South America extruded plastic market is projected to grow at a CAGR of 3.99% during the forecast period to reach US$3.269 billion by 2027, from US$2.486 billion in 2020.
Extrusion generates uninterrupted objects with a fixed cross-sectional profile by pushing material through an instrument with a specialized shape called a die. Plastic extrusion is a formal production method in which plastic is liquefied and shaped in a constant cycle while being augmented with the desired admixtures. The raw material (polymer) in the type of granulates is gravity-fed into the hopper and falls on a rotating tool via the feed throat. An electric engine drives the screw rotation. The screw design has evolved according to the material and the finished product design. The screw's rotation propels the plastic through a heated cylinder. The continuous process and advantage to achieve the desired shape are expected to drive South American extruded plastic market over the forecasted period.
Growth Driver for South America Extruded Plastic Market
The expansion of extruded plastic in South America is primarily driven by rising demand for extruded plastics in a wide range of applications, which provide an improved weight-to-strength ratio to traditional materials such as glass, wood, and metals. Pipes and windows are the most crucial PVC items in the construction sector. Other plastic building project components include facade elements, coatings, films, sheets, sealants, doors, floors, covers, small parts, and fasteners. The rapid growth in demand for plastic pipes is expected to be driven primarily by rising consumption in emerging markets. New construction projects are important in this case. Due to rapid urbanization, the urban density of residential areas and their pipeline structures is an important topic in many emerging-market cities. The rising urbanization and booming construction sectors are expected to boost the demand for extruded plastic in South America.
Extruded plastic development in South America is expected to be hamstrung by the cost of manufacturing, inadequate knowledge about using it in an environmentally responsible way, and waste treatment.
COVID-19 Impact on North America Extruded Plastic Market
COVID-19 disease outbreak harmed the South American extruded plastic market. Because of the COVID-19 outbreak, many developments were halted in 2020 due to a lack of investments, a shrinking workforce, and shut down regulatory requirements. Migrant workers caused havoc and quit functioning on construction projects in many developed and emerging nations, including Brazil and Argentina, due to a prohibition on interstate travel. This disrupts the distribution network, resulting in less building supplies consumption and significantly reduced extruded plastic's macroeconomic conditions, hence jolting South America extruded plastic market.
The region has a high rate of consumption of plastics for packaging, as well as regulatory reforms to improve rural infrastructure. Plastic extrusions are expected to be a growing market in the construction sector. In addition, South America’s growing middle class is predicted to cruise demand for sustainable packaging and plastic materials that improve comfortability, reliability, and well-being, which is expected to fuel the market growth. As per OEC, Brazil exported US$78.4 million in Other Plastic Sheetings in 2020, and Brazil exported US$179 million in Plastic Pipes in 2020, ranking it as the world's 26th largest exporter of Plastic Pipes. Brazil accounts for 40% of total waste generated in the region compared to all South American countries, that is 541,000 tonnes a day, as per the UN Environment. Hence, according to World Bank data, South America generates at least 430,000 tonnes of waste per day. Each South American generates an average of one to fourteen kilograms (2.2 to 31 pounds) of waste per day. Brazil is expected to dominate the market share of South American extruded plastic, owing to the government's initiatives to promote plastic recycling. Shrink films, stretch hoods, and technical films are expected to be in high demand in South America. In Brazil, the popularity of recycling is increasing year after year.
Key Market Segments
DuPont Teijin Films
Nilcosin Extrusion Inc.
Bausano & Figli Spa
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