July 12, 2024

Evolving packaging industry to drive the growth of Polyolefin Resins Market

The global Polyolefin Resins Market is estimated to be valued at US$ 255.82 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Polyolefin resins are used in various applications including film & sheets, blow molding, extrusion molding, and injection molding. They are used to manufacture different types of consumer products, films and sheets, pipes, wires and cables, containers and bottles. Polyolefin resins offer good mechanical and thermal properties, high rigidity, good chemical resistance and superior processability. Moreover, they are lightweight and have excellent transparency, high strength and durability which makes them suitable for various packaging applications.

Market key trends:

The packaging industry has been shifting towards sustainable and lightweight packaging solutions. Polyolefin resins offer recyclability and low carbon footprint which is driving their demand in the packaging industry. Moreover, increasing consumption of packaged food & beverages is also propelling the polyolefin resins market growth. Polyethylene (PE) resins are majorly used due to their chemical and stress crack resistance, moisture barrier properties and transparency. Furthermore, improvement in production technologies have allowed manufacturers to custom-design PE and PP resins as per specific end-use applications. Growth in end-use industries such as consumer goods and automotive coupled with benefits offered by polyolefin resins is expected to support the market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirements and established demand make it easy for new players to enter this market. However, presence of major players occupying large market share poses barrier.

Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of substitutes and undifferentiated products. This compels sellers to reduce prices and offer discounts.

Bargaining power of suppliers: A few petrochemical companies control the supply of raw materials like crude oil and natural gas. This gives them advantage in dictating prices.

Threat of new substitutes: Emergence of bio-based resins is a major threat as they are sustainable. However, polyolefin resins have penetration in various end-use industries.

Competitive rivalry: Intense competition exists among major players. They focus on product differentiation, capacity expansion and mergers & acquisitions to gain competitive edge.

Key Takeaways

The global Polyolefin Resins Market is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing application in packaging industry. Polyolefins find major use in food packaging, consumer goods packaging and pharmaceutical packaging.

Regionally, Asia Pacific dominated the polyolefin resins market in 2023 with over 35% share. Growing demand from countries like China, India and Indonesia is driving the regional market. North America and Europe are other major markets for polyolefin resins driven by developed end-use industries.

Key players operating in the polyolefin resins market are China Petrochemical Corporation, LyondellBasell Industries Holdings B.V., PetroChina Company Limited, TotalEnergies, Chevron Corporation, Repsol, Dow, Inc. Major players are investing in capacity expansion projects to meet global demand. They are also focusing on product development through innovation and customer-centric approaches.

*Note:

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