Plastic Products Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 7,550 plastic product manufacturers in the US process plastic materials and produce parts and finished goods for a variety of end uses. Product categories include packaging material; fabricated shapes and plates; polystyrene foam products; urethane and other foam products; bottles; plumbing fixtures; and resilient floor coverings.

Volatile Raw Materials Costs

Conventional plastic is a petroleum and natural gas byproduct and the cost of plastic or resin is affected by variability in the price of crude oil.

Industry size & Structure

A typical plastic products manufacturer employs about 85 workers and generates about $30 million annually.

    • The plastic products manufacturing industry consists of 7,550 companies that employ 618,800 workers, and generates over $228 billion annually.
    • The industry is fairly fragmented with the 50 largest firms representing just 32% of industry revenue.
    • Primary end-use markets include packaging, consumer and institutional, and building and construction. Other markets include transportation, electrical and electronics, furniture and furnishings, and industrial machinery.
    • Individual companies may specialize according to end-use, process, or material. Many companies may act as suppliers to OEMs, such as auto or aircraft manufacturers.
    • Large companies include Berry Plastics, Pactiv Evergreen Corporation, and Graham Packaging.
                                Industry Forecast
                                Plastic Products Manufacturers Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Sep 27, 2023 - Producer Prices Trending Downward
                                • Producer prices for plastic products manufacturers have been trending downward since peaking in August of 2022 following a steep runup that began after the pandemic-induced recession. Inventories and shipment of plastics and rubber products declined in June compared to a year ago as the US economy cooled. Industry sales in the first quarter declined year over year and from the previous quarter. Overall employment by plastic product makers fell in July compared to a year earlier while average industry wages continue to rise.
                                • A landmark truth-in-labeling law in California will prohibit companies from placing recycling symbols on products that are not widely recycled in the state, The New York Times reports. The new law, which takes effect in fall 2025, will affect many plastics that carry the “chasing arrows” symbol, like soda cups and yogurt containers, that are rarely recycled – specifically those without a 1 or 2 on the package such as milk and soda bottles, the only plastics said to be reliably recycled. The bill's supporters hope it will motivate makers of plastic packaging to switch to more sustainable materials, while the industry argues the focus should be on improving recycling rates by educating consumers and expanding recycling infrastructure, NYT reports.
                                • The plastics industry is rebutting what it says are “misleading” claims made by an environmental group that the use of PVC (polyvinyl chloride) pipe in drinking water systems poses a significant health and environmental hazard, Supply House Times reports. The report – “The Perils of PVC Plastic Pipes” – was issued in April by the nonprofit Beyond Plastics and comes at a time when billions of dollars in federal funds are flowing to communities across the US to replace lead service lines. The report cites health risks from PVC chemicals leaching into the water supply. The industry says PVC products have been demonstrated by product safety testing and certification organizations, including NSF International and American National Standards Institute, to not leach any contaminant at levels of public health concern. The Environmental Protection Agency has not issued any guidance regarding using PVC pipe to replace lead lines.
                                • The US Environmental Protection Agency has released a “Draft National Strategy to Prevent Plastic Pollution” focused on actions to reduce, reuse, collect, and capture plastic waste, according to the agency’s website. The three key objectives of the report are: reducing pollution during plastic production; improving post-use materials management; and preventing trash and micro/nano plastics from entering waterways and removing escaped trash from the environment. The agency recommends that plastic producers design products for reuse and recycling, use less impactful materials, and phase out unnecessary products to build a circular economy that eliminates waste in the management of plastic products. A 45-comment period began on April 21, the release date of the draft strategy.
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