The commodity plastics market has witnessed a minor decline in its growth since the coronavirus outbreak in 2020, as commodity plastics used in industries such as construction, electronics, construction, and textile have witnessed a decline in demand during this period. However, the global commodity plastics market is expected to grow to reach USD 596.1 billion by 2025. Factors such as increasing metal prices, the growing packaging industry, and the growing production of lightweight commodities are among the main driving factors of the market.
COVID-19 crisis has also played a major role in the commodity plastics industry market.
– During COVID-19, single-use disposable packaging has made a comeback to the market, since many considered it as the more hygienic and safer choice for food packaging. In addition, many commodity plastics manufacturers have altered their designs and shifted their operations as a swift response to the pandemic.
– While the restaurant and foodservice industry has suffered from a grinding halt during the first months of the coronavirus pandemic, commodity plastics have played a role in providing an effective solution for food packaging and delivery.
– On the other hand, travel restrictions have led to a decline in automobile sales and many companies in China and the US have suspended their operations. This, in turn, has led to a decrease in the use of plastics in the automotive industry.
– Moreover, COVID-19 has caused disruption in the electronics industry which also affected the commodity plastics industry. Since China is the major supplier and manufacturer of raw materials, COVID-19 outbreak in the country has led to disruption of the supply chain and necessitated the need for global players.
– COVID-19 had a negative impact on the global construction business. The pandemic has affected key cost constituents of construction projects such as material and labor which created a challenge for contractors with ongoing projects. Many contractors have resorted to cost-effective approaches to manage the crisis.
While the effect of coronavirus on the commodity plastics market has been aggressive, new product launches, expansion, and acquisitions are to offer new growth opportunities for market players during the next five years.
