LONDON--(BUSINESS WIRE)--Technavio analysts forecast the plastic and rubber manufacturing market in Turkey to grow at a CAGR of over 5% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the plastic and rubber manufacturing market in Turkey for 2016-2020. The report considers the revenue generated from the plastic and rubber manufacturing industries in Turkey.
Technavio chemicals and materials analysts highlight the following three factors that are contributing to the growth of the plastic and rubber manufacturing market in Turkey:
- Rise in demand for plastic from Europe
- Investment incentive program
- Increased focus on R&D
Rise in demand for plastic from Europe
According to Chandrakumar Badala Jaganathan, “There is a substantial and growing demand for plastic from Europe. By the end of 2013, the region's demand for plastic had reached 46.3 million tons. Germany accounted for 25.4% of the region's demand for plastic in 2013. Though manufacturers in Turkey import most of the raw materials used for the production of plastic and rubber, the demand from Western Europe for intermediate or semi-finished products is high. Hence, manufacturers in the market are focusing on the export of the semi-finished products to countries in Western Europe. Over 60% of the demand comes from countries in Western Europe such as Germany, Italy, France, the UK, and Spain. This demand has helped in the growth of manufacturers of semi-finished products, which in turn has helped in the growth of the plastic and rubber manufacturing market in the country.”
Investment incentive program
Turkey has gone through profound economic transformation over the last decade and the country's economic foundation is strong. As part of its investment support and promotion initiative, it established the investment incentive program in 2012, which is aimed at encouraging investments and reducing dependence on imports of intermediate goods vital to the country’s strategic sectors, such as the rubber and plastic manufacturing sector. The program also supports investors in the industry by providing tax reductions ranging from 15%-65%.
Major local and foreign investors have equal access to various schemes that are a part of the investment incentive program, such as General investment incentives scheme, Regional investment incentives scheme, Large-scale investment incentives scheme, and Strategic investment incentives scheme.
“These schemes offer exemptions in VAT and customs duty, tax deductions, land allocations, support for interest on loans, VAT refunds, and support for employer's social security premiums. Such incentives have enabled the growth of manufacturers in the plastic and rubber manufacturing market in Turkey by providing a conducive business environment,” says Chandrakumar Badala Jaganathan.
Increased focus on R&D
Manufacturers in the market are facing increased competition from foreign products. For instance, plastic and rubber products from countries in the EU are backed by a strong R&D base that provides them with a competitive advantage. In comparison, there is limited R&D expenditure on innovation in the plastic and rubber manufacturing market in Turkey. However, manufacturers are making concerted efforts at developing new products such as composite materials based out of plastic, thereby driving market growth.
Browse Related Reports:
- Global High-Performance Thermoplastics Market 2015-2019
- Global Nitrile Butadiene Rubber (NBR) Market 2015-2019
- Global Emulsion Polymers Market 2015-2019
Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.
About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at media@technavio.com.
