This research report on the blow molded plastics market covers market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The study includes insights by Plastic Type (Polyethylene Terephthalate (PET), Polyethylene (PE), Polyvinyl Chloride (PVC), Polypropylene (PP), and others), Technology Type (extrusion blow, injection blow, and stretch blow), End-user Type (packaging, automotive & transportation, building & construction, and Industrial and Others), and Geography (APAC, Europe, MEA, North America, and Latin America)
The global blow molded plastics market is currently focusing on the recycling of plastic materials to ensure the sustainability of the environment. Regulations with respect to the usage of certain packaging materials and the disposal of the same are growing across the world. Developed countries are leading the charge with framing new regulations and issuing new directives to the packaging industry, which largely uses fossil fuel-based plastic raw materials. Major brands are facing pressure for the usage of highly non-recyclable and other single-use plastics. The circular economy policy and the bioeconomic strategy by the European Commission are the two flagship policies that look at the production of renewable biological resources and reduction of carbon footprint by efficient usage of bioplastics, thereby reducing the impact of plastic packaging on the environment.
The incitement in dairy producers in China and India is generating high-volume demand for packaging products. The rise in disposable incomes is expected to increase further the demand for dairy products, which would increase dairy production by around 2% on the YOY basis. World milk prices have increased significantly and are currently at record prices; this trend is expected to continue, and the market will witness volatility. Hence, the demand for dairy packaging will largely be catered by blow molded plastics.
The blow molded plastics market is expected to grow at a CAGR of over 4% during the period 2019–2025.
This research report includes detailed market segmentation by type, technology, end-user, and geography.
Insights by Plastic Types
Depending on strength, quality, and durability, blow molded plastics use several polymers. The ease of production and a high productivity rate of stretch blow together act as the major factors for the high popularity of PET across several end-user sectors. Food, beverage, and other liquid containers are the major packaging related products of PET molded plastics. The polymer’s recyclable property is driving the adoption of PET. Beverage bottles, pharmaceutical bottles, juices, tea, and personal care segments are the major application areas.
The presence of high rigidity increases the application of PE polymers in home care products (bath, laundry bottles, kitchen) and personal care products. LDPE-based blow molded plastics are mainly used for food packaging of mustard, ketchup, and generic food storage containers. As polyethylene has the highest recycling rate of over 25% in the US, its adoption is expected to increase during the forecast period. Closely following PE, in terms of demand, PP is one of the most widely used polymers. High-cost benefits/performance ratios make this polymer highly used material in blow molding. PP is stiff with low density, which offers many benefits. Laboratory apparatus, automotive components, and food packaging are the major application areas of PP. The PP resins supply side market is highly concentrated, and the polymer is not available in adequate quantities across the world, thereby inhibiting its application through blow molded plastic technology. PVC’s high resistance to chemicals and oils makes the polymer an exceptional choice in the toiletry and cosmetic industry. Mascara containers, agricultural sprayers, and other industrial chemical applications use PVC blow molded plastics.
Insights by End-users
The blow molded plastics market is the highest in the packaging sector, which includes F&B, dairy, personal care, pharmaceuticals, and pet-food industries. Consumer packaging accounted for a major share of the global blow molded plastic packaging market in 2019. The consumer packaging market is expected to grow at a faster rate than industrial packaging.
The increasing consumption of dairy products in Europe and North America is growing, with the per capita consumption increasing by 4% YOY. Glass bottles still dominate the dairy packaging market, and brands are shifting to rigid plastic and liquid packaging board. The milk quota has significantly affected the European market and has helped China to be a major competitor in the industry.
The growing automotive industry is adding new opportunities for blow molded plastics. Technological transformations in the automotive industry are accelerating fast with changing customer preferences. Autonomous driving and new mobility solutions are expected to impact traditional vehicle manufacturers. However, it offers an opportunity for blow molded plastic manufacturers. The agreement between auto component suppliers (all tiers) and automakers will witness a restructuring during the forecast period, especially with respect to powertrain-related components.
The market is driven by constructions in the commercial sector, which accounts for a 20% share, while the manufacturing sector accounts for around 14% of the global construction volume. Barrier fencings used in the construction sector and public utility buildings will drive the blow molded plastics market.
Insights by Technology Type
The design flexibility (angular, oval, curved) is a major growth enabler for extrusion blow molding. The growth of extrusion molding is highly dependent on household bottles, personal care, and oil bottles. Although the fixed cost is high, the low variable cost per piece makes the technology hold on to its high market share of over 40% in the overall market.
The capital expenditure for a stretch blow molding equipment is higher than extrusion or injection molding, hence it is a challenging factor for its growth. Stretch blow molding is the process most generally used for the making of PET water bottles. Hence, the high capital expenditure is offset by the volume demand of PET bottles. The demand for plastic jars, deodorants, and pharmaceutical bottles is expected to be a major growth enabler for injection blow molding technology. The shift of pharmaceutical packaging from glass bottles to plastic bottles is steadily growing and is expected to be a major growth enabler during the forecast period.
Insights by Geography
The use of blow molded plastic is growing in applications across the world. With over 60% of the demand generated from Europe and APAC, the market is hugely dependent on the consumption in these regions. The clusters of plastics processing APAC have increased, thereby accelerating market growth. The low-cost manufacturing base in the APAC region lowers the cost by 6–10% than Europe and North America, thereby providing a competitive edge to the industry in this region.
The growth momentum in Europe is decelerating, while North America is accelerating. Currently, high-end automation in the US is estimated at 55%, while Canada has around 35% of the processes highly automated. In the next five years, automation is expected to reach 85% in North America. The US is a major market for innovative blow molding machines on account of its sophisticated industries and demand for cutting-edge technology. From a demand perspective, the US is a major market for industries such as F&B, pharma, and personal care. It is also a major automotive sector, with vendors such as Ford, Chrysler, General Motors, and other international OEMs.
Developing economies of APAC - India and China- continue to drive industrial activities and retail consumption, which is fueling a surge in demand for high-performance modules, containers, and parts made of plastics. Plastics, which are utilized in the manufacturing of solid goods, is expected to gain traction, thus positively affecting the plastic processing industry. The APAC market is largely volume-based with dairy products experiencing high demand being distributed across a vast geographical area. Australia, Japan, China, are the major drivers for packaging in APAC as their spending on F&B and dairy sectors is relatively high.
Key Profiled Countries
Insights by Vendors
The competition level in the blow molded plastics market is high as the industry is characterized by a large number of vendors, both small and large. The switching cost for buyers is low, making the market open for poaching customers. A large part of profit margins for vendors depends on the cost of the raw materials, the efficiency of molding machines, and the molding process. The industry is characterized by many large vendors that have diversified operations and also standalone operations. Alpha Packaging, Alpla-Werke, Graham Packaging, Plastipak Holdings, Amcor, Berry Global, and Consolidated Container Company are some of the prominent players. On account of high demand from customers in fast-moving end-users such as beverage, dairy, juice, and pharmaceuticals, industry leaders continually expand their capacities by enhancing the existing facilities or building new facilities.
Other Prominent Vendors
Key Market Insights
The analysis of the blow molded plastics market provides market sizing and growth opportunities for the forecast period 2020–2025.
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