China: Huge Growth Potential in Plastics Consumpti

Wellesley, Mass, March 22, 2017 (GLOBE NEWSWIRE) -- New proprietary research by BCC Research expects technology advances to drive developments in major segments of the high-performance film markets, including packaging, the largest end-use market. In 2016, Asia and China accounted for more than 60% of the global polyester films consumption, with China leading all regions with a 9.7% CAGR in that segment.

BCC Research's report forecasts the global markets for high-performance films to reach $16.2 billion in 2021, up from about $11.2 billion in 2016, demonstrating a 7.7% CAGR.

Research Highlights

• New and better barrier film structures made with high-performance films will extend product shelf life and improve appearance.
• S. petrochemical and polymer companies should benefit from abundance of natural gas obtained from hydraulic fracturing of tight gas shales.
• The U.S. and European markets are expected to achieve relatively slow but stable growth from 2016-2021.

"About two-thirds of the world’s PET films capacity is classified as 'commodity grade,' which is mainly used for packaging," notes BCC Research Editorial Director Kevin Fitzgerald. "The global average operating rate of 'commodity-grade' PET films producers is estimated to be at 80%, while China’s operating rate is below 70% due to surging investment into the industry."

Asia-Pacific a Key Region in Films Market, Especially China

In China, growing overcapacity in the early 2010s worried the industry players and operating rate and profit kept declining. However, the operating rate is now stable, and profit is good, as some manufacturers retreated and the capacity is reduced.

"When the biaxially-oriented polyethylene terephthalate (BOPET), a polyester film made from PET chips, experienced very fast growth and was very profitable in the late 2000s in China, many new investors entered the industry," Fitzgerald explains. "Overall, Asia and China should continue to grow their commanding share of the global polyester films consumption through 2021."

About BCC Research BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com . Follow BCC Research on Twitter at @BCCResearch .

Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.