Global Polyolefin Market: Snapshot
Application to Watch Out for in the Polyolefin Market
Polyethylene promises the largest application in the near future, thanks to robust demand for the HDPE grade variety. The variety is followed by LLDPE, and LDPE in demand. The applications of this thermoplastic range from construction, buildings, consumer goods, automotive, and electronics as well. Additionally, the plastic is also used for manufacturing buckets, consumer goods, covers, lids, pipes, plastic bags, toys, films, bottles, among others.
Polyolefin: A Promising Solution to Ongoing Threat of Plastic Bans
Various businesses are adopting a sustainable trend as a precaution, and a legal move to cushion their products from the looming single-plastic ban. Some businesses have moved on to more sustainable varieties of plastic, and the polyolefin are showing a much-needed promise here. Check out the developments below to keep an eye out on the market.
- Neste and Borealis have entered a strategic collaboration to produce renewable varieties of Polypropylene. Neste, a company which specializes in providing bio-based varieties for conventional fossil-based feedstock to produce bio-degradable varieties of plastics. The company will provide ISCC Plus certification, which stands for International Sustainability & Carbon Certification to trace, and authenticate renewability of the final products.
- In April 2019. Dow Chemicals received the Edison award in the US for its innovation with polyolefin dispersion epoxy coating for Canvera metal. The coating uses polyolefin dispersion to minimize epoxy and bisphenol A. The material has caused grave concerns among consumers, and will be banned in the EU starting in 2020. The new water-borne replacement shows potential in addressing manufacturing needs.
- Pressure is mounting on the medical industry to minimize its use of single-use plastics. Currently, the industry relies on heavy usage of PVC, a harmful variety of plastic to the environment. However, new research indicates that polyolefin-based plastics reduce energy use and emissions during incineration.
Polyolefins are polymers that are produced by polymerization of simple olefins. Olefins, also known as alkenes, are hydrocarbons with a carbon-hydrogen double bond. Polyolefins are hard, light in weight, and rigid in nature. They are primarily applied in structural plastics, consumer goods, industrial products, and food packaging. Polyolefins have waxy texture and they expand upon heating. These retain their odorless and nonporous nature when heated and cooled. This makes them an ideal material for food packaging. Polyolefins are preferred over other metallic and non-metallic substitutes due to light weight, durability, and resistance to physical and chemical attacks.
Polyolefins are available in various types. Primarily, they can be classified into two major group’s viz. thermoplastic and elastomeric compounds. Thermoplastic compounds include polyethylene (PE), and polypropylene (PP). Polyethylene can be further classified into low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), and high-density polyethylene (HDPE). LDPE and HDPE are used in high-quality package films, owing to their light weight and high durability. Elastomeric compounds include polyisobutylene (PIB), ethylene propylene rubber (EPR), and ethylene propylene diene monomer rubber (EPDM rubber). Elastomeric compounds are employed in the manufacture of pillows, cushions, and footwear.
The polyolefins market can be segmented on the basis of applications. Polyolefins are primarily applied in packaging, automotive, electronics, and construction materials. In the packaging industry, there has been high demand for recyclable containers. Great awareness about reduction in greenhouse gas emissions is developing. Consumers are shifting toward everyday products with eco-friendly packaging. This is anticipated to boost the demand for polyolefins. In automotive and electronics industries, polyolefins are in demand due to their light weight and high performance. In construction and other industries, raw polyolefins are widely used.
Asia Pacific dominates the global polyolefins market and was one of the major consumers of polyolefins in 2015. China holds a major share of the market in the region and India is expected to be the speedily expanding market in the region. Increase in population along with speedy industrialization is expected to boost the polyolefins market in Asia Pacific. South Asian countries such as Vietnam, Indonesia, and Thailand are also major markets. Regions such as North America and Europe are favorable markets for polyolefins. These are relatively mature markets and are expected to witness stagnant growth. Other regions such as Latin America and Middle East & Africa are switching toward utilization of unconventional and bio-based sources. Industries in these regions are focusing on R&D investments coupled with technological advancements. The polyolefins market in Saudi Arabia and South Africa is expanding speedily. This, in turn, is likely to augment the polyolefins market in Middle East & Africa. The region has strong construction and packaging industries, which are anticipated to driven the polyolefins market in MEA. Competition is likely to intensify in the global polyolefins market in the next few years, owing to implementation of new environmental norms. This is also estimated to create new opportunities for players in the market.
The global polyolefins market is fragmented, due to presence of a large number of local as well as regional manufacturers. Key players operating in the market include BASF SE, The Dow Chemical Company, Bayer AG, LyondellBasell Industries, and DuPont. Increasing investments in the residential construction segment, followed by developments in the packaging industry, are projected to augment the market. This is likely to result in a steady growth rate of the global polyolefins market and the rise in sales of polyolefins.
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The following regional segments are covered comprehensively:
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The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
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