Industry

New Insights into Plastics Industry Growth Trends

The Plastics Industry Association (PLASTICS) released its inaugural Plastics Demand Estimate in July 2024, starting with data from May 2024. This monthly estimate will provide regular insights into plastic trends.

Plastic Trends

In May 2024, U.S. plastics demand was estimated at $22.8 billion. This figure represents a 1.4% increase from April 2024. Additionally, it marks a 3.5% increase from May 2023. This growth in demand was the highest observed since January 2024. The increase indicates a positive trend for the industry.

You can also read: Looking Ahead – Future Shifts in the Plastics Industry

When adjusted for inflation based on the Producer Price Index (PPI) for plastics product manufacturing, demand rose 1.5% monthly. Year-over-year, the inflation-adjusted demand increased by 3.2%. These adjustments provide a clearer picture of real demand growth, highlighting the sector’s resilience.

Plastic Manufacturing Landscape

Plastic products manufacturing experienced growth for the fourth consecutive month in May 2024. This consistent manufacturing growth supports the upward trend in plastics demand observed from the lows of 2023. The steady increase in manufacturing indicates a robust recovery and growing confidence in the industry.

While monthly demand will continue to vary, year-over-year changes in plastics demand have become more aligned recently. This alignment contrasts with 2021 and 2022 when price distortions caused significant fluctuations in plastics demand. The recent stability suggests a more predictable market environment.

How is The Demand Estimated?

The methodology for the Plastics Demand Estimate involves analyzing monthly data on shipments of plastics and rubber products. Adjustments for exports and imports use data from the U.S. Census Bureau. The PPI of plastics product manufacturing, rebased to 2008=100, calculates the inflation-adjusted estimate. This methodology provides real monthly and year-over-year changes in demand, ensuring accurate and relevant insights.

Address questions regarding the report to Perc Pineda, PhD, Chief Economist of PLASTICS. Contact him via email for more detailed information and clarification.

To access to the report click here.

By Juliana Montoya | August 14, 2024

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