Plastics include various synthetic or semi-synthetic materials that use polymers as the main ingredient. Polymerization joins small molecules into large ones and creates polymers. Specifically, polymers are large molecules made of smaller molecules called monomers. Monomers come from natural resources, chemical processes, or other compounds. Particularly, the most common base materials for plastic production include ethylene, propylene, PVC (vinyl chloride), and styrene.
Ethylene is a monomer and a naturally occurring hormone in plants. Eventually it promotes leaf fall and helps fruits ripen. Ethylene polymerizes to create polyethylene, thus a plastic with many uses, especially in packaging films and squeeze bottles. Furthermore, this plastic has high-density (HDPE) and low-density (LDPE) forms for different properties.
The refining of gasoline while splitting and reforming hydrocarbon mixtures (natural gases) yields propylene, basically a monomer that resembles propane. Polymerization of propylene makes polypropylene, another versatile plastic valued for its strength, light weight, heat resistance, and high melting point. The following plastic is commonly used for pallets, bottles, jars, hot beverage cups, food packaging, vehicle batteries, disposable syringes, petri dishes, pill containers, and more.
Vinyl chloride is a monomer that, following polymerization, makes polyvinyl chloride (PVC), which is a plastic that helps packaging or items protect their contents by being moisture and abrasion resistant. PVC is used for roofing, flooring, windows, pipes, wire coatings, vehicle upholstery, plastic kitchenware, medical IV bags, blood collection bags, tubing, and more.
Styrene is a monomer that produces polystyrene through polymerization, which is a versatile plastic that is hard and solid. It is made for electronics, vehicle parts, toys, gardening equipment, and more. Additionally, plastic makes a foam material called expanded polystyrene (EPS) or extruded polystyrene (XPS), which has insulating and cushioning properties.
In the food industry, containers are essential to the preservation and presentation of foods. Whether a restaurant or food truck, plastics are needed to provide business owners with what they need to be successful. Plastics enhance storage containers, lunch boxes, shrink/cling wrap, food wrappers, food foils, foam trays, foam cartons, bags, and disposable utensils.
In the beverage industry, plastics are used in the production of different types of bottles, jugs, coffee/tea bags, disposable cups, milk/juice cartons, and drinking straws.
The healthcare industry uses plastics for many purposes. Their properties promote sterilization and cleanliness by reducing spills or contamination. Products include test tubes, medical tubing, specimen bottles, syringes, pill containers, petri dishes, diagnostic components, medical implants, and housing for medical test kits or devices.
For industrial uses, different types of plastics are needed to keep structures stable. The most common uses are piping, wiring and cables, siding and windows, roofing, flooring, insulation, and more.
The transportation industry benefits from plastics that are primarily used for vehicle parts for the interior and exterior. Some products include wiring and components for engines, interior trim, knobs, sound dampening foam, child protective seats, floor paneling, thermoplastics, storage bins, shelving, and more.
The personal care industry is heavily reliant on plastics that are used in a wide range of ways, from home furnishings to health products such as refrigerators, blenders, microwaves, rain boots, shower curtains, cleaning products, cosmetics, and more.
With plastics being one of the most common base materials needed for packaging and products, its market has seen consistent growth, as well as being one of the largest markets globally over the years.
In the European Union alone, the plastics industry had a total of 1.5 million jobs, and the size of the European plastic packaging market is estimated to be $23 billion in 2024, with expectations to reach $31 billion by 2029, reflecting a compound annual growth rate (CAGR) of 5.7% during that period. The global plastics market was estimated at $624 billion in 2023 and is expected to grow at a CAGR of 4.2% from 2024 to 2030.
Polypropylene is the most common plastic or resin in many high-end industries that rely on containers, medical supplies, and more. In addition, demand for polypropylene in the transportation and construction industries drives growth in the resin industry, which is a material in the production of plastic.
Another factor in the plastic industry’s market growth is the increasing need for alternatives to glass, rubber, metal, and wood materials throughout many businesses supply chains. Amongst waste and recycling metrics, the most common use of plastics is in containers and packaging, which had the most usage at 14.5 million tons in 2018 which includes bags, wrappings, bottles, jars, and other types of containers.
Let’s look at some of the most successful businesses in the plastic industry. The first major competitor to mention is Dow. This company is headquartered in Midland, Michigan, and is one of the largest plastic producers not only in the United States but around the world. Dow provides many products for industries that rely on plastic production, such as the food, beverage, medical, personal care, transportation, infrastructure, and technology industries. This company had a market cap of $38 billion and revenue of $45 billion in 2023. Dow’s most popular products are their solvents, resins, and coatings. Other applications range from cleansers for humans and animals, films, cold chain and electronic insulation, shoe materials, additives for piping, and more.
Another major competitor in the plastics market is ExxonMobil Chemical, which is headquartered in Houston, Texas, and is one of the largest petrochemical companies in the world with an array of plastic-based products in their inventory. These products consist of packaging materials, plastic bottles, automobile bumpers, synthetic rubber, and more. ExxonMobil’s market cap was $399 billion, with a revenue of $346 billion in 2023. With operations in every major region of the world, this company has proven to have consistent growth and conduct sustainable practices within the environment.
The US is a top plastic producer and consumer. In addition, it has key locations for plastic distribution, such as Houston, Texas, which has ExxonMobil, Chevron Phillips Chemical, and LyondellBasell based in or around the city. Another location is Baton Rouge, Louisiana, which is home to multiple petrochemical facilities, including a major ExxonMobil plant. The last location to mention in the United States is Libertyville, Illinois, which is located near Chicago. This is a great location for plastic product distribution centers in the area to reach the rest of the country due to the major trade routes located in the region.
Internationally, China is the world’s largest producer and consumer of plastics. Evidently, in 2021, China’s monthly production was estimated to range from 6 to 8 million metric tons, making it the leading manufacturing economy and exporter of plastic goods in the world. In contrast to production and consumption in North America, China accounts for 32%, while North America accounts for only 18%. Another major plastics-producing location is Singapore in the Southeast Asian region. In Southeast Asia, the plastics market is forecast to grow at a CAGR of over 6% from 2024 to 2029.
Plastics are a wide range of synthetic or semi-synthetic materials that use polymers as the main ingredient. The most common base materials for plastic production are monomers such as ethylene, propylene, PVC (vinyl chloride), and styrene. Polymerization of ethylene creates polyethylene; polymerization of propylene makes polypropylene, polymerization of vinyl chloride makes polyvinyl chloride (PVC); and polymerization of styrene produces polystyrene. The global plastics market was estimated at $624 billion in 2023 and is expected to grow at a CAGR of 4.2% from 2024 to 2030. In comparison, regarding the production and consumption of plastics globally, China accounts for 32%, while North America accounts for 18% of the overall global production and consumption of plastic products. China and the United States are the largest plastic production and consumption countries globally.
