Polyolefin Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (LDPE, LLDPE, HDPE, Others), By Application (Film And Sheets, Blow Molding, Injection Molding, Others), And By Geography - Forecasts From 2022 To 2027
- Published : Oct 2022
- Report Code : KSI061611866
- Pages : 138
The global polyolefin market is expected to grow at a CAGR of 4.58% over the forecast period to reach a market size of US$268.093 billion by 2027, increasing from US$192.389 billion in 2020.
Polyolefin is a collective term for the kinds of plastics that include polyethylene (Low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), and high-density polyethylene (HDPE)), among others, are produced from substances that are rich in carbon- coal, natural gas, and oil. Increasing demand from packaging, plastic, and construction, among other industries, is expected to drive the market during the forecast period. However, raw material price volatility is anticipated to hinder the growth of the market in the coming years.
Expanding the solar power industry is driving the market
Polyolefin is widely used in the solar module black sheet and has excellent chemical resistance. Expanding the solar power industry is expected to drive the growth of the market for polyolefin during the forecast period. The graph shows the annual PV installations worldwide. According to the International Energy Agency (IEA), in 2021 nearly 290 gigawatts (GW) of new renewable energy will be installed, a 3% increase over 2020's already exceptional growth. Solar PV alone will account for more than half of all renewable power expansion in 2021, followed by wind and hydropower. This shows that there is an increasing generation of solar power and is projected to boost the use of polyolefin and lead to its market growth.
Growing demand in the packaging industry is expected to drive the market during the forecast period.
Food packaging over the years has undergone various revolutionary changes in terms of shape, end-user, and even material used. Increasing disposable income and rising household spending in developing economies like China, India, and Brazil are expected to drive the growth of the market during the forecast period. According to the Organisation for Economic Co-operation and Development, household spending in China has increased from USD 7733.715 billion in 2017 to USD 9164,397 billion in 2020.
In addition, a rising number of supermarket companies around the globe are also supporting the growing demand for packed food products, which, in turn, is driving the demand for polyolefin in the packaging industry. For instance, according to the USDA statistics, in 2020, the value of food and liquor retailing in Australia increased by 5% to A$191 billion (US$133 billion). With a 66 percent share, supermarket and grocery expenditures continue to account for the majority of food retailing purchases.
The expanding healthcare industry is propelling market growth opportunities for vendors and manufacturers
Growing the healthcare and pharmaceutical industries is the major driving factor that is boosting the blister packaging market’s growth. According to the India brand equity trust, the Indian pharmaceutical industry meets more than half of the global demand for various vaccines, 40% of generic demand in the United States, and 25% of total medicine in the United Kingdom. India ranks third in the world in terms of pharmaceutical production by volume and fourteenth in terms of value. There are 3,000 pharmaceutical companies and 10,500 manufacturing units in the United States. India is a major player in the global pharmaceutical industry. Increased investment by market players in the form of acquisition or production capacity with the goal of expanding the product portfolio is expected to drive the growth of the blister packaging adoption market in the pharmaceutical industry over the next few years. For instance, in October 2018, Merck invested nearly €63 million as part of the € 1 billion investment plan up to 2020 of transforming the Darmstadt site, which will handle the packaging and shipping of the company's pharmaceuticals. Furthermore, rising healthcare spending, combined with a growing geriatric population, is expected to boost demand for medicines, enhancing market growth opportunities for blister packaging in the coming years. According to the World Bank, per capita, health spending in the United Kingdom has increased from US$2528 in 2006 to US$4313 in 2019. Furthermore, pharmaceutical companies are constantly investing in new packaging lines and upgrading existing technology in order to provide sophisticated and safe packaging. For an instance, CuePath Innovation launched CueStickers, a Generation II Smart Blister Packaging Solution, in February 2022. It includes several enhancements, such as the incorporation of an IoT device, integrated diagnostics, increased durability, and improved sensor accuracy. Similarly, Schreiner MediPharm launched an improved smart blister wallet for medication adherence monitoring in April 2022. A digitally enabled tool that enables pharmaceutical manufacturers to track compliance in clinical trial participants automatically and with greater flexibility. The Asia Pacific is estimated to hold a significant share of the market.
By geography, the global polyolefin market has been segmented as follows: North America, South America, Europe, the Middle East, and Africa, and Asia Pacific (APAC) regions. The Asia Pacific polyolefin market is dominating the global market, constituting a significant share in 2020 on account of rapid urbanization and increasing demand in the manufacturing industry in countries like China and India. Furthermore, the region's blister packaging market is expected to benefit from improved economic conditions and stability in many countries. Because of the established pharmaceutical industry in North America, the market is growing at a rapid pace. Growing regulations regarding single-dose packaging are expected to boost the market growth in the region. Europe has a significant market share due to the widespread use of polyolefin in various end-user industries.
