Plastic Processing Machinery Market - Forecast(2023 - 2028)

Plastic Processing Machinery Market Overview

Plastic Processing Machinery Market size is forecast to reach US$44.7 billion by 2027, after growing at a CAGR of 5.1% during 2022-2027. Plastic processing is defined as the process of converting raw plastic material into semi-finished products. Plastic primary processing machinery, also known as plastic molding machinery, is used to mold plastic semi-products and products, including rotational molding machine and compression molding machines, while the plastic secondary processing machinery is adopted to reprocess and post-process plastic semi-products and products, such as printing and thermoforming machines. The different types of plastic processing machinery includes blow molding machinery, compression molding machinery, extrusion molding machinery, injection molding machinery and others. As per the International Bottled Water Association (IBWA), people in US consumed 13.8 billion gallons of bottled water in 2018. Also, according to a new national survey conducted online by The Harris Poll on behalf of the IBWA, more than 9 in 10 Americans expect bottled water to be available wherever other drinks are sold. The increased demand from the pharmaceutical and packaging industry is driving the market growth.

Covid-19 Impact

The outburst of the covid-19 has specified several extraordinary challenges to all manufacturers and production companies. The plastic processing machinery industries also confronted a lot of difficulties in assembling plastic and receiving the workforce as the whole world was under quarantine. The gathering of the raw material and the delivery of the end product all was at stake during the lockdown. However, after a while, the market was back to normal when certain rules were changed. With the change where everyone around the world has to turned into extra aware of environmental safety. As the lifestyles have transformed people are choosing to be healthier and more sustainable after the pandemic.

Report Coverage

The report “Plastic Processing Machinery Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Plastic Processing Machinery Industry.

By Product Type: Blow Molding Machinery, Compression Molding Machinery, Extrusion Molding Machinery, Injection Molding Machinery, Rotational Molding Machinery, and Others.
By Plastic Type: Polypropylene (PP), Polyethylene (PE), Polyurethane (PUR), Polyvinyl Chloride (PVC), Polyethylene Terephthalate (PET), Polystyrene (PS), and Others.
By End-Use Industry: Packaging, Building and Construction, Automotive, Electronic and Electrical, Agriculture, and Others.
By Geography: North America (USA, Canada and Mexico), Europe (UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and Rest of the world (Middle East and Africa).

Key Takeaways

•  Asia Pacific dominates the plastic processing machinery market owing to a rapid increase in the packaging sector.
• The demand from pharmaceutical packaging sector is driving the market. After the pandemic the demand for healthcare facilities, medicines and related products are in high demand and eventually growing on daily basis. Thus, driving the demand for caps and closures market.
• Stringent government regulation on banning polymer is hampering the market growth.

 Figure: Asia Pacific Plastic Processing Machinery Market Revenue, 2021-2027 (US$ Billion)

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Plastic Processing Machinery Market Segment Analysis - By Plastic Type

The Polyethylene Terephthalate (PET/PETE) segment accounted for approximately 12% of the market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. PET is the utmost used polymer in the world and is a high gloss, crack-resistant transparent plastic. As a raw material, PET is considered as a safe, strong, lightweight, flexible, and non-toxic material that can be effortlessly recycled. It is extensively used in numerous applications such as automotive, food and beverage packaging, and electronics. The growing demand for bottled drinks and glass and metal container replacements finds no better alternatives to PET, due to its versatility in shape and size. It is entirely recyclable and also the highest recycled plastic in the U.S and worldwide. It is recycled by carefully washing and re-melting it, or by chemically breaking it down to its component materials to make new PET polymer. For instance, the U.S PET recycling rate was 27.9% in 2019. Rising demand of polyethylene terephthalate in food and beverages packaging such as carbonated soft drinks packaging contributed to the growth of the polyethylene terephthalate market which increased the growth rate of plastic processing machinery 

Plastic Processing Machinery Market Segment Analysis - By End-Use Industry

Packaging segment accounted for approximately 18% of the market shares in 2021 and is estimated to grow at a significant CAGR during the forecast period. The market for packaging is growing as plastic processing machinery are rapidly endorsing its trade in the construction and electronic sector. The Indian packaging sector have witnessed considerable growth largely due to increased globalization of trade in goods and services and the emergence of new trade models, such as e-commerce and organized retailing. As per the Indian Institute of packaging, the packaging consumption in India has increased to 200% in the past decade, rising from 4.3 to 8.6 kg per person per annum. The rising growth of packaging industry will drive the demand of plastic processing machinery market during the forecast period.

