Strong form: Exports have supported expansion, and revenue is projected to continue to grow

Over the five years through 2018-19, industry revenue is forecast to grow at a compound annual rate of 2.7% to reach £4.6 billion. Revenue grew throughout the period; however, profit margins were volatile, increasing from 6.4% of revenue in 2013-14 to 8.2% in 2016-17, and then falling to 6.6% in 2018-19 due to increasing oil prices and the depreciation of the pound. A weak pound and rising oil prices increase operators' costs, and as demand from the industry's largest market is set to increase, both selling prices and units sold are forecast to expand, causing revenue to grow by 2.9% in 2018-19.Crude oil prices were volatile over the period...read more.

Industry Statistics & Market Size
Revenue
£4.6bn
Annual Growth 14-19
2.7%
Forecast Growth 19-24
Profit
Employment
11,194
Businesses
371
Market Share of Companies

Industry Threats & Opportunities

  • The weak pound supported demand from manufacturing in the latter half of the period
  • The weakened pound is expected to have boosted industry exports
  • The value of the pound is expected to remain weak over the next five years, supporting export growth
  • Industry Report - Starting a New Business Chapter

    Many global players in the industry have parent companies that also produce petrochemicals or operate oil refineries. Some are part of integrated oil companies and operate on integrated oil refining or petrochemical complexes and as a result benefit from a steady supply of feedstock provided at favourable prices. Other companies operate under parent companies which are also their main customers and therefore have a steady source of demand. It is likely that newcomers to the market will not have these benefits, increasing barriers to entry. The marked fluctuations in raw material prices over the past few years have meant that the ability to access a steady supply of competitively priced raw materials is of increasing importance. Fur...purchase to read more.

    Additional Insights for the Primary Form Plastics Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Primary Form Plastics Manufacturing Industry are

  • Having contracts which are favourable to purchaser
  • Upstream vertical integration (ownership links)
  • Provision of superior after sales service
  • IBISWorld analysts also discuss how external factors such as Downstream demand from manufacturing and Industrial production index in the Primary Form Plastics Manufacturing industry impact industry performance..

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    What's in this report

    What is the Primary Form Plastics Manufacturing Industry?

    This industry includes companies involved in the manufacture of resins, plastic materials and non-vulcanisable thermoplastic elastomers. It also includes companies involved in the mixing and blending of resins on a custom basis and in the manufacture of non-customised synthetic resins.

    Industry Products
  • Polyvinyl chloride
  • Acrylic polymers
  • Polyester
  • Polyurethanes
  • Polypropylene
  • Polyethylene
  • Other products
  • Industry Activities
  • polymers
  • polyamides
  • phenolic and epoxide resins and polyurethanes
  • alkyd and polyester resins and polyethers
  • silicones
  • ion-exchangers based on polymers
  • cellulose and its chemical derivatives
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Downstream demand from manufacturing
  • Industrial production index
  • Total value of construction
  • Real effective exchange rate
  • World price of crude oil
  • Public concern over environmental issues

  • Current Performance
  • Slippery growth
  • Volatile reactions
  • Diluting domestic markets
  • Restricting growth
  • Dissolving concentration
  • Chart: Revenue Growth

  • Industry Outlook
  • Constrained profitability
  • Resistance to imports
  • Long term pay-offs
  • Building up
  • New forms of plastic
  • Table: Primary Form Plastics Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Primary Form Plastics Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Plastic Packing Goods Manufacturing
  • Motor Vehicle Parts & Accessories Manufacturing
  • Commercial Building Construction
  • Residential Building Construction

  • Key Selling Industries
  • Inorganic Basic Chemical Manufacturing
  • Organic Basic Chemical Manufacturing
  • Petroleum Refining

  • Products & Services
  • Other products
  • Polyvinyl chloride
  • Acrylic polymers
  • Polyester
  • Polyurethanes
  • Polypropylene
  • Polyethylene
  • Chart: Primary Form Plastics Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Packaging manufacturers
  • Construction product manufacturers
  • Other
  • Transportation manufacturers
  • Electrical and electronic product manufacturers
  • Chart: Major Market Segmentation for the Primary Form Plastics Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Primary Form Plastics Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Primary Form Plastics Manufacturing Industry

  • Industry Globalization
    Basell Polyolefins UK Ltd,
  • Table: Basell Polyolefins UK Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Primary Form Plastics Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Primary Form Plastics Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bioplastic
  • A type of biodegradable plastic derived from biological substances rather than petroleum.
  • Polyethylene
  • A flexible synthetic resin made by polymerising ethylene.
  • Polymer
  • A chemical compound or mixture of compounds that consists essentially of repeating structural units.
  • Polypropylene
  • A thermoplastic synthetic resin that is a polymer of propylene.
  • Polyvinyl Chloride
  • A tough chemically resistant synthetic resin made by polymerising vinyl chloride.
  • Synthetic Resins
  • A large class of synthetic products that have some of the physical properties of natural resins but are different chemically and are used chiefly in plastics.
  • Thermoplastic
  • A synthetic resin that is capable of softening or fusing when heated and hardening again when cooled.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Primary Form Plastics Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Primary Form Plastics Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Primary Form Plastics Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Primary Form Plastics Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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