Plastics are a wide range of synthetic or semi-synthetic materials that use polymers as the main ingredient. Polymerization (joining small molecules into large ones) creates polymers, which are large molecules composed of the smaller molecules called monomers, which are derived from natural resources, chemical processes, or other compounds. The most common base materials for plastic production are ethylene, propylene, PVC (vinyl chloride), and styrene.
Ethylene is a monomer that is also a naturally occurring hormone in plants that promotes leaf fall as well as fruits that promote ripening. Polymerization of ethylene creates polyethylene, which is a plastic with many uses, specifically with packaging films and squeeze bottles. This plastic comes in high-density (HDPE) and low-density (LDPE) forms for different properties.
The refining of gasoline or splitting and reforming hydrocarbon mixtures (natural gases) yields propylene, a monomer that resembles propane. Polymerization of propylene makes polypropylene, a versatile plastic valued for its strength, light weight, heat resistance, and high melting point. This 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, through polymerization, makes polyvinyl chloride (PVC). PVC is a plastic that helps packaging or items protect their contents by being moisture and abrasion resistant. PVC is commonly 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, through polymerization, produces polystyrene. A versatile plastic that is initially hard and solid and is made for electronics, vehicle parts, toys, gardening equipment, and more. This plastic is also made into a foam material called expanded polystyrene (EPS) or extruded polystyrene (XPS), which is valued for its 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 medical industry uses plastics for a variety of purposes because of their properties that promote sterilization and cleanliness by reducing spills or contamination. Products consist of test tubes, medical tubing, specimen bottles, syringes, pill containers, petri dishes, diagnostic components, medical implants, housing for medical test kits or devices, and more.
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. Products range from 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. The plastics industry had a total of 1.5 million jobs related to it in the European Union alone, and the European plastic packaging market size is estimated at $23 billion in 2024 and is expected to reach $31 billion by 2029 with a compound annual growth rate (CAGR) of 5.7% from 2024 to 2029. 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 commonly used plastic or resin in many of the high-end industries that rely on containers, medical supplies, and more. The growing demand for polypropylene in the transportation and construction industries is projected to drive growth in the resin industry (resin being 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.
As you can see, the United States is one of the largest producers and consumers of plastic in the world. Some key locations for plastic distribution are 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. 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.
