Growing demand from key applications is a key factor in the projected growth of the blow moulding sector. In terms of geographic performance, the Asia Pacific blow moulded plastics market is projected to post an annual growth rate of 5.44% in terms of revenue and 4.24% in terms of volume during the period 2021-2028, according to a report by Inkwood Research (https://inkwoodresearch.com) on the region’s blow moulded plastics market.
The packaging industry of the region has recorded considerable growth, given the economic prospects in the last few years. Also, the semiconductor, automotive, and electronics industries together hold more than 50% of the market share with regard to the manufacture of precision parts. Such factors are estimated to propel market growth.
China remains the leading plastics production powerhouse being the largest and biggest producer of plastics in the world. The low production costs have encouraged high investments in the plastics industry, including the manufacture of plastics machinery. Also, there is an increasing demand for innovative packaging. These factors are expected to fuel market growth in China. In South Korea, market growth is influenced by the availability of low-cost bioplastic. The bottled water market is growing at a rate of 9% every year, due to the growing need for clean water. Also, there has been an increase in liquid milk consumption in the country. Such factors, along with the rising use of plastic containers in the personal care industry, are projected to influence the growth of blow moulded plastics market in South Korea.
Large blow moulded products show promising prospects
The widening use of large blow moulded products in industries such as food & beverages, automotive, petrochemicals, household, construction, and pharmaceuticals is anticipated to serve as growth generator for this segment from 2021-2031, according to a study by Transparency Market Research (www.transparencymarketresearch.com). The study estimates the global market for large blow moulded products to expand at a CAGR of 4.6% up to 2021. The global large blow moulded products market stood at US$4.79 billion in 2020 and is expected to reach US$7.77 billion by 2031. The increasing use of large blow moulded products in household applications such as water bottles, food packaging, and beverage bottles is expected to establish stable revenue streams.
Large blow moulded products are known for their toughness, easy processing, flexibility, toxin free, odour free, extensive clarity, and electric insulation properties, which are projected to offer divers opportunities. Many fluid storing equipment use large blow moulded products; while windshield washer fluid bottles, cooling system overflow containers, and fuel tanks are commonly made using large blow moulded products. These applications are likely to serve as growth boosters for the large blow moulded products market, according to the report.
Resin demand on the rise
With the anticipated growth in the blow moulded plastics market, the demand for blow moulding resin is also projected to rise – at a CAGR of more than 5% from 2021-2026, according to estimates by Mordor Intelligence (www.mordorintelligence.com). While the market is hampered by the COVID-19 pandemic, as lockdowns, social distances, and trade sanctions that have triggered massive disruptions to global supply chain networks, there is also optimism. The pandemic has provided opportunities for the US$900 billion packaging industry due to an increase in demand for packaging of essential items, groceries, e-commerce shipments, and healthcare products, which led to upsurge in demand for blow moulding resins.
Asia Pacific is expected to dominate the global market due to rapid urbanisation and industrialisation, leading to a huge demand for blow moulding resins from countries, such as China, Japan, and India. The report states that over the medium term, the factors driving the market growth for blow moulding resins are rising demand from the packaging industry from the construction sector in the Asia Pacific region. However, on the flip side, COVID-19 impact and limited usage of hollow forms are expected to hinder the market growth.
- This article appears in the International Plastics News for Asia - December issue. To read the magazine, click here.
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