Green Polyvinyl Chloride Market Expected to Reach $290.4 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Green Polyvinyl Chloride Market," The green polyvinyl chloride market was valued at $179.2 million in 2021, and is estimated to reach $290.4 million by 2031, growing at a CAGR of 5% from 2022 to 2031. 

Green polyvinyl chloride, an eco-innovation in the conventional plastic industry is produced from non-food-based biomass or renewable ethylene instead of traditional fossil fuel feedstocks. It finds application in manufacturing pipes, wires & cables, soft packaging, stretch films, and other sustainable and eco-friendly products in various end use sectors.

Factors such as increase in disposable income, technological upgrades, and rise in original equipment manufacturers (OEMs) have led the automotive & transportation sector to witness a significant growth. For instance, according to a report published by India Brands Equity Foundation, the domestic automobile production increased by a compound annual growth rate (CAGR) of 2.36% from 2016 to 2020 with 26.36 million vehicles being manufactured in India in 2020.

Green polyvinyl chloride possesses excellent significant properties such as high impact strength, less resistant to chemicals, thermal resistance, lower ultimate tensile strength, and corrosion resistance that makes it best suited for producing various shock absorbing vehicle components such as soft dashboards, airbag fabrics (coated with PVC), and others. Furthermore, fire retardant properties of the green PVC material contribute to the overall safety of a vehicle. Moreover, green polyvinyl chloride (PVC) is highly preferred for manufacturing passenger compartment parts and exterior parts such as dashboards, profiles, seating & arm rests, body side protection strips, weather strips, and window sealing profiles. These factors together are anticipated to foster the growth of the green polyvinyl chloride market during the forecast period.

Moreover, green/bio-based polyvinyl chloride (PVC) has the potential to reduce carbon dioxide emission by 30%-70%, as compared to conventional synthetic PVC. Moreover, green PVC production is a cost-effective and efficient process and requires 65% less energy than conventional PVC. It does not harm earth or environment, as these materials do not have any toxicity and can degrade easily. Moreover, its greenhouse gas emission is minimal during the time of degradation. Bio-based PVC represents a 42% reduction in carbon footprints. Leading companies, such as Astral Pipes, Supreme Industries, Finolex Industries, and others are exhibiting their interest toward the production and usage of bio-based PVC materials, across various applications owing to these advanced technical properties and functionalities.

However, high formulation costs and requirement of skilled workforce in manufacturing green polyvinylchloride may restrain the growth of the green polyvinyl chloride market during the forecast period.

The high price of green polyvinyl chloride (PVC) is a major factor restraining the industry growth. This issue can be resolved with the volatility in crude oil price, which results in a price rise in petrol plastic. Moreover, this issue can be resolved with decrease in dependence on petroleum resources and advancement in R&D. The industry, with a healthy capital base and good infrastructure is projected to adopt forward integration strategy to create their own value chain.

Furthermore, huge R&D investment is required to transform the innovations done in the development of highly efficient green/bio-based polyvinyl chloride materials into commercialization and the research should continue to increase efficiency of the material, simplify their synthesis, and maximize the usage of potential bio PVC across several end-use sectors. With this development, the manufacturers will be able to produce more valuable and less expensive green PVC. This factor may create remunerative opportunities for green polyvinyl chloride market in the coming future.

The green polyvinyl chloride market is segmented on the basis of application, end use, and region. By application, the market is segregated into pipes, wires and cables, films, and others. The pipes segment dominated the global market, in terms of revenue in 2021. The increase in urbanization in both developed and developing economies have led both state and municipal governments to increase their spendings on building drainage systems wherein green polyvinyl chloride (PVC) pipes are widely used for underground drainage applications. This may act as one of the key drivers responsible for the growth of the green polyvinyl chloride market.

By end use the market is divided into building and construction, transportation, packaging, electrical and electronics, others. The building and construction end use segment dominated the global market, in terms of revenue in 2021 with 36.3% share in the global market. Surge in population led the building & construction sector to witness a significant growth where green polyvinyl chloride (PVC)-based pipes, tubes, wires and cables, and other products are widely used for different applications in building & construction sector. For instance, according to a report published by International Trade Administration, China’s construction industry is projected to grow at an annual average rate of 8.6% from 2022 to 2030. This may propel the demand for green polyvinyl chloride in the growing construction sector during the forecast period.

Region wise, the green polyvinyl chloride market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific green polyvinyl chloride market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2021, rise in building & construction, transportation, industrial, electrical & electronics, and other sectors have enhanced the performance of the green polyvinyl chloride market in the Asia-Pacific region.

China's consumer electronics sector is increasing rapidly which in turn has enhanced the performance of the green polyvinyl chloride market in the region. According to a report published by the United Nations Statistics Division, China witnessed around 28.7% of the global manufacturing output for consumer electronic products in 2019.

Key players operating in the global green polyvinyl chloride market include Vynova group, GERMANCARD Technologies GmbH, LG Chem Ltd, Westlake Vinnolit GmbH and Co. KG, GOLDSTAB ORGANICS PVT LTD, GEON, Schilling Ltd., V. V. HITECH INNOVATIONS INDIA PRIVATE LIMITED, Sylvin Technologies, Inc., INEOS.

Key findings of the study

• By application, the pipes segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.0% from 2022 to 2031.
• By end use industry, the building & construction is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.1% from 2022 to 2031.
• By region, Asia-Pacific garnered the highest share of 46.0% in 2021, in terms of revenue, growing at a CAGR of 5.7%.