CONTENTS

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April 2016

IBISWorld Industry Report

Global Plastic Product &

Packaging Manufacturing
Global Plastic Product & Packaging Manufacturing

April 2016

About This Industry..................................... 2

Industry Definition ......................................... 2
Main Activities ............................................... 2
Similar Industries .......................................... 2
Additional Resources ................................... 2

Industry Performance ................................. 3

Executive Summary ..................................... 3
Key External Drivers ..................................... 3
Current Performance .................................... 4
Industry Outlook ............................................ 6
Industry Life Cycle ........................................ 8

Products & Markets ..................................... 9

Supply Chain................................................. 9
Products & Services ..................................... 10
Demand Determinants ................................. 12
Major Markets ............................................... 12
International Trade........................................ 13
Business Locations....................................... 15

Competitive Landscape ............................. 16

Market Share Concentration ......................... 16

Key Success Factors .................................... 16
Cost Structure Benchmarks.......................... 17
Basis of Competition ..................................... 19
Barriers to Entry ............................................ 20
Industry Globalization .................................... 21

Major Companies ......................................... 22

Other Players ................................................ 22

Operating Conditions .................................. 24

Capital Intensity ............................................. 24
Technology & Systems ................................. 24
Revenue Volatility .......................................... 25
Regulation & Policy ....................................... 25
Industry Assistance ....................................... 26

Key Statistics ................................................. 27

Industry Data ................................................. 27
Annual Change.............................................. 28
Key Ratios ..................................................... 28
Jargon ............................................................ 29

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Global Plastic Product & Packaging Manufacturing

April 2016

About This Industry

Industry Definition
Enterprises in this industry manufacture a variety of plastic goods, including plastic building materials,
products used to package food and beverages and plastic products used to manufacture furniture and other
durable goods. Companies that manufacture foam products, such as those used in automotive
manufacturing and insulation for housing, are also included in this industry.

Main Activities
The primary activities of this industry are:
Manufacturing foam used in furniture, construction, transportation and electrical goods
Manufacturing of foam packaging products
Manufacturing plastic containers and packaging products
Manufacturing plastic pipes, plates, shapes and sheets, including plastic bags
Manufacturing plastic used in furniture, construction, transportation and electrical goods
The major products and services in this industry are:
Intermediate and Other Plastic Goods
Plastic containers and packaging products
Miscellaneous Plastic Products

Similar Industries
C2111-GL - Global Glass and Glass Products Manufacturing
This industry manufactures glass and glass products.

Additional Resources
For additional information on this industry:
www.plastics.ca
Canadian Plastics Industry Association
www.plasticseurope.org
PlasticsEurope
www.plasticsindustry.org
The Plastics Industry Trade Association
www.chinaplasonline.com
Chinaplas
www.euromap.org
EUROMAP

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Industry Performance
Executive Summary
Over the past five years, plastic consumption has accelerated. Plastic products have increasingly
substituted materials such as wood, paper, metals and glass in many applications. Plastic is often more
price-competitive and also offers better performance. As a recyclable material, plastic provides
environmental benefits such as waste reduction and energy savings. Even with these positive trends,
revenue is expected to decline at an annualized rate of 1.2% over the five years to 2016 to $739.4 billion.
This decrease has been underpinned by reduced world oil prices, which reduce input costs but also limit
selling prices to downstream industries. Revenue is expected to recover moving forward.
Global demand for construction remains a key revenue driver for the industry. Over the past five years, this
sector exhibited massive growth due to the economic recovery in developed economies and the speedy
industrialization of economies like India and China. Over the next five years, the construction sector is
expected to grow moderately, boosting industry revenue. As global construction markets continue to
strengthen, IBISWorld anticipates industry operators to increase sales of plastic products manufactured
for construction projects.
A wide variety of manufacturing industries use plastic products, including those involved in food and
beverages, household chemicals, pharmaceuticals, personal care, automobiles, furniture and household
appliances. Because food is less discretionary for consumers, operators that cater to the food and beverage
market likely outperformed the rest of the industry during the financial crisis. Additionally, the packaging
segment of the industry likely performed better than other industry products due to the inelastic nature of
demand for packaging products.
The next five years are expected to be prosperous for the industry, thanks to continuing improvements in
demand for plastic. However, input price volatility and concerns about a slowdown in developing Asian
economies, notably China, will threaten the industry over the next five years. Despite these challenges,
industry revenue is expected to grow at an annualized rate of 0.3% over the five years to 2021 to reach
$750.7 billion.

Key External Drivers

The key sensitivities affecting the performance of the Global Plastic Product & Packaging Manufacturing
industry include:
Downstream Demand - Manufacturing
Plastic products are often sold as inputs to manufacturers of intermediate and final goods. These
customers form a large part of the industry's revenue base. In addition, industry products are also used to
package downstream manufactured goods. Downstream demand from manufacturing is expected to
increase during 2016.
Downstream Demand- Motor Vehicle and Part Manufacturing
Plastic products are used to manufacture automobiles and vehicle component parts. As demand and
vehicle production increase, automotive manufacturers will increase their use of plastic products, resulting
in greater revenue for the industry. Demand from motor vehicle and related parts manufacturers is
expected to increase in 2016.
Global consumer spending
Many of the items this industry produces are either sold to households or used as inputs for products that
are subsequently sold to households. Therefore, an increase in global consumer spending results in
additional revenue. Global consumer spending is expected to increase during 2016, representing a
potential opportunity for the industry.

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Global value of construction

The level of construction activity affects demand for plastic products used in the building process. Plastic
products are found in many parts of a building. Demand for plastic produces rises as residential and
nonresidential construction activity increases. The global value of construction is expected to increase
during 2016.
World price of crude oil
This industry's largest costs are associated with inputs and raw materials such as crude oil. The price of
crude oil impacts the industry because it is a main input in plastic manufacturing. The world price of crude
oil is expected to decline in 2016, but prices have historically shown volatility, posing a threat to the
industry.

