Rigid Transparent Plastics Market

Rigid Transparent Plastics Market Analysis

The Rigid Transparent Plastics Market is expected to register a CAGR of greater than 6% during the forecast period.

Currently, due to the COVID-19 pandemic, the packing industry is on a booming trend, by material, the plastics sector has the highest demand. The manufacturers who initially prefer another type of plastics for apparent health care safety, as it was much safer, more adorable, and long-lasting for years, are now using plastic for the packing industry. This factor has increased the demand for rigid transparent plastic.

• In short term, the growing demand for plastic packaging in the medical industry leads to the demand for rigid transparent plastics.
• However, shifting of focus toward flexible packaging over rigid packaging tends to constrain the demand for rigid transparent plastic.
• The recyclability of plastics is projected to act as an opportunity for the market in future.
• Europe is dominating the overall rigid transparent plastic market, during the forecast period.

Rigid Transparent Plastics Market Trends

Increasing Demand from Packaging Industry

• The Global packaging industry has come across steady growth from the recent years and is expected to continue, driven by shifts in choice of substrates, expansion of new markets, and changing ownership dynamics.
• Additionally, growth in pharmaceuticals, cost-effectiveness of thermoforming and the ease of disposal are some of the other factors driving the packaging industry nowadays.
• Packaging is the 5th largest sector in India's economy and is one of the highest growth sectors in the country. According to Packaging Industry Association of India (PIAI), the sector is growing at a rate of 22-25% annually.
• Owing to the rising population in China, people are increasingly consuming products like food, beverages, and on-the-go pharmaceuticals. This is increasing the demand for packaging solutions that are convenient and portable. The Chinese packaging industry is expected to grow at a rate of 5.9% per year till 2020.
• In the United States, among the different types of packaging, the flexible packaging market is growing at a faster pace, owing to the benefits of flexible packaging and higher end-user preference over other packaging types. The changing trends in consumer behavior and the manufacturers' convenience are resulting in a faster growth of the flexible packaging market in the country.
• The packaging industry in Germany is also growing at a rapid pace, owing to the huge increase in domestic e-commerce and rising foreign exports. In addition, the increasing preference for packaged food and beverages is also leading to the growth of packaging industry.
• All the aforementioned factors are likely to help the market for rigid transparent plastics flourish in the packaging segment, during the forecast period.
• Also, due to the COVID-19 pandemic, the demand of rigid plastic in medical industry have been increased. However, the production of rigid plastic products had declined due to shutdown of manufacturing facility, which have constrained the growth of the short period of time.

Germany to dominate the European Market

• In Europe, Germany represents the largest economy and it is the fifth-largest economy in the world in terms of GDP. The growth of the automotive, healthcare, and construction & building sectors in the country have contributed largely toward the increase in demand for rigid transparent plastics.
• Moreover, the electronics & telecommunication sector is also growing, with the increase in the use of IT services in almost all industries throughout the country. With an increase in the use of consumer electronics, the demand for rigid transparent plastics is expected to rise gradually in the country.
• Germany witnessed an increase of over 15% in the new residential building permits, and this growth trend is expected to continue, owing to the growing demand for real estate, growing population, increased job security, and low borrowing costs.
• Hence, with the booming housing market and real estate demand, the construction & building industry is expected to grow rapidly, in turn, increasing the market for rigid transparent plastics in the country.
• Additionally, In Europe, Germany holds the largest healthcare market. The annual expenditure on health in the country is estimated to be more than EUR 320 billion, excluding fitness and wellness.
• With the demographic change and digitalization, the country has been investing in mobile healthcare facilities and is expected to grow by over EUR 3 billion shortly, thereby, providing a platform to further expand the German healthcare sector.
• Above mentioned factors are driving the market for rigid transparent plastics in the country.
• However, due to sudden break on construction activities, and shutdown of manufacturing facilities during the COVID-19 pandemic, the demand of rigid transparent plastic tends to decline, which tends to constrain the growth of the market in the current period of time.

Rigid Transparent Plastics Industry Overview

The rigid transparent plastics market is expected to be partially consolidated, with the top five-six players occupying a significant share of the market. Key players in the rigid transparent plastics market include SABIC, BASF SE, Covestro AG, Arkema, and LOTTE Chemical CORPORATION, among others.

Rigid Transparent Plastics Market Leaders