1、 Overview of the plastic industry
Plastic is a plastic material formed by processing synthetic resin or natural resin as the main component, with various additives added. Plastic has the advantages of light weight, high strength, corrosion resistance, good insulation, and easy processing, and is widely used in fields such as construction, packaging, transportation, electronics, and medical treatment.
According to their properties and uses, plastics can be divided into two categories: general plastics and engineering plastics. Universal plastics refer to plastics with lower costs and a wider range of applications, mainly including polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), etc. Engineering plastics refer to plastics with special properties such as high mechanical properties, heat resistance, chemical resistance, etc. They are mainly used to replace metals or other traditional materials in the production of industrial parts or shells, including polyamide (PA), polycarbonate (PC), polyoxymethylene (POM), etc.
2、 Market size of the plastic industry
In 2023, China's plastic product production reached 77.716 million tons, a year-on-year decrease of 4.3%. Among them, the production of general plastic products is about 70 million tons, accounting for 90%; The production of engineering plastic products is about 7.7 million tons, accounting for 10%.
From the perspective of segmented markets, China's plastic film production in 2023 was 15.383 million tons, accounting for 19.8%; The daily plastic production is 6.695 million tons, accounting for 8.6%; The production of synthetic leather is 3.042 million tons, accounting for 3.9%; The output of foam plastics is 2.471 million tons, accounting for 3.2%; The production of other plastics is 50.125 million tons, accounting for 64.5%.
From the perspective of regional distribution, in 2023, China's plastic product industry is mainly concentrated in the East China and South China regions. The plastic product production in East China is 35.368 million tons, accounting for 45.5%; The production of plastic products in South China is 15.548 million tons, accounting for 20%. Next are 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, China's plastic product production will reach 77.7 million tons in 2022, a year-on-year decrease of 4.3%; In 2023, China's plastic product production will reach 81 million tons, a year-on-year increase of 4.2%.
3、 Sub sectors of the plastic industry
1. Plastic film
Plastic film refers to plastic sheets or strips with a thickness of less than 0.25mm, and is one of the largest varieties of plastic products. Plastic films have the characteristics of being lightweight, transparent, flexible, moisture-proof, oxygen resistant, and anti-corrosion, and are widely used in fields such as agricultural coverage, food packaging, medicine and health, daily cosmetics, and industrial products.
According to different raw materials and processing methods, plastic films can be divided into polyethylene (PE) films, polypropylene (PP) films, polyvinyl chloride (PVC) films, polyester (PET) films, etc. 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 2023, China's plastic film production reached 16.8 million tons, a year-on-year increase of 4.4%; In 2023, China's plastic film production will reach 17.5 million tons, a year-on-year increase of 4.2%.
2. Daily plastic
Daily plastic refers to plastic products used for daily necessities, mainly including plastic tableware, plastic water cups, plastic fresh-keeping boxes, plastic trash cans, plastic laundry baskets, plastic hangers, etc. Daily plastic has the characteristics of being lightweight, durable, beautiful, and easy to clean, making it an indispensable part of modern life.
The main raw materials for daily plastics are general-purpose plastics, such as PE, PP, PVC, PS, etc. Among them, PE and PP are the most commonly used raw materials because they have advantages such as non-toxic, odorless, high temperature resistance, and low temperature resistance, making them suitable for making daily plastics that come into contact with food. PVC and PS are mainly used to make non food grade daily plastics, such as trash cans, hangers, etc.
In 2023, China's daily plastic production reached 77.716 million tons, a year-on-year decrease of 4.3%. Among them, the daily plastic production of PE is 3.1 million tons, accounting for 39.9%; The daily plastic production of PP is 2.9 million tons, accounting for 37.3%; The daily production of PVC plastic is 850000 tons, accounting for 10.9%; The daily plastic production of PS is 650000 tons, accounting for 8.4%.
In 2024, China's daily plastic production is expected to reach 7.8 million tons, a year-on-year increase of 0.4%. Among them, the daily plastic production of PE is 3.15 million tons, accounting for 40.4%; The daily plastic production of PP is 2.95 million tons, accounting for 37.8%; The daily production of PVC plastic is 900000 tons, accounting for 11.5%; The daily plastic production of PS is 700000 tons, accounting for 9.0%.
3. Artificial synthetic leather
Artificial synthetic leather refers to materials with leather characteristics made from various resins and fiber materials, mainly including polyurethane (PU) artificial leather, polyvinyl chloride (PVC) artificial leather, microfiber artificial leather, etc. Artificial synthetic leather has the characteristics of lightweight, wear resistance, waterproofing, and breathability, and is widely used in fields such as clothing, shoes and hats, luggage, furniture, and automotive interiors.
