Blow Molding Resin Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The blow molding resin market is projected to register a CAGR of over 5% during the forecast period, 2021-2026.

The market is hampered by the COVID-19 pandemic, as lockdowns, social distances, and trade sanctions have triggered massive disruptions to global supply chain networks. The construction industry has witnessed a decline due to the halt in activities. However, The pandemic has provided opportunities for the USD 900 billion packaging industry due to an increase in demand for packaging of essential items, groceries, e-commerce shipments, and healthcare products, which led to increasing demand for blow molding resins.

Key Highlights

• Over the medium term, the factors driving the market growth for blow molding resins are rising demand from the packaging industry and the rising demand from the construction sector in the Asia-Pacific region.
• However, on the flip side, COVID-19 impact and limited usage of hollow forms are expected to hinder the market growth.
• Asia-Pacific is expected to dominate the global market due to rapid urbanization and industrialization, leading to a huge demand for blow molding resins from countries, such as China, Japan, and India.

Key Market Trends

Growing Demand from Packaging Segment

• Blow molding resins, such as polyethylene, polyethylene terephthalate, etc., are widely used to manufacture bottles and containers for a vast range of applications, ranging from shampoo bottles to industrial drums.
• Such resins, due to their transparency, stiffness, excellent melt strength, processability, and environmental stress-crack resistivity, are widely used to manufacture blow molded products, which are further used in several packaging applications.
• The global packaging industry has been rising at a steady pace through the years owing to changing consumer preferences, the rising e-commerce sector, expanding FMCG products, and majorly owing to the rising disposable income among people.
• The packaging industry in China is expected to witness tremendous growth, and it may record a CAGR of nearly 6.8% to reach CNY 2 trillion by 2025. This positive momentum in the packaging industry is expected to ignite the market demand.
• Bottle production is rising at a rapid pace in almost all nations due to the hectic lifestyles among consumers, which have fueled the demand for on-the-go beverages. According to industry estimates, bottles and containers consist of 53% of high-density polyethylene (HDPE) products and 38% of total HDPE products.
• Therefore, the growing packaging industry is expected to fuel the demand for blow molding resin, globally, through the years to come.

Asia Pacific to Dominate the Market

• Asia Pacific is expected to dominate the global market owing to huge demand from countries, such as China and India.
• The India Packaging Market is the fifth largest sector and was valued at USD 50.5 billion in 2019, and it is expected to reach USD 204.81 billion by 2025, registering a CAGR of 26.7% during the period of 2020-2025, according to the Packaging Industry Association of India (PIAI).
• Additionally, The construction sector in the country is among the fastest-growing sector in the world, largely driven by the investments embarked on by the country’s infrastructure sector. Initiatives such as the ‘Housing for All’ and ‘Smart City Mission’ are expected to drive the construction sector in the country and thereby increase the demand for blow molded products in the industry.
• China, too is the leading manufacturer of automotive and electronics globally. Though the country’s ongoing trade war with the United States has hampered the electronics production in the country at present, the country continues to rank among the top nations in the global market. Automotive production has witnessed a dip in the country through 2019 and 2020, according to OICA. This, in turn, has negatively affected the market.
• Currently, China has numerous airport construction projects, which are either in the development or planning stage. These include Beijing Capital International Airport, Chengdu Shuangliu International Airport, Guangzhou Baiyun International Airport, etc. Additionally, the government rolled out massive construction plans for the movement of 250 million people to its new megacities, over the next 10 years.
• The Indonesian government planned to invest about USD 450 billion in the construction sector, by 2021, which is expected to drive residential construction in the country.
• Thus, all the abovementioned factors are expected to show a significant impact on the market in the coming years.

Competitive Landscape

The global blow molding resin market is fragmented in nature with the presence of a significant number of players in the global market. Some of the major companies dominating the market include are Exxon Mobil Corporation, Eastman Chemical Company, SABIC, Solvay, and Chevron Phillips Chemical Company LLC, among others.

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