With production of USD967 billion, Asia Pacific was the largest rubber and plastic producer globally in 2020. Regional production of rubber and plastic products remains highly concentrated in China, Japan and South Korea. Over 2021-2030, Asia Pacific is projected to be the second fastest growing region, driven by a strong economic recovery from the Coronavirus pandemic, rapidly growing manufacturing and construction sectors, and relatively low production costs.
Asia Pacific is the leading region in the global rubber and plastic industry, accounting for over half of global output. Thanks to a strong economic rebound, a rapidly growing manufacturing base and pent-up demand, Asia Pacific is forecast to reach pre-pandemic levels in 2021 and drive global industry recovery in coming years. However, rising costs of raw materials, supply chain disruptions as well as increasing concerns over environmental issues will continue to pose challenges for rubber and plastic producers in the future.
China is expected to lead the region’s growth in absolute terms and remain the largest rubber and plastic goods producer by 2030. The structural reforms and investment projects planned during China's 14th Five-Year Plan period (2021-25) are expected to boost domestic market development and bolster its economic self-reliance, as China faces an increasingly challenging external environment.
Although the rubber and plastic industry in Asia Pacific is dominated by small companies, large- and medium-sized companies lead in terms of revenue generation. While the plastic products industry is heavily fragmented in the region, rubber production is more concentrated, especially in India and Japan.
Exports from Vietnam nearly doubled over the 2016-2020 period, as the country’s role as a global manufacturing hub is rising, thanks to economic liberalisation, low production costs, as well as geopolitical tensions and supply chain disruptions.
The Regional Comprehensive Economic Partnership – one of the world's largest free-trade deals – coupled with rising global protectionism and supply chain vulnerabilities are anticipated to boost regional cooperation and trade flows.
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