The global polyolefin market is expected to grow at a CAGR of 8.29% over the forecast period to reach a total market size of US$394.402 billion by 2025, increasing from US$244.512 billion in 2019.
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, 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 below shows the power generated by photovoltaic from the year 2010 to 2018, According to the International Energy Agency (IEA), the power generated by PV increased from 32 TWh to 585 TWh in 2018, which is an increase of. 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 3650.878 billion in 2008 to USD 9809.086 billion in 2018.
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, the value of supermarkets in Australia has increased from AU$76,440 million in 2012 to AU$88,414 million in 2017.
Expanding healthcare industry is propelling the market growth opportunities for vendors and manufacturers
Growing the healthcare and pharmaceutical industry is the major driving factor that is boosting the blister packaging market growth. According to the International Trade Administration (ITA), the U.S Department of Commerce, the biopharmaceutical industry accounted for more than $1.3 trillion in economic output, representing 4% of total U.S output in 2015. Increasing investment by market players in the form of acquisition or production capacity with the aim of expanding the product portfolio is expected to drive the growth of the market for blister packaging adoption in the pharmaceutical industry in the coming years. For instance, in October 2018, Merck invested nearly €63 million a part of the €1billion investment plan up to 2020 of transforming the Darmstadt site which will be dedicated to the packaging and shipping of the company's pharma medicine. Furthermore, rising health spending coupled with the growing geriatric population is further anticipated to boost the demand for medicines thus augmenting the market growth opportunities for blister packaging in the coming years. According to the Organisation for Economic Co-operation and Development, per capita, health spending in the United Kingdom has increased from US$2528 in 2006 to US$4246 in 2017. Also, pharmaceutical manufacturers are constantly investing in new packaging lines and upgrading their existing technology so as to provide sophisticated and safe packaging. For an instance, in 2016, Merck KGa invested €50 million in the packaging building at its site in Darmstadt, Germany with an aim to enable the packaging of more than 400 million blisters by using flexible and modern technology. Similarly, in June 2018, Schreiner MediPharm, a Germany- based provider of specialty pharmaceutical labeling options, has developed a smart blister pack so as to enhance medication adherence by clinical trial participants.
The Asia Pacific is estimated to hold a significant share in the market.
By geography, the global polyolefin market has been segmented as 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 2019 on account of rapid urbanization and increasing the manufacturing industry in countries like China and India. Also, improving the economic environment and stability in many countries within the region is further anticipated to bolster the blister packaging market in the region. In North America, the market is growing at a substantial rate on account of the established pharmaceutical industry. Growing regulation related to single-dose packaging is poised to augment the market growth in the region. Europe holds a significant share in the market due to the widespread adoption of polyolefin in the 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 facility in Kallo and Beringen in Belgium. Also, in 2017, Accutrace™ S10 Molecular Fuel Marker and Canvera™ polyolefin dispersions of DOW chemicals were recognized as the best new innovators that are changing the world and received the 2017 Edison Awards. 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 the end-users and are investing in a high-quality product portfolio.
|Market size value in 2019||US$244.512 billion|
|Market size value in 2025||US$394.402 billion|
|Growth Rate||CAGR of 8.29% from 2019 to 2025|
|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|
Frequently Asked Questions (FAQs)
Q1. What will be the polyolefin market size by 2025?
A1. The global polyolefin market is expected to reach a market size of US$394.402 billion in 2025.
Q2. What is the size of the global polyolefin market?
A2. Polyolefin Market was valued at US$244.512 billion in 2019.
Q3. What are the growth prospects for the polyolefin market?
A3. The polyolefin market is expected to grow at a CAGR of 8.29% over the forecast period.
Q4. Which region holds the largest market share in the polyolefin market?
A4. The Asia Pacific polyolefin market is dominating the global market, constituting a significant share in 2019 on account of rapid urbanization and increasing the manufacturing industry in countries like China and India.
Q5. What factors are anticipated to drive the polyolefin market growth?
A5. Increasing demand from packaging, plastic, construction among other industries is expected to drive the polyolefin market during the forecast period.
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.
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.