April 22, 2024
Ethylene And Propylene Market

The Global Ethylene and Propylene Market is Trending Towards Sustainable Production

The global ethylene and propylene market comprise of two organic compounds that are colorless and flammable gases used as important starting materials and intermediates in the production of various plastics and chemicals. Ethylene is primarily used to produce polyethylene which is used in the manufacturing of plastic bags, containers, and bottles due to its versatility and durability. Propylene is primarily used to produce polypropylene which is used in the production of disposable diapers and packaging films due to its chemical resistance and moisture barrier properties.

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 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. Key players in the ethylene and propylene market are focusing on sustainable production methods to reduce carbon footprint and meet the growing demand for green chemicals and plastics.

The global demand for ethylene and propylene is growing due to increasing consumption of plastics in packaging, construction and automotive industries. Their use in life-saving medical equipment and devices has further propelled the market growth amidst the ongoing Covid-19 pandemic.

Many key players are expanding their production facilities globally especially in Asia Pacific and Middle East regions to leverage the growing market potential in developing countries. For instance, mega cracker projects are underway in China and India to cater to the rising demand.

Market key trends

One of the key trends gaining traction in the Ethylene And Propylene Market Demand is the increasing adoption of bio-based and recyclable production methods. Strict environmental regulations regarding carbon emissions and preference for sustainable products from consumers is compelling manufacturers to invest in green technologies. Some major players have collaborated to develop cost-effective catalytic processes for producing ethylene from renewable ethanol and expand their portfolio of bio-based chemicals and plastics. With sustainability becoming imperative, such chemically recycled and bio-based alternatives are expected to dominate the market over the forecast period.

Porter’s Analysis

Threat of new entrants: New companies entering the ethylene and propylene market will face high capital requirements for establishing manufacturing facilities.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous manufacturers and suppliers.

Bargaining power of suppliers: Suppliers have moderate bargaining power as they supply generic raw materials which are also used to produce substitutes.

Threat of new substitutes: Substitute products exist but switching costs are high hence threat of substitution is moderate.

Competitive rivalry: The market is highly fragmented with the presence of numerous regional and global players leading to high competitive rivalry.

Geographical Regions

The North American region accounts for around 35% of the global market value led by the United States due to high demand from end-use industries such as packaging, construction, automotive, and agriculture. Europe is also a key geographical region for the ethylene and propylene market accounting for over 25% of the market value led by countries such as Germany, France, and Italy. The Asia Pacific region is anticipated to be the fastest growing market during the forecast period driven by demand from end-use industries in developing countries such as China and India experiencing rapid industrialization and infrastructure development.

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