Evolving Regulatory Landscape Pertaining to Use of Different Grades of Plastic Likely to Fuel Latin America Polyethylene and Polypropylene Market Growth

Advancements in material science due to research and development have paved the way for new polymers and variants of plastic that are widely used in an array of industrial sectors. Polyethylene has emerged as one of the most popular thermoplastic polymers that are increasingly being used to produce fabricated parts and components. At present, various grades of polyethylene are used for an array of applications due to the exceptional impact & chemical resistance, low coefficient of friction, and electrical properties. Moreover, the demand for polyethylene continues to expand across Latin America due to its lightweight and optimum moisture absorption properties. While polyethylene continues to gain popularity across the different nations of Latin America, the adoption of polypropylene has also witnessed considerable growth across various industrial spheres.

In the current scenario, polyethylene and polypropylene are widely used across a host of end-use industries, including packaging, building & construction, electronics, consumer goods, agriculture, and automotive. Over the past few decades, the global production and consumption of plastic have increased at a staggering rate due to which, governments across the world are largely emphasizing on laying down stringent guidelines pertaining to the use of different grades of plastic in various industrial domains. The evolving regulatory landscape and growing discrepancies over the use of plastic are some of the factors that could impede the overall growth of the Latin America polyethylene and polypropylene market during the forecast period.

The culmination of these factors is likely to influence the growth trajectory of the Latin American polyethylene and polypropylene market during the assessment period. As per the study published by Transparency Market Research, the Latin America polyethylene and polypropylene market is poised to reach a market value of ~US$ 15 Bn by the end of 2030.

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Market Participants Anticipate Strong Gains from Automotive Sector, Packaging Sector to Retain Lead

Due to the current ecological and economic landscape, the automotive sector is gradually slanting toward the production of energy and fuel-efficient vehicles. As the race toward the production of energy-efficient vehicles intensifies, the use of plastic including polyethylene and polypropylene has witnessed considerable growth, owing to lightweight properties. Lightweight characteristics of polyethylene and polypropylene are expected to minimize fuel consumption by nearly five to seven percent due to which, more number of automotive companies are largely inclined toward using polyethylene and polypropylene to produce different components.

Polypropylene is largely used to produce automotive bumpers, cable insulations, and carpet fibers across the automotive sector and as per current trends, the demand for polyethylene and polypropylene from the automotive sector is expected to grow at a steady pace during the forecast period. The growing interest in electric vehicles across Latin America could potentially impact the demand for polyethylene and polypropylene in the upcoming years. Despite electric vehicles making a strong statement in the automotive sector, automobiles that operate on internal combustion engines (ICE) are expected to remain popular during the forecast future. The demand for polypropylene will further experience considerable growth, as it is increasingly being used to replace metal parts and to develop the exterior and interior parts of a vehicle. In several regions of Latin America such as Argentina and Brazil, steel gasoline tanks are being replaced by high-density polyethylene gas tanks– a trend that is likely to influence the overall growth of the Latin America polyethylene and polypropylene market during the forecast period.

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While the automotive sector is expected to provide abundant opportunities to the participants involved in the current Latin America polyethylene and polypropylene market, the packaging sector is expected to be at the forefront in terms of market share and value. Polyethylene has emerged as an ideal material of choice in the packaging sphere and is increasingly used in various forms of food containers and packing applications due to its ability to retain the freshness of the food products and provide a high level of food safety. Governments across Latin America are introducing stringent regulations pertaining to the use of plastic, due to which, a number of plastic recycling initiatives and projects has been initiated.

Demand Likely to Drop amid COVID-19 Crisis; Market Expected to Recover in Last Quarter

The first three quarters of 2020 are likely to remain a period of sluggish growth for the companies operating in the current Latin America polyethylene and polypropylene market. The dwindling demand from the automotive sector coupled with restrictions on trade and transportation are some of the key factors due to which, the Latin America polyethylene and polypropylene market is likely to witness sluggish growth during the COVID-19 pandemic. Domestic market players are expected to lower their prices to establish a strong presence in the market and capitalize on the looming opportunities in the packaging sector. Several projects in the pipeline are likely to be delayed due to the advent of the COVID-19 pandemic.

