China Extruded Plastic Market Size, Share, COVID-19 Impact, Opportunities, And Trends By Type (Polypropylene, Polyethylene (PE), LDPE, HDPE, Polyvinyl Chloride (PVC), Others), By End-User Industry (Construction, Electrical And Electronics, Packaging, Automotive, Others), And By Geography - Forecasts From 2022 To 2027

The China extruded plastic Market is projected to grow at a CAGR of 6.24% to attain a market size of US$80.351 billion by 2027., from US$52.593 billion in 2020.

The major factors driving the market’s growth are changing consumer preferences for online shopping, and the emerging e-commerce sector of the country. Moreover, the most widely used extruded plastic in China is polypropylene as it is widely adopted by the FMCG packaging sector for the packaging of a variety of products.  The market is divided into two categories: type and end-user industry.  

China’s Extruded Plastic Market Drivers:

• High demand from the packaging industry

Changing consumer preference for online shopping, and the emerging e-commerce sector across the country are expected to propel the plastic packaging market, which in turn is projected to drive the overall market growth. The booming e-commerce sector in China has forced many packaging companies to develop more sustainable packaging alternatives that include recycled plastics. Such developments are expected to drive the growth of the packaging market across the country, which in turn is anticipated to have a positive impact on the overall market growth. Furthermore, high disposable income has increased the demand for imported or frozen food products, which need proper packaging and are anticipated to drive the overall market growth.

 China’s Extruded Plastic Market: By Industry Vertical

• Automotive

 Factors contributing to the growth of the market across the country include the growing demand for extruded plastic from the automotive sector of the country. China is considered one of the largest vehicle markets in terms of both annual sales and manufacturing. The domestic production of vehicles across the country is estimated to reach 35 million by 2025 (Source: International Trade Administration). With the increasing modernization of vehicles, the market is expected to surge during the forecast period. China is expected to dominate the whole Asia Pacific automotive market owing to its growing population, which has increased the sales of automobiles across the country. The country is also the leading automotive component producer, which is anticipated to drive the demand for extruded plastic across the country. Moreover, many technological advancements have been made in the automotive sector, which will significantly contribute to the overall market growth.

China’s Extruded Plastic Market: By Type

• Polypropylene

China is the largest consumer of polypropylene and is expected to dominate the market growth during the forecast period. The high demand for polypropylene is due to the growing demand for industrial and FMCG product packaging in the country. The courier sector of the country handled around 83.36 billion parcels in 2020, which has increased to 100 billion in 2021 (Source: National Statistics Bureau of China), which is projected to drive the demand for packaging materials,which, in turn, is expected to drive the overall market growth.

 COVID-19 Insights

The COVID-19 pandemic has negatively affected the overall market growth in the country. During the  COVID-19 pandemic, manufacturers across the country have faced many issues like supply chain disruption and shortages of raw materials, which have ultimately hindered the overall market growth. However, the market is forecasted to grow in the coming years due to the growth in automotive and packaging industries in the country, which will increase the demand for extruded plastic across these end-user industries.

Segmentation

The market has been analysed through following segments:

• By Type
  • Polypropylene
  • Polyethylene (PE)
  • LDPE
  • HDPE
  • Polyvinyl Chloride (PVC)
  • Others
• By End-User Industry
  • Construction
  • Electrical and Electronics
  • Packaging
  • Automotive
  • Others