Europe Blow Molded Plastic Market Size, Share & Trends Analysis Report By Product (ABS, PE), By Technology (Extrusion, Injection), By Application, By Point Of Usage, And Segment Forecasts, 2020 - 2027

Report Overview

The Europe blow molded plastic market size was valued at USD 21.7 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 2.1% from 2020 to 2027. The demand for various medical products, such as disinfectants, sanitizers, and household cleaning products, has increased due to the global COVID-19 pandemic. This, in turn, is driving the demand for blow molded plastics as they are used in the production of various medical products. However, the segment is expected to grow at a slower rate than the automotive & transport and packaging application segments owing to the rising demand for Electric Vehicles (EVs) and sustainable packaging products. Increasing health concerns along with stringent governmental regulations regarding carbon emissions have driven the usage of plastics in the automotive industry to manufacture lightweight cars with higher fuel efficiency. However, the market may have a slow growth due to the COVID-19 pandemic and rising unemployment and debt crisis in Europe.

The market is characterized by the presence of various stringent environmental regulations like DIRECTIVE (EU) 2019/904 and Commission Regulation (EU) No 10/2011 imposed by regulatory bodies, such as the European Chemicals Agency (ECHA) and European Commission among other federal-level agencies. On the other hand, a positive scenario across Eastern Europe, in terms of consumerism and manufacturing, is expected to drive the market.

Technology Insights

The extrusion blow molding technology segment led the market in 2019 and accounted for more than 37% share of the global revenue in 2019. This high share is attributable to various advantages and low operating costs of extrusion blow molding. The machinery and equipment cost of injection blow molding technology ranges from USD 37,500 to USD 400,000, which is relatively higher than that of extrusion machinery. This is anticipated to be a major disadvantage, mainly for the new market participants.

Moreover, mold designs are required to be created before the start of any process, and this could put production behind schedule or cost more money for the company. These factors may not be a major setback for the established players but can pose challenges to the new and small-scale companies planning to enter the market. The demand for compound blow molded plastics is high from the automobile industry as this technology is used for manufacturing extremely high-quality customized auto components. As a result, the compound blow molding segment is anticipated to grow at a higher rate as compared to the stretch blow molding segment.

Product Insights

The Polyethylene (PE) product segment led the market in 2019 and accounted for more than 20% of the total revenue share. This significant share is attributable to the increasing use of PE compounds in the packaging, construction, and electrical & electronics industries. Components produced from polystyrene are used in a wide range of industries including consumer goods, electrical & electronics, building & construction, and packaging. Polystyrene is resistant to photolysis, which makes it non-biodegradable. In addition, the manufacturing of polystyrene contributes 1000 times more to global warming compared to CO2 emissions. These factors will limit its usage, thereby hampering the segment growth.

Acrylonitrile Butadiene Styrene (ABS) offers properties such as rigidity, high strength, and dimensional stability of the components produced, which make it suitable for application in consumer goods and electrical and electronics application. LEGO toys and electronic equipment & components are the major applications for ABS. Moreover, ABS is thermoplastic, which offers heat and impact restraint properties and can be easily liquefied to produce blow-molded products. However, it has a low melting point and therefore cannot be used in high operating temperatures.

Point Of Usage Insights

The automotive & transportation point of usage segment led the market in 2019 and accounted for more than 30% of the overall revenue share in 2019. This significant share is attributable to the increasing use of lightweight, durable, long-lasting blow molded plastics components, which help in enhancing vehicle efficiency along with a reduction in overall weight. The growing demand for EVs to reduce carbon emissions is expected to drive the segment growth over the forecast period.

Household industrial chemical containers are used to store products such as floor cleaners, glass cleaners, phenyl, disinfectants, and various others. Amid the global COVID-19 pandemic, the demand for household cleaning products has increased. This is expected to drive the demand for blow molded plastics in the household industrial chemical containers point of usage segment.

Food & beverage bottles are widely used in the packaging of carbonated and non-carbonated drinks, bottled water, edible oil, and various other packed and processed food products. Rising demand for packed and processed food is expected to drive the segment growth over the forecast period.

Application Insights

The packaging application segment led the market in 2019 and accounted for more than 41% of the market share. The segment will retain its dominant position throughout the forecast years on account of rising demand for Personal Protective Equipment (PPE) and products, such as face shields, masks, gloves, and kits.

