Polyolefin Market Size, Share & Trends Analysis By Product Type (PE, PP, Ethylene Vinyl Acetate, Thermoplastic Olefin), By Application (Film & Sheet, Injection Molding, Blow Molding, Profile Extrusion), And Segment Forecasts, 2018 - 2025

Industry Outlook

The global polyolefin market size was estimated at 149.78 million tons in 2016. Increasing innovation in plastic technologies, the advent of cheap interior furnishings in automobiles, and strict industrial standards concerning carbon emissions have been key factors driving the industry. Polyethylene is the fastest growing product in terms of volume, expanding at a CAGR of 6.4% during the forecast period.

High tensile strength along with high impact resistance of the product has contributed to its demand in the film and sheet and packaging sectors. Polyethylene can be heated to its melting point, cooled, and heated again as per requirement, without significant degradation in strength or quality. This allows it to be widely used in geomembranes, plastic films, and bags, among others.

Asia Pacific is anticipated to remain a key region in terms of consumption owing to the significant rise in demand from the automotive and construction industries. A strong supply chain of major key players is anticipated to provide lucrative opportunities to ancillary participants to improve their operational status. Favorable government regulations are significantly driving the food industry in the U.S. and Europe, wherein high-grade and innovative olefins are used for packaging and labeling food articles.

Scrutiny by governments around the world has brought on constant innovation by players to improve product quality and sustain in the competitive environment. Stringent regulations against waste disposal are anticipated to drive innovation in the use of polyolefins in the plastics market. Innovation in this industry is also fueled by several investments to cater to a larger customer base and to reach out to niche markets as well.

Polyolefin Market Trends

The growth of adhesives market is largely driven by growth in the end-use industries construction, transportation, automotive, packaging, textiles, and film & sheet. The rapid development in emerging economies and increasing demand for Beverages and light weight fuel efficient automobile has increased the market share of polyolefins. The rise in demand for E- Commerce industry the demand for packaging is increased and which is expected to propel the market in the forecast period.

The rapid industrialization in the developing countries across various regions has shown significant growth in the plastics market overall. The growth in paper packaging and E-Commerce industry are the key contributors in the growth of the polyolefin market. Moreover, the increase in purchasing powers of individuals, along with consumption traits and technological advancements has directed towards the development of more diverse, complex and eco-friendly products, which are certainly driving the growth of the polyolefin market.

The most dominant market of polyolefins is film & sheet industry. Owing to its properties such as chemical resistant, odourless and nonporous, they are widely used in the industry to produce three-dimensional packaging industry. The future of polyolefins mainly depends on the growth of end user’s application, such as carton, case and corrugated Packaging. The overall packaging industry is expected to show high growth rate, with case and carton witnessing satisfactory growth rate.

The raw material availability is currently dicey which directly imposes a major drawback on the multinationals in terms of procurement cost. Several companies are striving to reduce the polyolefin pricing globally for the end-user industries.

The price volatility in oil market remains a key concern for the industries linked to it, whether directly or indirectly. Several companies spend billions of dollars in the research and development of polyolefin market to suffice the growing customer trend in the market globally. In order to manufacture modified polyolefins which has enhanced performance ability, companies find it difficult to chemically route the product. Owing to the lower surface energy, chemical routing to modified polyolefins using grafting technique of hydrophilic polymers is essential although it is a complicated process that demands a lot of time.

Product Insights

Polyethylene and polypropylene are estimated to grow at a rapid pace in terms of volume. LLDPE and LDPE are widely used in electrical insulation whereas HDPE is used extensively in manufacturing household containers. Owing to a strong supply-to-demand ratio, multinational companies in the sector are constantly spending on R&D and innovation to expand their end-use application scope. Polyethylene has numerous significant applications. It is not toxic in its solid-state and is, therefore, extensively used in food packaging.

One of its major constraints, however, is its price; it is generally more expensive than other polyolefins. Ethylene-Vinyl Acetate (EVA) increases transparency, flexibility, and toughness of the product it is used in and is therefore used in the processing and packaging industries. It is also used extensively in footwear, automobile bumpers, and athletic goods, among others. The product also finds application as a cold flow improver for diesel because of its ability to easily transform sheets and molding into desirable shapes.

