The Global Polyolefins Market was worth US$ 264.76 billion in 2023 and is anticipated to reach a valuation of US$ 464.70 billion by 2029 and it is predicted to register a CAGR of 9.83% during the forecast period 2024-2029.
Polyolefins are polymers produced by the polymerization of single olefins. Olefins, also called alkenes, are hydrocarbons with a carbon-hydrogen double bond. Polyolefins are hard, light, and rigid by nature. They are mainly applied in structural plastics, consumer goods, industrial products, and food packaging. Polyolefins have a waxy texture and expand when heated. These retain their odorless and non-porous nature when heated and cooled. Polyolefins are available in different types. Mainly, they can be classified into two main groups, viz. thermoplastic and elastomeric compounds. Thermoplastic compounds include polyethylene (PE) and polypropylene (PP). Polyethylene can be further classified into low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), and high-density polyethylene (HDPE). LDPE and HDPE are used in high-quality packaging films, due to their low weight and high durability. Elastomeric compounds are used in the manufacture of pillows, cushions, and shoes.
Currently, polyethylene is the most widely used plastic resin in the world, due to its ease of processing, low cost, and versatility. It produces about 40% of the resins used in many end-user applications. As the industry integrates more and more, the factors that have the greatest impact on the market are changing accordingly. With the development of ethylenic raw materials from new sources, such as bio-based materials, coal, and shale, polyethylene prices are expected to have an advantage over other plastic resins, while driving the demand and use of polyethylene in the market. In addition, the constant advancements in polymerization catalyst technologies are expected to improve the performance, performance, and customization of polyethylene resins. HDPE, LDPE, and LLDPE are the most widely used forms of polyethylene. HDPE, due to its many properties and advantages, is used in many applications. HDPE is resistant to most chemical solvents, UV resistant, leach resistant, can withstand temperatures from -148 to 176 ° F, and are cost-effective plastic as well.
HDPE is ideal for blow molding applications and is used in food and beverage packaging. Its recyclable nature makes it possible for highly disposable products. It is also used in chemical packaging, due to its chemical resistance properties. It is used in shampoo. Polyethylene (HDPE, LDPE, and LLDPE) comprises the highest proportion of polyolefins used in film extrusion. Polyethylene fibers have the highest market share in the fiber segment. Elastolefin, a fiber composed of at least 95% (by weight) ethylene and at least one other olefin, is highly valued because of its good elastic properties. High Molecular Weight Polyethylene (HMWP) fibers are widely used in protective clothing. High-density polyethylene (HDPE, PE100, and PE80) piping systems are fast becoming the most widely used piping systems in the world, due to their economic feasibility and low toxicity. All of the above factors are likely to increase the market demand.
Polyolefins have many useful properties which make them suitable for a variety of applications. It has little strength and toughness, but it is very ductile and has good impact resistance; it will stretch rather than break. Polyolefins are waterproof and durable, so they are more durable when exposed to the elements compared to other polymers. Polyolefins are a good electrical insulator, offering resistance to the formation of electrical shafts, but can be electrostatically charged. Adding antistatic agents will prevent this. The transparency of low-density polyolefins makes it suitable for packaging applications. Polyolefins such as HDPE can be recycled into other products, which is more cost-effective than making a new product from new plastic. Good heat resistance properties allow its use at high and low temperatures. The demand for polyolefin is growing in various industries including automotive, electrical and electronics, food and beverage, and consumer goods.
The properties of polyolefins such as high rigidity, and good resistance to moisture and chemicals make polyolefins suitable for industrial uses, mainly for the packaging of automotive and electrical parts. Whereas, in the automotive industry, manufacturers focus on increasing vehicle efficiency by reducing vehicle weight. Polyolefin material is preferred because it is lightweight, and provides ease of processing, sealing properties, and rigidity. In the food and beverage industry, the consumption of polyethylene is increasing at a rapid rate due to the increasing demand for the production of packaging materials for food and beverages. The use of polyethylene in fashion, sports, and toys is growing due to its ability to withstand physical stress, durability, flexibility in packaging, and ease of molding products.
