Ethylene Market Size, Share & COVID-19 Impact Analysis, By Application (High-Density Polyethylene, Low-Density Polyethylene, Ethylene Oxide, Ethyl Benzene, and Others), and Regional Forecast, 2024-2032

The global ethylene market size was USD 166,520 million in 2019 and is projected to reach USD 245,005 million by 2027, exhibiting a CAGR of 5.6% during the forecast period. Asia Pacific dominated the ethylene market with a market share of .04% in 2019.

C₂H₄ is a colorless and flammable gaseous organic compound that contains double bond carbons. It is used for the production of polyethylene (PE), ethyl oxide, ethylene glycol, high-density polyethylene, 1-2-dichloroethane, vinyl acetate, and other compounds. Increasing product consumption can be attributed to the growing plastic industry. It also has an application in the agriculture industry to improve plants’ health and growth. It is used to produce plastics of various types that are used in various industries such as automotive, construction, consumer goods, packaging, and others. Moreover, technological advancement has led to the effective and increased use of plastics such as LDPE and HDPE as per the industry requirements. Also, the increasing demand for plastic products among consumers is boosting the market.  

Disruption in the Supply Chain to Impede Market Amid COVID-19 Outbreak

The coronavirus pandemic has hit the chemical industry and has brought the operations and trade activities to a halt. This caused a decline in demand for the consumer and industrial market, which in turn, caused disruptions in the supply chain. The worldwide lockdown has resulted in a significant economic impact on trading and production activities in the chemical sector which further affects the pricing dynamics. However, market intelligence will be stabilized due to the high demand for PE in packaging applications. The covid-19 has increased awareness among the consumer for public and private hygiene to protect against the virus. The packaging industry has seen a hike due to the high demand for sanitized and hygienic packaged food products. A major part of this is used for the production of PE, which is further used in packaging industries for various applications such as consumer goods, food products, and others. The rise in demand for quality and hygienic packaging will significantly improve the market in the forthcoming years.

ETHYLENE MARKET TRENDS

Increasing Demand for LightWeight Plastics to Aid Market

The growing trend for lightweight plastics owing to consumer’s convenience is creating new opportunities for small- and large-scale cosmetic businesses. The growing awareness of various types and forms of plastic products among consumers will further aid the development of the market. The rising trend for lightweight plastic material in the automotive and construction industries is adding to the demand. Ethylene producing manufacturers are shifting attention towards lightweight and quality packaging to provide the consumer with improved packaging solutions. Moreover, the spread of coronavirus has led consumers to push towards better product packaging owing to the new regulations pertaining to coronavirus. The growing demand for plastic consumer goods due to low prices and easy availability is further increasing the product demand in the market. Furthermore, this strong demand for plastic consumer goods for packaging applications is driving the ethylene market growth.

ETHYLENE MARKET GROWTH FACTORS

Increasing Demand for Packaging Solutions During Pandemic to Boost Growth

The increasing consciousness among consumers for safe packaged products has led to the demand for plastic solutions in the market. Demand has risen sharply for plastic packaging solutions for various applications in groceries, e-commerce healthcare products, and transportation. Additionally, demand for luxury, industrial applications are also expected to grow and to drive the market. The consumers are demanding high-quality food with proper packaging solutions, thus driving the market. Moreover, growth in the automotive and construction activities are also supporting the market growth as plastic is used for wiring, auto parts, pipes, and others in the respective industries. Furthermore, growing applications in agriculture, medical, and other sectors are also driving the ethylene market size.

RESTRAINING FACTORS

Depleting Raw Material Sources and Introduction of Substitutes to Hinder Market Growth

Depleting of raw material such as fossil fuel resources along with fluctuating crude oil prices can act as a restraining factor for the market growth. The introduction of substitutes such as bio-ethanol from natural sources such as starch and sugar. The adoption of these bio-based substitutes can be attributed to the governmental regulations over environmental protection and preservation of resources. Moreover, rising technological advancement is further providing support towards substitutes, thus restraining the market. Another factor that acts towards restraining the market is the spread of coronavirus that has led to a disturbance in the supply chain thus affecting the market growth.

