Published on : Jul 11, 2016
A major trend in the market for plastic bags and sacks is the emergence of strategic mergers as well as acquisitions with a number of players looking for expansion worldwide. Even though the industry for plastic bags is highly fragmented in nature, still some of the major players are bringing in new advancements via mergers and acquisitions.
- Soaring Retail Industry to Provide Impetus to Plastic Bags and Sacks Market: The global retail industry has largely provided an impetus to the demand for plastic bags and sacks, hence fuelling the growth of the market for plastic bags and sacks. In addition, the increasing disposable incomes has raised consumers’ purchasing power. Thus has in turn propelled the demand for convenient and cost-friendly plastic bags globally.
- Low Crude Oil Prices to Boost Market Growth: Crude oil along with numerous intermediate products which are formed in the processing of crude oil are the key ingredients utilized for making varied types of plastics. This is why, the cost of crude oil has a direct influence on the growth of plastic bags and sacks market. Thus, the drastic downfall in the prices of oil act as a blessing in the plastic bags and sacks market. Due to the low cost of oil, the operational costs of plastic sacks and bags may lower to a great extent, thus augmenting the growth of the overall market.
- Increasing Count of Regulations to Inhibit Market Growth: A number of regulations have been imposed globally in order to reduce plastic waste globally. This is owing to the detrimental impacts incurred owing to plastic waste globally. This has resulted in an increased awareness about the proper disposal and management of plastics. This has resulted in the implementation of some basic fee at retail outlets for utilizing specific types of plastic sacks and bags.
In addition, a number of bans and fines are being implemented on the usage of plastic bags and sacks. In addition, the preference for biodegradable plastics is also on the rise owing to the negative impact posed by plastics on environment. These factors are poised to impede the growth of this market for plastic bags and sacks in the coming years.