Industry Analysis & Industry Trends
Over the past five years, plastic consumption has accelerated. Plastic products have increasingly substituted materials such as wood, paper, metals and glass in many applications. Even with these positive trends, revenue for Global Plastic Product and Packaging Manufacturing industry is expected to decline over the five years to 2016. This decrease has been underpinned by dramatically reduced world oil prices, which reduce input costs and also limit selling prices to downstream industries. However, the five years to 2021 are expected to be prosperous for the industry, thanks to continuing improvements in demand for plastic. However, input price volatility and concerns about a slowdown in developing Asian economies will threaten the industry over the next five years... 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 that do not have such bargaining power. As a result, 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. Lar.. read more