This report was created for global strategic planners who cannot be content with traditional methods of segmenting world markets. With the advent of a "borderless world", cities become a more important criteria in prioritizing markets, as opposed to regions, continents, or countries. This report covers the top 2,000 cities in over 200 countries. It does so by reporting the estimated market size (in terms of latent demand) for each major city of the world. It then ranks these cities and reports them in terms of their size as a percent of the country where they are located, their geographic region (e.g. Africa, Asia, Europe, Middle East, North America, Latin America), and the total world market.
This study covers petrochemicals as defined by the North American Industrial Classification system or NAICS (pronounced "nakes").
The NAICS code for petrochemicals is 32511. It is for this definition that aggregate latent demand estimates are derived. Petrochemicals is specifically defined as follows:
32511 See industry description for 325110.
325110 This industry comprises establishments primarily engaged in (1) manufacturing acyclic (i.e., aliphatic) hydrocarbons such as ethylene, propylene, and butylene made from refined petroleum or liquid hydrocarbon and/or (2) manufacturing cyclic aromatic hydrocarbons such as benzene, toluene, styrene, xylene, ethyl benzene, and cumene made from refined petroleum or liquid hydrocarbons.
325110P Primary products
3251101 Aromatics (benzene, toluene, xylene, etc), not made in a refinery
3251104 Liquefied refinery gases (aliphatics), not made in a refinery
325110MM Miscellaneous receipts
325110SM Secondary products and miscellaneous receipts
325110SS Secondary products
32511011 Aromatics (benzene, toluene, xylene, etc.), made in petrochemical plants
32511041 Liquefied refinery gases (aliphatics), made in petrochemical plants
This study covers the world outlook for petrochemicals across more than 2,000 cities. For the year reported, estimates are given for the latent demand, or potential industry earnings (P.I.E.), for the city in question (in millions of U.S. dollars), the percent share the city is of the region, and of the globe. These comparative benchmarks allow the reader to quickly gauge a city vis-à-vis others. Using econometric models which project fundamental economic dynamics within each country and across countries, latent demand estimates are created. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.
This study does not report actual sales data (which are simply unavailable, in a comparable or consistent manner in virtually all of the cities of the world). This study gives, however, Professor Parker’s estimates for the worldwide latent demand, or the P.I.E., for petrochemicals. It also shows how the P.I.E. is divided across the world’s cities. In order to make these estimates, a multi-stage methodology was employed that is often taught in courses on international strategic planning at graduate schools of business.
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