A wide range of plastics is used in the automotive application segment, with their scope extending from interior components to engine parts. PP compounds are being used as substitutes for metals and other engineering plastics due to their superior mechanical properties and moldability. Several grades of PP compounds have been developed to meet diverse performance requirements. Growing demand for sustainable materials has been a major factor fueling the usage of lightweight blow molded plastics in this segment.

Polyvinyl Chloride (PVC) is one of the widely used plastics in building & construction applications. PVC can be easily modified as per the structural requirement. Historically, the construction industry is one of the major consumers of plastic products as they can be easily modified to meet the specific requirement, for instance, flame-retardant additives are blended with PVC, which is one of the important aspects of building & construction materials.

The rising demand for packaging products and solutions to supply PPE and medical devices is driving the demand for PP. The penetration of blow molded plastics in medical applications is less compared to other applications, such as automotive & transportation, electronics, and packaging. Due to the global pandemic, the demand for various hygiene and healthcare products, such as disinfectants and sanitizers, has increased, which, in turn, will drive the medical application segment.

Country Insights

Germany dominated the market in 2019 and accounted for over 26% share of the total revenue. Germany is one of the largest manufacturers of plastics in Europe, as the country has an adequate number of production plants of high capacities. In addition, Germany exports plastics to neighboring countries owing to high-quality products and large production capacities. The country also recycles a significant amount of plastic waste and converts it into fibers, sheets, films, etc.

Germany is the largest consumer of non-alcoholic beverages and packed & processed food products in Europe, which is driving the demand for blow molded plastics in the food & beverage packaging application. Italy’s packaging and automobile industries are the two largest contributors to the market growth. The growing environmental awareness in the region has boosted the demand for packaging products made from recycled plastics, which will drive the overall market.

Key Companies & Market Share Insights

The majority of the players have integrated their value chain, which includes raw material production, distribution, and manufacturing, to maintain high product quality and expand geographical presence. This integration in the value chain provides a competitive advantage in the form of low-cost manufacturing and enhanced profit margins. Companies are investing in R&D activities to develop new industrial plastic and its applications to cater to the changing requirements of consumers.

Amid the global COVID-19 pandemic and lockdown in major cities of the region, the automotive manufacturer BMW AG has postponed the construction of its manufacturing plant in Hungary till 2024, which was about to start by the end of 2020. Mercedes-Benz, Audi, and BMW AG have signed an agreement and Memorandum of Understanding (MoU) with the Hungarian Government to invest USD 461.19 million in the redevelopment of transportation infrastructure in the country. Some of the prominent companies in the Europe blow molded plastic market include:

• Agri-Industrial Plastics

• ALPLA-Werke Alwin Lehner GmbH & Co KG

• APEX Plastics

• Berry Global, Inc.

• Comar, LLC

• Creative Blow Mold Tooling

• Custom-Pak

• Dow Inc.

• Garrtech, Inc.

• Gemini Group, Inc.

• HTI Plastics

• INEOS Group

• International Automotive Components (IAC) Group

• LyondellBasell Industries Holdings B.V.

• Magna International, Inc.

• Plastipak Holdings, Inc.

• Rutland Plastics Ltd.

• The Plastic Forming Company, Inc.

Europe Blow Molded Plastic Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the Europe blow molded plastic market report on the basis of technology, product, point of usage, application, and country:

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Extrusion

  • Injection

  • Stretch

  • Compound

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Polypropylene (PP)

  • Acrylonitrile butadiene styrene (ABS)

  • Polyethylene (PE)

  • Polystyrene (PS)

  • Polyvinyl Chloride (PVC)

  • Polyethylene terephthalate (PET)

  • Others

• Point Of Usage Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Household Industrial Chemical Containers

  • Toiletries & Cosmetics and Personal Care & Medical

  • Food & Beverage Bottles

  • Industrial Containers & Drums

  • Pipes, Cable & Insulation

  • Automotive & Transportation

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Packaging

  • Consumables & Electronics

  • Automotive & Transportation

    • HVAC Ducts

    • Air Intake Ducts

    • Others

  • Building & Construction

  • Medical

  • Others

• Country Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Germany

  • U.K.

  • France

  • Italy

  • Central Europe

    • Poland

    • Slovakia

    • Czech Republic

    • Hungary

    • Romania