by The global ethylene market is estimated to be valued at US$166,520 million in 2019 and is expected to exhibit a CAGR of 5.6% over the forecast period 2020-2027, as highlighted in a new report published by Coherent Market Insights.
- A) Market Overview:
The ethylene market involves the production and consumption of ethylene, a flammable gas widely used in the production of various products such as plastics, fibers, and chemicals. Ethylene is primarily used as a raw material in the manufacturing of polyethylene, which is extensively used in packaging films. The growing demand for polyethylene films in industries such as food and beverages, consumer goods, and pharmaceuticals is driving the growth of the ethylene market.
- B) Market Key Trends:
One key trend in the ethylene market is the increasing demand for polyethylene films. Polyethylene films find applications in various sectors due to their excellent barrier properties, low cost, and versatility. Industries such as food and beverages use polyethylene films for packaging fruits, vegetables, and other perishable items. The consumer goods industry utilizes these films for product packaging, while the pharmaceutical industry relies on them for packaging medicines. The growing trend of online shopping has also contributed to the demand for polyethylene films for packaging purposes.
For example, in the food and beverage industry, the demand for flexible packaging solutions has witnessed significant growth. Flexible packaging, including polyethylene films, offers convenience, durability, and cost-effectiveness, thereby driving the demand for ethylene in the market.
- C) Porter’s Analysis:
Threat of New Entrants: The Ethylene Market requires considerable capital investments for setting up production facilities, which acts as a barrier to new entrants. Additionally, the presence of established players with economies of scale further inhibits entry into the market.
Bargaining Power of Buyers: The bargaining power of buyers in the ethylene market is relatively low. The market is dominated by a few major players who have a strong hold over the pricing and supply of ethylene. This limits the negotiation power of buyers.
Bargaining Power of Suppliers: The bargaining power of suppliers in the ethylene market is moderate. While the raw material suppliers have some leverage, the market for ethylene has a diverse range of feedstock options, mitigating the supplier’s influence.
Threat of New Substitutes: The threat of new substitutes in the ethylene market is low. Ethylene has a vast range of applications, and there are limited alternatives available that can match its versatility and cost-effectiveness.
Competitive Rivalry: The ethylene market is highly competitive, with numerous players vying for market share. Key players adopt strategies such as mergers, acquisitions, and collaborations to strengthen their market position and gain a competitive edge.
- D) Key Takeaways:
Market size related content: The global ethylene market is expected to witness high growth, exhibiting a CAGR of 5.6% over the forecast period. This growth is driven by the increasing demand for polyethylene films in industries such as food and beverages, consumer goods, and pharmaceuticals.
Regional analysis related content: Asia Pacific is the fastest-growing and dominating region in the ethylene market. The region has a strong presence of key players, growing industrialization, and increasing population, which drives the demand for ethylene.
Key players related content:
Key players operating in the global ethylene market are Borealis, Chevron Phillips Chemical, Dow Chemical, Equistar Chemicals, ExxonMobil, Huntsman, INEOS, LG Chem, LyondellBasell Industries, Mitsubishi Chemical, Mitsui Chemicals, National Iranian Petrochemical, Nova Chemicals, Royal Dutch Shell, Sasol, SABIC, Showa Denko, Sinopec Shanghai Petrochemical, Tosoh, and Total. These players focus on strategies such as mergers, acquisitions, and collaborations to expand their product portfolios and strengthen their market presence.
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