Global Polyolefin Market is Segmented By Type (Stearates, Fatty Acid Esters, Fatty Acid Amides, Soap, Silicone Polymers, Others), By Application (Film & Sheet, Injection Molding, Blow Molding, Fiber, Other), By End-User (Automotive & Transportation, Building & Construction, Plastic Modification, Other), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2029.
The global polyolefin market reached US$ XX million in 2022 and is expected to reach US$ XX million by 2031, growing at a CAGR of 8.1% during the forecast period 2024-2031.
Polyolefin Market Scope and Summary
| Metrics | Details |
| Market CAGR | 8.1% |
| Segments Covered | By Type, By Application, By End-User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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A polyolefin is a macromolecule created by the polymerization of olefin monomer units. Polyolefins are created by treating olefins with a metal-containing catalyst, which causes a highly exothermic reaction. The two most common types of polyolefins are Polyethylene (PE) and Polypropylene (PP).
Polyethylene is created from ethane gas by the catalytic cracking of crude oil into gasoline. It is then piped from the petroleum refinery to a polymerization plant. A similar process is used for propane gas to obtain polypropylene. Polyolefins are used to manufacture various goods such as containers, buckets, pipes, toys, sheets, films, cans, bottles and cartons.
Source: DataM Intelligence Analysis (2022)
Polyolefin Market Dynamics
The demand for polyolefins is mainly driven by the rising demand from the end-use industries. It is the most important driver for the market. Stringent environmental regulations and demand for alternative materials is the key challenge for the growth of this market.
Increasing demand from end-use industries
Polyolefins are extremely cheap and have various applications in industries ranging from food processing, agriculture, automotive, aerospace, packaging and healthcare. The global economic growth and adoption of modern lifestyles globally are driving the demand for packaged foods. The wrapping for foods and containers for beverages is made primarily from polyolefins.
Automobile production is rising globally due to greater demand, especially from the emerging markets. The major interior components of vehicles, such as dashboards and interior trims, are polyolefins. Critical healthcare products such as IV tubes, catheters, syringe tubes are made from polyolefins. The increasing demand from the end-use industries is driving the trends for the global polyolefins market.
Stringent environmental regulations on non-biodegradable plastics
Polyolefins are cheap and are readily produced in industrial quantities. It makes them ideal for a wide variety of applications of modern life. Wrapping sheets, bottles, containers, buckets, pipes, cartons, and other products are made entirely of plastics. Polyolefins are long-chain polymers and it renders them incredibly thermally stable with high durability. The products made from polyolefins remain around forever and are not biodegradable. The consumption patterns of modern lifestyles have led to the generation of humungous quantities of waste.
The waste does not degrade but piles up in the environment threatening natural ecosystems. The threat is particularly big for the ocean since more than 14 million tons of plastic waste end up in the ocean every year. Plastic pollution has led to the extinction of many marine species. Governments globally are enacting stringent new regulations to curb the effects of non-biodegradable plastics. The various new laws stipulate heavy fines for plastic use, mandatory use of plastic alternatives such as paper and cardboard in applications and the complete phase-out of single-use plastics by the end of the decade. Many single-use plastics are polyolefins. Therefore, the new environmental regulations represent a key challenge for the growth of this market.
COVID-19 impact analysis
The global petrochemical industry experienced uneven impacts on value chains in production and sales in 2021 due to the COVID-19 pandemic. Automotive and construction applications saw steep declines since government-imposed lockdowns and restrictions brought a prolonged halt to manufacturing globally. Food, sanitary and medical applications saw robust growth. The main reason behind the growth was stockpiling of essential goods, rise in e-commerce and delivery services and rise in healthcare-related activities due to the pandemic.
Products such as polypropylene, used for making storage containers, saw a rise in demand, whereas polyurethane, used for mainly automotive applications such as gaskets, saw relatively steep declines. Many petrochemical companies adapted their existing plants to produce methanol and isopropyl alcohol to meet the growing demand for disinfectants and hand sanitizers. The global pandemic-related supply chain disruptions have not affected the petrochemical industry much and most major companies have adequate provisions for the supply of raw materials.
The short-term impact of the COVID-19 pandemic has been relatively mild for the petrochemical industry. Major companies have cut operating expenses and capital expenditure in response to the pandemic and were further benefited by low oil prices. The pandemic will have a negligible impact on the medium to long-term growth of the global polyolefin market since oil prices are projected to remain low and companies are expected to gradually ramp up capacity utilization as economic activity returns to pre-pandemic levels. The demand for polyolefins remains strong and is expected to grow gradually in the coming years.
