Plastics that are used in large volumes for various uses such as packaging, electronics, consumer goods, photographic, magnetic tape, textile and variety of household products are known as commodity plastics. This class of plastics exhibit relatively low mechanical properties and are of low cost. Commodity plastic products are plates, trays, cups, trays, medical trays, containers, printed material and other disposable items. Europe’s commodity plastic market is highly competitive due to the presence of multiple vendors. Almost all the manufacturers are investing heavily in various plastic manufacturing to expand their product portfolio to serve the extensive needs of the increasing population in Europe.
According to the study “Europe Commodity Plastics Industry Situation and Prospects Research Report”, it was observed that commodity plastic market is witnessing an increasing use over glass materials for food and beverage packaging which has a positive impact on growth of European market. The high-end food manufacturing units, beverage manufacturers and alcohol manufacturers prefer commodity plastics over glass for packaging. Commodity plastics are lightweight and safer handling when compared with glass bottles which are fuelling growth in European commodity plastic market.
Geographically, Europe’s commodity plastic market is spread across Germany, Russia, UK, France, Italy and other regions. Europe’s commodity plastic market is segmented into PE, PP, HDPE, PVC, PET and PS. Polyethylene (PE) accounts for a major share in the commodity plastics. The major applications of Europe’s commodity plastic market are in packaging, consumer goods, electronics, automotive, textiles and pharmaceuticals. Europe’s commodity plastic market targets audience such as producers, traders, distributors, associations, government bodies, various industries, plastic manufacturers and research institute. The leading players in Europe’s commodity plastic market are DuPont, BASF, Sumitomo Chemical, Exxon Mobil, China Petrochemical Corporation, The Dow Chemical Company, LG Chem, SABIC, Royal DSM, LyondellBasell Industries Holdings, Chevron Phillips Chemical Company, Formosa Plastics, Borealis, INEOS, National Petrochemical Company, NOVA Chemicals, Versalis and Reliance Industries Limited.
Industrialization is propelling the demand for various commodity plastics in Europe. The country also imports high density polyethylene based beverage bottles for packaging. Advanced technology coupled with innovation and new techniques in manufacturing of polyethylene will definitely drive the European markets.
Packaging industry accounts for a major share in the European commodity plastic market due to properties such as combination of lightness, flexibility, ease of sterilization, impermeability, and other features which ensure that the food maintains its natural taste, free from external contamination. The increasing consumption of commodity plastic is due to the increasing demand for package foods, light weight products and easy to handle products.
It was observed that there is a slight decline in the demand for commodity plastics in European countries due to growing awareness in environmental concerns and stringent regulations governing the production of plastics. This trend may leave a huge impact on the commodity plastic manufacturers because the population is either avoiding plastic products or prefer recycling the used plastic products. Therefore, there may be a huge impact on production and consumption of commodity plastic in Europe over the next few years.
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Ankur Gupta, Head Marketing & Communications