Ethylene Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Ethylene Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • May 2021 •
  • 175 pages •
  • Report ID: 6072047 •
  • Format: PDF
Major players in the Ethylene market are AkzoNobel, BASF SE, Borealis, Chevron Phillips Chemical Company LLC, China Petrochemical Corporation, China Petroleum & Chemical Corporation, Clariant, Dow Chemical, Equistar Chemicals and Exxon Mobil Corporation.

The global Ethylene market is expected to grow from $190.29 billion in 2020 to $234.11 billion in 2021 at a compound annual growth rate (CAGR) of 23%.The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $302.22 billion in 2025 at a CAGR of 7%.

The ethylene market consists of sales of ethylene and its related services. Ethylene is an acyclic hydrocarbon, used in the manufacture of polymers such as polyethylene (PE), polyethylene terephthalate (PET), polyvinyl chloride (PVC) and polystyrene (PS) as well as fibres and other organic chemicals.

During the historic period, increased demand for polythene products contributed to the ethylene market’s growth.Ethylene is mainly used in polyethylene products such as low density polyethylene (LDPE), high density polyethylene (HDPE) and linear low density polyethylene (LLDPE).

The polyethylene market has grown substantially due to the increased demand for plastic across the globe.The high penetration of plastics in electronic products and lightweight products in vehicles has increased the consumption of plastics.

According to National Geographic (2020), 40% of the plastic produced every year is single-use plastics. Production of plastic increased exponentially to 448 million tons by 2015 from 2.3 million tons in 1950 and this number is being expected to double by 2050. These factors that has driven the adoption of polyethylene, impacted the growth of the ethylene market.

Stringent government regulations related to the production and use of ethylene restrains the growth of ethylene market.Ethylene is combustible and carcinogenic nature making it dangerous to its environment.

It is highly explosive and can cause light-headedness, dizziness, and unconsciousness when exposed.Several countries are implementing legislations for environment protection, which will put pressure on the companies involved in the production of ethylene.

For instance, in January 2020, a group of 364 environmental and other non-governmental organizations have filed a petition with the U.S. Environmental Protection Agency (EPA) to revise standards applicable to petro-plastics production facilities. The petition requests EPA to impose unprecedented controls on such facilities. Moreover, globally, governments are banning single-use plastics to curb the plastic waste. For instance, in January 2020, China, announced its plans to ban single-use plastics and promote recycling and green packaging. The restrictions laid on production would hamper the growth of the market.

The ethylene market covered in this report is segmented by feedstock into naphtha, ethane, propane, butane, others. It is also segmented by end-use industry into packaging, automotive, construction, agrochemical, and textile and by application into polyethylene, ethylene oxide, ethylene benzene, ethylene dichloride, vinyl acetate, alpha olefins.

The ethylene producing companies are investing in ways to develop bio-based green polyethylene compound.These plastics are easy to produce, consumes less energy and offers the same versatility of chemically synthesized plastic.

Following the trend, Braskem, a Brazil based bio polymer producer, in 2018 partnership with LEGO Group, a Danish toy production company, to supply its I’m greenT polyethylene. I’m greenT polyethylene is a plastic made from sugarcane which is 100% recyclable and contributes to the reduction of greenhouse gases.

In August 2019, Huntsman Corporation agreed to sell its ethylene business to Indorama Ventures for $2 billion.This acquisition will add products such as ethylene, ethylene oxide and monoethylene glycol, extending the product profile of Indorama Ventures and will strengthen the PET feedstock supply chain and improve its position as PET manufacturer.

The deal gives Indorama Ventures access to a number of new derivative products, including propylene/PO derivatives, surfactants, ethanolamines, glycol ethers and MTBE. Indorama Ventures is an intermediate petrochemicals industry.