April 23, 2024
Ethylene And Propylene Market

Ethylene And Propylene Market To Exhibit Substantial Growth Due To Rising Demand From The Construction Industry

The ethylene and propylene market is a multi-billion-dollar industry, producing key petrochemical intermediates that serve as feedstock for various end-use products. Ethylene is primarily used to produce polyethylene for applications in plastic bags, bottles, and films, while propylene serves as a precursor for commodities like polypropylene. The consumption of various plastic goods has increased dramatically over the years due to their low cost, durability, and versatility. Additionally, these olefins also find applications as intermediates in the manufacturing of ethylene oxide, ethylene glycol, cumene, and other derivatives that are crucial for industries like textiles, consumer goods, and construction.

The Global ethylene and propylene market is estimated to be valued at US$ 441203.47 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the ethylene and propylene market are PepsiCo Inc., Suja Life, LLC, RAW Pressery, Juice Press, Preshafood, Evolution Fresh, Inc., Juice Generation, Liquiteria, Hain Celestial, and Juice Warrior.

The market provides numerous opportunities for players as the demand for ethylene and propylene is increasing across industries. Companies are investing in capacity expansion projects and product innovation to cater to the rising needs. Furthermore, evolving consumer preferences for sustainable products are driving the adoption of bio-based ethylene and propylene produced via renewable resources.

Globally, Asia Pacific dominates the market due to massive petrochemical complexes in China and India and a growing construction industry in the region. However, players are also exploring opportunities in other regions by diversifying their product portfolio and focusing on partnerships and joint ventures.

Market drivers

The rising demand from the global construction industry is a key driver accelerating market growth. Ethylene and propylene are crucial feedstocks for manufacturing plastics and resins used in pipes, fittings, adhesive tapes, and construction chemicals. Additionally, government support via initiatives to develop petrochemical hubs and relaxation of FDI norms in emerging economies fosters market development.

PEST Analysis

Political: The Ethylene And Propylene Market Growth is influenced by government policies and regulations related to environmental safety and production facilities. New environmental laws passed by governments aim to reduce hazardous emissions from manufacturing plants.

Economic: The demand and consumption of ethylene and propylene is dependent on economic growth and industrial production. A strong economy leads to high demand from end-use industries like construction and automotive. Any downturn in economies reduces consumption across major manufacturing sectors.

Social: Factors like increasing population, rising disposable income levels and changing lifestyles drive the consumption of end-products containing ethylene and propylene derivatives. Growing population enhances the requirements for infrastructure, consumer goods and transportation globally.

Technological: Advancements in production processes help improve efficiencies and reduce costs. Developments in shale gas extraction techniques allow for cheaper raw material supplies. New equipment designs enable optimization of yield and higher output.

The Asia Pacific region accounts for the largest share of the global ethylene and propylene market in terms of value. Countries such as China, India, Japan and South Korea have seen strong industrial and infrastructural growth which has propelled the demand for ethylene and propylene. The sizable population, rising disposable incomes and developing manufacturing sectors in the Asia Pacific economies cements the region’s prominence for ethylene and propylene derivatives. North America and Western Europe currently hold the second and third position due to established petrochemical industries and extensive end-user bases.

The Middle East and Africa region is expected to exhibit the fastest growth in the ethylene and propylene market during the forecast period. Countries like Saudi Arabia, UAE and Qatar have extensive crude oil and natural gas reserves giving them an upstream cost advantage for producing petrochemicals. Expanding petrochemical capacities and industrialization efforts and developing construction industries will drive the consumption of ethylene and propylene in the Middle East and African countries in the coming years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it