Demand for extruded plastics in the US is forecast to expand 2.6 percent yearly to nearly 34 billion pounds in 2013, valued at more than $23 billion (resin content only). Resins will account for 40 percent of the final product cost of $59.2 billion. The key factor as extruded plastics rebound from the demand declines of 2007 and 2008 will be a turnaround in the housing market, a major outlet for extruded plastic products such as siding and pipe. Extruded plastic advances will also be boosted by a significant moderation in plastic resin prices. These and other trends, including market share and product segmentation, are presented in Extruded Plastics, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Polyvinyl chloride (PVC) and low density polyethylene (LDPE) together accounted for 60 percent of all extruded plastics demand in 2008. Demand for extruded PVC is expected to rise 3.0 percent annually to 10.4 billion pounds in 2013. Slower advances for extruded LDPE will reflect saturated film and sheet applications in the packaging arena. The fastest growth in demand is expected for polypropylene, mainly for extruded sheet used in the manufacture of disposable trays, cups, bowls and other packaging.
Demand for extruded high density polyethylene is projected to grow 2.5 percent per year to 5.6 billion pounds in 2013, driven by rapid growth in the potable water and corrugated drain and sewer pipe market. Slower growth is expected for foamed polystyrene due to competition from polyolefin resins in film and other uses. Nevertheless, polystyrene will remain a major player in disposable packaging applications such as foamed cups, plates and other containers. The fastest foamed polystyrene growth is anticipated in building and other insulation applications.
Packaging and construction markets each accounted for nearly 40 percent of all extruded plastics demand in 2008. The construction market will rise 3.4 percent per annum to 13.5 billion pounds in 2013. A resurgent residential building construction segment will portend good growth for products such as siding, pipe, windows and doors, molding and trim, and fencing and decking. Demand for extruded plastic packaging will be fostered by growth in disposable packaging products such as cups, bowls and clamshells.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
