Industry Analysis & Industry Trends
Over the past five years, consumers of have increased their consumption of plastic. This trend has caused plastic products to increasingly substitute materials such as wood, paper, metals and glass in many applications. The next five years are also expected to be prosperous for the industry thanks to continuing growing demand for industry products. However, global economic uncertainties, including the European debt crisis and concerns about a slowdown in rapidly developing Asian economies, will present challenges over the period... read more
Starting a New Business
Barriers to entry for this industry are high. Existing large players can negotiate lower prices for raw materials (principally plastic resins), which represent a large percentage of total industry costs. This enables them to offer their products to their customers at a more affordable price than new or entering competitors which do not have such bargaining power. Because of this, new entrants may find it difficult to compete as price is a key competitive factor used in attracting customers, with demand for plastic products being highly price elastic.
Apart from price pressures, significant investments are required in acquiring plant and equipment for the manufacturing process to take place... read more