Market Trends of Plastic Compounding Machinery Industry
This section covers the major market trends shaping the Plastic Compounding Machinery Market according to our research experts:
Packaging Industry Expected to Show Maximum Adoption
- The adoption of plastic compounding machinery is expected to grow significantly in the packaging industry owing to the differential growth across materials and formats, which is significantly driving the fundamental shifts in the packaging industry. These differentials are a by-product of changing consumer behaviors and product innovation within the market.
- Also, packaging is the largest end-user segment for plastic products accounting for more than 40% of the total plastic usage in the world. Also, consumers have exhibited an increasing inclination towards plastic packaging, as plastic packages are light in weight and more comfortable to handle.
- Also, the increasing focus on packaging and the use of packaging material across end-user industries is expected to boost the adoption of plastic compounding machinery in these industries during the forecast period. For instance, when it comes to the features of food packaging, the critical consumer priorities across all markets relate to the hygiene and leak-proof properties of the container, but the packaging material itself is also considered essential.
- Furthermore, in recent years, the growing environmental concern has been driving the demand for bioplastics in the packaging industry, which is expected to create growth opportunities for the studied market. For instance, according to European Bioplastics, in 2022, the total production capacities of bioplastics in the rigid and flexible packaging industry were about 376.1 thousand metric tons and 695.6 thousand metric tons, respectively.
- The growth of the e-commerce industry has also become a key instigator behind the demand for plastics for packaging. According to Oceana, the estimated use of e-commerce plastic packaging is expected to reach 4,533 million pounds by 2025. Such trends create a favorable outlook for the studied market's growth.
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Asia-Pacific is Expected to Exhibit the Maximum Growth
- The Asia-Pacific region is expected to register the maximum growth rate during the forecast period, owing to several factors, such as the changing demographics and social factors, such as growing urbanization, aging population, and the rising middle class and their growing aspirations, in countries like China, Japan, and India.
- Strong demand for engineering plastics in Asia-Pacific is likely to boost the plastic compounding industry, which is expected to propel the compounding machinery demand in the region. One of the major drivers of engineering plastics is the growing purchasing power of consumers in developing countries/emerging economies.
- With consistent economic growth in the region, the financial status of consumers is increasing, which in turn is improving their purchasing power. As a result, their demand for and production of automobiles is growing consistently. In addition, with the improvement of their purchasing power, their demand for technologically advanced consumer goods and appliances and electrical and electronic goods is continually increasing, which in turn is boosting the demand for engineering plastics in Asia-Pacific.
- Several countries in the region are taking major steps to introduce solutions and incorporate sustainable processes in the businesses to achieve sustainable development goals, which is expected to have a notable impact on the studied market's growth.
- Furthermore, the growing demand for packaging plastics and other plastic products across various end-user industries is encouraging several players to expand their presence in the region. For instance, Celanese, a leading plastic compounding company, is planning to expand its Nanjing, China, Compounding, and LFT facilities to add approximately 52KT of compounding and long-fiber thermoplastics (LFT) capacity by the second half of 2023.
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