Current Performance
From food producers to car manufacturers, this industry supplies plastic products to a wide range of
sectors. The industry manufactures plastic containers for food, beverages, household chemicals and
personal care products. It also manufactures plastic components for motor vehicles, buildings (e.g.
plumbing fixtures and pipes), furniture and household appliances. Consequently, demand for each of these
downstream products affects demand for plastic. In the five years to 2016, demand for plastic recovered
from the shocks of the global financial crisis. Industry revenue fell during the recession as construction
activity and motor vehicle manufacturing contracted in Europe and North America and consumer
sentiment plummeted worldwide, but the industry has recovered somewhat from this decline.
Innovation and cost cutting
The main material used to produce plastic products is plastic resin, a petroleum -based product. For this
reason, fluctuations in global crude oil prices lead to changes in input costs for plastic manufacturers.
Crude oil prices are generally volatile, and an overall downward trend has prevailed over the five years to
2016, negatively affecting industry revenue. Because competition is mostly price-based, companies have
struggled to develop more affordable and environmentally friendly products. For example, manufacturers
were able to reduce the weight of polyethylene terephthalate (PET) bottles 30.0% by using fewer raw
materials in the manufacturing process. This method has also been used in other product segments and
will become more widespread as stronger and lighter plastics are developed.
In addition, manufacturers have improved their production capabilities worldwide by adopting laborsaving machinery, such as in-line socketing machines; in effect, operators have increased productivity and
decreased wage costs. Many larger companies have also developed manufacturing operations in regions
such as Southeast Asia to take advantage of greater labor resources at more affordable rates. Greater
manufacturing in this region has led to improved technical proficiency, allowing more complex items to be
manufactured at far lower costs and relieving some of the pressure on profit margins that persisted during
the recession.
As a result of manufacturers moving production to cost-saving areas, employment has increased faster
than wage costs. Industry labor is expected to expand at an average annual rate of 4.0% over the five years
to 2016 to 4.5 million people. Accordingly, the average wage has increased at an annualized rate of 2.5%
since 2011. Furthermore, as the costs of operation continue to decline, IBISWorld expects the number of
industry establishments to expand at an annualized rate of 3.8% in the five years to 2016 to reach an
estimated 151,729 facilities.
Fluctuating demand
Overall, demand for plastics has grown consistently in the five years to 2016, especially from the
automotive sector, with consumers and manufacturers increasingly seeking less expensive and more
environmentally friendly cars. Plastics have become a common substitute for many metals in this sector,
providing a lightweight alternative that provides a similar level of protection.

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Additionally, consumer preferences have been shifting toward smaller, single-serving food packages, which
have fueled demand for plastic packaging. Electrical products, computers, consumer goods, motor vehicle
manufacturing and packaging industries worldwide are major consumers of plastic products. China, a
major force in each of these sectors, is a large market for the Plastic Product and Packaging Manufacturing
industry. For example, in 2012, China experienced an oversupply of plastics due to excessive domestic
production and slower-than-expected demand for plastic product exports. Nonetheless, international trade
in the industry has been strong in the past five years, and is anticipated to increase at an annualized rate of
1.6% to total $324.7 billion in 2016.
Revenue and profitability
Industry revenue growth has been slow throughout most of the period, declining at an annualized rate of
1.2% to $739.4 billion, including a 0.3% decrease in 2016. Though the industry has especially benefited
from rapidly recovering demand from downstream industries, greatly reduced world crude oil prices have
affected revenue growth negatively. While Asia has increasingly played a key role in this industry's success,
the recovering housing and automobile markets in the United States have also driven demand for plastic
products.
Industry profitability has strongly rebounded since 2011. Currently, industry profit, mea sured by earnings
before interest and taxes, is expected to be 6.0% of revenue. Fluctuating world oil and natural gas prices,
which impact not only the cost of plastic resin but also transportation costs, have spurred many
manufacturers to set up operations close to key buying industries. In the five years to 2016, the world price
of crude oil is expected to decline at an 20.1% annualized rate. As companies continue to innovate, develop
product lines and set up manufacturing operations in low -cost areas of the world, such as Southeast Asia,
IBISWorld expects that operators will continue to pass along rising input costs to consumers.

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Industry Outlook
The Global Plastic Product and Packaging Manufacturing industry is expected to fare well over the next
five years. IBISWorld anticipates that revenue will grow at an annualized rate of 0.3% through 2021 to
$750.7 billion, including a growth of 0.4% in 2017. Much of this growth will likely result from product
development and entry into new markets, driven by grow ing demand and preference for plastics over
substitute materials. The versatility of plastic compared with materials like glass, wood, metal or paper is
one of the major advantages industry manufacturers have over their competition.
Profit and demand
IBISWorld expects profit growth to be constrained in the five years to 2021, with margins staying relatively
unchanged over the period. World crude oil prices, which affect the price of plastic resin inputs, are
expected to recover from recent weakness, growing at an annualized rate of 9.2% over the next five years.
Rising oil prices will also negatively impact transportation costs. Manufacturers will likely not be able to
pass all the additional costs on to customers, and will therefore absorb a portion of the cost increase. Also
threatening the industry is an oversupply of plastic in Asia that will challenge operators' ability to raise
product prices. Furthermore, growing wage costs in previously low -cost countries, such as China, may limit
profit margin growth. Wages are expected to rise at an annualized rate of 1.2% to $85.8 billion in the five
years to 2021. However, as manufacturing capabilities become more advanced, the industry will be able to
produce higher-quality items. Technological advances that reduce the weight of plastic materials, as well as
the quantity of materials used to produce industry items, will help protect profit margins from the threat of
rising input costs.
Greater demand for plastic products will encourage companies across the world to invest more in research
and development. Manufacturers will strive to create products that can enter new markets and compete
against products traditionally manufactured using substitute materials. Product innovation will continue
to be a key feature of the industry, and obtaining patents will remain an important form of competition for
operators. IBISWorld expects the number of industry enterprises to grow at an annualized rate of 2.0% in
the five years to 2021 to reach 161,948 as new companies innovate products and develop patents.
Additionally, trade in the industry is anticipated to grow at an annualized rate of 0.3% to total $380.0
billion in the five years to 2021.
Employment opportunities
Stronger global demand for plastics will encourage continued demand for low-cost labor and sustained
growth in employment and enterprise numbers. Much of the industry's workforce over the next five years
is forecast to expand in regions such as Southeast Asia, where labor costs are significantly lower than those
in more developed markets. Many larger operators will follow the trend by moving the bulk of their
manufacturing facilities to low-cost countries, leaving more specialized divisions, such as research and
development and corporate headquarters, in developed countries.
Key demand drivers
The recyclability of plastic products gives the industry yet another competitive advantage, with
environmental issues expected to remain a primary concern for governments all over the world. The global
climate change debate has prompted governments to act, as public awareness of environmental issues has
increased, placing greater emphasis on production efficiency, reducing energy consumption and expanding
recyclability. Recycling plastic requires half the energy of burning plastic, and 70.0% less energy is needed
to produce plastic products made from recycled plastics. Industry research and development over the next
five years is expected to focus on creating cost-effective, environmentally friendly plastic products. Such
products would appeal to environmentally conscious consumers while also reducing manufacturing costs
as technology continues to improve.
More people are living alone, particularly in developed economies such as the United States, Japan and the
United Kingdom; to serve this consumer segment, businesses have introduced more single-serving food
and beverage packages. As a result, food and beverage producers are increasing their demand for foam and
plastic packaging products. At the same time, industry operator Graham Packaging Company notes there is

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a trend toward concentrated fabric care products, which use smaller packages. IBISWorld expects demand
for plastic products catering to this demographic to continue increasing over the next five years.

