Thermoformed plastics market on the rise

The global thermoformed plastics market size is projected to reach $59.74 billion by 2027, exhibiting a CAGR of 5.7% during the forecast period. This is a substantial growth from the $40.59 billion in 2019, according to a report by Fortune Business Insights.

The report, titled “Thermoformed Plastics Market Size, Share & COVID-19 Impact Analysis, By Plastic Type (Polyethylene, Polypropylene, Polystyrene, Polyvinyl Chloride, Acrylonitrile butadiene styrene, Bio-degradable polymers), By Thermoforming Type (Vacuum Snapback, Thin Gauge Thermoforming, Thick Gauge Thermoforming, and Plug Assist Forming), By Application (Healthcare & Medical, Food Packaging, Electrical & Electronics, Automotive Packaging, Construction, Consumer Goods & Appliances), and Geography Forecast, 2020-2027” also mentioned that the COVID-19 pandemic has brought the world to a standstill. The health crisis has brought an unprecedented impact on businesses across industries. The report, however expects the pandemic to pass and with rising support from governments and several companies, there are opportunities and room for growth.

In particular, the growing awareness about hygienic packaged food products is expected to foster healthy growth of the market.  The increasing demand for packaged food owing to the evolving habits of consumers will foster the healthy growth of the market. The increasing income and expenditure are factors expected to contribute positively to the market growth. The high-barrier properties, extended shelf-life, contamination prevention of thermoformed plastics make it suitable for food packaging, thus boosting the growth of the market. Moreover, the growing need for sturdy packaging in convenience foods products will spur demand for such plastics. The surging population has resulted in increasing food production to cater to the needs of consumers, in turn aiding the growth of the market. The increasing urbanisation in rural areas will have a positive effect on the market. The infrastructural development and technological advancements in packaging techniques will bolster the significant growth of the market.

However, the report cites that disruptions in plastics production is expected to have a drastic impact on the global market. The closed manufacturing facilities due to lockdown imposed by governments will aggravate the business in the forthcoming years. The disruption caused by the pandemic has severely affected the supply chain of dairy products, medicines, sanitizers, food, disinfectants, face masks, and others. However, the improving situation will urge governments to lift lockdowns, in turn, stabilizing the manufacturing sector and promoting the market.

Healthcare sector as growth driver

Asia Pacific is expected to hold a considerable share during the forecast period owing to the growing polymer formulations in developing nations such as China and India. China is the largest supplier of plastics products. The rapid urbanisation and improved living standard of people can have a tremendous effect on the market in the region. Moreover, the growing automotive and construction sector is likely to fuel demand for thermoformed plastics in the region.

The market in North America is expected to experience a high growth rate during the forecast period owing to the rapid industrialisation and technological advancements in the packaging industry. The growing demand for medicines and drugs in the healthcare sector will contribute excellently to the market. The evolving consumer lifestyle and disposable income will favour the healthy growth of the market in the region.