Europe 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 Country - Forecasts From 2022 To 2027

The European extruded plastic market is projected to grow at a CAGR of 4.90% to attain a market size of US$37.759 billion by 2027 from US$27.091 billion in 2020.

The major factors driving the market growth are the growing demand for packaging solutions from various convenience stores and e-commerce in Europe. Germany has dominated the overall market growth during the forecast period. Rising demand for housing units across various countries in Europe is forecasted to drive the demand for extruded plastics across the construction sector of the region. Additionally, rising investments and innovation by key players in the market are further augmenting the market’s growth. However, the COVID-19 pandemic and several government regulations to ban plastic use have severely affected the overall market growth. The market is divided into two categories: type and end-user industry.

Europe’s Extruded Plastic Market Drivers:

• Growing utilization of distribution channels

Growing demand for packaging solutions across various convenience stores and e-commerce in Europe is projected to drive market growth during the forecast period. Europe is estimated to be the world’s largest importer of processed fruits and vegetables, which accounts for approximately 40% of the global supply (Source: CBI - Ministry of Foreign Affairs (EU). Furthermore, growth in food packaging and increasing demand for packaging solutions in growing e-commerce shipments are anticipated to drive the market’s growth in the coming years. During the pandemic, e-commerce portals have seen a surge in demand for the packaging of groceries, medicines and various food items, which has significantly increased the demand for plastic packaging solutions across the country which in turn is projected to drive the market’s growth. Additionally, rising investments in advanced and innovative packaging across various end-user industries and manufacturers' growing focus on environmentally friendly packaging will further boost the overall market growth during the forecast period. For instance, Plast-Box Group, a key player in plastic packaging, has opened a new warehouse and logistics centre near Warsaw. Huhtamaki has announced its acquisition of Polish joint venture company Huhtamaki Smith Anderson sp. z o.o. from Smith Anderson Group Ltd (SA).

Europe’s Extruded Plastic Market: By Country

• Germany

Germany is one of Europe’s leading construction markets and is expected to continue its growth during the forecast period. Rising demand for housing units is one of the major factors which is supporting the growth of the construction market in the country, which in turn, is anticipated to drive the overall market growth during the forecast period. Moreover, the recent migration of people into the country is driving the demand for new residential construction. Around 3.6 million refugees are forecasted to arrive in Germany by 2020, which requires 350,000 new dwelling spaces per year (Source: Government sources), which is projected to boost the construction sector growth in the country. Furthermore, increasing government initiatives to provide affordable housing to urban and rural poor people will significantly support the construction activities in the country, which are expected to drive the extruded plastic market growth in the country during the forecast period. Furthermore, Germany has dominated the European automotive market with more than 30+ assembly and engine production plants, which contribute to almost 1/3rd of the total automobile production in Europe. It is also one of the leading equipment, engine, integrators, and component manufacturer, because of which it can be said that the country has dominated the overall market growth in Europe. Growing investments in R&D and technological advancement create new opportunities for the market's key players.

COVID-19 Insights

The COVID-19 pandemic has negatively impacted the extruded plastics market growth in Europe owing to the nationwide lockdown and supply chain disruptions. During the pandemic, various end-use industries across the country were severely affected, especially the automotive and construction sector of the region. Lack of investment in the automobile industry, stoppage of construction activities and economic downfall are some of the factors that are responsible for the declining overall market growth. However, the market has been witnessing high growth since 2021 due to the rising construction activities and growing demand for packaging materials, across the food and e-commerce sector of the country.

Segmentation

The market has been analysed through the following segments:

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