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Industry Life Cycle

This industry is in the mature stage of its life cycle.
Life Cycle Stage
Plastic is gaining market share over substitute goods such as glass and aluminum
Technological innovation is improving and expanding the industry's product range
The industry's contribution to the global economy will lag global GDP growth in the 10 years to 2021
The number of establishments will increase
The Global Plastic Product and Packaging Manufacturing industry is operating in the mature stage of the
life cycle. In the 10 years to 2021, the industry is expected to grow less than the overall global economy.
IBISWorld estimates that industry value added will actually decline at an annualized rate of 1.0% from
2011 to 2021, marginally slower than the expected world GDP growth of 2.7% over the same period.
The financial crisis saw global aggregate demand fall drastically in the early portion of the past five years.
This industry was deeply affected because its consumer base is so diverse and widespread. Falling
household expenditure saw demand for plastic products used in the packaging of food and bevera ges
decline, as well as plastic used to produce furniture and household durable goods. Much the same, the use
of plastic in automobile manufacturing fell as car producers across the globe saw demand for vehicles fall.
In response, they decreased their production volumes, and consequently, their demand for plastic goods.
However, other indicators suggest that the industry is moving into a growth stage of its life cycle. The
industry's products are continuing to penetrate new markets traditionally dominated by products made of
traditional materials, such as wood, glass and metals. This expansion is caused by technological
advancements that enable manufacturers to produce plastic products that can be sold to the market at a
lower price than competing goods, without compromising quality and performance. Because plastics are
such versatile materials, this trend is likely to continue, and may result in the industry's move into the
growth stage of its life cycle over the next five years. Linked to this technological change is a key feature of
this industry: companies often work with customers in product development. Industry operators note the
importance of product innovation and often conduct research and development activities. Companies in
this industry compete on the basis of price, quality, new product introductions and economies of scale. For
example, industry manufacturer Illinois Tool Works states in its annual report that it has seen growth due
to the development of new products, broadening the applications of existing products and from the
development of new manufacturing processes. As another example, Saudi Basic Industries Corporation
cites its work with a customer to develop a new resin that is comprised of up to 25.0% post-consumer
recycled content from used water bottles.

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Products & Markets

Supply Chain
Key Buying Industries
A-GL - Global Agriculture, Hunting, Forestry and Fishing
Farmers purchase plastic and foam products to be used in the packaging of fresh foods such as meat, fruit
and vegetables, fish and dairy products.
C-GL - Global Manufacturing
Downstream manufacturing industries use plastic packaging, as well as intermediate plastic products,
which are integrated into the final consumer good production.
E-GL - Global Construction
Foam and plastic goods are used in the construction of housing and real estate, i.e. plastic pipes and
insulation foam.
F-GL - Global Wholesale and Retail Trade
Wholesalers and retailers use plastic products in securing products during shipments and for packaging
purposes.
G-GL - Global Hotels and Restaurants
Restaurants and other hospitality industries use disposable plastic food containers and other plastic
packaged products.
Key Selling Industries
C1912-GL - Global Petrochemicals Manufacturing
This industry supplies plastic product manufacturers with chemicals used as inputs in the production
process.
C1931-GL - Global Resin and Synthetic Rubber Manufacturing
Resins are used in the production of plastic products and are purchased from this industry.
F4311-GL - Global Wholesale Trade
Wholesalers supply the industry with machinery as well as some inputs that are not purchased directly
from other manufacturers.

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April 2016

Products & Services

Intermediate and Other Plastic Goods

38.6%

Miscellaneous Plastic Products

27.9%

Plastic containers and packaging products

33.5%

The industry produces a wide variety of plastic products, which are mainly used by downstream
manufacturers, wholesalers and construction companies.
Plastic containers and packaging products
Plastic containers and packaging products account for a share of industry revenue. This product segment
has become more significant over the past five years due to strong manufacturing activity in emerging
economies and growing demand for packaging with changes in household formation and population
demographics. Single person households are on the rise, necessitating smaller food portions and greater
packaging as other consumables are packaged to target this growing market. Also, technological
developments in plastic packaging have made this product group more environmentally friendly, which
has increased its appeal among buyers.
According to industry operators, there are two main segments in the plastic container industry:
conventional plastic containers, which include containers for drink and are manufactured in large
numbers; and custom containers, which are tailor-made to have unique characteristics, such as heat
resistance or air tightness. Graham Packaging Company is an example of a company that focuses on the
custom plastic packaging for food, beverage, household, personal care and automotive lubricants. It states
that plastic containers are one of the fastest growing segments in rigid packaging.
Miscellaneous plastic products
Plastic pipes, plates, sheets, bags, film and miscellaneous plastic products are the next largest product
group, accounting for 27.9% of revenue. These products are used in a variety of applications, including
construction, manufacturing, supermarkets and grocery stores. Demand is dependent on activity in these
downstream industries. During the global recession, demand from supermarkets and grocery stores was
considerably more stable compared with construction and manufacturing. Therefore, sales of plastic bags
outperformed the rest of the industry, particularly in developing nations where economic growth remained
positive and consumerism continues to grow.
Intermediate and other goods
Plastic products used in furniture, construction, transportation, electrical and consumer goods also
account for a significant portion of industry revenue. These items are mainly intermediate manufactured
goods, which are integrated into other consumer products. Demand for these products is dependent on

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construction activity and the level of manufactured output. As a result, during the global recession, this
product group experienced a sharper fall in revenue than the rest of the industry, given the slowdown in
construction in most developed nations.
Smaller product groups include foam packaging and foam used in furniture, transportation, electrical and
consumer goods. Similarly with plastic products, foam used in construction and some manufacturing has
experienced a sharper decline during the economic downturn compared with packaging, due to its reliance
on construction activity. Other products include polyester based products, garbage bins and all other
plastic products, demand for which has grown in line with the rest of the industry over the past five years.

