Tracing the consumption curve

The GCC markets are moving at an admirable pace. On the back of a recovery fuelled by higher crude prices and a sense of stability, investments continue to pour in.
 According to a recent study sponsored by the Qatar Financial Centre Authority, "The GCC in 2020: Outlook for the Gulf and the Global Economy", the member countries of the GCC (Gulf Cooperation Council) are expected to show robust growth as the population is expected to reach 53.5 million by 2020, a 30% increase over 2000 levels.
 Growth in the indigenous population is also attributed to the influx of expatriates. As investments pour in, infrastructure expands and economies grow, these pave the way for employment opportunities. All these factors are driving growth in consumer spending for products and services. This trend has supported innovations in plastics and rubber products output. Consumer plastics products used for domestic purposes are of varied nature. A few generic ones include microwave storage boxes, food containers, air-tight canisters, kitchen tools, disposable plates, cutting boards, lunch boxes, pail boxes, frosty mugs, cups, pitches, giftware, souvenirs, shopping bags, garbage bags, other kitchen ware, etc.
"The Gulf has witnessed significant expansion in plastics production in a short period of time. The challenge in the region moving forward is converting the production of plastics raw materials into more high-value downstream industries manufacturing components and finished goods. That will lead to further industrial diversification in the region, more profitably and more jobs," according to a statement by Dr. Abdulwahab Al-Sadoun, Secretary General of Gulf Petrochemicals and Chemicals Association (GPCA).
As demand for consumer products increase, there is a proportional increase in the demand for raw materials required to produce them, with polyethylene (PP), polypropylene (PP) and polyethylene terephthalate (PET) being the few important ones.
"Plastics that are most commonly used to make household items are PE and PP, and they continue to dominate the Middle East market, whilst acrylonitrile butadiene styrene (ABS), an engineering thermoplastic, finds usage in household consumer appliances.  However, globally, demand volumes of ABS are much smaller compared to those of PP or PE. PET is used to make plastic bottles on the other hand," Vishnu Sankaran, Industry Manager, Chemicals and Materials Practice, Middle East and North Africa, Frost & Sullivan explained.
He added: "Demand for these plastic raw materials within the GCC region has been increasing over the last few years. Whilst most of the products are exported, there has been an increasing trend of in-house consumption of PE and PP for further conversion to household and other products. This trend is expected to continue, with the development of polymer conversion parks as well. Moreover, higher population growth which in turn is expected to increase food consumption and housing needs, rising disposable incomes as well as rapid urbanisation are all expected to drive demand for household plastic items in the near to medium future."

Versatility in application
PP is one of the most widely used plastics globally, deployed in applications across a gamut of sectors, household products being one of the most prominent ones. PE is found in many ordinary household items such as wraps, bottles, containers, toys, bags, etc. According to Frost & Sullivan, by 2015, Middle East's total PE capacity is expected to increase by 6 million tonnes to reach around 18 million tonnes. Similarly, Middle East's PP capMens Running Shoes & Running Trainers