The use of polyolefin plastics such as HDPE, LLDPE, and LDPE bags is one of the main reasons for environmental and health risks. The global production of plastics and the environmental pollution that accompanies it has shown that plastic waste is a major environmental problem. The effect of plastic waste on marine organisms, humans, and the environment, in general, is a public concern and calls for the need to save ecosystems and their lives. Hence, growing environmental concerns are leading to more stringent regulations, hampering the growth of the market. As governments around the world have taken action to ban plastic.
For manufacturers, already reeling from supply chain disruptions caused by the US-China trade war, COVID-19 has added more wait times to freight deliveries. The emergence of coronavirus, declared a pandemic by the World Health Organization, is having a notable impact on global economic growth. According to the International Monetary Fund, global GDP is expected to decline by 0.4% in 2021. According to the World Trade Organization (WTO), world trade volumes are expected to decline between 14% and 33% in 2021 due to the economic impact of COVID-19. The pandemic is affecting the operations of various industries, such as automotive, oil and gas, construction, aerospace, and others, as most countries have published a guide to staying at home, that is - say locking. And the coronavirus outbreak is expected to be seen throughout 2021 and a few months into 2021. Since polyolefin products are widely used in these industries, the decline in operations in these industries has a direct impact on the growth of the polyolefin market.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
9.83% |
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Segments Covered |
By Type, Application, End-Use, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
ExxonMobil Corporation (U.S.), Lyondell Basell Holdings B.V (Netherlands), Sinopec Corp. (China), The Dow Chemical Company (U.S.), BASF SE (Germany), and Others. |
Polyethylene and polypropylene are estimated to grow at a rapid rate in terms of volume. LLDPE and LDPE are widely used in electrical insulation, while HDPE is widely used in the manufacture of household containers. Due to a close relationship between supply and demand, multinational companies in the sector are constantly investing in R&D and innovation to broaden their final scope. Polyethylene has many important applications. It is non-toxic in a solid state and therefore is widely used in food packaging.
Film and sheets have become the dominant application segment, with polyolefin being applied in different ways in food packaging, blown film bags, industrial thermoforming, and more. The field of application also extends to the packaging of transport bags, industrial bags, and agricultural stretch packaging, among others.
The packaging segment holds the largest share of over 37% in 2020 and is expected to experience a significant CAGR of 5.4% in the global polyolefins market during the forecast period. This growth is attributed to the increasing demand for polyethylene films as a substitute for glass and metal in the packaging industry which further drives the growth of the market.
Asia-Pacific has emerged as the fastest-growing regional polyolefins market in terms of consumption, which can be attributed to the expansion of several economies in the region, as well as the increased disposable income of consumers. Expansion of end-use industries, such as construction, packaging, and automotive, are also expected to be the main drivers. The presence of leading petrochemical companies such as BASF, Sinopec, and Chevron is expected to drive demand for products in China, India, Thailand, Vietnam, and other Asian countries. Asia-Pacific is characterized by the availability of skilled labor at low cost as well as a large area of land. A shift in production outlook to emerging economies, particularly China and India, is expected to have a positive influence on growth over the forecast period. The increase in construction spending due to the need for sustainable infrastructure is expected to stimulate growth over the next two years. The main driver of demand in North America is the wide scope and heavy use in several key end-use industries, such as automotive and transportation, construction, footwear, furniture, home goods consumption, packaging, and electronics. Manufacturers around the world are investing in research and development to expand their business activities and strengthen their product portfolio.
The European market includes Germany, France, the United Kingdom, Russia, Spain, Belgium, and the Netherlands, among other countries in Central and Eastern Europe. A revitalized automotive segment in these countries, coupled with rising consumer disposable income and increased spending on construction and infrastructure, is likely to complement the growth of the sector.
In September 2020, Borealis introduced a new portfolio of circular polyolefin products. Borealis' new circular product portfolio, called Bornewables, is produced with renewable raw materials entirely derived from waste and waste streams.
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