PHILIPPINES PLASTIC MARKET

Philippines Plastic Market size reached USD 2.9 billion in 2024 and is estimated to reach USD 4.0 billion in 2032 and the market is estimated to grow at a CAGR of 4.1% from 2025-2032.

Philippines Plastics Market size is forecasted to grow at stable growth rate due to the increasing demand for plastic across various industries along with the rapid expansion of the manufacturing and e-commerce sector.

Major Philippines Plastic Market Drivers

Plastic is extensively utilized across numerous industries in the Philippines which includes electronics, packaging, construction, and automotive sectors, highlighting its versatility and essential role in production. Having a domestic supply of plastic materials provides benefits across all sectors due to its adaptable and timely delivery capabilities, significantly mitigating the impact of currency fluctuations and import regulations. There is a notable increase in market entries, particularly from foreign companies, alongside expansion among existing players who are diversifying their product offerings.

In the Philippines, the downstream plastic sector includes manufacturers and fabricators that transform plastic resins into finished products, serving consumer and industrial markets. Major manufacturing processes encompass sheet and film extrusion, injection and compression molding, woven sack weaving and extrusion, sheet thermoforming, lamination, printing, among others. The majority of plastic firms are based in and around Manila primarily in the Camanava area alongside others in Manila and Calabarzon. Some companies are also found in Cebu and Iloilo in the Visayas as well as in Davao.

The plastic industry in the country has experienced rapid growth due to the expanding manufacturing sector coupled with the robust growth of the e-commerce industry which drives increased demand. CRI reports that plastics are widely integrated into the manufacturing landscape of the Philippines, particularly in key industries such as automotive and packaging. The systems of injection molding are highly sought after in these sectors for producing a wide range of items including packaging materials, bottle caps, car dashboards, among others. Furthermore, extrusion molding serves as a significant production technique for fabricating plastic parts including pipes, drinking straws, wall components, and automotive parts. In addition, supportive government initiatives aimed at promoting housing unit construction, commercial establishments, and advancements in the agriculture sector have fueled the demand for plastic pipes.

The Philippines plastic market relies heavily on imports, with an annual importation exceeding USD 2 billion in plastic products and raw materials. CRI’s data for 2023 reveals that the Philippines imported plastic products and raw materials valued at USD 2.68 billion, constituting 2.1% of the nation’s total imports.

However, despite the positive driving factors, the Philippines plastics industry confronts various market challenges. While the country has shown commendable economic growth, it remains a developing country with many regions still struggling with poverty which influences the widespread reliance on plastic bags. On a daily basis, Filipinos consume more than 163 million plastic bags, 450 thousand film bags, and 480 thousand shopping bags with recycling rates standing below 9%. Environmental organizations have persistently campaigned for the prohibition of one-time-use plastic products, presenting numerous proposed resolutions and laws to Congress in the last decade to advocate this cause. The Philippine Congress approved the Extended Producer Responsibility Act or EPR in 2022 which requires enterprises with assets over PHP 100 million to formulate recycling strategies equivalent to their plastic production, with fines starting at PHP 5 million for non-compliance.

EPR regulations which aimed at making manufacturers responsible for handling the waste generated by their products and promoting circular economy, are a central topic of negotiation among UN plastics treaty negotiators. Several developed markets such as South Korea, Japan, and Taiwan have well-developed EPR regimes which usually includes government-funded initiatives for the collection and segregation of plastic waste. Among the top 10 nations globally that contribute the most plastic waste to seas and rivers, half are situated in Southeast Asia region with the Philippines and Indonesia being critical to efforts aimed at combating this environmental challenge. Based on the World Wildlife Fund, the Philippines annually consumes more than 2.15 million tons of plastic, with only 9% being recycled and a staggering 35% ending up in the environment. The introduction of small plastic bags for products such as cosmetics and shampoo by consumer goods companies to enhance affordability for lower-income groups has led to a surge in low-value plastic which is exceedingly difficult to recycle and exacerbates leakage from waste disposal sites into water bodies. At the end of 2024, the objective is to ensure that no less than 40% of waste is diverted from entering natural environments, with a subsequent annual increase of ten percentage points leading up to 2028, reaching 80%. The Philippines has adopted practical strategy by crafting accessible legislations that facilitates achieving these objectives, with companies have a range of options available to them including waste reduction, incorporation of recycled materials, and implementation of reusable packaging in order to meet compliance requirements.

The Philippines plastic market is dominated by a small number of major companies with key players within this sector include Dupont, Chemrez Technologies, SGS Philippines, among others. As the Philippines population and economy continue to grow steadily, the plastics sector in the country is poised for continuous expansion alongside an expected increase in the value of imported plastic products and raw materials.

Based on the application, the packaging sector leads the market largely due to the advantages of engineering plastics which includes enhanced wear and chemical resistance, ease of shaping, puncture resistance, and robust mechanical strength. The surge in demand for convenient packaged and processed food is propelling the use of plastic containers. The enduring appeal of cans in the food and non-alcoholic beverage industries due to their convenience and portability is anticipated to keep driving the need for this type of packaging. Rising applications of plastic bags and tableware in residential and commercial environments are also anticipated to boost plastic consumption in the packaging sector.

Based on the product type, Polyethylene (PE) is leading the market segment especially for food and beverage packaging due to its low handling risks and toxicity along with the absence of BPA and heavy metals which contribute to its suitability for safe food packaging. PE also finds application in packaging for products like shampoo, cooking oil, and other items.

Segments covered in the Report:

The Philippines Plastic Market has been segmented on the basis of type and end-use industry. Based on the type, the market is segmented into polyethylene, polypropylene, polyethylene terephthalate, polyvinyl chloride, polyamide, polycarbonate, polyurethane, polystyrene, others. Based on the end-use industry, the market is segmented into packaging, automotive & transportation, infrastructure & construction, consumer goods, healthcare & pharmaceuticals, electrical & electronics, others.

Market Segmentation

Philippines Plastic Market by Type

• • Polyethylene
  • Polypropylene
  • Polyethylene Terephthalate
  • Polyvinyl Chloride
  • Polyamide
  • Polycarbonate
  • Polyurethane
  • Polystyrene
  • Others

Philippines Plastic Market by End-Use Industry 

• • Packaging
  • Automotive & Transportation
  • Infrastructure & Construction
  • Consumer Goods
  • Healthcare & Pharmaceuticals
  • Electrical & Electronics
  • Others