Global polyolefin market to cross USD367 bln by 2025
Rising demand for the polyolefin materials such as polyethylene (PE) and polypropylene (PP) from end user industries such as automotive, construction and packaging are driving the global polyolefin market. Global polyolefin market is expected to reach USD367.36 bln by 2025, from USD214.83 bln in 2017 at a CAGR of 6.94%, as per Plastemart with reference to Fior Markets.
Even though factors such as rapid industrialization in the Asia Pacific region, growth in packaging industry coupled with growing demand for the flexible packaging materials are driving the global polyolefin market, volatility in the raw material prices and the implementation of the stringent environmental norms is predicted to hamper the growth of the global polyolefin market market. The growing demand for the flexible packaging materials and concerns related to the improper disposal of the polyolefin plastic materials are expected to restrain the growth of the market over the forecast period.
In order to enhance their market position in the global polyolefin market, key players are now focusing on adopting the strategies such as product innovations, mergers & acquisitions, recent developments, joint venture, collaborations, and partnership. For instance, in March 2019, Borealis and ADNOC signed Memorandum of Understanding to explore strategic opportunities in the polyolefin industry. Under the terms of the agreement, Borealis and ADNOC will jointly explore potential growth opportunities within the integrated polyolefin industry in key geographical markets.
Major players are focusing on tapping the unexplored markets in order to increase their market share. For instance, SOCAR polymers in 2019, announced the launch of 120,000tpa high-density polyethylene (HDPE) production facility in Azerbaijan. With this new manufacturing capacity, Azerbaijan will be self-sufficient in the polyolefin. To better serve the ever increasing demand for the polyolefins, major firms are increasingly launching new and improved products. For instance Borealis AG in 2016, announced the extension of its Queo polyolefin plastomers portfolio with the launch of three new polyolefin elastomers. The three new polyolefin elastomer grades to be launched are Queo 6800LA, Queo 7001LA and Queo 7007LA.
Polyethylene (PE) segment had a market value of USВ84.79 bln in 2017. Due to their light weight, high durability, non-toxicity and chemical and corrosion resistance properties, the ЗУ materials are extensively used in the manufacturing of the packaging films and household containers, as well as automobile accessories.
Application segment is divided into packaging, automotive, electronics, construction materials and others. Automotive application segment held a robust share of the global polyolefin market in 2017, due to growth in the replacement of the metal with polyolefin materials and growing demand for the lightweight, fuel efficient cars. Growing consumer preference for the ecofriendly packaging materials, increasing demand for the recyclable containers as well as focus on reducing the carbon emission are factors that are expected to propel packaging materials segment to grow at an accelerated CAGR of 8.83% over the forecast period.
Asia Pacific region emerged as the largest market for the olefin with a 43.56% share of market revenue in 2017. Factors such as rapid industrialization, the growth of end user industries as well as increasing demand for the fuel-efficient automobiles in the region are projected to propel Asia Pacific region to grow at an accelerated CAGR of 9.02% over the forecast period. North America region is also anticipated to grow at a robust pace in global polyolefin market due to wide utilization of the polyolefins in the end-use industries such as automotive and transportation, construction, and electronics.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the estimated PP consumption in the Russian market was 796,120 tonnes in January-July 2019, up by 11% year on year. Shipments of PP block copolymer and homopolymer PP increased.