The plastic manufacturing industry is facing unprecedented challenges as well as exciting opportunities thanks to changing consumer behaviours and innovative advances. These are the most prominent trends in the plastic industry in the years to come.
4 trends in the plastic industry
The fragmented industry
Most manufacturers tend to be small in size, as they offer products for specialised / customised applications that are produced in low volumes.
Increased use of plastic
Industry growth has been fuelled by the expanding use of plastic in high growth industries (such as construction, automotive, aerospace and electronics).
Companies are finding new uses for existing plastic, or are producing newer plastics with novel physical properties that make them suitable for new uses.
Fears of environmental damage have led to an increased focus on biodegradable plastic manufactured from renewable materials.
4 business challenges of the plastic industry
Some plastic products have seasonal demand. Vinyl producers, for instance, build inventories in the early part of the year for the spring and summer building season.
Shortened product lifecycle
Product lifecycle has decreased from years to months, affecting the entire supply chain of plastic goods. Quick turnaround on customer choices is critical for plastic companies to stay competitive.
Volatile raw material prices
As plastic is derived mainly from oil and natural gas, price and availability of plastic depends on the price of these. Manufacturers may have to pass on the price fluctuations resulting from the volatility of oil prices.
Manufacturers are subject to growing regulations that govern the production, disposal, and cleanup of hazardous chemicals, as plastic products usage contributes to environmental pollution.
4 opportunities in the plastic industry
Priorities for executives in the plastic industry
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