1. OVERVIEW
The plastic industry back dates to the early 1900s, but it wasn’t until the 1950’s that the mass production of plastics began. Since then, more than nine billion metric tons of plastic materials have been produced worldwide, with plastics becoming a ubiquitous part of human life.
2. PLASTICS PRODUCT
Annual global plastic production reached a high of 368 million metric tons in 2019, having experienced a compound annual growth rate (CAGR) of roughly 3.5 percent from 2010. However, the plastics industry was disrupted in 2020 due to the outbreak of COVID-19, which caused global output to decrease by an estimated 0.3 percent compared to 2019. China is the leading producer of plastics, accounting for roughly 31 percent of global production. In comparison, plastic production in Europe continued to decrease, falling by an estimated five percent compared to 2019. North America (NAFTA) is the second-largest producer, with plastic production in the United States amounting to more than 56 million metric tons in 2019.
Although there are thousands of different plastics, there are approximately seven broader types of plastic that are produced and consumed in large quantities, in which Polyethylene (PE) is the most widely produced plastic worldwide and is used to produce many products, such as packaging. The second-most produced plastic is polypropylene (PP), of which more than 70 million metric tons worth was produced in 2020.
3. PLASTIC CONSUMPTION DEMAND
Despite the recent backlash against plastics due to pollution concerns, plastic remains a hugely important commodity that is used in virtually all aspects of modern daily life. Thus, plastic demand is set to continue growing for the foreseeable future, with production set to reach 589 million metric tons in 2050. The global demand for polyethylene terephthalate (PET) – a thermoplastic polymer most associated with plastic bottles – reached 27 million metric tons in 2020 and is projected to reach 42 million metric tons by 2030. The demand for eco-friendly solutions such as sustainable plastic packaging is also expected to experience growth.
4. ADVANTAGE AND WEAKNESS
COVID-19 has had an impact on sustainability goals in the industry. Specifically, Vietnam and many countries around the world, which are the main export markets of packaging enterprises, have also switched to a strategy of living with COVID-19, the economy has many prospects for recovery in 2022, along with that. More people getting jobs and buying more consumer goods opens up growth opportunities for the packaging industry.
Sanitation concerns have led to a significant increase in demand for single-use plastic products such as gloves and masks, but plastic waste is not just a problem of any single country, but a global problem. It's a global issue, but given the current situation, some cities have had to temporarily lift bans on these items.