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April 2016

Demand Determinants
Plastic products have a wide variety of applications, from packaging of foods and beverages to insulation in
housing construction. Furthermore, this industry's manufacturers produce plastic products that are used
as inputs in the production process of intermediate and final goods. For example, beverage producers use
plastic bottles to package drinks, while construction companies use plastic pipes when installing utility
infrastructure. Due to the wide range of features and their far-reaching applications, a number of factors
affect the demand for plastic products.
Plastic products are fairly simple and homogeneous, which makes them easily replaceable. Further, plastic
products are highly substitutable with paper, glass and aluminum products, depending on their
application. In packaging, plastic bags are highly substitutable with paper bags, while plastic bottles can
easily be replaced by glass bottles or aluminum cans. For this reason, it is vital that plastic products are
competitively priced. Although facing tough competition from substitutes, manufacturers also face strong
price competition between one another, as consumers are happy to switch to cheaper suppliers of plastic
products given that their perceptions are that the goods are of a similar look, standard and quality.
Their use in the manufacturing of intermediate and final goods also affects demand, determined by the
demand exhibited in downstream markets for the intermediate and final goods themselves. Manufactured
plastic goods are used in the production of automobiles; foam products form parts of the seating, interiors
of the doors, boot, floor and roof of the car (among others), while plastic products are used to in the
dashboard, lights, the engine and many other interior and exterior component parts. As a result, when the
demand for automobiles falls, as it did during the recently experienced Global Financial Crisis, the demand
for plastic products also falls, as automobile manufacturers reduce their production and therefore the
plastic product they require/demand.
Other factors affecting the demand for the industry's products are less industry specific and are of a broad
and macroeconomic scale. For instance, an increase in the unemployment rate can adversely affect
consumer spending, and it can also negatively affect the household sector's ability to attain mortgage
finance. This tends to translate into less construction of new housing taking pla ce. Thus, the demand for
plastic products falls as plastic used in packaging of consumer goods, furniture, automobiles and
construction declines with consumption falling. Likewise, interest rates, household debt and aggregate
demand can all have similar effects on the Global Plastic Product and Packaging Manufacturing industry.

Major Markets
Packaging
Other

39.6%
26.0%

Building and construction

20.3%

Motor vehicle and transport manufacturing

8.5%

Electrical equipment and components

5.6%

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Packaging
At 39.6% of industry revenue, the packaging market includes a number of manufacturing and food and
beverage industries that use industry packaging products as part of a final product. These products include
items such as bottles, containers, plastic bags, film and foam used in the packaging of other items. The
durability of plastics and their ability to hold wet, dry, hot and cold products has caused the use of plastics
in packaging to increase significantly in recent years. Producing plastic packaging is a lso beneficial for
manufacturers, as products are often generic and required in large numbers. Growing amounts of
consumption in China, India and other developing nations also drives demand for plastic packaging.
Building and construction
Accounting for 20.3% of industry revenue, the construction industry is also a major market for plastic
products, such as pipes, floor and wall coverings and insulation. Demand for these products, however, is
dependent on the level of construction activity across the globe. During the global recession, construction
in many of the world's major economies drastically slowed down, which lead to a major fall in revenue for
companies producing these types of products. However, construction activity has been strongly recovering
over the past five years. The global value of construction has increased at an annualized rate of 3.7% in the
five years to 2016, and this growth is anticipated to continue over the next five years, which will help
bolster this segment's share of revenue.
Motor vehicle and transportation
Plastics for use in the manufacturing of motor vehicles are also a significant market of this industry,
comprising 8.5% of all industry demand in 2016. The constant development of lighter and stronger plastics
has seen automotive companies increase their reliance on plastics over traditional metals, as consumers,
particularly those in developed economies, search for a more environmentally friendly motor vehicles. Ever
increasing world oil and fuel prices have also driven the greater use of plastics in motor vehicles, due to
their lighter weight and therefore greater fuel efficiency. The global economic crisis also took a toll on this
sector of the industry, as many consumers put off non-essential vehicle purchases until the outlook was
more stable and positive.
Electrical Equipment and components
Plastics are also used extensively in the manufacturing of electrical equipment and components.
Comprising 5.6% of total industry demand in 2016, plastics are a popular choice in many electrical items
because of their light weight and resistance to electrical shock when compared to alternative materials,
such as metal.
Other
Accounting for an estimated 26.0% of industry revenue in 2016, other market segments include sports and
leisure industries, agricultural applications and other durable goods manufacturing industries. Because
this market encompasses a broad selection of different industries, demand has been fairly stable over the
past five years. However, since much of this market is dependent on the level of disposable income in any
particular economy, demand from these buyers suffered a setback throughout the recession.

International Trade
Exports in this industry are high and steady.
Imports in this industry are high and steady.
Global trade plays a prominent role in this industry's performance. In the five years to 2016, industry trade
is anticipated to increase at an annualized rate of 2.9% to total an estimated $324.7 billion. This strong

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growth has been encouraged by economic recovery from the global recession and, as a share of overall
revenue, trade has increased from 38.2% in 2011 to 43.9% in 2016. The wide range of industry products
ensures that international demand is steady, and this trend is anticipated to persist in the next five years.
Europe consistently ranks as the largest regional trader of industry products, exporting higher amounts
than imported goods. In 2013, Europe enjoyed a trade surplus of over $20.0 million with Turkey being the
largest importer of European plastic products. After Europe, North East Asia and North and Central
America are the next largest regional trade blocks. Individually, Germany and China are the largest traders
of plastic products, at 11.9% and 11.2% of total trade in 2016. In the next five years, these countries are
anticipated to continue trading the largest volume of plastic products. The United States and Belgium
account for 10.6% and 5.4% of industry trade in 2016 and, in the next five years, IBISWorld anticipates
these countries will remain amongst the largest industry traders. In the next five years, trade is forecast to
increase at an annualized rate of 3.9% to total $322.3 billion. Increasing consumer spending and
improving economic conditions, especially in construction markets, will influence this growth.

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Business Locations

Region

Europe

4 5.7

North Asia

2 3 .1

North America

1 4 .2

South East Asia

1 0.9

Africa & Middle East

3 .2

South America

1 .6

India & Central Asia

1 .0

Oceania

0.2

Historically, North America and Europe have been the largest plastic product manufacturing regions of the
world. This is not surprising given the productivity of the regions, which generally results in high levels of
consumption expenditure. However, over the past 10 to 15 years, these two regions have lost some of their
share of the global market. Strong competition from emerging economies, mainly China, has resulted in
more and more companies closing shop in the United States, Europe and Canada. At the sa me time, major
global companies from the Western world have ramped up foreign investment in China and other
developing nations, taking advantage of cheap production costs associated with labor and raw materials.
This has led to the growing dominance of North Asia as well as the emergence of South East Asia in the
industry.
North Asia accounts for 23.1% of total revenue. China is the largest producer in the region, doubling its
production capacity over the past ten years. South East Asia has increased its capacity as well, accounting
for an estimated 10.9% of industry revenue in 2016. Japan is also a strong player, although much like the
United States and Europe, its manufacturing output is declining. Oceania, which has lost its share of
revenue over the past five years, is the only other region in the world with domestic manufacturing
companies unable to compete with cheaper, imported goods flooding their domestic markets.
The rest of the world's regions are considered to be developing and are growing in dominance in the global
manufacture of plastic products, slowly taking away the market share of more developed Western
economies. Over the next five years, it is likely that developing economies such as Bangladesh and
Cambodia will play an increasing role in global plastics manufacturing.

