Global polyolefins (PO) market is expected to grow at a CAGR of 4.51% - estimated to be 130.54 mln tons in 2014 and reach 170.07 mln tons by 2020, as per Reportlinker. The market for PE is expected to grow at a CAGR of 4.4% and for PP at 4.7% respectively. As of 2014, PE holds a share of about 36% of the total world plastics market and PP holds a share of 20%.
Currently, Asia-Pacific is the biggest market for polyolefins. With huge installed capacities of polyolefins, the region has acquired more than 45.3% of the global market share. The market is emerging in various countries like China, South Korea, India, Saudi Arabia and Brazil as result of the increase in industrial activity. A large number of emerging manufacturers from Asia-Pacific is expected to reduce import dependency and this will drive the market growth in future.
Easy availability of raw material in U.S. & China, and growing demand from packaging & construction industry are the major drivers decisive in market growth. Moreover, shale gas boom in North America has also provided an options for getting cheap raw materials. This will widen profit margins for the producers and provide a boost to the industry.
High capacity-to-demand ratio will act as a barrier for the growth of polyolefin industry. However, growing demand due to increased applications is expected to fade its effect.
18-Sep-15 
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