Overview of the plastics industry
Plastic is made of synthetic resin or natural resin as the main component, adding various additives, after processing molding plastic materials. Plastic has the advantages of light weight, high strength, corrosion resistance, good insulation, easy processing, etc., and is widely used in construction, packaging, transportation, electronics, medical and other fields.
According to the properties and uses of plastics, they can be divided into two categories: general plastics and engineering plastics. General purpose plastics refer to plastics with lower cost and wider application range, mainly including polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS) and so on. Engineering plastics refer to plastics with high mechanical properties, heat resistance, chemical resistance and other special properties, mainly used to replace metal or other traditional materials to make industrial parts or shells, mainly including polyamide (PA), polycarbonate (PC), polyformaldehyde (POM) and so on.
Second, the plastic industry market size
In 2022, the output of plastic products in China reached 77.716 million tons, down 4.3% year-on-year. Among them, the output of general plastic products is about 70 million tons, accounting for 90%; The output of engineering plastic products is about 7.7 million tons, accounting for 10%.
From the market segment point of view, in 2022, China’s plastic film production of 15.383 million tons, accounting for 19.8%; The output of daily plastics was 6.695 million tons, accounting for 8.6%; The output of synthetic leather was 3.042 million tons, accounting for 3.9%; Foam production 2.471 million tons accounted for 3.2%; The output of other plastics was 50.125 million tons, accounting for 64.5%.
From the perspective of regional distribution, China’s plastic products industry in 2022 is mainly concentrated in East China and South China. The output of plastic products in East China was 35.368 million tons, accounting for 45.5%; The output of plastic products in South China was 15.548 million tons, accounting for 20%. It is followed by Central China, Southwest China, North China, Northwest China and Northeast China, accounting for 12.4%, 10.7%, 5.4%, 2.7% and 1.6% respectively.
According to the production situation and market trends of the plastic products industry, the output of plastic products in China will reach 77.7 million tons in 2022, down 4.3% year-on-year; In 2023, China’s production of plastic products will reach 81 million tons, an increase of 4.2%.
Third, the plastic industry segments
1. Plastic film
Plastic film refers to the thickness of the plastic sheet or strip below 0.25mm, is one of the largest varieties of plastic products. Plastic film has the characteristics of thin, transparent, flexible, moisture-proof, oxygen-proof, anti-corrosion, etc., widely used in agricultural coverage, food packaging, medicine and health, daily cosmetics, industrial products and other fields.
According to different raw materials and processing methods, plastic film can be divided into polyethylene (PE) film, polypropylene (PP) film, polyvinyl chloride (PVC) film, polyester (PET) film and so on. Among them, PE film is the most commonly used plastic film, mainly including low density polyethylene (LDPE) film, high density polyethylene (HDPE) film and linear low density polyethylene (LLDPE) film.
In 2022, China’s plastic film production reached 16.8 million tons, an increase of 4.4%; In 2023, China’s plastic film production will reach 17.5 million tons, an increase of 4.2%.
2. Daily plastic
Daily plastic refers to plastic products used in daily life, mainly including plastic tableware, plastic cups, plastic crisper, plastic trash cans, plastic laundry baskets, plastic hangers, etc. Daily plastic with light, durable, beautiful, easy to clean and other characteristics, is an indispensable part of modern life.
The raw materials of daily plastics are mainly general plastics, such as PE, PP, PVC, PS and so on. Among them, PE and PP are the most commonly used raw materials, because they have the advantages of non-toxic, tasteless, high temperature resistance, low temperature resistance, etc., suitable for making daily plastics that contact food. PVC and PS are mainly used to make non-food plastics for daily use, such as trash cans, hangers and so on.
In 022, China’s daily plastic production was 77.716 million tons, down 4.3% year-on-year. Among them, the output of PE daily plastics was 3.1 million tons, accounting for 39.9%; The output of PP daily plastics was 2.9 million tons, accounting for 37.3%; PVC daily plastic production of 850,000 tons, accounting for 10.9%; PS daily plastic production of 650,000 tons, accounting for 8.4%.
In 2023, China’s daily plastic production is expected to reach 7.8 million tons, an increase of 0.4%. Among them, the output of PE daily plastics was 3.15 million tons, accounting for 40.4%; The output of PP daily plastics was 2.95 million tons, accounting for 37.8%; PVC daily plastic production of 900,000 tons, accounting for 11.5%; PS daily plastic production of 700,000 tons, accounting for 9.0%.
3. Synthetic leather
Synthetic leather refers to materials with leather characteristics made of various resins and fiber materials, mainly including polyurethane (PU) artificial leather, polyvinyl chloride (PVC) artificial leather, microfiber artificial leather and so on. Artificial synthetic leather has the characteristics of light weight, wear-resistant, waterproof, breathable, etc., and is widely used in clothing, shoes and hats, luggage, furniture, automotive interior and other fields.
