A recent market research report published by Transparency Market Research states that the global plastic bags and sacks market will generate revenues worth US$ 18,904 mn by the end of 2016. The global consumption of plastic bags and sacks is expected to increase at a 4.1% CAGR from 2016 through 2024 and rise to 12,361.9 thousand metric tons by 2024. Despite excellent growth prospects, the market is hindered by the concerns regarding non-biodegradable nature of plastics and their role in making landfills a nuisance and a major environmental issue.
In this blog post, TMR analysts uncover some factors and issues central to the overall development of the global plastic bags and sacks market:
Q. Has the recent crash in oil prices impacted the global plastic bags and sacks market?
A. Crude oil and a number of intermediate products formed during its processing and refinement form the major constituents in the production of a variety of plastics. Thus, differences in their cost have a definite and direct impact on the plastics industry as well. The drastic slump in oil prices, which dropped by more than 70% as compared to the prices in June 2014, has proved to be a blessing for the plastic bags and sacks market. As the raw materials were being procured at relatively lower prices during this period, operational costs of plastic bag and sac manufacturers declined by 20-25% in 2015 as compared to 2014. This has helped companies generate much higher ROI.
Q. What major factor are influencing the consumption and demand for plastic bags and sacks across the world?
The Drivers: The global demand for plastic bags and sacks is primarily driven by the momentous growth achieved by the global retail industry in the past few years. The substantial rise in the number of modern retail outlets and convenience stores across the world has substantially boosted the overall consumption of a variety of plastic bags and sacks. The rising disposable incomes and increased purchasing powers of consumers have also boosted the demand for cost-effective and convenient carry-out plastic bags in the past few years.
The Restraints: On the flip side, the market has suffered a major blow from many regulations aimed at reducing the usage of plastic bags and sacks across the world. Lack of degradability and a major role in filling landfills, making vast land patches barren and nonoperation for agricultural purposes, have negatively impact the sale of plastic bags and sacks. With the excessive use of plastics and the rising pressure on the capacities for plastic disposal, the demand for biodegradable plastics is increasing. Increased awareness regarding this is expected to have a major negative impact on the overall consumption of plastic bags and sacks in the coming years.
Q. How are regulations aimed at reducing plastic waste across the globe affecting the global plastic bags and sacks market?
A. Rising concerns related to the mounting plastic waste and its impact on the environment have awakened wide scale interest in the proper management and disposal of plastics. Governments across the world are undertaking various measures ranging across the entire lifecycle of plastic bags and sacks – beginning from their issuance at retail outlets to their disposal, recycling, and reuse. Most countries have implemented rules that require a basic fee for several kinds of plastic bags and sacks being given away at retail outlets.
At least 77 bills regarding the regulation of plastic bags in the retail sector were proposed between 2015 and 2016 by 23 states in the U.S. alone. A vast majority of these states have also introduced these bills, which will lead to bans, fines or improved plastic recycling efforts once the bills are passed.
Such regulations are expected to have an adverse impact on the global plastic bags and sacks market.