ETHYLENE MARKET SEGMENTATION ANALYSIS

By Application Analysis

LDPE Segment to Hold the Major Share in the Market During the Forecast Period

Based on application, the ethylene market is segmented into high-density polyethylene, low-density PE, ethylene oxide, ethylbenzene, and others. The LDPE segment dominated the market in 2019 due to growing consumer demand for the various plastic-based products from various industries such as automotive, construction, medical, and others. These plastic products include containers, dispensing bottles, and tubes. Moreover, the trend for lightweight automobiles is a factor that is further supporting the market size.

The HDPE segment is also expected to have significant growth during the forecast period. The growing demand for high density polyethylene HDPE can be attributed to growing construction activities. They are used for wiring, tube, and pipes in the construction industry due to high chemical and UV resistance thus useful for outer applications. They are also used as container bottles for shampoo, laundry detergent, conditioner, and others due to their low chemical resistance. All of the above factors are expected to contribute to the growth of the market.

REGIONAL ETHYLENE MARKET ANALYSIS

North America is estimated to have a significant share in the global market, which can be attributed to the rapid technological advancement and high disposable income in the region. The increased demand for plastic-based consumer goods has been leading the manufacturers towards the innovation of new products. This demand, along with the high economic status of countries within the region, is driving the market. Moreover, the growth in the medical industry has been supporting the market demand for ethylene derived products, where they are used as IV tubes, injections, pouches, and others. The aforementioned factors are supporting the market growth.

Asia Pacific dominated the market in 2019, which can be attributed to the increasing demand for PE from the plastic industry and chemicals from the chemical industry from developing countries such as China, India, and Japan. The economic development within these countries has led to an improvement in the lifestyle of consumers causing high demand for quality-based plastic for daily essential use products. Moreover, the growing middle-class population is further fueling the demand for construction activities and automobiles. The plastic industry in China is dominant in the region due to the rising number of younger populations that are demanding new housing units and individual vehicles thus improving the market.

The European region is expected to have significant market growth during the forecast period. This growth can be associated with the high demand for automobiles from all levels of consumers. Evolving consumer lifestyle acts as a key driver for the high demand for luxury automobiles, thus creating market opportunities. Germany is one of the major evolving automotive countries due to increasing technological advancement that provides efficient plastic solutions to be used in automobiles for making them lightweight and lower the production cost.

Latin America and the Middle East & Africa are expected to have substantial growth during the forecast period. Brazil is one of the major countries responsible for growth in the region due to the high rate of urbanization and developing economy in the country. Moreover, growing innovation within the region has led to high consumption of the product thus used in construction and consumer goods industries. The Middle East & Africa is a major location for raw materials thus creating opportunities for manufacturers in the region. This can growth can be attributed to the growing economy which is causing high disposable income for consumers, thus supporting the market growth.

KEY INDUSTRY PLAYERS

Joint Ventures and Capacity Expansion are the Key Strategies Implemented by the Companies

Key players operating in the industry are Reliance Industries Limited, China Petroleum & Chemical, LyondellBasell Industries Holdings, Exxon Mobil Corporation, Shell International, SABIC, and others. Companies profiled are involved in product innovation, mergers, acquisitions, and collaborations thus gaining a competitive edge in the global market. For example, In September 2018, China's Sinopec started production at the Zhanjiang refinery. The company will produce 8,000 kilotons per year at this factory.

LIST OF KEY COMPANIES PROFILED IN ETHYLENE MARKET:

• Reliance Industries Limited (Mumbai, India)


• China Petroleum & Chemical (Beijing, China)


• LyondellBasell Industries Holdings (Rotterdam, Netherlands)


• Exxon Mobil Corporation (Texas, United States)


• Shell International (The Hague, Netherlands)


• SABIC (Riyadh, Saudi Arabia)


• BOREALIS AG (Vienna, Austria)


• BRASKEM SA (São Paulo, Brazil)


• Chevron Phillips Chemical Company (Texas, United States)


• INEOS GROUP AG (London, UK)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• October 2019: Sinopec Sabic Tianjin Petrochemical Co. Ltd. and Saudi Arabia’s SABIC had a joint venture for an expansion project at Tianjin ethylene plant. The project will increase the production capacity to 1.3 million tons annually.

REPORT COVERAGE

The market research report provides a detailed ethylene industry analysis and focuses on crucial aspects such as leading companies, sources, applications, and products. Also, the report offers insights into ethylene market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation