Category Archives: Plastic

Plastic Compounding

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plastic compounding - plastic thumb tacks
Plastic compounding is a method of changing the characteristics — physical, electrical, thermal, or aesthetic — of thermoplastics. It is the third step in plastics production, after acquiring the raw material and synthesizing the polymers. Depending upon what characteristics the final product should have, a base resin is selected and then specific additives, reinforcers, or fillers are incorporated into the compounded plastic using a melting and blending process. Pellets of this compounded plastic are sent to the customer for sheet extrusion or injection molding.

Today’s market size shows revenues for plastic compounding in 2019 and projected for 2027. Global plastics production continues to increase. In 2018, 359 million metric tons of plastic were produced, up from 245 million metric tons a decade earlier. The increasing use of plastic as a substitute for products traditionally made of glass, metal, wood, natural rubber, and man-made materials such as concrete will drive growth in this industry. There is also a growing demand for plastic in various industrial applications due to its versatility, easy molding, and ability to form a desired shape.

Automotive applications claimed the highest market share, about 25%, in 2019 owing to the greater reliance on plastics in automotive components. Packaging, electrical and electronics, building and construction, and consumer goods round out the top 5 applications in terms of market share. All 5 together comprised more than 75% of the plastic compounding market. Although medical devices claimed a very small share in 2019, this is expected to expand in 2020 while the automotive application share declines. As the world battles COVID-19, demand for personal protective equipment and some medical devices, made with plastics, has skyrocketed. At the same time, automotive plants worldwide shut down the production of vehicles while many retooled to build ventilators, respirators, and plastic face shields.

The Asia-Pacific region held the largest share of the market in 2018 due to a growing number of plastics manufacturers locating there and an expanding manufacturing sector. The region is the largest producer and consumer of automobiles, consumer goods, and packaging materials and one of the largest producers and consumers of electrical and electronic products. Most producers are involved in at least one of the segments of the plastics industry. Globally, more than 60% of plastic compounders are small and medium-sized businesses, many expanding their production capabilities. Major corporations such as automotive manufacturers and Original Equipment Manufacturers tend to contract with compounders who cater specifically to their company’s needs. Chinese compounders, however, tend to work with a large number of small to medium-sized businesses. Some leading global plastics compounders include BASF SE, LyondellBasell Industries N.V., The Dow Chemical Co., SABIC, Asahi Kasei Plastics, and Covestro (Bayer Material Science).

Geographic reference: World
Year: 2019 and 2027
Market size: $59.10 billion and $104.41 billion, respectively
Sources: “Plastic Compounding Market Size, Share & Trends Analysis Report by Product (PP, PET, TPV, TPO, PVC, PBT, ABS), by Application (Automotive, Electrical & Electronics, Construction), and Segment Forecasts, 2020 – 2027,” Grand View Research Report Summary, February 2020 available online here; “Plastic Compounding Market Size Worth $104.41 Billion by 2027: Grand View Research, Inc.,” CISION PR Newswire, March 3, 2020 available online here; “What is Plastic Compounding,” Marval Industries Inc. available online here; “Global Plastic Production from 1950 to 2018 (in Million Metric Tons),” Statista, October 2019 available online here; Jack R. Nerad, “How Car Companies are Helping to Produce Medical Personal Protective Equipment (PPE),” J.D. Power, March 24, 2020 available online here.
Image source: annca, “pin-pinn-needle-thumbtack-plastic-3092912,” PIxabay, January 20, 2018 available online here.

Methanol

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methanol fuel
Methanol is a toxic, colorless, flammable liquid. It used to be called wood alcohol because it’s a byproduct of the destructive distillation of wood, a process by which wood is heated to a high temperature in the absence of oxygen in order to extract various chemicals. Now it’s made using natural gas in a catalytic industrial process. Methanol can also be made from coal, biomass, landfill gas and power plant or industrial emissions. Methanol has been one of the most widely used industrial chemicals since the 1800s.

