Global Ethylene Market is Estimated To Witness High Growth Owing To Increasing Application In Manufacturing Polyethylene
Global Ethylene Market is Estimated To Witness High Growth Owing To Increasing Application In Manufacturing Polyethylene
Ethylene or ethene is an organic chemical that serves as an important starting material in petrochemical industry.

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.

Market Overview:
Ethylene or ethene is an organic chemical that serves as an important starting material in petrochemical industry. It is primarily used to produce polyethylene which finds wide applications across industries such as packaging, consumer goods, automotive and construction. Ethylene helps in reducing weight and improving durability and tensile strength of plastics. With rapid industrialization and growing demand for packaged and durable goods, the need for polyethylene and ethylene is increasing substantially.

Market key trends:
One of the key trends positively impacting the global ethylene market growth is increasing application of polyethylene in manufacturing flexible packaging films and containers. Polyethylene offers advantages such as transparency, barrier properties, durability and safety for food packaging. It is widely used in producing plastic bags, bottles, wraps and other flexible packaging products. According to recent studies, over 40% of global polyethylene production is utilized in flexible packaging applications and the demand is projected to grow at more than 6% annually during the forecast period. Rising e-commerce activities, focus on convenience food, increasing disposable incomes are some of the factors augmenting the use of flexible packaging worldwide and subsequently driving the consumption of ethylene in polyethylene production.

Porter’s Analysis
Threat of new entrants: The global ethylene market is capital intensive business which requires large investments. New players need massive capital investments which acts as entry barriers.

Bargaining power of buyers: Buyers have moderate to low bargaining power due to availability of substitutes and fragmented, price sensitive buyers.

Bargaining power of suppliers: Global ethylene suppliers have moderate bargaining power due to supply capacity constraints and availability of substitutes.

Threat of new substitutes: Ethylene has substitutes like propylene but switching costs act as barriers.

Competitive rivalry: Intense due to presence of global players.

SWOT Analysis
Strength: Ethylene is used as raw material in many end user industries like packaging, construction, automotive etc. It has wide applications.
Weakness: Ethylene manufacturing is capital intensive and requires large scale production. Fluctuating raw material prices can impact margins.
Opportunity: Increasing plastics demand from packaging and construction industries across Asia Pacific and Middle East regions provides high growth opportunities. Also bio-based ethylene production using renewable feedstock presents opportunities.
Threats: stringent environmental regulations regarding plastic waste disposal and volatile crude oil prices are key threats.

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 packaging industry for food packaging, medical packaging etc.

Regionally, Asia Pacific dominates the global ethylene market and the region is estimated to maintain its dominance during the forecast period. China contributes to around one third of global ethylene demand. Rapid growth of end user industries in India and Southeast Asian countries will drive market growth in the region.

North America is the second most prominent region driven by increasing shale gas production leading to abundant feedstock supply. Ongoing capacity additions by key players will further strengthen the region's position.

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. Major players are focusing on expanding production capacities especially in high growth regions to leverage opportunities.

 

 

Get more insights on this topic:

https://www.marketwebjournal.com/global-ethylene-market-trends-size/

What's your reaction?

Comments

https://www.timessquarereporter.com/assets/images/user-avatar-s.jpg

0 comment

Write the first comment for this!

Facebook Conversations