Owing to rapid economic development and growing focus towards alleviating environmental concerns, the APAC rotomoulding powder market has strengthened its stance as a considerably lucrative investment avenue. India and China, being the two most populated countries, are counted among the world’s biggest users of plastic products. Rotomoulding powder industry boasts of a prolific existence in these two nations, as the inexpensive nature of rotational molding process ultimately allows the final products to be economically viable, making them ideal for emerging countries in the Asia Pacific (APAC) market.
Asia Pacific Rotomoulding Powder Market, By Material, 2017 & 2024 (USD Million)
Impact of India’s expanding toy manufacturing industry on the APAC rotomoulding powder industry
According to India’s National Productivity Council, the country manufactures a wide variety of toys using a diverse array or raw materials, including wood, metal, rubber, textiles and plastics, with plastics accounting for the major chunk of these materials consumed.
The Conditions: India’s toy industry has experienced several changes over the last ten years, specifically in terms of toy concepts, design and innovation. However, it is still a labor intensive industry with 75% of the manufacturers being micro-scale, 22% being small to medium scale and only 3% being large scale entities. Given that most of these toy manufacturers have a tight profitability window, using rotomoulding powder to produce plastic toy parts becomes an obvious choice to lower costs, ensuring a favorable revenue graph for the APAC rotomoulding powder market.
The Demand: India is a fast growing economy, with regard to both earnings and the population. It has been reported that children accounted for approx. 39% of the nation’s population during the 2011 census, with 57% of that demographic being in the 0-10 age bracket. These numbers indicate that the toy industry in India can be expected to face tremendous demand in the near future, which will further translate into significant growth for the rotomoulding powder market.
The Projection: Supposedly, the Indian toy sector had ranked eighth globally in 2017. However, the country is on its way to become the world’s most populous country in a few years, which would immensely propel its child population. This will further provide an extremely conducive growth environment for the APAC rotomoulding powder market over the forecast timespan.
Impact of China’s recycled PE import ban on the APAC rotomoulding powder market
It is estimated that China has witnessed a 66% fall in plastic bag use since it adopted a strict regulation to limit plastic use in 2008, which included avoiding the use of ultra-thin plastic bags. This change was brought on by the China’s increasing focus on improving the its environment quality.
The Conditions: The focus of Beijing towards environmental concerns has become so severe that China, which according to the Global Alliance for Incinerator Alternatives had taken in 51% of the world’s plastic waste up to 2017, imposed a complete ban on plastic waste import. The nation also levied heavier import duties on recycled Polyethylene (PE), a material that is used extensively in rotomoulded products.
The Effects: After the import ban and introduction of heavy import duty, the nation’s net PE imports had witnessed just a 20% average increase in 2018. Moreover, PE demands from local production and net imports alike were expected to be 12% higher in 2018 as compared to the previous year numbers.
The Projections: To replace lower imports of scrapped PE resins for a number of low-value end use applications, China’s polyethylene sector has surged considerably, which is poised to benefit the country’s rotomoulding powder industry over the forecast timeframe.
Fueled by the India’s expanding toy industry and China’s changing plastic industry dynamics, the APAC rotomoulding powder market is slated to procure substantial proceeds over the coming years. Reports have projected that the APAC rotomoulding powder market would be surpassing a valuation of US$7 billion by 2024.