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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

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

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

Industry Profile Excerpts

Industry Overview

The 8,000 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.

Growth of China’s Plastic Manufacturing

Plastic products manufacturers in the US face increasing competition from less expensive plastic imports from China.

Volatile Raw Materials Costs

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

Industry size & Structure

A typical plastic products manufacturer employs about 73-74 workers and generates about $26 million annually.

    • The plastic products manufacturing industry consists of 7,800 companies that employ 576,000 workers, and generates $201 billion annually. Most companies are small to medium sized businesses.
    • 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 Corporation, and Graham Packaging.
                                Industry Forecast
                                Plastic Products Manufacturers Industry Growth
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                Apr 22, 2022 - Mandate Increases Resin Demand, Price Uncertainty
                                • Growing demand for recycled resins to comply with California’s new minimum recycled content requirements has the beverage container industry facing a potential shortfall and price uncertainty, according to new ICIS analysis. California in 2022 became the first US state to mandate a minimum recycled content in plastic beverage containers. Under the new law manufacturers are required to include an annual average of 15% of post-consumer recycled (PCR) plastic in beverage containers governed by the state’s container deposit return scheme (DRS), or ‘bottle bill’. The average is set to increase to 25% by 2025, and 50% by 2030. Modeling by ICIS points to the need for a significant increase in the availability of post-consumer resin (PCR) to meet demand driven by the new California law.
                                • New research warns that drinks bottled using recycled polyethylene terephthalate (PET) may pass more potentially harmful chemicals into their contents than newly manufactured bottles, suggesting that problems with the recycling process may be causing contamination, The Guardian reports. Researchers from Brunel University London found 150 chemicals that leached into drinks from plastic bottles, with 18 of those chemicals found in levels exceeding regulations. PET is the third most widely used type of plastic in food packaging and is commonly used in single-use beverage containers.
                                • The plastics industry is paying more for input materials. Petroleum and chemicals, major components of plastics, are being driven up by global market insecurity stemming from Russia’s invasion of Ukraine. Oil prices in the US reached $123 per barrel in early March 2022, while prices in Europe hit $133 per barrel. Punitive sanctions and bans on Russian petroleum by many nations have tightened supply. Ukraine is a major supplier of mined minerals to the global market, but fighting has limited exports and likewise tightened supply. US plastics producers may have to look to other countries for supplies and pay higher prices, which hurt profit margins if they can’t be passed along the supply chain.
                                • US demand for flexible packaging, most of which is single-use plastic, is expected to increase 4.5% annually through 2025. Demand increased 4-5% year over year in 2020 due largely to pandemic-related panic buying of the early lockdowns, according to consulting firm Wood Mackenzie.
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