The raw materials of synthetic leather are mainly resin and fiber, of which resin is the main component of synthetic leather, which determines its performance and quality. At present, China’s synthetic leather resin mainly PU and PVC two kinds, of which PU resin has excellent elasticity, softness and permeability, is the preferred raw material of high-grade synthetic leather; PVC resin has lower cost and better wear resistance and water resistance, and is the main raw material of middle and low grade synthetic leather.
2022: China’s production of synthetic leather reached 3.3 million tons, an increase of 14.7%. Among them, the output of PU synthetic leather was 1.8 million tons, accounting for 54.5%; The output of PVC synthetic leather was 912,500 tons, accounting for 27.6%; The output of microfiber leather was 163,900 tons, accounting for 5%; The output of other types of synthetic leather was 423,500 tons, accounting for 12.8%.
2023: China’s production of synthetic leather is expected to reach 3.4 million tons, an increase of 3%. Among them, the output of PU synthetic leather was 1,896,100 tons, accounting for 55.8%; The output of PVC synthetic leather was 957,200 tons, accounting for 28.1%; The output of microfiber leather was 172,300 tons, accounting for 5.1%; The output of other types of synthetic leather was 374,400 tons, accounting for 11%.
4. Styrofoam
Foam refers to plastic products that form porous structures by adding foaming agents or physical foaming methods to plastics, mainly including polystyrene (PS) foam, polyurethane (PU) foam, polyethylene (PE) foam, etc. Foam has the characteristics of light weight, heat insulation, sound insulation, buffering, shock absorption, etc., and is widely used in construction, packaging, transportation, home appliances and other fields.
The raw materials of foam are mainly general plastics and blowing agents, of which general plastics are the basic components of foam, which determines its basic performance and quality. Blowing agent is an important factor affecting the pore structure and density of foam plastics, which can be divided into chemical blowing agent and physical blowing agent. Chemical blowing agent refers to the chemical substances that decompose and release gas during processing, such as undimethylhydrazine, hydrogen peroxide, etc. Physical blowing agent refers to a physical substance that releases gas through pressure changes during processing, such as butane, carbon dioxide, etc.
In 2022, China’s foam production was 2.746 million tons, an increase of 4.4%; In 2023, China’s foam production is expected to be 2.871 million tons, an increase of 4.6%. Among them, PS foam production accounted for about 53%, PU foam production accounted for about 31%, PE foam production accounted for about 16%.
From January to October 2022, China’s foam imports were 41,700 tons, and the import amount was 706 million US dollars; The export volume was 517,100 tons and the export value was $1.951 billion. Vietnam, the United States and India are the main export destinations for Chinese foam.
Fourth, the development trend of the plastics industry
1. The market prospect is broad, and the industry will continue to grow
The plastics industry is an important part of the new chemical materials industry, and it is also a field with more vitality and development potential. With the support of national policies and the growth of demand in downstream industries, the plastics industry will maintain stable growth, while facing opportunities and challenges such as transformation and upgrading, dislocation development, and industrial clusters.
According to the current situation of market development, it is conservatively estimated that in 2022-2027, the average annual compound growth rate of plastic products demand in China will be 6%, and by 2027, the demand for plastic products in China will be close to 12 million tons.
While basic application fields that meet the general needs of society maintain steady growth, high-end application fields are gradually expanding. The plastic products industry is still in the stage of rising development, and the transformation and upgrading are steadily advancing. The development trend of replacing steel with plastic and wood with plastic provides a broad market prospect for the development of plastic products industry.
2. Dislocation development, deep cultivation of market segments
The downstream areas of the plastic products industry have a wide range, and there are great differences in the requirements of different plastic products on the research and development ability, technology, production process and management level of the production enterprises. There are many kinds of plastic products, large technology span and wide application, the market demand is large and distributed in different downstream industries, the market participants are mostly small and medium-sized enterprises, and the low-end products have excess capacity, fierce competition, and the market concentration is low.
Market participants are usually based on their own research and development design, technology, management advantages for product positioning market segments, choose the way of dislocation competition, participate in market competition to seek development and growth. For example, in the field of plastic film, some companies focus on the production of high value-added functional films, such as optical films, solar backplane films, etc.; Some companies focus on the production of low-cost versatile film, such as agricultural covering film, food packaging film and so on.
3. Sustainable development of industrial clusters
In terms of industrial layout, East China, South China and Central China are relatively concentrated areas of China’s plastic products industry, forming a number of industrial clusters with greater influence. Under the strong promotion of national and local government policies, the construction of industrial clusters will carry out the next layout around the implementation strategy of green, ecological, low-carbon and recycling, and will extend from simple processing-type operations to the whole industrial chain with high technology content and high added value. In order to promote the stable, healthy and sustainable development of the plastic processing industry cluster, and further enhance the overall competitiveness of the plastic products industry.