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

United Kingdom extruded plastic market is projected to grow at a CAGR of 4.63% during the forecast period to reach US$2.489 billion by 2027, from US$1.813 billion in 2020.

Extrusion is a process of compression in which the raw material is pumped through a die opening to generate a desired cross-sectional shape. The forces are applied to the original material by using a pressure object in a closed container in this process so that the stresses induced in the substance are greater than the flow velocity of the material. Because the material behaves like a fluid, it can flow through the narrow passage accessible in the container, taking the size and shape of the opening. The advantages of adopting the extrusion process are that through the extrusion process, it is possible to obtain a consistent cross-section of the materials. Compared to other techniques, the extrusion process has a low cost, and the extruded component is very hot after the extrusion process. Post-extrusion work is very simple.  Different types of plastic products are formed by the plastic extrusion process. It begins with a raw material known as resin. Resin beads are liquefied and purified for uniform consistency during the plastic extrusion. The melt temperature must be achieved before the resin can be pressed through a die-cut for the finished product form. Plastic extrusion is used to manufacture various products, ranging from construction supplies to consumer goods. Plastic extrusion is commonly used to manufacture window frames, electrical covers, pipes, tubing, fences, edging, and weather stripping.

 The United Kingdom Extruded Plastic Market Driving Force

The plastic extrusion market is expected to gain momentum over the forecast period due to significant drivers, such as important innovations in processing techniques and the launch of innovative and novel plastic products. Other variables that are expected to drive demand for plastic extrusion include burgeoning piping businesses and manufacturing sectors, raising awareness of the advantages of plastic extrusion, and growing consumer awakening about environmentally friendly products and other conveniences. Manufacturers have a significant opportunity to establish innovative plastic items produced to meet shifting consumer demand for fuel-efficient and rising lightweight vehicles. The construction industries, packaging, automotive, oil, and gas are supposed to drive the plastic extrusion market in the United Kingdom.

Challenges

Deformation requires a high compressive force, which comes at a high cost. Only one type of cross-section can be obtained at a time, resulting in product limitation. Extreme temps may endorse undesirable outcomes, necessitating the use of heat-resistant tools, which are costly. Extrusion dies to wear out quickly, and the government's recent tax on virgin plastic is expected to stymie the growth of extruded plastic in the United Kingdom.

The United Kingdom Extruded Plastic Market and Impact of Covid-19 on it.

The very first wave of the coronavirus had a significant impact on the business, resulting in temporary closures, a shift to internet purchases, and diminished travel. The economic downturn caused by COVID-19 restrictions has been concentrated in specific types of businesses. Overall, the UK economy shrank by a record 19.8 percent in the second quarter of 2020, following the start of the first lockdown, as measured by GDP. GDP was still down 8.2 percent by 2020(Source: ONS). Sectors of hospitality – pubs, restaurants, and hotel chains – recorded almost no output, whereas businesses such as communication and information, where employees could mostly work at home, were less impacted. During the pandemic, the sale of only essential items was boosted. The personal care and other sector saw a drop which has impacted the packaging industry, and dynamic pricing for raw materials in packaging has impacted the extruded plastic industry in the country. Furthermore, the lockdown and transit restriction imposed in the country has influenced the labor workforce working in the manufacturing and construction sector because of which all the operations were halted, which has also affected the use of extruded plastic in the industry hence during the pandemic period, a negative impact can be seen in the country over the forecasted period. 

The United Kingdom Market and Extruded Plastic Market

The growing population, rising GDP, and increasing initiatives to contribute to less CO2 emissions are major factors driving the growth of extruded plastic in the country. According to Labour Force statistics data, the United Kingdom's population is rising at a growth rate of 0.4%, which is 67.1 million, which enhances the GDP of the country to US$51374 per capita, increasing at a growth rate of 2.1% (Source: Aggregate National Accounts). The growing income level in the government enhances the purchasing and spending power of the individual on their hair care, personal care, cosmetics, and others. In this era where companies are going sustainable, they are adapting less Co2 emission provision and recyclable packaging; as per OECD data, the Co2 emission in the country is 4.6 tonnes per capita. As per the Revenue and Customs Department of the United Kingdom, the UK government has decided to levy a tax on plastic packaging that contains less than a certain minimum percentage of ways to reduce waste beginning in April 2022. A bottom line of 30% is proposed, but this percentage could be higher or lower depending on the outcome of the current overall consultation. The tax was implemented on April 1, 2022, and it is levied at a rate of £200 per tonne. The initiative by the government to reduce emissions and use recyclable products in packaging, construction, and other industries is expected to drive the market for extruded plastic in the United Kingdom. 

Key Market Segments

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