The Polyolefin Resins Market is estimated to be valued at US$ 255.82 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Polyolefin resins are produced by polymerization process of olefins such as ethylene and propylene. They possess properties such as stiffness, chemical resistance and good electrical insulation. They are majorly used in production of films, sheets, plastic bags, plastic bottles, packaging materials, automotive parts and home appliances like refrigerator, washing machines. Their affordability, durability, recyclability and lightweight properties increase their demand from packaging, automotive and construction industries.
Market key trends:
The increasing demand from the packaging industry is a major trend driving the growth of the polyolefin resins market. Polyolefin resins are majorly used in food packaging, pharmaceutical packaging and consumer goods packaging due to their lightweight, toughness, chemical resistance and recyclability properties. According to the Flexible Packaging Association, flexible packaging accounted for over 35% of the overall packaging market in 2021. With growing consumption of packaged and processed food & beverages across regions, the demand for polyolefin resins from packaging industry is expected to increase significantly during the forecast period. Other trends such as development of bio-based polyolefin resins and increasing R&D towards high performance polyolefin resins are also expected to fuel the market growth.
Porter’s Analysis
Threat of new entrants: The polyolefin resins market poses moderate threat of new entrants due to the requirement of high capital investments and presence of established players.
Bargaining power of buyers: The bargaining power of buyers in the polyolefin resins market is low due to the availability of a large number of manufactures.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as polyolefin resins are commoditized products and switching cost is low.
Threat of new substitutes: The threat of new substitutes is low as polyolefin resins have strong product and process advantage over other substitutes.
Competitive rivalry: High due to presence of established players.
SWOT Analysis
Strength: Established supply chain and distribution network. Wide product portfolio catering to diverse end-use industries.
Weakness: Volatility in raw material prices can negatively impact profits. Regulations against plastic usage can hamper demand.
Opportunity: Growing packaging industry worldwide due to rising e-commerce sales. Increased penetration in emerging markets.
Threats: Stringent environmental regulations against plastic usage. Development of bio-based and recyclable substitutes.
Key Takeaways
The Global Polyolefin Resins Market Growth is expected to witness high, exhibiting CAGR of 5.1% over the forecast period, due to increasing demand from packaging industry. The packaging industry accounts for over 50% of the polyolefin resins consumption globally.
Regionally, Asia Pacific dominates the polyolefin resins market and the trend is expected to continue during the forecast period. China accounts for over 30% of the global polyolefin resins demand. Investments toward capacity expansions in China and India will boost the regional market.
Key players operating in the polyolefin resins market are Sinopec Corporations, LyondellBasell Industries Holdings N.V., ExxonMobil Chemicals, and Petrochina Company Limited. Sinopec Corporations is one of the leading producers of polyolefin resins in Asia. LyondellBasell Industries Holdings N.V. offers wide range of polyolefin resins under brands such as Lupolen and Hostalen to cater different end-use industries.
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