While bottlenecks across the supply chain are likely to cause a considerable dent to the growth of the Latin America polyethylene and polypropylene market, companies operating in the current market landscape are anticipated to focus on curating effective business continuity strategies and long-term strategies to recover from the current situation.

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Analysts’ Viewpoint

The Latin America polyethylene and polypropylene market is expected to grow at a sluggish CAGR of ~4% during the forecast period. Some of the important factors that are likely to impact the market growth include, high demand from the automotive and the packaging sector, significant developments in material sciences, research and development, and optimum characteristics of these plastic variants. Domestic market players should focus on expanding their production capacity and lower their prices to compete with prices offered by players operating in the Asia Pacific region. While the growth will remain the slowest in 2020, the market will witness a steady growth beyond the last quarter of 2020.

Latin America Polyethylene and Polypropylene Market: Overview

  • Polypropylene is used in a wide range of household and industrial applications. It is synthesized from propylene monomer through chain-growth polymerization. Polypropylene belongs to the polyolefin group.
  • Polyethylene is a widely used plastic in the world. It is derived through modified natural gases such as ethane, methane, and propane. Polyethylene is also derived from catalytic cracking of crude oil into gasoline.
  • The polyethylene and polypropylene market in Latin America is anticipated to expand at a steady pace during the forecast period
  • Demand for polyethylene and polypropylene packaging is rising constantly in Latin America. Online shopping activity has been increasing in emerging economies such as Brazil and Mexico in the region. Large numbers of e-Commerce companies operate in these countries. Increase in need of plastic packaging is driving the demand for polyethylene and polypropylene in the packaging industry in Latin America.
  • Polyethylene and polypropylene are primarily used in instrument panels, automobile doors, and sheathing electrical cables in the automotive industry. Polyethylene and polypropylene are highly functional, esthetic, and sustainable materials in the modern world. These materials have replaced several materials such as metal, concrete, and wood, as they are lightweight, corrosion proof, economical, and esthetically appealing. Versatility of polyethylene and polypropylene to provide better qualitative properties is driving their consumption across the region. This, in turn, is boosting the polyethylene and polypropylene market in Latin America.

Rise in Demand for Polypropylene in Latin America

  • The polyethylene and polypropylene market in Latin America has been segmented based on product, application, end use, and country & sub-region. Based on product, the polyethylene and polypropylene market in Latin America has been bifurcated into polyethylene and polypropylene. In terms of revenue, the polyethylene segment held major share of the polyethylene and polypropylene market in the region in 2019. The polypropylene segment is anticipated to expand at a faster pace during the forecast period.     
  • In terms of application, the polyethylene and polypropylene market in Latin America has been classified into polypropylene: injection molding, fiber & raffia, film & sheet, blow molding, and others; and polyethylene: films & sheet extrusion, pipe extrusion, injection molding, blow molding, and others
  • Based on end use, the polyethylene and polypropylene market in Latin America has been segregated into polypropylene: packaging, automotive, consumer goods, electrical & electronics, building & construction, and others; and polyethylene: packaging, automotive, consumer goods, electrical & electronics, construction, and others
  • Expansion in the packaging industry in Latin America is likely to drive the demand for polyethylene and polypropylene in the region, as these are employed in the manufacture of rigid and flexible packaging materials
  • Rise in investments in research & development activities and advancements in technology by major market players to enhance the recycling rate of plastic and polyethylene-related products are projected to create opportunities in the polyethylene and polypropylene market in Latin America
  • Consumers prefer sustainable, eco-friendly, and ethical product brands. Increase in awareness about plastic recycling through advertisements has boosted the sales of products such as plastic containers and geomembranes. This is expected to augment the polyethylene and polypropylene market in Latin America.

Latin America Polyethylene and Polypropylene Market: Key Country Highlights

  • In terms of country & sub-region, the polyethylene and polypropylene market in Latin America has been split into Brazil, Mexico, Argentina, and Rest of Latin America. Brazil dominated the polyethylene and polypropylene market in the region in 2019. This trend is estimated to continue during the forecast period. The country is projected to create lucrative opportunities for the polyethylene and polypropylene market in the near future.
  • Demand for polyethylene and polypropylene in Brazil is driven by growth in packaging and automotive industries

Latin America Polyethylene and Polypropylene Market: Competition Landscape

  • Major manufacturers of plastics dominated the polyethylene and polypropylene market in Latin America in 2019. Key players operating in the polyethylene and polypropylene market in the region include 
    • Toray do Brasil Ltda.
    • Exxonmobil México S.A. De C.V.
    • LyondellBasell Brasil Ltda
    • INEOS
    • CELANESE CORPORATION
    • Chevron Phillips Chemical Company
    • SABIC
    • Braskem Idesa,
    • Alpek
    • Borealis AG.

