Global Market Outlook on PVC

  • Global demand is expected to grow at 3.8 percent CAGR through 2016–2022 
  • Construction and applications in electrical and electronics segment are expected to drive the demand in the upcoming years 
  • Applications in consumer segment are expected to witness moderate growth 
  • PVC demand in medical applications would most likely witness a further fall in Western Europe and North America, due to safety concerns


Demand Market Outlook

  • The overall PVC market is observed to be currently oversupplied, with supply and demand gap likely to reduce in the upcoming years
  • The US PVC producers are anticipated to use their low-cost feedstock position from natural gas to become global suppliers
  • Asia and South America are likely to witness higher growth compared to other regions

Industry Best Practice

Engagement Models

  • Direct buying is the preferred engagement model in the industry 
  • CPG companies outsource their packaging requirements to their converters, since it helps them to focus on their core business 
  • Consortium buying is not a common practice for CPG players in the resin market 
  • Opportunities to tie up with major downstream segments, like construction, could be utilized to be benefited with discounts for better volume

Contract Models

  • Market price contract: The supplier supplies the commodity at market price or benchmark price 
  • Fixed contract: The margin of supplier is fixed throughout the contract period or fixed price is locked for the contract period 
  • Contract revisions: Quarterly contracts are generally preferred in this industry

Global Market Size: PVC

  • The global PVC market is forecasted to grow at a CAGR of 4.7 percent to reach around $46.6 billion by 2022 
  • The major growth drivers include applications in construction, electrical and electronics segment, etc. 
  • Growth in consumer goods applications is anticipated to remain modest during this period
  • The global PVC market size was estimated at over $35.3 billion in 2016, with Asia driving the overall demand 
  • Applications in electrical and electronics segment in Asia are anticipated to favor high growth rates 
  • Growth in construction and automobile industries in developing regions, like Asia and Middle East, would most likely add to the positive effect