Plastics : Explanation of market analysis in the plastic industry with real examples

Here's an in-depth yet simple explanation of market analysis in the plastic industry with real examples

Current market trends: 

Example: 

The shift from single-use plastic bags to reusable PE bags in supermarkets leads to analyzing how this affected PE resin demand and pricing.

Demand analysis: 

Example: 

A bottle manufacturer analyzing how the summer season increases PET bottle demand by 40% for beverages, requiring production planning adjustment.

Industry sector analysis:

Example: 

Medical sector during the rise of diseases will see an increase in PP demand for syringes and medical containers, causing manufacturers to reallocate production capacity.

Competition assessment: 

Example: 

Company X noticed Competitor Y offering recycled PET at 10% lower prices, leading to market share analysis and pricing strategy review.

Geographic market study: 

Example: 

European ban on single-use plastics created new market for biodegradable alternatives, making companies shift production to meet new regulations.

Price analysis: 

Example: 

When oil prices dropped 30% in 2020, PE resin prices decreased by 25%, affecting the entire supply chain pricing structure.

Technology impact: 

Example: 

Introduction of smart packaging with QR codes on yogurt containers increased HDPE demand in dairy packaging sector.

Future projections: 

Example: 

Analysis showing 40% growth in biodegradable plastic demand for 2025 leads to investment in PLA production lines.

PLA (Polylactic Acid) is a biodegradable thermoplastic derived from renewable resources like corn starch and sugarcane. It's widely used in packaging, and disposable items due to its ease of processing, low environmental impact, and ability to break down into natural compounds under proper composting conditions. 

Environmental factors: 

Example: 

Coca-Cola's pledge to use 50% recycled content by 2030 driving up rPET market analysis and investment.

rPET (recycled Polyethylene Terephthalate) is a sustainable plastic material made by processing and reusing post-consumer PET products, primarily plastic bottles. This recycled material helps reduce plastic waste and requires less energy to produce than virgin PET while maintaining similar properties for use in packaging, textiles, and other consumer products.