyethylene, polypropylene, polyvinyl chloride, polystyrene, and others. These polymeric materials are fed into extruder where they undergo continuous heating and forming. Extruded plastics of varied shapes and sizes are obtained as final product.

Increase in awareness regarding hygiene-related activities has led to growth of the packaging sector where extruded plastics are widely used for manufacturing films & wraps used for packaging a wide range of consumer goods. Moreover, increase in investments in building infrastructure in countries such as the U.S., China, Japan, Mexico, and India have led the building & construction sector to witness a significant growth where extruded plastics are employed as insulating materials and cladding panels. These factors are predicted to contribute toward the global market growth.

However, production of extruded plastics release various toxic chemicals that if exposed beyond the concentration limit may cause several health-related issues such as irritation in eye, vision failure, respiratory problems, dizziness, genotoxic, cardiovascular, and gastrointestinal problems. This factor is anticipated to hamper the market growth.

Extruded plastics are widely used as a substitute over metals in several end-use sectors such as building & construction, and automotive, owing to its resistance to corrosion, lightweight, and better insulation property. In addition, factors such as growing concentration of manufacturers, availability of feedstock at reduced prices, and arrival of local players has led the manufacturers to offer extruded plastics at low prices. This factor is predicted to create remunerative opportunities for expansion of the extruded plastics market in the future.

The extruded plastics market is segmented on the basis of material type, application, end use, and region.

By material type, the market is segregated into polyethylene, polypropylene, polyvinyl chloride, polystyrene, and others. The polyethylene segment dominated the global market, in terms of revenue in 2020, with one-third of the total share. This is attributed to the fact that applications that require tough, translucent, and good chemical resistant extruded plastics use polyethylene-based extruded plastics. For instance, medical device manufacturing, film manufacturing, agricultural equipment, and other sectors prefer polyethylene-based extruded plastics for producing tubes, needle sheaths, fishing rods, and other products.

By application the market is divided into pipes & tubing, wire insulation, windows & door profiles, films, and others. The films segment dominated the global market in terms of revenue in 2020, with one-third of the total share. This is attributed to the fact that extruded plastics-based films are used in pharmaceutical, foods & beverages, agriculture, and other end-use sectors. In addition, extruded plastics enable the production of consistent high-quality thin plastic film at cheaper rates. This has made consumers become more linear toward using extruded-plastics films for various packaging applications.

By end use, the market is fragmented into building & construction, packaging, automotive, industrial, and others. The packaging end use segment dominated the global market, with one-third of the total share in 2020. This is attributed to increasing awareness for hygiene-related activities in the packaging sector where extruded plastics are widely used for manufacturing films & wraps.

Region-wise, the extruded plastics market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific extruded plastics market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major extruded plastics market share in 2020, owing to rise in automotive sectors that have enhanced demand for extruded plastics in the Asia-Pacific. The electric vehicle sector in China is increasing rapidly, which has forced extruded plastics manufacturers to produce high-quality extruded plastics for use in sealing systems to enhance the aerodynamics of vehicle.

Key players operating in the global extruded plastics market include Atlantis Plastics, Inc., China Plastic Extrusion Ltd., Crescent Plastics Incorporated, GSH Industries, Keller Plastics Inc., Lakeland Plastics, Inc., Nenplas Limited, Petro Packaging Company, Inc., Pexco LLC, and Saint Gobain.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The major end-users of extruded plastics such as building & construction, packaging, automotive, industrial, and electrical & electronics have been negatively impacted due to the ongoing pandemic outbreak. The ongoing health crisis has increased the supply-demand gap, hampering the global extruded plastics supply chain. According to an article published by The Economic Times, the exports of electronic products such as wires and cables, semiconductors, and others have dipped due to supply chain issues. Also, several electronics companies have either shut down or shrank their operations due to the risk of infections among the workforce where extruded plastics are widely used as an insulating material in various consumer electronics products. Moreover, more than 100 countries have locked their international borders for transportation and non-essential trade activities which in turn have reduced the consumption of extruded plastics among several end-use sectors. In addition, the falling income of has led to a contraction of the demand for extruded plastics among the building & construction sector. For instance, according to a report published by International Labour Organization, the impact on construction enterprises has been significant, with many facing liquidity problems. Also, COVID-19 has put a temporary brake on various construction projects which in turn has shrunk the demand for extruded plastics among the building & construction sectors.

In 2020, extruded plastics prices are expected to be higher in Asia. The price rise is due to continued regional demand trends and tight product availability. Firm downstream demand for extruded plastics and stronger upstream costs are expected to sustain the price gain.

However, the extruded plastics market is expected to recover rapidly post-COVID-19 situation due to its increased dependency on the electronics, medical, packaging, and other sectors. Moreover, the sales of electronic products such as wires and cables, and others have increased where extruded plastics are widely used for insulation purposes. For instance, according to data released by International Data Corporation (IDC), the shipment of notebooks surged by the impressive growth of 17.6% during April-June 2020. This is expected to enhance the performance of the extruded plastics market post-COVID-19 scenario.

Key findings of the study

• The polyethylene segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.8% from 2021 to 2030.
• The films segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.8% from 2021 to 2030.
• The packaging end use segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.9% from 2021 to 2030.
• Asia-Pacific garnered the highest share of 40.2% in 2020, in terms of revenue, growing at a CAGR of 5.4%.