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Competitive Landscape
Market Share Concentration
Industry concentration is low.
The Global Plastic Product and Packaging industry has a fragmented structure, resulting in a low level of
market share concentration. The three largest players are estimated to account for a mere 4.0% of revenue
in 2016. The industry's low concentration is primarily due to the fact there are more than 135,000
enterprises operating within the industry, each manufacturing a certain type of product that caters to a
specific and limited customer base. As a result, an enterprise's ability to generate revenue and dominate
the market is limited by the range of products manufactured and its global reach. Additionally, the range of
products that are produced from plastics is extremely broad, making it extremely difficult a company to
increase its market share. As such, very few firms have the scope to be able to produce on such a large and
diverse scale.

Key Success Factors

The key success factors in the Global Plastic Product & Packaging Manufacturing industry are:
Economies of scale
The development of large-scale production facilities allows companies to minimize per unit costs of
production. Having the ability to produce on a large scale also gives them the ability to attract large
customers and contracts.
Effective quality control
Producing high-quality goods on a consistent basis can attract new customers and help increase sales as
quality of the products manufactured is a key competitive feature of this industry.
Output is sold under contract - incorporate long-term sales contracts
Negotiating long-term supply contracts with customers ensures a more consistent revenue stream and
allows operators to plan their expenditures on a long term basis.
Undertaking technical research and development
Use of plastic and its applications continues to develop and, as such, companies must have the right R&D
programs in place to keep up with the changing nature of the industry and the products offered to the
market.
Supply contracts in place for key inputs
Inputs contribute a large proportion to cost in this industry, therefore manufacturers must ensure they
have contracts in place that minimize the price paid for inputs as it directly affects their profit margins.
Effective cost controls
Profit margins are a key concern and, as such, must have effective cost controls in place that ensure costs
are minimized by monitoring inventory levels, costs associated with sales and production capacity.

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Cost Structure Benchmarks

Purchases

58.6%

Wages

1 0.9%

Rent & Utilities

3 .3%

Depreciation

2 .7%

Marketing

0.9%

Other

1 7.6%

Profit

6.0%

Profit
The industry's profit margin is still recovering from a significant decline in the recession. Currently,
industry profit margins are estimated to account for 6.0% of revenue. Some of the larger industry
companies have padded their margins by offshoring manufacturing operations to more cost-effective
corners of the world, such as China. As international demand for plastics grows, profit figures should
continue to benefit as manufacturing systems become more automated and the reliance on labor decreases.
IBISWorld expects profit to grow marginally in the five years to 2021.
Purchases
The largest cost this industry incurs is for inputs, such as plastic resins and recycled feedstock. IBISWorld
estimates that purchases will account for 58.6% of total industry revenue in 2016. Producers are generally
price takers as prices of inputs are determined by the global market. Affecting prices of plastic resins are
demand and supply considerations, and more importantly, the price of oil. Oil feedstock is used as an input
in the manufacture of plastic resins. Because oil prices can fluctuate considerably over time, so too can the
price of plastic resins, affecting the cost of inputs for manufacturers. As a result of fluctuating input prices,
producers typically negotiate long-term contracts with their suppliers that contain price escalation clauses.
In this way, industry manufacturers are able to maintain some control over input costs. Despite a
forecasted dip in crude oil prices, world oil prices are expected to continue climbing over the long term
future, placing some pressure on industry profitability.
Labor and depreciation
Wages, which currently account for an estimated 10.9% of industry revenue, are another significant
expense for industry manufacturers, and are affected by the amount of labor the industry employs and the
availability of unskilled labor. In this regard, developing countries in Southeast Asia and South America
have a competitive advantage compared to the developed regions of the world. This is due to the fact that
there is an abundance of low cost labor in these regions that can be employed quickly to meet demand. In
general, this industry's manufacturing processes do not require any highly -skilled labor functions or
special education requirements. Wages have displayed a downward trend over the past five years, and this
trend is set to stability, with wages growing marginally in the five years to 2021.

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Being a highly capital intensive industry, manufacturers of plastic products invest heavily in m achinery
and equipment in order to achieve optimal productive efficiency. In this way, greater levels of automation
can be achieved to reduce handling costs and those related with product defects and labor. As a result,
depreciation costs are significant, amounting to 2.7% of industry revenue in 2016.
Other
Rent and utilities are expected to consume 3.3% of industry revenue in 2016, reflecting costs associated
with leasing manufacturing facilities and electricity. Although a small share, marketing and advertising
costs are expected to account for 0.9% of industry revenue. Other costs, not including rent, utilities and
advertising are expected to total 17.6% of industry revenue and include research and development
initiatives, insurance premiums and administrative expenses.

18

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Basis of Competition
Competition is high and increasing
Competition in this industry is largely based on price. In this industry, large customers can be in a strong
position when negotiating price, which can bolster their competitiveness. In recent years, industry players
have continued to combat rising raw material and transportation costs. Another significant competitive
factor is the quality of the products produced and the reliability of delivery times. Downstream users of
plastic products seek to work with manufacturers who are able to produce high quality goods that they are
then able to transport reliably and seamlessly to their end markets with minimal disruptions and delays.
Manufacturers who have the technology and funds to innovate new products are at a competitive
advantage to their rivals. One example of this has been the extension of shelf life of wine packaged in
plastic bottles. As such, those companies that are able to access such technology and produce bottles with
such features possess a competitive advantage over their peers and can charge premiums. Furthermore,
with environmental issues being so topical and businesses looking to improve their social responsibility by
reducing their global footprint in terms of the impact they have on the environment, recyclability of the
products has become crucial. Social trends and the demand emanating from the market have seen
preferences shift towards plastic products due to the reliability of their recyclability qualities.
Besides the competition faced within the industry from producers of plastic products, competition exists
from producers of substitute products. Plastic product is used in many applications, for a wide variety of
purposes; in many of their uses, they are substitutable with comparable paper, wood, glass and metal
based products. The way the industry's various consumer groups (whether households, or manufacturers
in downstream industries) decide between which of these products they use is based on comparisons
between the relative price, weight, performance, safety, recyclability, presentation and versatility of each of
these.

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Barriers to Entry
Barriers to entry are high and steady.