Latin America Polyethylene and Polypropylene Market - Scope of the Report

Transparency Market Research’s recent report on the polyethylene and polypropylene market in Latin America provides readers with an assessment of the landscape of the market with the help of a comprehensive outlook. This study on the polyethylene and polypropylene market in Latin America analyzes the market for the period from 2020 to 2030, wherein 2019 is the base year. The report enables readers to make important decisions regarding their business, with the help of a wealth of information enclosed in the study.

This TMR study on the polyethylene and polypropylene market in Latin America also provides data on developments made by important players and stakeholders in the market, along with competition analysis. The report also provides understanding of drivers, restrains, opportunities, and market trends.

This study also discusses the underlying trends and the impact of various factors that are driving the polyethylene and polypropylene market in Latin America, along with their influence on the growth of the market.

This study also offers Porter’s Five Forces analysis and value chain analysis of the polyethylene and polypropylene market in Latin America in order to elaborate on crucial growth strategies of players operating in the regional market.

Key Questions Answered in Latin America Polyethylene and Polypropylene Market Report

  • How much revenue is the polyethylene and polypropylene market in Latin America expected to generate by the end of the forecast period?
  • Which country currently accounts for the maximum share of the polyethylene and polypropylene market in Latin America?
  • What are the factors anticipated to drive the polyethylene and polypropylene market in Latin America during the forecast period?
  • Which country is likely to be a highly lucrative for polyethylene and polypropylene during the forecast period?
  • What are the essential strategies adopted by key stakeholders of the polyethylene and polypropylene in Latin America to expand their geographical presence?
  • What are major advancements in the polyethylene and polypropylene in Latin America?

This report answers these questions about the polyethylene and polypropylene market in Latin America, aiding major stakeholders and key players in making correct decisions and strategizing for expansion of their business.

Latin America Polyethylene and Polypropylene Market: Research Methodology

This TMR report on the polyethylene and polypropylene market in Latin America is based on a complete and comprehensive evaluation of the market, supported by secondary and primary sources. The competition scenario of the polyethylene and polypropylene market in Latin America is supported by an assessment of different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data and current trends, researchers of the polyethylene and polypropylene market in Latin America arrived at predictions and estimations and calculated the market forecast.

This report uses an analytical triangulation method to estimate the polyethylene and polypropylene market in Latin America by using both bottom-up and top-down approaches.

This detailed assessment of the polyethylene and polypropylene market in Latin America, along with an overview of the market, is provided on the basis of a careful examination of growth opportunities. Analysts’ conclusions on how the polyethylene and polypropylene market in Latin America is set to expand are based on carefully vetted primary and secondary sources.

Latin America Polyethylene and Polypropylene Market: Segmentation

This report on the polyethylene and polypropylene market in Latin America segments the market based on product, application, end use, and country & sub-region.

Product

  • Polypropylene
    • Homopolymer
    • Block Copolymer
    • Random Copolymer
  • Polyethylene
    • HDPE
    • LDPE
    • LLDPE

Application

  • Polypropylene
    • Injection Molding
    • Fiber & Raffia
    • Film & Sheet
    • Blow Molding
    • Others (including Other Extrusions)
  • Polyethylene
    • Film & Sheet Extrusion
    • Pipe Extrusion
    • Injection Molding
    • Blow Molding
    • Others (including Extrusion Coating)

End Use

  • Polypropylene
    • Packaging
      • Rigid
      • Flexible
    • Automotive
    • Building & Construction
    • Electrical & Electronics
    • Consumer Goods
    • Others (Medical and Agriculture)
  • Polyethylene
    • Packaging
      • Rigid
      • Flexible
    • Construction
    • Automotive
    • Electrical & Electronics
    • Consumer Goods
  • Others (Medical and Agriculture)

Country & Sub-region

  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America

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Latin America Polyethylene Polypropylene Market

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