by The global Ethylene Market is estimated to be valued at US$ 137.2 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Ethylene, also known as ethene, is a gaseous hydrocarbon used as a basic petrochemical in the production of numerous consumer and industrial products. It is primarily used in the manufacturing of polyethylene, which finds application in packaging films, plastic bags, bottles, pipes, and construction materials due to its resistance to degradation and versatility. Owing to its wide range of uses, ethylene production serves as the largest segment within the global ethylene market.
Market Overview:
Ethylene is a colorless gas with a sweet and mushroom-like odor. It is highly flammable in nature. Ethylene finds application as an intermediate in the production of polyethylene, ethylene glycol, vinyl acetate, ethylbenzene, and styrene. As a result of its high versatility, ethylene forms the building block for numerous everyday products.
Market key trends:
Increased demand for polyethylene from the packaging industry is expected to be a key trend driving the global ethylene market over the forecast period. Polyethylene finds widespread use in food packaging, consumer goods packaging, and flexible packaging owing to properties such as chemical resistance, low moisture permeability, and lightweight. According to firm figures, the global polyethylene market volume was valued at over 70 million tons in 2019 and is estimated to grow steadily at over 5% annually through 2027. Growth in the packaging industry along with rising focus on recyclable and sustainable packaging solutions will additionally support the consumption of ethylene over the coming years.
SWOT Analysis
Strength: Ethylene serves as an important feedstock or building block for the production of polyethylene, ethylene dichloride and ethylene oxide which have wide applications in automotive, construction and packaging industries. The global market for these end-use industries is growing steadily which will boost the demand for ethylene.
Weakness: Fluctuations in crude oil and natural gas prices impact the cost of ethylene production. Ethylene production requires steam cracking of hydrocarbons which is an energy intensive process. High energy costs reduce the profit margins of ethylene producers.
Opportunity: Increasing demand for plastics from emerging economies of Asia Pacific provides growth opportunities for ethylene producers. Governments across regions are investing in petrochemical projects to cater to the rising demand for ethylene and its derivatives.
Threats: Stringent environmental regulations regarding emissions from petrochemical facilities act as a threat. Technology advancements enabling production of bio-based ethylene can pose a threat to conventional naphtha and gas-based ethylene production.
Key Takeaways
The Global Ethylene Market Size is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing demand from the packaging industry. Ethylene and its copolymers such as LDPE, HDPE find wide application in flexible packaging of food and other consumer goods.
Regional analysis: Asia Pacific dominates the global ethylene market and is expected to grow at the fastest rate during the forecast period. China contributes significantly to the Asia Pacific market owing to presence of large petrochemical facilities and steadily rising demand for ethylene-based polymers from end-use sectors. Countries like India are also witnessing major petrochemical projects that will propel the regional market.
Key players: Key players operating in the global ethylene market are BASF SE, Chevron Phillips Chemical Company, LLC, Exxon Mobil Corporation, Ineos Group Ltd, LyondellBasell Industries N.V., Royal Dutch Shell plc, Saudi Basic Industries Corporation, China Petroleum & Chemical Corporation (Sinopec), The Dow Chemical Company , Lonza Group. The market is consolidated in nature with top players accounting for major share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