Barriers to Entry checklist

Level/Impact

Industry Competition
Industry Concentration
Life Cycle Stage
Capital Intensity
Technology Change
Regulation and Policy
Industry Assistance

High
Low
Mature
Medium
Medium
Light
Low
SOURCE: IBISWORLD

Barriers to entry for this industry are high. Existing large players can negotiate lower prices for raw
materials (principally plastic resins), which represent a large percentage of total industry costs. This
enables them to offer their products to their customers at a more affordable price than new or entering
competitors who do not have such bargaining power. Because of this, new entrants can find it difficult to
compete as price is a key competitive factor used in attracting customers, with demand for plastic products
being highly price elastic.
Apart from price pressures, significant investments are required in acquiring plant and equipment for the
manufacturing process to take place. Larger operators can fund state-of-the-art machinery and are able to
better maximize utilization of this equipment, which brings down the per unit cost of production. Enabling
them, once more, to minimize their costs and undercut prices of their competitors' products.
Significant costs are required in research and development expenditures or technology transfer agreements
in order to expand market opportunities to compete and achieve growth. Often, joint ventures or strategic
alliances between the large global operators occur which may assist to reduce this barrier.
Existing operators are able to enter into long term contracts with their customers, who form the demand
for the industry's products that exists in the marketplace. As such, new entrants do not only face the
difficulties associated with attracting customers away from existing players, but also need to have the
ability to negotiate their own contracts with customers as these contracts elapse. This means that timing is
crucial and that the offer they give their customers in contract negotiations has to be of better value than
that offered by their competitors, which can be quite difficult to achieve.
Vertically integrated operators that have been servicing their consumer markets for long periods of time
often have a better understanding of their customers, their needs and the general trend of the industry.
This may also reduce opportunities for new entrants.

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Industry Globalization
The level of globalization is high and steady.
The Global Plastic Product and Packaging Manufacturing industry exhibits a high level of globalization, but
the nature of the industry and the products themselves necessitates operations to be fairly localized. One of
the main reasons for this is that plastic products are generic and bulky goods that are used in the
production of a wide variety of intermediate and final products. It is inefficient, for example, to produce the
plastic components for a car in Europe, ship those parts to the car manufacturer in Asia and then ship the
final product back to Europe to be sold. This forces manufacturers to set up operations close to major
buying markets to minimize transport costs and deliver goods in a timely manner. Nonetheless, trade is
prominent in the industry, accounting for about 43.9% of industry revenue.
Key buying industries will also, when presented with the choice between a manufacturer of plastics in the
same country or city or a manufacturer on the other side of an ocean, choose the closer option if the prices
are similar. Furthermore, because plastic products have far reaching applications, most countries across
the world have developed their own plastic manufacturing industries to serve as the primary source of
plastic goods. This has led to the industry's low market share concentration, with no one company able to
hold a major market dominance. There are a number of industry players with establishments and
operations in multiple countries; however, they typically account for a very small share of total industry
revenue.

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Major Companies
There are no major players in this industry

Other Players
Because the industry is so fragmented, there is no single player dominating the global market for
manufactured plastic products. However, IBISWorld has identified three of the largest players operating in
Africa, the Middle East, Oceania and North America that have significant control of their respective
domestic markets as well as a significant global presence. Although they represent the largest operators in
the industry, from a global perspective, they form only a small share of the total market, accounting for
between 0.5% and 2.2% of total revenue.
Saudi Basic Industries Corporation
Estimated market share: 2.2%
Saudi Basic Industries Corporation (SABIC) is one of the world's largest industrial chemical companies.
The company is owned by the government of Saudi Arabia and operates through the several segments:
chemicals, performance chemicals, innovative plastics, polymers, fertilizers, metals and technology and
innovation. Most relevant to the industry are the innovative plastics and polymers segments. The
innovative plastic operations' products include thermoplastic resins, film and sheet products and specialty
compounds, as well as coatings for various downstream markets such as automotive, aircraft, construction
and healthcare industries. The polymers segment produces polyethylene and polypropylene.
The company states that it focuses on innovation and invests in new polymer technologies. It has also
invested in expanding its manufacturing operations globally. The innovative plastics segment has
developed its European STAMAX product line within the North American market, with manufacturing
operations in Michigan. The company also expanded resin compounding production in China and India
during the past five years. In 2016, SABIC is expected to generate $8.0 billion in industry -relevant revenue,
giving it a market share of 1.0%.
Amcor Limited
Estimated market share: 0.9%
Amcor Limited, a publicly listed Australian company, is one of the largest packaging companies in the
world, with operations in 43 countries. As of 2015, its main markets were Western Europe (32.0% of
revenue); North America (31.0%); emerging markets (32.0%); and Australia and New Zealand (5.0%). The
company was established in the 1860s as Australian Paper Manufacturers, focusing its operations on paper
production. In the 1970s and 1980s the company added a range of diverse packaging interests to its
traditional papermaking activities, including plastic. In 1986, the company became Amcor Ltd. The
company acquired four of Alcan's packaging businesses from Rio Tinto prior to this five-year period. These
companies include Alcan Packaging Global Pharmaceutical, Alcan Packaging Food Europe, Alcan
Packaging Food Asia and Alcan Packaging Global Tobacco. The company also acquired Ball Plastic
Packaging America, which has five plants in the United States.
The company operates through four main segments: flexibles, rigid plastics, Australasia and packaging
distribution and investment. The flexibles division provides packaging for fresh food, processed food and
tobacco, through three divisions: flexibles Europe and Americas, flexibles Asia Pacific and global tobacco

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packaging. The rigid plastics division produces PET containers used in markets such as food, beverage,
pharmaceutical, personal care and household chemicals. According to the group's annual report, the
Australasia and packaging distribution is not relevant to this industry as it includes products other than
plastic (such as fiber, glass and aluminum). IBISWorld estimates that Amcor will generate $6.4 billion in
industry-relevant revenue in 2016.
Illinois Tool Works Incorporated
Estimated market share: 0.5%
Illinois Tool Works Incorporated (ITW) was established in 1912 and incorporated in 1915. The company is
a worldwide manufacturer of highly engineered products and specialty systems, with 840 operating
facilities in 57 countries. The company operates through the following divisions: transportation: industrial
packaging, food equipment, power systems and electronics, construction products, polymers and fluids,
decorative surfaces and other. The segments most relevant to the industry include the industrial packaging,
transportation and other segments. The industrial packaging segment produces steel and plastic strapping
and plastic stretch film. The transportation segment produces metal and plastic components, fasteners and
assemblies for automobiles. The other segment produces a wide range of products included in this
industry, such as plastic bags, plastic packaging for food storage and plastic fasteners for appliances and
furniture. In 2016, the company's industry-relevant segments are expected to generate $3.3 billion.