Global Polyolefin Market Segment Analysis
The global polyolefins market is segmented into type, application, end-user and region. The polyolefins market is segmented into film and sheet, injection molding, blow molding, fibers and others based on application. Films and sheets dominate this segment since it is the single largest user of polyolefin. Polyolefin films and sheets have various uses across packaging, agriculture, building and construction. Films are used in agriculture to protect fruits and vegetables from frost, rain and wind and also to minimize water consumption by reducing evaporation.
Large polyolefin sheets are used in the construction of window slits and films. Polyolefin, especially Low-Density Polyethylene (LDPE), is used to manufacture bubble wrap, the most widely used packaging material for transporting fragile goods. Polyolefin sheets are used in the construction industry to use between slabs as a vapor retarder. Due to the above-mentioned wide range of applications, films and sheets have the largest share in polyolefin applications.
Source: DataM Intelligence Analysis (2022)
Global Polyolefin Market Geographical Analysis
Asia-Pacific is leading in the global polyolefins market. The region accounts for the largest market share, primarily due to major emerging markets such as China, India, Malaysia, Indonesia and developed markets such as Taiwan, Japan and South Korea. Some of the largest polyolefin producers and consumers are located in this region.
China is also the largest consumer of polyolefins globally. The country accounted for 35% of the global demand for polyethylene (PE) and 41% of the global demand for polypropylene (PP) in 2021. The major demand for polyolefin comes from the packaging industry, especially since China has the largest e-commerce market globally with estimated market size of $1.2 trillion.
China also is the largest automobile producer globally, with more than 20 million passenger vehicles and 5 million commercial vehicles produced in 2021. Polyolefins have extensive uses in automobiles, such as interior trims and dashboards. India and China are the largest markets for the food and beverages industry, mainly due to their large populations. Polyolefins are extensively used for making plastic bottles for beverages and shrink wrap packaging for packaged foods. The Asia-Pacific will continue to have the largest market share in the polyolefin market.
Source: DataM Intelligence Analysis (2022)
Global Polyolefin Market Competitive Landscape
The global polyolefins market is competitive due to the availability of a wide variety of polyolefin products available from different companies. Some of the major players contributing to the growth in the segment are Formosa Plastics Corporation, China Petrochemical Corporation, Dow, BASF SE, SABIC, LyondellBasell Industries Holdings B.V., Reliance Industries Limited, Borealis AG, Ineos Group AG, Sumitomo Chemical Co. Ltd. The significant players adopt several growth strategies such as new product launches, joint ventures and collaborations, contributing to global growth in the industry.
Formosa Plastics Corporation
Overview: Formosa Plastics Corporation is a plastics company specializing in producing a wide variety of plastics, chemicals and petrochemicals such as resins, high-density polyethylene, polypropylene, acrylic fiber, acrylic acid ester, carbon fiber, caustic soda and calcium carbonate. The company has more than a dozen production plants in Taiwan and U.S. and its products are exported to more than 70 countries globally. Formosa Plastics Corporation was founded in 1954 and is headquartered in Kaohsiung, Taiwan.
Product Portfolio: Formolene HB6007 is a High-Density Polyethylene (HDPE) resin primarily designed for blow molding application. It conforms to US FDA's CFR 177.1520 standards for polyolefins used in direct food contact. The product is specially designed for usage in water, dairy and fruit juice processing industries.
Key Developments: In 2020, Formosa Plastics Corporation launched Formolene HB6007F, a new, improved HDPE resin with better thermal stability at high temperatures.
Why Purchase the Report?
- Visualize the composition of the polyolefins market segmentation by type, application, end-user and region, highlighting the critical commercial assets and players.
- Identify commercial opportunities in the polyolefins market by analyzing trends and co-development deals.
- Excel data sheet with thousands of global polyolefins market-level 4/5 segmentation data points.
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- Product mapping in excel for the critical product of all major market players
The global polyolefins market report would provide access to an approx.: 66 market data tables, 62 figures and 180 pages.
Target Audience 2022
- Petrochemical manufacturers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
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Frequently Asked Questions
What is the Projected CAGR value of the Polyolefin Market?
The Polyolefin Market is expected to grow at a high CAGR of 8.1% during 2023-2029.
Which region controlled the global market during 2023-2029?
North America region Controls the Polyolefin Market during 2023-2029.
Which is the fastest-growing region in the Polyolefin Market?
Among all regions, Asia Pacific is the fastest-growing market share during the forecast period.
