Plastics are ubiquitous. From packaging to household goods to building materials to automotive components, there are seemingly no limits to where plastics are found in our day-to-day lives.
With so much demand, there is a large number of public companies focused on plastics from which investors can choose. It’s a massive market opportunity: Global total plastic sales were estimated at $628 billion in 2023, and the market is forecast to grow at a compound annualized rate of 4.2% through 2030.
Investors can select from companies that make the raw ingredients that go into plastics, companies that make the end products we use as consumers, and a few that do a bit of both. Here’s a look at some of the top names in plastics for investors to consider.
Top plastics stocks to invest in for 2025
1. ExxonMobil
NYSE: XOM
Key Data Points
ExxonMobil (XOM -0.94%) is best known as an oil and gas company, but it is also a major producer of specialized polypropylene, a raw material that goes into plastics. Propylene is a molecule that is produced as part of the oil-refining process, making this a natural offshoot of ExxonMobil’s core business.
ExxonMobil significantly boosted its production of polypropylene in 2020 in response to the need for more masks and medical supplies to support the COVID-19 pandemic response.
This company is very much entrenched in the fossil fuel energy economy, but plastics offer some diversification from the oil giant's core petroleum offerings.
2. Dow
NYSE: DOW
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NYSE: LYB
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Lyondell (LYB -0.54%) is a Dutch multinational chemicals company that ranks as the largest licensor of technologies to produce not just polypropylene but also polyethylene, two of the basic building blocks that go into making plastic goods.
LyondellBasell is a cash-generation machine and has a history of returning that cash to shareholders through dividends. The company can get caught up in cyclical demand for chemicals, which tends to ebb during periods of economic uncertainty. Still, this is a diversified business that should be able to grow with increasing global demand and provide a steady source of income for your portfolio.
4. Amcor
NYSE: AMCR
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5. AptarGroup
NYSE: ATR
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How to invest in plastics stocks
Here is how to invest in plastics stocks:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Are plastic stocks right for you?
Environmentalists criticize plastics due to concerns about the fossil fuel-intensive production process and the long time it takes for plastics to degrade, but there are no good alternatives for many applications. All of the companies on this list are exploring how to manufacture plastics from more environmentally friendly sources and create products that degrade faster when possible. Despite the concerns, plastic demand should continue to grow for the foreseeable future.
Plastics aren’t likely to match other stock sectors, such as tech, in terms of massive growth potential, but these companies should be reliable performers selling into stable and growing markets that can provide ballast in a tech-heavy portfolio.
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