The EVA segment is experiencing steady growth owing to numerous innovations by key companies such as Sinopec Corporation, LyondellBasell Industrial Holdings, and ExxonMobil Chemicals to serve high potential end-use industries; packaging is one such industry. Thermoplastic olefins (TPO) come with a medium-high melt flow, which offers an appropriate amount of stiffness and impact resistance. They are widely used in the automotive sector. TPO has the capacity to be easily processed by injection molding and thermoforming. The product also witnesses high demand from the building and construction sector for its application as roof membranes.

Application Insights

Film and sheet emerged as the dominant application segment, with polyolefin diversely applied in food packaging, blown film bags, industrial thermoforming, and more. The application scope also extends to packing carrier bags, industrial bags, agricultural stretch wraps, among others.

Injection molding is another major application of polyolefin, which includes LDPE, LLDPE, HDPE, EVA, PP, and TPO. The reason for such vivid application scope is its characteristics of being lightweight, along with high chemical resistance and good toughness at lower temperatures. Most polyolefin resins are used in pellet form for injection molding.

Blow molding is yet another key application owing to advantages of polyolefin, such as good processing ability, chemical resistance, and lower cost compared to other plastics. Blow-molded olefins find application in packaging and automotive industries thanks to benefits of wield-line strength, faster color change, and better processing.

Profile extruded olefins find application in food-grade packaging, agriculture, construction, and consumer products. Their typical properties include ease of processing, flexibility, and tear resistance. They can be extruded as monolayer and multilayer films, including LDPE, LLDPE, and HDPE. They can also be coextruded with the help of other polymers such as ethylene-vinyl alcohol and polyester barrier resins.

Regional Insights

Asia Pacific dominated the Polyolefin market and accounted for the largest revenue share of 45.14% in 2016. Polypropylene has witnessed rapid growth in China and across APAC owing to increasing applications in the construction industry. They also have a wide array of applications in the automotive industry. Factors such as chemical resistance, elasticity & toughness, fatigue resistance, insulation and transmissivity are driving the Polypropylene market in Asia Pacific.

Several government initiatives have been implemented in emerging economies to improve energy efficiency of residential infrastructure. Additionally, rising income levels & lower interest rates are expected to have a positive impact on the polypropylene market across APAC. There is an increasing demand of polypropylene in household as well as industrial sector which is expected to foster the growth of the market.

Polyolefins have a huge market in terms of film & sheet industry. Owing to characteristics such as high melting point, impact resistance, lightweight and flexibility, polyolefins are widely used in the industry across North America. Residential and commercial construction is one of the fastest-growing sector with countries such as Mexico and Canda witnessing significant growth over the last five years. These factors in turn are bound to have a positive impact on the polyolefin market over the forecasted period.

Increasing usage of injection molded polyolefins such as LDPE, HDPE, LLDPE and more are expected to increase the polyolefin market size significantly in the foreseeable future. The advantages owing to the injection molding of polyolefins include chemical resistance, lighter weight, good toughness and more which make it suitable for several industries such as furniture, packaging, housewares, sporting goods industry and the like.

Polyolefin Market Share Insights

Multinationals such as Sinopec Corporations, LyondellBasell Industries Holdings N.V., ExxonMobil Chemicals, and Petrochina Company Limited dominate the global market thanks to constant R&D and strategic initiatives. They have a defined line of work and operate closely with consumer demands, enabling them to establish a sustainable business model globally.

Companies such as Sinopec Corporation, use technological aided innovations in the tumultuous times, to establish their brand in the industry. Other companies such as LyondellBasell Industries Holdings N.V., constantly invest in Research and Development activities in order to come up with a diverse range of products to cater to all future demands.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global polyolefin market report on the basis of product, application, and region:

• Product Outlook (Volume, Million Tons; Revenue, USD Billion, 2014 - 2025)

  • Polyethylene

  • Polypropylene

  • Ethylene Vinyl Acetate

  • Thermoplastic Olefins

  • Others

• Application Outlook (Volume, Million Tons; Revenue, USD Billion, 2014 - 2025)

  • Film & Sheet

  • Injection Molding

  • Blow Molding

  • Profile Extrusion

  • Others

• Regional Outlook (Volume, Million Tons; Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia