According to a new report published by Allied Market Research titled, “Polyolefins Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2021–2028,” The global polyolefins market was valued at $133.9 billion in 2020, and is projected to reach $446.2 billion by 2028, growing at a CAGR of 12.5% from 2021 to 2028.
Polyolefins are polymers derived from polymerization of monomers such as ethylene and propylene. Polypropylene and polyethylene are the major commercial polymers used in plastic products production.
The growth of the global polyolefins market is driven by the presence of established consumer base such as automotive, aerospace, packaging, and others. In addition, upsurge in demand for polyolefins in the renewable energy sector is propelling the polyolefins market growth. However, the outbreak of COVID-19 has hindered the market growth by decreasing the consumer spending. The prices of raw materials have increased, owing to decrease in production of crude oil by oil-producing countries. Oil-producing countries have decreased the production volume of crude oil, owing to the demand uncertainty caused by COVID-19 in many countries.
The global polyolefins market is segmented into type, application, and region. On the basis of type, the market is categorized into polyethylene (PE), polypropylene (PP), and polystyrene. Various applications of polyolefins studied in the market include film & sheet, injection molding, blow molding, profile extrusion, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Polyolefins market share is analyzed across all regions and segments.
On the basis of type, the polyethylene segment garnered 48.8% in terms of volume in 2019. This was attributed to the presence of high consumer base for polyethylene such as automotive and aerospace. In addition, it is highly adopted for various applications such as packaging, pipes & fittings, caps of containers, trays, and housewares , owing to its high bond strength and prolonged durability.
On the basis of application, the film & sheet segment garnered 31.0% in terms of volume in 2019, and is expected to grow at a CAGR of 4.2% during the forecast period. This is attributed to rise in utilization of films in construction, automobile, and packaging sectors.
Region-wise, Asia-Pacific is expected to grow at a CAGR of 3.9%, in terms of volume, during the forecast period. This is attributed to factors such as rise in packaging, construction, automotive sectors.
The polyolefins market analysis covers in-depth information of the major industry participants. The key players operating and profiled in the market include Exxonmobil Corporation, SABIC, Total SE, Repsol, Ineos Group AG, Reliance Industries, LyondellBasell Industries N.V., Sinopec Group, Ducor Petrochemical, and Formosa Plastics Corporation.
Other players in the value chain of the polyolefins market include Borealis AG, Arkema S.A., Braskem S.A, Abu Dhabi Polymers Company Ltd. (Borouge), Sasol Ltd., Tosoh Corporation, and Polyone Corporation.
Key findings of the study
- The report outlines the current polyolefins market trends and future scenario of the market from 2021 to 2028 to understand the prevailing opportunities and potential investment pockets.
- The polyolefins market size is provided in terms of volume and revenue.
- On the basis of type, the polypropylene segment is expected to grow at a CAGR of 14.5%, in terms of revenue during the forecast period.
- On the basis of application, the profile extrusion segment gained 26.1% share in 2020 in terms of volume.
- On the basis of type, the polyethylene segment garnered a share 65.6% in 2020 in terms of revenue.
- On the basis of region, North America garnered a share of 15.7% in 2020 in terms of revenue.
Impact of COVID-19 on the polyolefins market
- The outbreak of COVID-19 pandemic had led to partial or complete shutdown of production facilities, which do not come under essential goods, owing to prolonged lockdown in major countries such as the U.S., China, Japan, India, and Germany. It has led to either closure or suspension of their production activities in most of the industrial units across the world.
- The COVID-19 outbreak has affected the demand as well as manufacturing of polyolefins.
- The manufacturing activities of industries, such as automotive and construction, were disrupted, owing to spread of COVID-19 in many countries across the globe, which resulted in decrease in demand for polyolefins.
- The global health crisis affected the chemical industry supply chain to a major extent, which led to a major impact on raw material procurement.