Industry Analysis & Industry Trends
From food producers to car manufacturers, the Global Plastic Product and Packaging Manufacturing industry supplies plastic products to a wide range of sectors, keeping demand steady. Over the past five years, consumers have increased their consumption of plastic has been substituted for materials such as wood, paper, metals and glass in many applications. As downstream industries such as construction and auto manufacturing continue their recovery, the industry is is expected to fare well over the next five years. The versatility of plastic when compared with equivalent products is one of the major advantages plastic manufacturers have over their competition... 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 who do not have such bargaining power. Because of this, new entrants can 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