by Ethylene or ethane is an important petrochemical used as a building block in the production of various plastics and polymers. It is used to produce polyethylene which finds its key applications in manufacturing of consumer plastics used in packaging films, containers, bottles, and retail bags. With the growth of consumer products industry worldwide, the demand for polyethylene as a primary packaging material has seen a significant rise over the past couple of decades. The availability of polyethylene in a wide range of densities and grades has made it the preferred material for flexible and rigid packaging applications. Its high strength-to-weight ratio, chemical resistance, sealability, and moisture barrier properties allow polyethylene to effectively protect products during distribution and storage. The global packaging industry has greatly benefited from these characteristics of polyethylene and witnessed considerable expansion with the growth of e-commerce sector. Moreover, changing consumer preferences towards packaged and branded products has further augmented the demand for polyethylene-based packaging materials.
The global Ethylene Market is estimated to be valued at US$ 158.06 Mn in 2023 and is expected to exhibit a CAGR of 30.% over the forecast period 2024 to 2031.
Market key trends:
One of the prominent trends in the global ethylene market is shift towards sustainable and recyclable polyethylene materials. With initiatives like plastic waste management and single-use plastic bans gaining traction worldwide, packaging manufacturers are focusing on developing polyethylene resins integrated with recycled content. Some players are also investigating bio-based polyethylene production methods to offer greener alternatives to fossil fuel-based feedstocks. Adoption of closed-loop recycling systems and advanced technologies like depolymerization is expected to help boost polyethylene recycling rates over the coming years. This emphasis on sustainability and circularity in polyethylene and plastic value chains will be a defining factor shaping future growth avenues in the global ethylene market
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the global ethylene market is moderate. The capital required for setting up an ethylene production plant is high and presence of major players pose barrier for new players.
Bargaining power of buyers: The bargaining power of buyers in the global ethylene market is moderate. Ethylene being a commodity product, buyers can negotiate on pricing. However, availability of alternatives is limited.
Bargaining power of suppliers: The bargaining power of suppliers in the global ethylene market is moderate. Suppliers of raw materials like naphtha, oil, and natural gas are few. However, being a commodity, suppliers cannot influence prices significantly.
Threat of new substitutes: The threat of substitutes in the global ethylene market is low. There are no cost-effective substitutes for ethylene.
Competitive rivalry: The competitive rivalry in the global ethylene market is high. Major players compete on basis of pricing, product differentiation, and mergers & acquisitions.
Key Takeaways
The Global Ethylene Market Demand is expected to witness high growth.
Regional analysis: North America has the largest share in the global ethylene market due to presence of key players such as Dow Chemicals, ExxonMobil, and LyondellBasell. The Asia Pacific region is expected to witness highest growth during the forecast period supported by increasing demand from China and India.
Key players: Key players operating in the ethylene market are Aecom, DPR Construction, Holder Construction, Jacobs, M+W Group, Bouygues Construction, Mercury, Arup, and Benthem Crouwel Architects. Major players are focusing on capacity expansion as well as forward and backward integration to establish their presence across value chain
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