Today’s market size shows methanol revenues for 2018, 2020 and 2027.1 Data for 2027 is projected. According to the Methanol Institute, global demand for methanol increased at a compound annual growth rate of 5.9% from 2014 to 2019. Production takes place on 5 continents and in the Middle East. There are 90 plants with a combined production capacity of 110 million metric tons worldwide. Forty percent of the methanol consumed is used for emerging energy applications and about 33% is used in the production of formaldehyde. Formaldehyde is used in the production of resins, glues and various plastics. It’s also used to produce acetic acid which is used in the production of polyester fibers and PET plastics. The newest and growing use for methanol is in the production of light olefins ethylene and propylene. Ethylene is used in the production of packaging and nonpackaging film, PET plastics, PVC and polystyrene. Propylene is used as an alternative to propane and as a fuel gas in the chemical and plastics industries. Most methanol to light olefin production is done in China.

Emerging energy applications for methanol include automobile fuel, marine fuel, DME, biodiesel, fuel cells, electricity and boilers and cookstoves.2 China leads the world in using methanol as an automotive fuel. Currently, a majority of passenger cars in China are fueled by M15, a blend of 85% gasoline and 15% methanol. Since 2012 China has been participating in a pilot program to study the efficacy of using 100% methanol. In the last few years, 470,000 buses, trucks and taxis have been converted to run on either 100% methanol (M100) or a blend of 85% methanol and 15% gasoline (M85). In March 2019, China issued a policy paper encouraging the broad adoption of M100 as a vehicle fuel. Australia, Egypt, Iceland, and Israel also have programs testing the viability of using methanol as a transportation fuel. The United States researched using methanol as fuel in the 1980s and 1990s. Ford, GM, and Chrysler produced methanol-fueled versions of popular car models and sold them at the same price as gasoline-powered models. By 1997 there were 15,000 methanol-fueled vehicles on the road with 100 fueling stations in California alone. But, once the price of gasoline dropped below the price of methanol, the automakers stopped producing methanol-fueled vehicles. Despite this, with more than 200 million miles driven, methanol-fueled vehicles proved to be a viable alternative to gasoline-powered vehicles.

Why methanol? Renewable methanol, made from agricultural waste, forestry residues, municipal solid waste, and carbon dioxide from industrial exhaust, lowers carbon emissions by 65-95% when compared to fossil fuels. According to the Danish Department of Energy, carbon dioxide emissions from methanol on a well-to-wheel basis are the lowest of all alternative fuels, including battery-electric. Carbon dioxide emissions totaled 176g/km for gasoline engines, 178g/km for hydrogen, 142g/km for hybrid engines, 132g/km for diesel, 98g/km for battery-electric, and 83g/km for methanol. Renewable methanol fuel also has lower emissions of nitrogen oxides and volatile organic compounds and contains no benzene, toluene, ethylbenzene, and xylene. These last four cancer-causing chemicals in gasoline emissions do not biodegrade easily and can contaminate groundwater. And, while methanol emissions do contain toxic formaldehyde, if a heated catalytic converter is used, the levels meet or exceed California’s strict Ultra Low Emission Vehicle emission targets. With ground transportation accounting for close to 73% of all transportation greenhouse gas emissions in Europe alone in 2015, widespread adoption of methanol-fueled vehicles can have a dramatic effect on lowering carbon emissions and reducing the effects of climate change.

In 2019, three regions of the world accounted for approximately 75% of methanol consumption globally. More than half of global consumption was in China, followed by Eastern Europe and the United States. The industry is fragmented with the top 10 companies having less than 30% of global capacity. The leading producer of methanol is Methanex. Other top companies include SABIC, Celanese Corp., Eastman Chemical Co., BASF SE, and Atlantic Methanol among others. Methanex, SABIC, QAFAC, and GPIC produce low carbon methanol. BASF, BioMCN, Enerkem, New Fuel, and Nordic Green produce bio-methanol. Renewable methanol is produced by Carbon Recycling International and Innogy. More than 30 companies are involved in the research and development of low carbon methanol, bio-methanol, and renewable methanol.