The main raw materials for synthetic leather are resin and fibers, among which resin is the main component that determines its performance and quality. At present, there are mainly two types of resins for synthetic leather in China: PU and PVC. Among them, PU resin has excellent elasticity, softness, and breathability, making it the preferred raw material for high-end synthetic leather; PVC resin, on the other hand, has lower cost and better wear resistance and waterproofing properties, making it the main raw material for mid to low grade synthetic leather.
In 2023, the production of synthetic leather in China reached 3.3 million tons, a year-on-year increase of 14.7%. Among them, the production of PU synthetic leather is 1.8 million tons, accounting for 54.5%; The production of PVC synthetic leather is 912500 tons, accounting for 27.6%; The production of microfiber leather is 163900 tons, accounting for 5%; The production of other types of synthetic leather is 4235000 tons, accounting for 12.8%.
In 2024, it is expected that the production of synthetic leather in China will reach 3.4 million tons, a year-on-year increase of 3%. Among them, the production of PU synthetic leather was 1.8961 million tons, accounting for 55.8%; The production of PVC synthetic leather is 957200 tons, accounting for 28.1%; The production of microfiber leather is 172300 tons, accounting for 5.1%; The production of other types of synthetic leather is 374400 tons, accounting for 11%.
4. Foam plastic
Foamed plastic refers to the plastic products with porous structure formed by adding foaming agent or physical foaming method into the plastic, mainly including polystyrene (PS) foam, polyurethane (PU) foam, polyethylene (PE) foam, etc. Foamed plastic has the characteristics of light weight, heat insulation, sound insulation, cushioning, shock absorption, etc. It is widely used in the fields of construction, packaging, transportation, household appliances, etc.
The main raw materials of foamed plastics are general plastics and foaming agents. The general plastics are the basic components of foamed plastics, which determine their basic properties and quality. Foaming agent is an important factor affecting the pore structure and density of foam plastics, which can be divided into chemical foaming agent and physical foaming agent. Chemical foaming agents refer to chemical substances that decompose and release gases during the processing, such as unsymmetrical dimethylhydrazine, hydrogen peroxide, etc; Physical foaming agents refer to physical substances that release gases through pressure changes during the processing, such as butane, carbon dioxide, etc.
In 2023, China's foam plastic output will be 2.746 million tons, up 4.4% year on year; In 2023, China's foam plastic output is expected to be 2.871 million tons, with a year-on-year growth of 4.6%. Among them, the output of PS foam plastics accounts for about 53%, that of PU foam plastics accounts for about 31%, and that of PE foam plastics accounts for about 16%.
From January to October 2023, China's foam plastic import volume will be 41700 tons, and the import amount will be 706 million dollars; The export volume is 517100 tons, and the export amount is 1.951 billion US dollars. Vietnam, the United States and India are the main export destinations of China's foam plastics.
4、 Development trends in the plastic industry
1. The market prospects are broad, and the industry will continue to grow
The plastic industry is an important component of the chemical new materials industry, and it is also one of the more dynamic and promising areas for development. With the support of national policies and the increasing demand from downstream industries, the plastic industry will maintain stable growth, while facing opportunities and challenges such as transformation and upgrading, misaligned development, and industrial clusters.
Based on the current market development situation, it is conservatively estimated that the annual compound growth rate of plastic product demand in China will be 6% from 2022 to 2027. By 2027, the demand for plastic products in China may approach 12 million tons.
While the basic application fields that meet general social needs continue to grow steadily, the high-end application fields are gradually expanding. The plastic products industry is still in an upward development stage, and transformation and upgrading are steadily advancing. The development trend of replacing steel with plastic and wood with plastic provides broad market prospects for the development of the plastic products industry.
2. Misaligned development and deep cultivation of segmented markets
The downstream scope of the plastic products industry is relatively wide, and there are significant differences in the requirements of different plastic products for the research and development capabilities, technology, production processes, and management levels of production enterprises. There are many types of plastic products, with a wide range of technology and applications. The market demand is large and distributed in different downstream industries. Market participants are mainly small and medium-sized enterprises, with overcapacity and fierce competition in mid to low-end products, resulting in low market concentration.
Market participants usually position their products in segmented markets based on their own research and development design, technology, and management advantages, choose a competitive approach, and participate in market competition to seek development and growth. For example, in the field of plastic films, some companies focus on producing high value-added functional films, such as optical films, solar panel films, etc; Some companies focus on producing low-cost universal films, such as agricultural covering films, food packaging films, etc.
3. Sustainable development of industrial clusters
In terms of industrial layout, the East China region, South China region, and Central China region are relatively concentrated regions in China's plastic products industry, forming a group of influential industrial clusters. Under the strong promotion of national and local government policies, the construction of industrial clusters will revolve around the implementation strategies of green, ecological, low-carbon, and circular industries, and will extend from simple processing operations to the entire industrial chain with high technological content and high added value. Thus promoting the stable, healthy, and sustainable development of the plastic processing industry cluster, and further enhancing the overall competitiveness of the plastic product industry.
