The global Ethylene Market is estimated to be valued at US$ 137.2 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Ethylene is an organic compound that exists as a colorless, flammable gas with a faint sweet and musky odor at standard temperature and pressure. It is widely used to produce ethylene glycol, polyethylene, ethylene dichloride, and ethylene oxide amongst others. Polyethylene is the most widely used plastic in the world and is used to produce various consumer products, packaging films and pipes. Ethylene glycol is used to produce polyester fibers, resins and plastics. Ethylene dichloride and ethylene oxide are largely used as chemical intermediates in the production of other organic compounds.
Ethylene has widespread applications across numerous end-use industries such as packaging, automotive, construction and agrochemicals. Rising population and changing consumption patterns are leading to an increase in demand for packaged consumer goods which in turn is driving the global demand for polyethylene and other ethylene derivatives used in plastic packaging.
Market Key Trends:
Growing demand from the packaging industry: Plastics have become integral to modern packaging as they help preserve contents, reduce spoilage and increase shelf-life. The global packaging industry consumes a large percentage of the annual ethylene production mainly for production of Global Ethylene Market Size. According to industry estimates, over 80 million tons of PE was used for packaging globally in 2023. Growth in the packaging sector fueled by e-commerce, food delivery services and pharmaceuticals is a key trend driving up demand for ethylene.
Increased use in agrochemicals: Ethylene is an important chemical intermediate used in the production of ethyleneamines which are active ingredients in many herbicides, fungicides and plant growth regulators. With growing global population, the demand for food is rising rapidly putting pressure on limited arable land. The increased use of agrochemicals for higher crop yields is supporting the demand for ethylene and its derivatives from the agrochemical industry.
Automotive industry playing a role: Polyethylene is widely used in the automotive industry for manufacturing of auto parts, under the hood components, dashboards, tires and others. The ongoing transformation of
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of raw materials lower the threat of new entrants. However, established players enjoy economies of scale.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and undifferentiated products.
Bargaining power of suppliers: Suppliers of key raw materials like oil & natural gas have significant influence over pricing due to global demand-supply dynamics.
Threat of new substitutes: Development of bio-based substitutes poses a threat, though their commercialization remains at a nascent stage.
Competitive rivalry: Intense competition exists among key players to gain greater market share through capacity expansion and backward integration.
Key Takeaways
The Global Ethylene Market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing demand from the packaging industry. The market size for 2023 is US $137.2 Bn.
Regional analysis: Asia Pacific dominates the global market and is expected to maintain its lead position over the forecast period. China accounts for over one-third of the global ethylene capacity. Middle East & Africa is another rapidly growing region led by capacities expansions in Saudi Arabia, UAE and Kuwait.
Key players operating in the ethylene market are BASF SE, Chevron Phillips Chemical Company, LLC, Exxon Mobil Corporation, Ineos Group Ltd, LyondellBasell Industries N.V., Royal Dutch Shell plc, Saudi Basic Industries Corporation, China Petroleum & Chemical Corporation (Sinopec), The Dow Chemical Company , Lonza Group. Companies are engaged in capacity expansions and backward integration to gain cost leadership.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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