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Operating Conditions
Capital Intensity
The level of capital intensity is medium.
1.
There is a heavy reliance on large-scale extrusion machines in manufacturing plastic products
2.
In minimizing per unit costs of production, investment in the latest and most efficient machinery
and equipment is necessitated
This industry has a moderate level of capital intensity. For every dollar spent on wages, companies
operating within this industry will allocate an estimated $0.23 on machinery, equipment and other capital
expenses. Depreciation, which provides an indication of the level of capital investment, will account for
2.7% of industry revenue in 2016. In comparison, wages will account for an estimated 11.7% of industry
revenue. Consequently, the level of capital investment required in this industry is significant.
The largest cost this industry incurs is that paid for raw materials, principally resin. In order to produce the
final product, manufacturers rely heavily upon large-scale extrusion machines capable of large volume
production runs. As a result, a relatively low level of labor input is necessitated in the manufacturing
process. Contributing further to the high investment requirements is the need to have access to the most
efficient extrusion machinery and equipment available, which allow for large production volumes so as to
reduce both variable and fixed per unit costs of production. This need arises from the highly competitive
market that manufacturers operate in globally. For example, polyethylene terephthalate (PET) container
manufacturer Constar states that the ability to compete in the industry is based on flexibility and having
economies of scale. The company states that in some cases an entire manufacturing line may be restricted
to the requirement of a single customer.

Technology & Systems

The level of technology change is medium.
Technological development in the industry is estimated to be at a medium level, with varying levels of
advancements in different parts of the world. The US, the EU and Japan have a highly developed
technological base in all industries, and they have the majority of patents. Developed nations have
increased their investment in the latest machinery and equipment over the past 10 to 15 years, with
significant assistance having been extended from foreign investors. This has led to a solid improvement in
productivity in these regions, however they are still behind the developed world, on average.
Machine technology used to produce plastic pipe and shapings has improved in recent years. The
production capacity of extruders has been boosted by the creation of high output twin screw extruders,
improved dye and calibrator designs, water tanks with greater cooling capacity, pullers with greater pulling
force, and faster, more accurate saws and cutters.
Cooling is the most significant factor limiting line speed and higher output. Recently a new technology
involving nitrogen gas cooling of plastic extrusion has been developed. Other research and development
conducted within the industry is focused upon expanding the use of recycled materials, improving product
performance (e.g. increased strength, reduced wall thickness, increased diameters) and expanding product
applications (e.g. high-pressure applications). These developments are allowing plastic product
manufacturers to enter new markets and find new uses for their products that are able to compete with
products made from substitute materials such as paper, glass, wood and metals, which have traditionally
dominated those specific product markets.

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Revenue Volatility
Industry revenue volatility is high.
In the five years to 2016, the Global Plastic Product and Packaging Manufacturing industry has exhibited a
high level of revenue volatility. This industry produces plastic products that have a wide array of
applications, including: food and beverage packaging; automotive parts and components; construction,
including insulation and piping; and furniture manufacturing, among others. For this reason, the revenue
volatility of the Global Manufacture of Plastics Products industry is closely aligned with the downstream
demand for products that use the industry's goods. For example, demand for soft drinks and drinks
packaged in plastic bottles tend to be seasonal. This translates into volatility in the revenue generated as
different weather conditions throughout the various parts of the world influence the demand for drinks
and therefore the demand for plastic bottles. Similarly, demand for vehicles can be affected by
macroeconomic variables such as unemployment and more directly through tax incentives. As demand for
vehicles fluctuates, so too does the demand for foam and plastic products that are used in seating, steering
wheel, dashboard and other interior and exterior car components.
From a cost-price perspective, the price of inputs that manufacturers pay to produce their products affects
the price they charge for the final product they sell to their customers. Consequently, as prices of inputs
rise, the added costs are passed onto consumers through higher prices being charged. This generally sees
the demand for plastic products fall, as consumers shift preferences towards relatively cheaper substitute
products such as those manufactured from paper board, aluminum and glass, depending on their purpose.
This affects the amount of revenue that is generated and, in turn, affects volatility.

Regulation & Policy

The level of regulation is light and the trend is increasing.
The level of industry regulation varies across regions. Globally regulation is at a low level, despite the fact
that it is moderate in more developed economies, because emerging nations generally lag in environmental
regulation. Environmental awareness and associated laws and regulation increase with higher socioeconomic standards in regions, as businesses can afford to invest in new machinery and in making their
facilities compliant. This is one of the reasons for cheaper plastic products from countries such as China,
where regulation is weaker and therefore costs of production are lower. Over time however, regulation is
expected to increase in emerging economies as well, as governments aim to reduce pollutants emitted by
the production facilities and greenhouse gases.
The United States
Regulation in the United States is considered to be moderate. Most plastic composites manufacturing
operations generate some emissions of hazardous air pollutants (HAPs) during the application and curing
of thermoset resins. The manufacturing of composite products with polyester and vinylester resins and gel
coats in particular can release significant amounts of the HAP styrene. These emissions are regulated by
state and federal air pollution control requirements and most manufacturing facilities are required to
obtain a registration or permit. Although plastic manufacturing equipment makers design their equipment
and manufacturing process to comply with these standards, the regulations have nonetheless increased the
price of the equipment as well as the cost of production. The higher costs associated with these
environmental regulations are one of the reasons that companies are now looking to manufacture in
countries with fewer environmental regulations, such as China.
Recycling legislation, which has also been enacted in several states, requires that a certain specified
minimum percentage of recycled plastic be included in certain new plastic containers. Since the price of
recycled resin is currently lower than the price for virgin resin, it is unclear how these regulations will
affect the cost of production. Depending on the plastic product being produced, these regulations could
pose a problem for manufacturers due to the higher level of impurities present in recycled plastic.

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26

Industry Assistance
The level of industry assistance is low and the trend of industry assistance is steady
There are no specific tariffs for this industry.
Industry assistance is generally in the form of import tariffs, government subsidies or grants, as well as
memberships with associations that can influence the industry. It is common for countries to impose tariffs
on imported plastic products to protect the domestic industry; however, over time this practice is
becoming less common as free-trade agreements among trading partners expand.
For example, North America, one of the largest plastic product manufacturing regions in the world, sees
the countries within it trading freely between themselves, imposing some tariffs on imports from other
origins. In the US, imports of plastic products made from polypropylene and polyethylene are subject to a
3.1% tariff if they are derived from countries, which have normal trade relations with the US (NTR
countries). This is most countries in the world, with the exception of a few. In addition, imports of
polyethylene terephthalate (PET) products are currently subject to a 7.1% tariff. Imports of both high density polyethylene (HDPE) and low-density polyethylene (LDPE) products are also subject to a 6.8%
tariff. Therefore, some protection exists, however it is lower compared to 20 years ago.
Government subsidies and grants to manufacturers are not very common in the Western world but do
occur globally. Emerging economies such as China have subsidies for nearly all businesses that are export
oriented, and hence reduce their production costs. There are no major industry specific subsidies for
plastic product manufacturers in China, while all other subsides for export oriented businesses still apply.

