Revenue for the Basic Plastics and Synthetic Resin Manufacturing industry in China is estimated at $145.7 billion in 2013. Over the past five years, revenue has been growing at an annualized rate of 18.6%, says IBISWorld. Growth slowed in the latter years of the five-year period due to the lingering effects of the global economic crisis of 2009.
Growing domestic demand is the primary driver of the Basic Plastics and Synthetic Resin Manufacturing industry, says IBISWorld. The household electronics manufacturing industry in China is shifting toward the use of more plastic in its products to make them lighter (IBISWorld industry report 3954). In addition, polypropylene (PP) products are considered environmentally friendly, and they are increasingly being used in the manufacture of decorative and functional auto parts (IBISWorld industry report 3725).
The top four enterprises operating in this industry, the Sinopec Group, China National Petroleum Corporation, Yabang, and Zhenjiang Chimei, account for 27.9% of industry revenue. Domestic regulations on environmental protection are relatively lower than that of more developed countries like the United States and Japan. This, along with the large domestic market, has attracted many foreign chemical giants like Total, BP, LG and Exxon Mobil to China. However, the Chinese government has been committed to establishing an energy-saving and environmentally friendly society, which may prevent other foreign companies from entering the market, says IBISWorld. Specifically, the Comprehensive Scheme on Energy Saving and Emission Reduction is being implemented during the twelfth five-year planning period (2011 to 2015), making the market less appealing to foreign investors.