South America Thermoplastics Market

South America Thermoplastics Market Analysis

The South America Thermoplastics Market is expected to register a CAGR of greater than 5% during the forecast period.

• Impact of COVID-19 pandemic is expected to hinder the growth of the market.
• Brazil dominated the South American thermoplastics market.

South America Thermoplastics Market Trends

Packaging Industry to Dominate the Market

• Packaging accounts for the largest application segment in the South American market. The prime reasons for the growing application of engineering plastics, in the packaging segment, are better wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength.
• Some of the major applications of engineering plastics, in the packaging segment, are as follows: packaging of bottled water, flexible packaging, such as sausage skin, flexible foils, such as shopping bag.
• Polyethylene terephthalate (PET) is one of the plastics majorly used for packaging purposes, mostly in the food and beverage industry. Portability, design flexibility, ease of cleaning, light weight, and protection against moisture, are a few properties of PET, which makes it suitable for packaging purposes. In addition, low handling hazards, low toxicity, and absence of bisphenol A (BPA) and heavy metals are some of the other factors that allow PET to be used for food packaging.
• PETs are used for making clamshells, bakery and take-out containers, microwaveable food trays, carbonated soft drink bottles, and other packages. Other applications include packaging materials for cooking oils, shampoo, hand wash, and more products.
• Polyamide is another major engineering plastic that finds major application in the packaging sector. Bi-axially oriented and non-oriented polyamide films are used in medical and food packaging, owing to the former's high impact strength and good heat resistance.
• Increasing household and commercial applications for containers, plastic bags, canisters, and tableware, among others, are expected to drive the consumption demand for plastics in the packaging sector, during the forecast period.
• The usage of plastics for packaging products is expected to experience a fairly steady demand, during the forecast period. Requirements for rubber gloves in the healthcare sector, stretch films, garbage bags, and other medical devices, are anticipated to witness greater demand, in the coming years.

Brazil to Dominate the South American Market

• Brazil is a leading consumer of thermoplastics, in the automotive industry, due to the continuous emphasis on efficient vehicles in the country. The regulations regarding emissions have had an impact on the production of motor vehicles in the country, this dip has had an impact on the growth of thermoplastics in the country's automotive sector.
• In addition to this, the country is one of the leading manufacturers of regional and business jets and manufactures a range of aerospace products, which include turboprops, military aircraft, agricultural aircraft, business aircraft, helicopters, and other general aviation aircraft.
• The sales of consumer electronics, in the country, appear to have reached a saturation level. Consumers are more careful while buying expensive products, and this behavior is expected to continue in the upcoming years. Despite the challenging situation, Samsung and LG are continuing to strengthen their position in the country, as leading electronics manufacturing companies.
• Such growth in various industries is expected to drive the market for thermoplastics in South American region during the forecast period.

South America Thermoplastics Industry Overview

The South America thermoplastics market is partially consolidated with the major players accounting for a decent share of the market. Some of the prominent players in the market include Solvay, Röchling, BASF SE, DSM, and LyondellBasell Industries Holdings B.V. (incl. A. Schulman Inc.), among others.

South America Thermoplastics Market Leaders