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April 2016

Key Statistics
Industry Data
Establishments
Enterprises
(Units)
(Units)

Employment
(Units)

Exports
($m)

Imports
($m)

Wages
($m)

Global
consumer
spending
($ trillion)

Revenue
($m)

IVA
($m)

2007

843,660.2

146,552.1

118,386

114,931

4,080,203

253,563.3

253,563.3

75,927.6

30.9

2008
2009

904,681.3
657,324.0

155,706.7
129,156.2

126,171
116,704

123,581
114,175

4,157,188
4,235,625

266,722.5
215,256.5

266,722.5
215,256.5

79,930.6
74,072.5

32.5
30.5

2010
2011

662,101.5
785,040.0

124,727.5
134,982.4

121,241
126,055

117,480
121,935

3,451,250
3,713,370

263,222.7
299,684.5

263,222.7
299,684.5

67,786.9
71,394.2

31.4
32.3

2012

671,102.7

129,045.4

130,315

126,167

4,388,529

296,382.8

296,382.8

72,672.7

33.2

2013
2014
2015

682,090.7
677,830.6
741,765.6

131,970.4
135,347.6
144,497.6

133,920
140,423
147,561

129,571
135,728
142,256

4,654,500
4,703,313
4,428,292

309,651.0
303,937.6
324,187.9

309,651.0
303,937.6
324,187.9

74,674.7
78,409.8
80,334.9

33.7
34.7
35.5

2016

739,436.0

145,389.0

151,729

146,591

4,526,916

324,719.2

324,719.2

80,787.5

36.7

2017
2018
2019

742,578.4
745,720.9
746,967.7

146,571.3
146,414.3
148,393.3

154,409
158,968
161,211

149,326
153,993
156,297

4,620,889
4,674,161
4,757,269

336,950.5
346,696.9
359,633.1

336,950.5
346,696.9
359,633.1

82,232.2
83,095.0
84,318.6

38.2
39.3
40.8

2020

748,927.5

148,879.4

165,326

160,538

4,796,230

368,051.9

368,051.9

84,937.4

42.1

2021

750,725.4

149,482.2

166,723

161,948

4,855,239

380,014.7

380,014.7

85,834.6

43.4

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April 2016

Annual Change
Establishments
Enterprises
(%)
(%)

Employment
(%)

Exports
(%)

Imports
(%)

Wages
(%)

Global
consumer
spending
(%)

Revenue
(%)

IVA
(%)

2008
2009

7.2
-27.3

6.2
-17.1

6.6
-7.5

7.5
-7.6

1.9
1.9

5.2
-19.3

5.2
-19.3

5.3
-7.3

5.2
-6.2

2010
2011
2012
2013

0.7
18.6
-14.5
1.6

-3.4
8.2
-4.4
2.3

3.9
4.0
3.4
2.8

2.9
3.8
3.5
2.7

-18.5
7.6
18.2
6.1

22.3
13.9
-1.1
4.5

22.3
13.9
-1.1
4.5

-8.5
5.3
1.8
2.8

3.0
2.9
2.8
1.5

2014
2015

-0.6
9.4

2.6
6.8

4.9
5.1

4.8
4.8

1.0
-5.8

-1.8
6.7

-1.8
6.7

5.0
2.5

3.0
2.3

2016
2017

-0.3
0.4

0.6
0.8

2.8
1.8

3.0
1.9

2.2
2.1

0.2
3.8

0.2
3.8

0.6
1.8

3.4
4.1

2018
2019

0.4
0.2

-0.1
1.4

3.0
1.4

3.1
1.5

1.2
1.8

2.9
3.7

2.9
3.7

1.0
1.5

2.9
3.8

2020
2021

0.3
0.2

0.3
0.4

2.6
0.8

2.7
0.9

0.8
1.2

2.3
3.3

2.3
3.3

0.7
1.1

3.2
3.1

Key Ratios
IVA/revenue
(%)

Imports/
demand
(%)

Exports/
revenue
(%)

Revenue per
employee
($'000)

Wages/
revenue
(%)

Employees
per est.

Average
wage
($)

2007

17.4

30.1

30.1

206.8

9.0

34

18,608.8

2008
2009
2010
2011

17.2
19.6
18.8
17.2

29.5
32.7
39.8
38.2

29.5
32.7
39.8
38.2

217.6
155.2
191.8
211.4

8.8
11.3
10.2
9.1

33
36
28
29

19,227.1
17,488.0
19,641.3
19,226.3

2012
2013

19.2
19.3

44.2
45.4

44.2
45.4

152.9
146.5

10.8
10.9

34
35

16,559.7
16,043.5

2014
2015

20.0
19.5

44.8
43.7

44.8
43.7

144.1
167.5

11.6
10.8

33
30

16,671.2
18,141.3

2016
2017

19.7
19.7

43.9
45.4

43.9
45.4

163.3
160.7

10.9
11.1

30
30

17,846.0
17,795.8

2018
2019
2020

19.6
19.9
19.9

46.5
48.1
49.1

46.5
48.1
49.1

159.5
157.0
156.2

11.1
11.3
11.3

29
30
29

17,777.5
17,724.2
17,709.2

2021

19.9

50.6

50.6

154.6

11.4

29

17,678.8

Figures are inflation-adjusted 2016 dollars

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NOTE: UNLESS SPECIFIED, AN ASTERISK (*) ASSOCIATED WITH

A NUMBER IN A TABLE INDICATES AN IBISWORLD ESTIMATE AND
REFERENCES TO DOLLARS ARE TO US DOLLARS.

Jargon
EXTRUSION A manufacturing process that uses compressive stress on hot and cold materials, such as
polymer, to produce products of a desired shape.
PLASTICA wide variety of synthetic materials. Plastics are polymers and often combined with other
substances and materials to improve quality or reduce costs.
POLYETHYLENE TEREPHTHALATE (PET) A thermoplastic polymer resin used to create synthetic fibers
(i.e. plastic), such as that of food, beverage and other liquid containers.
POLYMER A large, molecular compound used as an input in the manufacture of synthetic fibers such as
plastic.
RESIN A natural or synthetic compound that can take many forms depending on its chemical composition.
Specific to this industry, it is used to make polymer, used in the production of plastic products.

WWW.IBISWORLD.COM

Global Plastic Product & Packaging Manufacturing

April 2016

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