The slide discusses the impact and implications of COVID on Plastic Industry. Includes Global and Indian plastic industry analysis, import export statistics etc.

1. Submitted By,
Aiswarya Santhosh
PGDM 1904
ICAR-NAARM
Corrected by: Annett
Skinner, Devadi
Hariprasad
Impact and Implications
of COVID on Plastic
Industry
PGDM 630 –
Seminar II
ICAR-National Academy of Agriculture Research Management
Rajendranagar, Hyderabad-500030
Seminar Guide,
Dr. S.K. Soam
Joint Director
ICAR-National Academy
of Agricultural Research
Management,
Hyderabad

2. Global Plastic Market
Global Plastic Market Size, 2019-2027 (USD Billion)
Global Market Share by Region
Plastic Producing Countries
$568.9 B $ 722.6 B
In 2019 In 2027
Asia pacific dominated the plastic market with a
share of 44.3% in 2019.
China is the largest producer of plastic in world
accounting to 30% global production, followed by USA
& Germany
rapid industrialization & increased skilled workforce
Global Plastic Production (MMT)
360 MMT
In 2019
Compounded Annual Growth Rate
3.2% CAGR
2019-2027
Global Market Share by application
2019 (%)
8.4 BMTCumulative

3. Indian Plastic Market
Indian plastic market size
US $25 B
We have more than
30000 processing units,
85-90% of them are small and medium sized
enterprises.
Per capita plastic consumption in India is
11kg/person
compared to global per capita consumption of
45kg.
India generates
9.46 MT of plastic waste annually out
of which 40% remains uncollected
Indian plastic exports stood at
US $10B between 2019-20.
India’s top export destinations are
China, USA and UAE
India produces high quality plastics
We have import of plastic goods worth
Rs.48000 Cr annually, hence heavily
import dependent.
India’s polymer consumption would grow by
10% between 2017-2022
9%
Sources: Plastic Export Promotion Council, IBEF, FICCI

4. Plastic Waste directives
Basel Convention and its amendment in 2019 (regulating transboundary moments of plastic waste)
United Nations Convention on the Law of the Sea [UNCLOS] (controlling plastic pollution of the marine
environment),
International Convention for the Prevention of Pollution from Ships (banning ships from dumping plastic
at sea)
Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection [GESAMP]
United Nations Global Partnership on Marine Litter [GPLM] (both addressing in- land sources, fate and
effects of plastics and microplastics in the marine environment).
India: India had announced its commitment to eliminate the SUPs by 2022 –the 129 airports banning
SUPs, Green parliamentary elections, partnerships to combat marine pollution etc.

5. Challenges amid COVID
• Increased medical waste during the pandemic masks, PPE kits, ventilators
etc. Demand for hygiene products like sanitizer, soaps etc.
• Increased use and demand of single-use-plastics mono layer films for
packaging of food items, disposable cups and culinary,
• Packaging for e-commerce shipments that are emerging as lifelines in this
new world.
• Plummeting oil prices globally have led to a dramatic decrease in the value
of plastics, and companies are making tough decisions about whether
recycling is still an economically viable option.
• Need for a proper use and disposal of personal protective equipment.
• Severe land degradation and depreciation in soil quality affecting
agriculture.
• Ocean litter-The dumping of plastic wastes in oceans, thereby the biotic and
abiotic factors causing weathering of plastic to form micro-plastics that form
great threat to lives in oceans.
25%
19%
56%
Plastic Waste Management
Incinerated Recycled Landfills
46% of the plastic waste generated belongs to the SUP category

6. Consumption in India
At 6% growth in
consumption.
1.32MMT fresh
capacity of end
products required
annually
16477
5300
639943
547
9262
3846
Petrochemical Consumption in India
Polymers Synthetic Fibres Elastomers
Surfactants Performance Plastics Fibre Intermediates
Intermediate others
Source: ICIS
Polymer Sector End-Use Segments %
Growth(
YoY)
Non-wovens (PP&
Polyester)
Health &hygiene,
Medical
10-13%
BOPP (PP) &
Film(LLD)
Food and FMCG
Packaging
11-13%
Rigid packaging(PP &
PE)
Sanitizer, edible oil,
hair oil, hair wash
8%
Milk packaging Dairy-milk packaging 6%
Pipes-Agri(PE&PVC) Irrigation 5%
Plastic High Growth Domestic End Use
Segments
Petrochemical consumption of 22MMT(19-20) of which polymers are 16.5MMT

7. Supply Gap for Polymers from
2019 to 2030(KT)
Capacity
2019
Demand
2019
Capacity
2025
Demand
2025
Capacity
2030
Demand
2030
15452 16477
20781
23394
20781
3222611.5 MMT
deficit
Source: ICIS
11.5 MMT deficit equals 12 new world scale polymer plants
needed.
Per capita plastic consumption in India is at 11 kgs as compared
to 45 kgs global per capita consumption.
Segments to contribute
towards Atmanirbharta
Status of Investments No. of
projects
Proposed
Investments
Under implementation 8 1,97,505
Announced 4 4,41,630
Awaiting Board Approval 6 1,23,725
Total Investments 18 7,62,860
• Huge investments lined up despite poor
reinvestment economics & higher factor costs.
• Investments in upstream needs encouragement for
the development of the downstream.
• This is imperative for realization of the vision of
$5Trn economy.
Would require support from government