Prominent key market players in the global polyolefin market include Exxon Mobil Corporation, SCG Chemicals Co., Ltd., The DOW Chemical Company, Total Polymers, and Borealis AG, among others. The number of players in the polyolefin market is large and growing, with the opportunity to generate significant revenues as a result of growing demand. Key players in the market are seen to adopt similar strategies and are aiming to expand their market share by expanding their product portfolio. For instance, in 2019, Neste and Borealis AG entered into strategic cooperation for the production of renewable polypropylene. The cooperation enables Borealis to use Neste renewable propane with NEXBTL technology as renewable feedstock at its facilities in Kallo and Beringen in Belgium. Big market players are looking to raise their market share and improve their market reach by acquiring SMEs. Moreover, different firms offer differentiated yet similar products to meet the different requirements of end-users and are investing in a high-quality product portfolio.
Recent development and expansion
- In November 2021, UAE's ADNOC signs a $6.2 billion deal to expand its polyolefin Borouge plant and build the world's largest polyolefin plastics plant. Borouge 4 will benefit from the anticipated increase in customer demand for polyolefins, which will be driven by their use in manufactured products in the Middle East, Africa, and Asia.
- LG Chem began commercial production at its new naphtha cracking centre in Yeosu, South Korea, in June 2021. The new plant can extract 800,000 tonnes of ethylene from crude oil, which will be used to produce 800,000 tonnes of polyolefin.
- In March 2020, LyondellBasell and Liaoning Bora entered into a joint venture in China to work on developing an ethylene cracker and polyolefin derivative complex with a 1.1 million tonne capacity per year.
Covid 19 impact on Polyolefin Market
COVID-19 caused havoc in all end-use industries, including building and construction, agriculture, and manufacturing. Demand for polyolefin fell dramatically as a result of the disruption. Manufacturing plants are forced to close due to government regulations, or they close voluntarily due to a lack of demand. Furthermore, export activities were drastically reduced or completely halted in order to prevent the spread of COVID-19 throughout the world; as a result, transportation by air, sea, and land was suspended. All of these factors reduced demand for foam products across industries, resulting in a decrease in market size, growth rate, and potential investment in the polyolefin industry. Due to uncertain future circumstances, consumer spending has also decreased and limits have been placed on necessary daily products.
Polyolefin Market Scope:
|Market Size Value in 2020||US$192.389 billion|
|Market Size Value in 2027||US$268.093 billion|
|Growth Rate||CAGR of 4.58% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Type, Application, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Exxon Mobil Corporation, LyondellBasell Industries Holdings B.V., Braskem, The DOW Chemical Company, Sinopec Catalyst CO., LTD, SABIC, INEOS, Borealis AG, Total Polymers, Reliance Industries Limited, The Polyolefin Company (Singapore) Pte Ltd., SCG Chemicals Co., Ltd.|
|Customization Scope||Free report customization with purchase|
- By Type
- By Application
- Film and Sheets
- Blow Molding
- Injection Molding
- By Geography
- North America
- South America
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. Covid 19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Polyolefin Market Analysis, By Type
6. Polyolefin Market Analysis, By Application
6.2. Film and Sheets
6.3. Blow Molding
6.4. Injection Molding
7. Polyolefin Market Analysis, By Geography
7.2. North America
7.3. South America
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.4. South Korea
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.1. Exxon Mobil Corporation
9.2. LyondellBasell Industries Holdings B.V.
9.4. The DOW Chemical Company
9.5. Sinopec Catalyst CO.,LTD
9.8. Borealis AG
9.9. Total Polymers
9.10. Reliance Industries Limited
9.11. The Polyolefin Company (Singapore) Pte Ltd.
9.12. SCG Chemicals Co., Ltd.
Exxon Mobil Corporation
LyondellBasell Industries Holdings B.V.
The DOW Chemical Company
Sinopec Catalyst CO., LTD
Reliance Industries Limited
The Polyolefin Company (Singapore) Pte Ltd.
SCG Chemicals Co., Ltd.
|Report Name||Published Month||Get Sample PDF|
|Polyphenols Market Size, Share & Trends: Industry Report, 2019-2024||Apr 2021|
|Polyvinyl Alcohol (PVA) Films Market Size: Report, 2021-2026||May 2023|
|Bio-Based Polyols Market Size & Share: Industry Report, 2019 - 2024||Mar 2020|
|Polyols Market Size & Share: Industry Trends & Report, 2019-2024||May 2020|
|Polylactic Acid Market Size & Share: Industry Report, 2022-2027||Sep 2022|