Plastic Processing Machinery Market Segment Analysis - By Geography

Asia-Pacific region held the largest share in the plastic processing machinery market in 2021 and is forecast to grow at 6.2% CAGR during 2022-2027. China, being an emerging economy in the Asia-Pacific region, is witnessing an exponential rise in the number of manufacturing activities, which would require high-performance components that consume plastic in various end-user industries. Within the types of plastic processing machinery, injection molding machinery is expected to hold a significant share in China. Some of the prominent players operating in this segment of the market include Haitian International Holdings Limited, The Chen Hsong Group, L.K. Technology Holdings Limited, Cosmos Machinery Enterprises Limited, and FU CHUN SHIN Machinery Manufacture Co. Ltd, among others. Also, the production data of bottled drinking water is indicative of the fact that the injection molding machinery market in China is poised to grow over the forecast period. According to DCC China, the production of bottled drinking water, by volume, is expected to reach a total annual consumption of 49 million metric ton by the end of 2020. The government of Japan plans to reduce its carbon footprint by EVs, which has resulted in substantial investments toward EV infrastructure development. Japan witnessed an increase in the number of EV charging stations, to support the rising number of EVs, on account of the introduction of government subsidies for EV buyers.

Plastic Processing Machinery Market Drivers 

Robust Plastic Demand in Healthcare Sector Amid COVID-19

In the wake of the coronavirus pandemic, various industries across the globe have witnessed fundamental changes in their supply chains, consumer behaviors, and routes to market, due to the temporary closure of businesses and other restrictions being imposed to contain the virus. These factors created adverse impacts on many industrial processes, including on the production of plastic processing equipment. In 2020, however, the sales and production of plastics observed a significant increase in major countries like North America, despite the unprecedented health and economic challenges. Plastic materials have also been gaining widespread adoption for manufacturing of hospital devices as well as personal protective equipment, thus playing a major role in reducing virus spread and in turn, amplifying the plastic processing machinery industry outlook over the foreseeable future.

Increasing Demand for Plastics from the Packaging Industry

The global demand for plastic packaging from industries such as food & beverages, consumer goods, electronics, and even industrial is on the rise, owing to the benefits offered by plastic packaging as it reacts with less number of products and helps keep items safe, also the materials used can be made odorless, helps in protection of item from environmental conditions, and product can be even sealed for leakage proofing; such benefits are driving the demand for plastic packaging in the market. The lightweight property of the plastic is driving the growth of the plastic packaging in various region. Glass is much heavier compared to plastic, which means more trips would be required while transporting. This translates to a more significant environmental impact. Glass is also much heavier for the end consumer, whereas plastic is lightweight and much easier to carry. Thus, the growing demand for plastic in packaging industry is escalating the market growth of plastic processing machinery, for instance, a group of more than 40 Canadian companies from leading brands to waste management firms, government institutions, and NGOs have unveiled the Canada Plastics Pact, a plan to recycle or compost 50 per cent of Canada’s plastic packaging by 2025. Besides, plastic packaging accounts for 47 percent of all plastic waste, it is the immediate focus of the CPP’s collective efforts, which will centre around four targets by 2025. 

Plastic Processing Machinery Market Challenges

Stringent government regulations and banning of polymer

Despite the positive growth environments, the introduction of stringent rules & regulations regarding the usage of plastics in several countries worldwide may create significant barriers for the industry growth. For instance, the central government of India has issued a draft proposal to mandate various requirements for plastic carryout bags and ban single-use plastics nationwide from 2022, which may pose negative impacts on the demand for plastic processing machines over the projected timeframe.

Plastic Processing Machinery Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Plastic Processing Machinery. Major players in the Plastic Processing Machinery Market are

1. Arburg GmbH
2. Cosmos Machinery
3. Haitian Plastics Machinery Group Co. Ltd.
4. Husky Injection Molding Systems
5. Japan Steel Works Ltd.
6. Milacron Holdings Corporation
7. Niigata Machine Techno Company Ltd.
8. Sumitomo Heavy Industries
9. Toshiba Machine Co. Ltd

Recent Developments

• In February, 2022, Windsor Machines launched a new product called SPRINT- 800 for manufacturing thermoplastic products and is ready to be launched in domestic as well as international markets. Windsor Machines is primarily engaged in the business of manufacturing plastic processing machinery, which includes pipe extrusion, blown film extrusion and injection molding machines.
• In April 2021, Tederic Machinery Co. launched the NEO series of injection molding machines at Chinaplas 2021, including all-electric, hybrid, multi-material, and 2-platen models. Able to achieve maximum pressure in 28 msec, Tederic’s NEOs feature a new generation of servo-pumps with high response speeds that can save from 30% to 80% in energy consumption compared to traditional hydraulics.
• In January 2020, FCS Group, launched FCS India Plant. FCS is an internationally renowned injection molding plastic machine manufacturing company, established in 1974. In the present day it has three manufacturing plants and 70 service centers in cities worldwide with over 10,000 manufacturing partners, including TATA Motor, MicroPlastics, Cello, Supreme and Motherson Sumi Systems, which are well-known Indian companies.

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