AMI Reports on Polymer Demand in Asia
- Published: November 22, 2017
BRISTOL, UK | Applied Market Information (AMI) announces the latest report in its global polymer demand series, Polymer Demand in Asia. AMI says that in terms of the consumption of polymers, Asia has long been regarded as the powerhouse of plastics processing and accounted for over 46% of global polymer demand in 2016. The end of the 20th century saw the start of Asia’s rising demand for polymer accelerate at an unprecedented rate. Today Asia is divided between some of the most mature polymer markets in the world and those that remain underdeveloped, AMI adds, so gaining a good understanding of where the opportunities lie will help those that participate now reap the benefit of future growth.
China accounts for the largest polymer demand in Asia, and with manufacturing costs remaining relatively low, this looks set to continuing for the foreseeable future. According to the report, growth rates in China are forecast to slow from the double figure heights of recent years, to a more sustainable level leaving the high growth rates for those countries, that until recently, had seen little investment.
The new study details the size, nature, and future prospects for both commodity and engineering plastics. The region represents a varied market with the 13 countries listed in the report having differing prospects for polymer demand.
Although some countries have in recent years imposed minimum wages to help stop the exploitation of workers, in relative terms, Asia still has an abundance of cheap labor that encourages foreign investments in manufacturing and plastics processing. Exports are also driven by cheap production costs, as for many countries around the globe importing goods from Asia is cheaper than domestic production, says AMI.
The future prospect is bright for the Asian region, as growth is not only a consequence of the continuing advance in the use of polymers within China but also driven by vibrant markets in Vietnam, Indonesia, and some of the smaller emerging markets such as Myanmar.
In addition to detailing demand by polymer, AMI's report also assesses the end-use applications for polymer by process (extrusion, molding, etc.) and by major market (packaging, building, automotive, etc.). AMI's analysis shows that growth in Asian polymer demand is largely due to increasing demand for consumer packaging, which accounted for more than 32% of all polymers processed in the region during 2016. The continued investment in infrastructure and building projects in the region has also attributed to the rising demand for polymers, accounting for over 20% of the regions demand in 2016, making it the second largest market after packaging.
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