“As more consumers in developing countries such as China and India increase their spending power and join the global economy, we are witnessing truly phenomenal growth in demand for the key plastics that are critical to so many of the products and life essentials we rely on every day, such as cell phones, computers, food and beverage packaging, clothes, cars and even life-saving medical devices,” said Nick Vafiadis, vice president of plastics for IHS Markit.

“In my conversations with the leaders of plastics resins producers and manufacturers, it is clear the plastics industry understands the need to be very proactive in embracing sustainability across the entire supply chain,” Vafiadis said. “This includes leading stakeholder discussions and finding ways to partner with retailers, consumers, recyclers, and even with designers, to plan for second-life uses for products after they are initially consumed.”

By 2022, global polyethylene demand is expected to reach 120 MMT annually, while global demand for polypropylene is expected to be just under 90 MMT. Much of that growth is being driven by China, which accounts for about 60 percent of new global plastics demand growth. China’s ban on importing plastics waste for recycling plus the global growth of online shopping trends are helping increase demand for virgin plastics material, according to IHS Markit.

Source: IHS Markit