1 Source for 2018 and 2027 data: “The Global Methanol Market to Garner $56,151 Million by 2027,” AB Newswire Press Release, March 17, 2020 available online here. Source for 2020 data: “Global Methanol Market 2020 : Industry Outlook, Top Countries Data, Comprehensive Insights, Growth and Forecast 2026,” MarketWatch Press Release, February 5, 2020 available online here.
2 DME stands for dimethyl ether. It’s used as a replacement for propane in liquid petroleum gas and can be used as a replacement for diesel fuel in transportation.

Geographic reference: World
Year: 2018, 2020 and 2027
Market size: $34.5 billion, $36.85 billion and $56.2 billion, respectively
Sources: “The Global Methanol Market to Garner $56,151 Million by 2027,” AB Newswire Press Release, March 17, 2020 available online here; “Global Methanol Market 2020 : Industry Outlook, Top Countries Data, Comprehensive Insights, Growth and Forecast 2026,” MarketWatch Press Release, February 5, 2020 available online here; “Energy,” Methanol Institute available online here; “The Methanol Industry,” Methanol Institute available online here; Tammy Klein, Methanol: A Future-Proof Fuel, Methanol Institute, February 2020 available online here; “The Chemical,” Methanol Institute available online here; “Methanol,” Chemical Economics Handbook, December 2019, IHS Markit press release available online here; Renewable Methanol Report, ATA Markets Intelligence S.L. on behalf of the Methanol Institute, December 2018 available online here; “Methanol Fuel in the Environment,” Methanol Fuels available online here; “Ethylene Uses and Market Data,” Independent Commodity Intelligence Services, December 9, 2010 available online here; “Methanol Market Size, Share, Demand, Trends, Industry Analysis, Statistics Worldwide 2026 | BASF SE, SABIC, Eastman,” MarketWatch Press Release, March 5, 2020 available online here; “Propylene,” Industrial Gases available online here.
Image source: Paul Brennan, “pumping-gas-fuel-pump-industry-gas-1631634,” Pixabay, August 31, 2016 available online here.

Polypropylene

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Polypropylene recycling symbolPolypropylene is a thermoplastic polymer made from propylene monomers and catalysts. It was first polymerized in 1951 by Philips petroleum scientists Paul Hogan and Robert Banks. In 1954 Italian chemist Giulio Natta perfected and synthesized the first polypropylene resin. By 1957 it was in widespread commercial production across Europe. Currently, it is one of the most commonly produced plastics in the world.

Because polypropylene can be combined with other polymers, the types of end uses can vary widely making it a versatile material with which to work. In 2016 global demand was 45 million metric tons, 30% of which was used in the packaging industry. Some other uses include automotive parts, furniture, dishwasher-safe plates, toys, carpets, upholstery, laboratory equipment and medical devices.

Today’s market size shows the estimated global sales of polypropylene in 2017 and projected for 2022. Polypropylene homopolymers are expected to be the fastest-growing type during this time period due to increasing demand in the automotive and medical industries, especially in the Asia Pacific region. The market for polypropylene is expected to grow the fastest in China, followed by India and South Korea from 2017 to 2022.

Geographic reference: World
Year: 2017 estimated and 2022 projected
Market size: $75.40 billion and $99.17 billion respectively
Sources: “The Polypropylene Market Size is Estimated at USD 75.40 Billion and Projected to Reach USD 99.17 Billion by 2022, at a CAGR of 5.6% Between 2017 and 2022,” CISION PR Newswire Press Release, February 1, 2018 available online here; “Everything You Need to Know About Polypropylene (PP) Plastic,” Creative Mechanisms, 2016 available online here; and “Polypropylene,” Wikipedia, April 23, 2018 available online here.
Image source: OpenIcons,”recycle-5-pp-recycling-plastic-98858,” Pixabay, April 1, 2013 available online here.

3D Printing

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The arrival on the market of consumer level 3D printers in 2012 has brought a great deal of attention to the subject of 3D printing. In essence, 3D printing may be defined as follows: A way of making objects using a computer-driven, additive process, one layer at a time. A computer-aided design (CAD) system is used by a printer-like machine which creates thousands of cross sections of the designed object and then produces that object, in plastic or metal, layer by layer. Although the name is relatively new, the technology behind 3D printing emerged in the 1980s for use, primarily, in the manufacturing sector.

