Los Angeles, CA (PRWEB) January 29, 2013
Over the past five years, consumers of plastic products and producers of plastic have increased their consumption. "This trend has caused plastic products to increasingly substitute materials such as wood, paper, metals and glass in many applications," says IBISWorld industry analyst Sean Windle. Plastic is often more price-competitive, while also offering better performance characteristics. As a recyclable material, plastic also has environmental benefits, such as waste reduction and energy savings. This trend has boded well for global plastic product manufacturers, with revenue expected to grow 3.5% in 2012 to $779.8 billion, marking an annualized growth rate of 0.5% over the past five years.
The five-year period to 2017 is also expected to be prosperous for the Plastic Product and Packaging Manufacturing industry, due to continued improvements in demand for plastic. However, according to Windle, "Global economic uncertainties, including the European debt crisis and concerns about a slowdown in rapidly developing Asian economies, will subdue growth over the next five years." From 2012 to 2017, industry revenue is forecast to grow.
According to IBISWorld analysis, the Plastic Product and Packaging Manufacturing industry has a fragmented structure, exhibiting a low level of market share concentration. The three largest players are estimated to account for less than 5.0% of total revenue in 2012. The industry's low level of concentration is primarily due to the fact that there are close to 128,000 enterprises operating within the industry, each manufacturing a certain type of product that caters for a specific and limited customer base. As such, an enterprise's ability to generate revenue and to dominate the market is limited by the range of products manufactured and its global reach. What makes it more difficult to take ownership of the market is that the range of products that are produced from plastics is extremely broad. As such, very few firms have the scope to be able to produce on such a large and diverse scale.
Global demand for construction remains a key revenue driver for the industry. The five years leading to 2012 exhibited massive growth in this sector, due to the speedy industrialization of economies such as India and China. The construction industry outlook for the next five years leading to 2017 is unlikely to be as spirited, but moderate growth in construction is expected to continue to boost revenue in the Global Plastic Product and Packaging Manufacturing industry in the lead-up to 2017. A wide variety of manufacturing industries use plastic products, including those in food and beverage, household chemical, pharmaceuticals, personal care, automobile, furniture and household appliance industries. IBISWorld estimates that those catering to the food and beverage market outperformed the rest of the industry during the financial crisis, as this industry is less sensitive to economic fluctuations, given that food is less discretionary.
For more information, visit IBISWorld’s Global Plastic Product & Packaging Manufacturing industry report page.
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IBISWorld industry Report Key Topics
Enterprises in this industry manufacture a variety of plastic goods, including products used in the packaging of food and beverages, plastic building materials and plastic products used in the manufacture of furniture and other durable goods. Also falling under the scope of this industry is the manufacture of foam products, such as those used in automotive manufacturing and insulation for housing.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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