Market Size of south america engineering plastics Industry
| Icons | Lable | Value |
|---|---|---|
|
Study Period | 2017 - 2029 |
|
Market Size (2024) | USD 5.60 Billion |
|
|
Market Size (2029) | USD 7.94 Billion |
|
Largest Share by End User Industry | Packaging |
|
|
CAGR (2024 - 2029) | 7.22 % |
|
Largest Share by Country | Brazil |
Major Players |
||
|
||
|
*Disclaimer: Major Players sorted in no particular order |
South America Engineering Plastics Market Analysis
The South America Engineering Plastics Market size is estimated at 5.60 billion USD in 2024, and is expected to reach 7.94 billion USD by 2029, growing at a CAGR of 7.22% during the forecast period (2024-2029).
5.60 Billion
Market Size in 2024 (USD)
7.94 Billion
Market Size in 2029 (USD)
4.93 %
CAGR (2017-2023)
7.22 %
CAGR (2024-2029)
Largest Market by End-user Industry
49.71 %
value share, Packaging, 2023
Due to the wide range of applications, including bottles, jars, and containers, specifically in the food and beverage industry, the packaging segment occupied the major share.
Fastest Growing Market by End-user Industry
8.53 %
Projected CAGR, Electrical and Electronics, 2024-2029
The electronics segment is expected to witness the fastest growth due to the superior properties of engineering plastics, such as lightweight, good impact resistance, higher flexibility, and fire resistivity.
Largest Market by Resin Type
44.80 %
value share, Polyethylene Terephthalate (PET), 2023
With widespread applications in the packaging industry and the rising demand for PET sheets and films, PET resin occupies the largest market share.
Largest Market by Country
62.76 %
value share, Brazil, 2023
Due to significant economic growth and escalating demand for engineering plastics in major industries, including packaging, automotive, and construction, Brazil has occupied the highest market share over the past few years.
Leading Market Player
43.96 %
market share, Alfa S.A.B. de C.V., 2022
In 2022, with the largest production capacity of around 640 kilotons per year of PET resin in South America, the company held the largest market share. Alfa offers various grades, mainly for packaging applications.
Packaging industry to dominate the market during the forecast period
- Engineering plastics, with their superior mechanical and thermal properties compared to common or commodity plastics, have endless applications. They have replaced metals and other traditionally used materials in various application areas, such as automotive, aerospace, building & construction, and more.
- The packaging industry is the largest consumer of engineering plastics. Packaging made from engineering plastics comes in a variety of material types and forms, including films, bottles, containers, and others, each with its own unique characteristics. These characteristics encompass temperature range, appropriate food use, shelf life, appearance, and barrier properties. Suitable for both hot and cold filling, as well as microwave reheating, engineering plastics are expected to see a CAGR of 5.13% in terms of consumption volume from this industry during the forecast period.
- The automotive industry is the second-largest consumer of engineering plastics, which have replaced expensive metals and their alloys with various types of composites, each designed for unique conditions and requirements. The industry uses high-strength engineering plastics, which not only reduces the cost of part processing, assembly, and maintenance but also makes the vehicle lighter and more energy-efficient. Brazil and Argentina have the most developed automotive industries in the region, and consumption in this industry is expected to record a CAGR of 6.74% in terms of revenue from 2023 to 2029.
- The electrical and electronics industry is projected to be the fastest-growing segment due to the increasing demand for smart electronics and advanced devices, contributing to the industry's growth. The demand in this industry is anticipated to record a CAGR of 7.74% in terms of volume during the forecast period.
Understand The Key Trends Shaping This Market
Brazil to remain dominant during the forecast period
- South America accounted for a share of 4.56%, by revenue, of the consumption of engineering plastics globally in 2022. Engineering plastics have applications in different industries, such as automotive, packaging, electrical and electronics.
- Brazil is the largest consumer of engineering plastics and witnessed a growth of 10.18% in revenue in 2022 compared to the previous year. Brazil occupied nearly 60% and 66% volume shares of packaging and automotive production, respectively, of overall South America. With the growing demand for ready-to-eat convenience food and the emerging trend of on-the-go lifestyles, the consumption of packaging materials increased, increasing the sales of engineering plastics in the region. The surge in automobile demand is a consequence of the increasing demand for private mobility. Technological innovations are driving demand for electronic gadgets.
- Argentina is the fastest-growing consumer, led by the automotive industry, as the government legislated a new Act to promote new investments in the car-marking industry and strengthen its supply chain. This will reinforce the industry’s export-oriented profile, promoting the development of new engine technologies during the forecast period. Therefore, the demand for engineering plastics in automotive is likely to increase, registering a CAGR of 10.77%, by revenue, in the country during the forecast period.
- The consumption of engineering plastics in the region is expected to register a CAGR of 7.21% by revenue during the forecast period (2023-2029), owing to the use of advanced materials, organic electronics, miniaturization, and disruptive technologies.