There are two distinct branches of 3D printing: (1) small-scale 3D printing, where individuals or small groups with comparatively cheap machines print plastic objects in their homes or small shops, and (2) industrial 3D printing, which is usually called additive manufacturing (AM). The current industrial applications of 3D printing (primarily the creation of models, molds and dies) are seen by many as having the potential to have a revolutionary impact on manufacturing as a whole, in part because of its replacement of more traditional machine tooling tasks.

Today’s market size is an estimated value of the 3D printer market in 2012 and a forecast as to its value within a decade. This forecast comes from a gentleman who is a founding member of a company selling 3D printers to the public, 3D Systems. His forecast may refer only to 3D printers sold for nonindustrial applications, in other words, the first of the two branches of this market, as described above.

Geographic reference: World
Year: 2012 and 2022
Market size: $500 million and $35 billion respectively.
Source: Abe Reichental in a video interview with the Financial Times, “3D Printing ‘Bigger than Internet,'” June 21, 2012, available online here. “How Will 3D Printing Impact The Manufacturing Industry?” Seeking Alpha, March 18, 2013, available online here.
Original source: 3D Systems
Posted on April 2, 2013

Bio-Based Manufacturing

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In 2011, U.S. Senator Debbie Stabenow, Chairwoman of the Senate Committee on Agriculture, Nutrition, and Forestry introduced her “Grow It Here, Make It Here” initiative to spur growth in the emerging bio-based manufacturing industry. The initiative would provide a 30% tax cut for new, expanded, or re-equipped bio-manufacturing projects. Bio-based manufacturing uses agricultural goods, such as soy and wheat, to make value-added products, such as car parts, cleaning products, and plastics. This is not a new concept. Henry Ford used Michigan-grown soy and other agricultural products in his automobiles. In recent years, more and more automakers are using parts made from agricultural products. An example: the seats of the new Ford Focus and the Chevy Volt are made of Michigan-grown soy material.

Currently, bio-based products represent 4% of the plastic and chemical industry market. According to the U.S. Department of Agriculture, the potential market for bio-based plastic and chemicals could reach 20% by 2025 with federal policy support. Some studies show that if that 20% is reached, it would create more than 100,000 American jobs. This does, however, assume that agricultural production is able to keep up with strongly increasing demand and do so while maintaining competitive prices. Today’s market size is the estimated, current value of the bio-based economy in the United States.

Geographic reference: United States
Year: 2011
Market Size: $1.25 trillion
Source: “Stabenow Announces ‘Grow It Here, Make It Here’ Initiative to Advance Emerging Michigan Industry in Zeeland,” October 24, 2011, available online here.
Posted on November 4, 2011

Vinyl Records Market

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Could it be, as some sources are now reporting, that the vinyl record of the past is coming back? The ease of digital sound recording and the distribution of music digitally appeared to have made earlier music recording formats extinct. Now it appears that vinyl records are making a comeback, at least as a niche market.

Today’s market size is an estimated total number of vinyl records sold in the United States in 2007 and in 2010, a significant portion of which are newly pressed vinyl recordings.

Geographic reference: United States
Year: 2007 and 2010
Market size: 988,000 units and 2.8 million units respectively
Source: David Giffels, “Building a House of Wax,” The New York Times Magazine, October 23, 2011, page 28, available online here. Amira Jensen, “Dust off the Turntable: Record Sales Jump,” ABC News / On Campus, April 6, 2009, available online here.
Original source: Neilsen Company
Posted on October 26, 2011

Global Plastic Consumption

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The leading types of plastic consumed in the world are polypropylene, polyvinyl chloride, and high-density ethylene.

Geographic reference: World
Year: 2009
Market size: 178.1 metric tons
Source: Chemical Week, June 8, 2009, page 22
Original source: Chemical Market Associates Inc.