A new study released by Grand View Research claims that the global market for injection molded plastics is expected to reach $277.78 billion by 2020. Packaging is increasing the demand for the usage of plastics, for instance, the growing packaging industry in Asia is expected to be a key factor driving market demand over the next six years. In addition, the growing need for weight reduction in automobiles is also expected to augment the demand for plastics as a substitute to metal which in turn is expected to increase the demand for injection molded ABS and polypropylene.
Volatile crude oil prices coupled with growing environmental concerns is expected to be a key issue for market participants. Globally, the cost of resin or raw material accounts for 42% of the total cost incurred for production of injection molded plastics. Cost incurred for the process and other costs associated with it accounts 45% to the total cost and machinery accounts for 13% of the total cost for producing injection molded plastics.
Packaging was the largest application segment for injection molding plastics accounting for nearly 30% of global demand in 2013. Packaging finds application in both consumer and industrial for both flexible and rigid packaging. The demand for packaging is on the rise due to the improving economic conditions of countries such as India, Brazil, Russia and other Asian countries.