The plastic resin industry in the US has witnessed the rise in demand for resins in the recent years, after a long slump period between 2010 and 2013. The demand from downstream manufacturers, Original Equipment Manufacturers (OEM), and construction drive this industry. In addition to this, in the recent years, there has been a rising demand for plastic resins in the paints and coatings, as well as the electrical and electronics industry. The resin is a viscous chemical liquid, which is widely utilized in many products used today. These are mainly used in the products such as varnishes, plastics, and adhesives. Do you want to know how the plastic resin industry will look in the future? Read this post to know more.
Plastic Resin Industry by Numbers
The following numbers will help you understand how the plastic resin industry has registered growth in the recent years.
- According to a report by the American Chemistry Council (ACC), the production of major plastic resins has reached 7.6 billion pounds in July 2018. This is roughly 8.3% increase in the production when compared to July 2017. The plastic resin production between January and July 2018 has reached 50.00 billion pounds. Overall, there has been a 6.5% increase in the production capacity, when compared to the period between January and July 2017. The sales of major plastic resins have reached 7.3 billion pounds in July 2018, which is almost a 9.3% increase from July 2017. The report also suggests that the captive use of these resins in July 2018 was around 49.6 billion pounds, which is 6.6% increase when compared to July 2017.
- A research by Statista suggests that the plastic resin production in 2017 was 113 billion pounds. Thermoset polymers, mainly epoxy, has contributed to about 16.8 billion pounds of the production. Some popular thermoset polymers include nylon, PVC, high-density polyethylene and polypropylene resins. The thermoset polymers industry is projected to show a growth of 1.6% in 2018 in comparison to 2017. Thermoplastics or thermoset polymer plastics are widely used in the industries such as building and construction, packaging, consumer electronics, etc.
Key Projections on Popular Resins
The following projections are made on the basis of reports collated from various sources.
- Polyethylene: There is an increased demand for cross-linked High-density Polyethylene (HDPE) and Linear Low-density Polyethylene (LLDPE). The global cross-linked HDPE market will reach USD 7,863 million in 2022, whereas it is expected to reach USD 59 billion in 2023.
- Cross-linked HDPE possesses a high density to strength ratio than LDPE. There are minimal branches of polymer chains in HDPE, which contributes to its high density, rigidity, and less permeability. HDPE compounds are widely used as a replacement of plastic insulations, PVC, as well as copper tubes.
- Linear Low-density Polyethylene (LLDPE) is one of the important types of LDPE, which comprises short polymer chains. These polyethylene compounds differ from their low-density variants due to the absence of long polymer chain branching. LLDPE compounds are mainly used in the production of films used for food and non-food packaging, as well as extrusion coating applications, etc.
- Polypropylene: In the report titled “The Polypropylene – Global Market Outlook” by ResearchAndMarkets.com, the global polypropylene market is expected to reach $126.89 billion in 2026. The increasing use of this thermoplastic polymer in the automotive industry is the key driver of the growth. Polypropylene, also referred to as polypropene, is a linear hydrocarbon polymer resin, which is well-known for its flexibility, excellent chemical and electronic resistance at moderately or extremely high temperatures. All these properties make it an ideal choice for industries such as automobile, carpeting, toy making, etc. This resin is also used in the cosmetics and toiletries industry.
- Polyethylene Terephthalate (PET): According to various market reports, the global market for PET packaging is expected to reach USD 74.32 Billion in 2021. The global consumption will be 21.1 million tonnes for the same. The demand for this plastic is driven by its increasing utilization in various transitional economies. This plastic resin has excellent moisture and gas barrier properties, which makes it a suitable choice for food packaging applications. PET plastic resins are widely used in the food packaging industry for making plastic drink bottles, food jars for jelly, jam, and peanut butter, etc. These resins are also used in textile and engineering industry.
- Acrylonitrile-Butadiene-Styrene (ABS) Resins: The market for ABS resins is forecasted to be USD 30 Billion in 2022. It is one of the largest volume types of thermoplastic resins, which offer a brilliant combination of chemical, thermal, and impact resistance. Above all, the processing capability of this resin makes it an ideal choice for building electronic and electrical parts, appliance parts, automotive applications, etc. Additionally, its excellent ductility and strength at low temperatures will contribute to its high demand in the future.
- Nylon 6 & 66: The Nylon 6 & 66 market was valued at USD 24.4 billion in 2016, and it is expected to register growth at the CAGR of 6.1% between 2017 and 2025. These polyimide grades are becoming a fast replacement for metal parts, owing to their characteristics, such as durability, lightweight, strength, etc. Nylon 6 can be processed at low temperature with low mold shrinkage, whereas Nylon 66 has a high melting point, and is ideal for high-temperature applications. Nylon 6 is mainly used for the production of automotive components, circuit breakers, firearm components, etc. Nylon 66 is mainly used for making battery modules, recreational equipment, fasteners and bolts, etc.
Although there have been stringent regulations on the manufacturing of these resins, still their demand is increasing every day due to several benefits they offer. Do you wish to source your resins from a reputed supplier? Mid Continent Plastics is one of the leading suppliers of the aforementioned plastic resins in the USA. The company supplies these resins in various quantities.