Plastics in Health Care: Supply Chains and the 2026 Outlook

Perc Pineda, PhD
Chief Economist, Plastics Industry Association

One of the most important materials in health care is plastic. From blood bags that facilitate blood transfusions to personal protective equipment, syringes, medical devices and equipment, ophthalmic goods, dental equipment and supplies, and pharmaceutical packaging, plastics serve health care providers around the world.

The importance of plastics in health care became particularly evident during the COVID-19 pandemic, when access to protective equipment and essential medical supplies was critical to protecting health care workers and patients alike. The experience underscored the importance of having reliable materials that support health care delivery.

The Life Saving Value of Plastics in Health Care

Why plastics? Because they offer an exceptional balance of cost and performance, helping make essential health care products accessible and practical on a global scale.

The 2026 Size & Impact report estimated that 34.0 percent of plastic products were directed into the services sector of the economy, one of which is health care. Ten percent of plastic products – equivalent to $36.5 billion – went into health services consumption.[1]

In 2025, plastics accounted for 7.4 cents of every dollar of $104.6 billion in final demand for state and local government hospitals and health services. Plastics also accounted for 6.7 cents of every dollar of final demand for ophthalmic goods, 4.2 cents for dental equipment and supplies, and 4.2 cents for electromedical and electrotherapeutic apparatus. These examples highlight the diverse and essential roles plastics play across health care, from hospital services to specialized medical equipment and devices.

Imports Holding Steady Amid Weak Domestic Manufacturing

It was documented that the U.S. had limited national strategic reserves of medical equipment, and inadequate supplies of personal protective equipment during the Covid-19 pandemic.[2] The value of U.S. imports of medical equipment and supplies, measured on a customs-value basis, surged 27.2 percent from 2020 to 2021. By comparison, the International Monetary Fund estimated global consumer-price inflation at 4.7 percent in 2021. Although the import figures are measured in nominal dollars and therefore reflect price as well as quantity changes, the magnitude of the increase suggests that global inflation alone cannot explain the surge.

U.S. manufacturing of medical equipment and supplies also rebounded in 2021, increasing 9.5 percent following a 7.0 percent decline in 2020. However, the subsequent trends in imports and domestic production diverged. Imports declined 5.4 percent in 2022 and edged down 0.3 percent in 2023, before increasing 6.4 percent in 2024 and 1.8 percent in 2025. Domestic manufacturing of equipment and supplies meanwhile, grew just 0.6 percent in 2022 and 0.8 percent in 2023, then contracted 4.1 percent in 2024 and 6.2 percent in 2025.

The divergence is particularly notable in 2024 and 2025, when imports continued to increase even as domestic manufacturing declined. This pattern suggests that the rise in imports cannot be attributed solely to the global inflationary environment and may reflect changes in the balance between foreign supply and domestic production. The divergence between rising imports and declining domestic manufacturing highlights a shift in the sources of supply for medical equipment and supplies in the United States. Understanding this trend requires considering both import patterns and domestic production performance.

Reports from medical technology companies in 2025 and 2026 indicate that manufacturers faced higher input costs, supply-chain adjustments, and financial pressures amid changes in trade policy and global sourcing. At the same time, U.S. imports of medical equipment and supplies remained elevated, increasing in 2024 and again in 2025, while domestic manufacturing contracted. The earlier surge in imports may have contributed to higher inventories, reducing the need for additional domestic production as demand was met from existing stocks. However, the available evidence does not establish the extent to which inventory accumulation affected manufacturing activity. Taken together, these developments suggest that import trends, inventory adjustments, input costs, and manufacturers’ production decisions may all have played a role in the divergence between imports and domestic output.

Medical Equipment and Supplies Outlook

The U.S. Census Bureau reports medical equipment and supplies manufacturing inventories annually as part of its Annual Integrated Economic Survey, with 2024 being the latest available year. Total inventories increased by 6.3 percent in 2023, followed by a 6.2 percent increase in 2024. Within total inventories, finished goods inventories rose by 13.1 percent in 2023, an increase of $7,043.7 million from 2022, and by 7.5 percent in 2024, an increase of $673.4 million. These increases are consistent with the possibility that elevated finished goods inventories have constrained the need for additional manufacturing output.

Over the past 12 months, U.S. medical equipment and supplies manufacturing recorded six months of growth and six months of decline. Following a 1.8 percent decrease in August, output fell by another 1.0 percent in September.

On a year-over-year basis, output growth began in April, with May and June each recording a particularly strong 3.5 percent increase. Growth subsequently moderated to 1.0 percent in August and 0.3 percent in September. Medical equipment and supplies production is projected to increase by 1.2 percent this year, with potential implications for plastics manufacturing, which converts plastic resins and other materials into finished medical products, components and equipment.

[1] Plastics Industry Association. Size and Impact of the Plastics Industry on the U.S.: 2026. September 2026. https://www.plasticsindustry.org/data-report/size-and-impact-2026/

[2] Ranney, Megan L., Valerie Griffeth and Ashish K. Jha. “Critical Supply Shortages — The Need for Ventilators and Personal Protective Equipment During the Covid-19 Pandemic.” The New England Journal of Medicine, vol. 382, no. 18, 2020, p. e41. https://doi.org/10.1056/NEJMp2006141.