Polyethylene Market to reach $190 billion by 2022, says Beroe Inc
Source: PR Newswire
RALEIGH, North Carolina, March 19, 2019
Polyethylene market size: The global market for polyethylene (PE) is expected to grow at a CAGR of 3.8 percent until 2022, according to Beroe Inc, a procurement intelligence firm. The high demand is mainly driven by blow molding applications and food/non-food packaging applications.
Asia is expected to witness a high growth rate of about 4.4 percent CAGR, followed by the Middle East ranging from 4 - 5 percent CAGR. Saturated markets such as the U.S. are expected to witness a growth of about 2 percent CAGR until 2022. Europe is expected to grow at 1.2 percent during the estimated period, and LATAM is expected to witness a growth rate of approximately 2.3 percent CAGR.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The abundance of low-cost ethane in the U.S. has been driving PE capacity expansions in the U.S. and Canada, where over 10 MMT new capacity of PE would be available online by 2021. In addition, the commencement of the US ethane exports into Europe and India are likely to drive the competitiveness of integrated PE producers outside of the U.S. market. However, the European Union has set its targets for recycling to over 40 percent by 2025, which is expected to curb the demand for virgin PE in the market.
The new capacity addition in Iran is expected to be an industry driver for PE and lifting of sanctions on Iran will furthermore drive the new PE capacity additions in Iran. Around 5 million MT new PE units are slated to be available online, which is presumed majorly for exports to the Asian and the European region.
- The major growth driver for PE films is the increase in the use of stretch and shrink films, which is expected to grow at a CAGR of 4.78 percent in the next five years.
- Delay in approvals and initiation of coal-based projects due to stringent environmental regulations and the increase in China’s PE demand is expected to retain China as a net importer of PE.
- Low-cost feedstock has attracted investments from companies of regions such as Taiwan’s Formosa Plastics, Brazil’s Braskem, South Africa’s Sasol, and Europe’s Ineos. However, expansions beyond 2021 might ultimately depend on the prices of crude oil.
- Evolution of shale-based ethane as a petrochemical feedstock and its surplus availability in the U.S. has reduced the production cost of PE, thereby making it the second low-cost destination.
- SABIC is the largest player in the PE market with a global market share of 8.5 percent and holds nearly 37 percent share in the MEA market.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
According to Porter’s Five Forces analysis, due to a high supplier power in the North American region, the price increase has been driven without much opposition, and high freight cost limits importing opportunity for the buyer. On the other hand, the import dependency of C4 LLDPE is high in Europe with no capacity additions expected until 2022.
The report also includes:
- Global Market Size: PE
- Global Capacity - Demand Analysis
- Global Demand by Application
- Global Market Outlook
- Global Trade Dynamics
- Global Imports
- Global Exports
- Regional Market Outlook (North America, Europe, Asia, LATAM, and MEA)
- Supply - Demand Trends and Outlook
- Trade Dynamics
- Industry Outlook (North America, Europe, Asia, LATAM, and MEA)
- Drivers and Constraints for the Industry
- Mergers and Acquisitions
- Porter’s Five Forces Analysis
Cost & Pricing Analysis:
- Cost and Price Analysis (U.S., Europe, Asia, LATAM, and MEA)
- Cost Structure Analysis
- Price Analysis: PE (North America, Europe, Asia, LATAM, and MEA)
- Global Capacity Share by Suppliers
- Global Capacity Addition by Suppliers
- Regional Capacity Share
- Exhaustive Supplier List
- Key Global Supplier Profiles
- SWOT Analysis for Global Suppliers
- Financial Risk for Top Five Global Suppliers (if publicly listed)
Industry Best Practices
- Contract Structures
- Industry Best Practices
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com