Plastic Production Expected to Grow by 3.4% in 2020

Plastic production up 3.4% by volume in 2019 According to data from the 2019 Plastic Sector Monitoring Report released by PAGEV, the sector closed the past year with a 3.4% increase in volume to 9.46 million tonnes compared to the previous year, continuing the production growth trend of recent periods, while declining 2.5% in value to USD 33.4 billion. The plastic sector expects 4% growth in production in 2020, which began with optimism. According to data from the Turkish Plastics Manufacturers Foundation for Research, Development and Education (PAGEV), plastic product production in 2019 rose to 9.46 million tonnes with a 3.4% increase in volume compared to the previous year, while declining 2.5% in value to USD 33.4 billion. The decline in value terms was driven by falling unit prices of plastic products. During the first three quarters of last year, plastic product production declined compared to the same periods of the previous year, but entered an upward trend in the final quarter of the year and closed with growth compared to 2018. Nevertheless, the sector's production remained below 2017 levels.

Packaging led plastic production

Looking at the subsectors in 2019, approximately 3.8 million tonnes of plastic packaging materials led the total plastic product production of 9.46 million tonnes, while plastic construction materials production followed at 2.1 million tonnes.

Domestic market gained momentum at year-end

Domestic consumption of plastic products reached 8.1 million tonnes in 2019 with a 2.6% increase in volume compared to the same period of the previous year, while declining 3.5% in value to USD 31.1 billion.

Flexible packaging held the largest share in 2019 product exports

Plastic product exports in the year just ended reached 2 million tonnes with a 5.1% increase in volume and USD 4.9 billion with a 0.8% increase in value. The sector's largest export markets in 2019 were Iraq, Germany, the United Kingdom, Israel and the United States. Flexible packaging was the product group holding the largest share in the sector's 2019 product exports. Last year, 456,000 tonnes of flexible packaging valued at USD 1.1 billion were exported. With these figures, flexible packaging accounted for 23% of total plastic product exports in volume and 22% in value. Immediately following flexible packaging came plastic products used for cargo transportation packaging. These two product groups comprised 45% of the previous year's total plastic product exports in volume and 43% in value.

Plastic sector shows trade surplus in products

During the same period, plastic product imports fell to 559,000 tonnes with a 1.7% decline in volume and USD 2.5 billion with an 8.2% decline in value. Leading import countries were Germany, China, Italy, France and South Korea. In the year just ended, 7 million tonnes and USD 9 billion worth of plastic raw material were imported. Domestic raw material production during this period remained at 1.14 million tonnes. The plastic product sector recorded a trade surplus of 1.4 million tonnes with an 8.1% increase in volume and USD 2.3 billion with a 13.2% increase in value in 2019.

4% growth in plastic product production by volume expected in 2020

In 2020, in line with macroeconomic expectations, the plastic product sector is projected to see 4% growth in production by volume, 1% growth in imports, 5% growth in exports and 4% growth in domestic consumption. PAGEV Chairman Yavuz Eroğlu commented on Turkey's plastic sector's 2019 performance: "We reiterate the call we made through our campaign launched last year, 'Plastics have a lot to do in our lives but have no place in nature', and we invite everyone to become a link in the recycling chain."