8. PE
PP
PVC
171 KT
56KT
89KT
79KT
185KT
123KT
Q1-2019 Q1-2020
54%
52%
54%
 Industry was adversely impacted by COVID 19
as its visible from the negative growth rates in
each segment.
 HD Raffia sector demand decline is the lowest
at -28%
 F&F Sector demand decline by -2%
 Hygiene and medical application supported the
plastic demand.
 MLF Sector with surge in the packaged food &
edible items in COVID times was a positive
impact.
Impact of COVID on Plastic Industry Q1-
2020
Impacted by: Labour and transport availability, severe
credit crunch
Despite huge decline in Q1’20-the consumption
will rebound as we enter the Q2

9. The COVID impact on the
packaging players will be mixed,
depending on the converter’s
portfolio position.
There will be a huge spike in
packaging sector of groceries and
essentials segments. All forms of
reusable culinarians have been
replaces with SUPs.
Temporary lift on ban of SUPs in
most of the countries.
Impact of COVID on plastic packaging segment
Source: McKinsey Report

10. Plastic in Agriculture
Plastic Mulches
• By 2027, Global market for
Mulch Films is projected to
reach
US$5. 1 B
• The increased plastic waste will
end up clogging sewage systems
causing the threats of floods.
• The intense application and
mismanagement of plastic
mulching film cause poor crop
growth and soil degradation.
Drip Irrigation
• Global drip irrigation market is
valued at
UD$ 4.43 B
in 2018 and is projected to reach
USD 9.37 B by 2026.
• The drip irrigation industry
witnessed a downturn of up to 20%
due to unavailability of imported
raw material.
• The increased plastic to negatively
affect the water percolation &
normal soil aeration degrading land
productivity.
CAGR-
9.3%
Greenhouse Films
• Greenhouse Film Market is
estimated to reach
US$ 4.70 B
by 2021, at a CAGR of
10.96% from 2016 to 2021.
• LDPE,LLDPE,EVA,EBA,PVC etc.
are the main components
that goes into greenhouses.
• The greenhouse film industry
was relatively unaffected,
though it faced the raw
material crunch during the
start.

11. Recommendations to achieve Aatmanirbharta in Plastic
Atmanirbhar
Bharath
• Govt has decided to reduce the corporate taxes from 25% to 17%
 Increase in time line from 2023 March by atleast 3 years
• Definition of SUP has to be brought out by the government so that the corporates can focus
on sectors reducing the SUPs and invest in right sectors.
• Duty protection across the value chain-1.5 times duty drawback on finished products- aid
Make in India and Atmanirbhar Bharat
• Nodal agency like the development commissioner for the development of plastic,
innovation, R& D for making quality produce to sustain in domestic & international market.
• Conversion of land from agriculture to non-agriculture –hurdle for the industry investment.
• Decriminalization on non-grievous offences in the company act.

12. Interventions to Support Atmanirbharta in
Plastic Industry
Immediate Interventions
• Increase in tariffs by at least 5% across the value chain and other import restrictions.
• Tariffs are the only offset for factor cost disadvantages available in the short term.
• Mandatory BIS standards for plastic raw materials and processed products.
• Export incentives through enhanced MEIS and duty drawback.
• Import duty of PVC to be brought down by 7.5%-direct implication on agriculture.
Interventions for Medium and Long term
• High factor costs-disadvantaged domestic economy.
• Poor reinvestment economics-inhibiting new investments.
• Infrastructure and logistics bottleneck.
• Participation in FTAs without sectoral cost-benefit analysis.

13. Economy of Plastics
• Circular Economy aims to make the linear
‘take-make-dispose’ model of
consumption to a circular model where
the plastics recycled and reused to save
valuable raw materials and reduce waste.
Plastic Waste management is key solution
• Use of Bio plastic
• Reduce, Reuse, Recycle and Recover

14. References
• Silva, P.M., Nanny, M.A., 2020. Impact of microplastic fibers from the degradation of non- woven
synthetic textiles to the Magdalena river water column and river sediments by the city of Neiva,
Huila (Colombia). Water 12, 1210.
• Singh, R.K., Ruj, B., 2015. Plasticwaste management and disposal techniques - Indian sce- nario.
Int. J. Plast. Technol. 19, 211–226. https://doi.org/10.1007/s12588-015-9120-5. The 5 Gyres,
2019. San Francisco Bay Microplastics Project. The 5 Gyres Institute and the San Francisco Estuary
Institute https://www.5gyres.org/sfbay-microplastics.
• Ajith, N., Arumugam, S., Parthasarathy, S., Manupoori, S., Janakiraman, S., 2020. Global dis-
tribution of microplastics and its impact on marine environment—a review. Environ. Sci. Pollut.
Res. https://doi.org/10.1007/s11356-020-09015-5.
Websites:
• www.ibef.org
• www.plastindia.org ›
• ficci.in

15. Thank You