According to a new report by Univdatos Market Insights, Global Ethylene Market, is expected to reach USD 218.73 Billion in 2030 by growing at a CAGR of almost 6%. Low-density Polyethylene (LDPE) is a soft, flexible, lightweight plastic material. LDPE is used because of its low-temperature flexibility, toughness, and corrosion resistance properties. In addition, they are non-toxic and non-contaminating, and resistant to impact, dampness, chemicals, rip, and stress fracture. In recent years, the demand for LDPE has risen dramatically due to its application in many industries such as manufacturing packaging, garbage bins, floor tiles, mailing envelopes, and dropper bottles. Moreover, the use of low-density polyethylene in the market is growing due to the electrical insulating qualities that have resulted in its growing utilization in a variety of end-use sectors across the world.
The report suggests that the Increasing Adoption of Ethylene-Based Products in the Packaging Industry is one of the major factors driving the Global Ethylene Market during the forthcoming years. Based on application, the ethylene market has been classified into Polyethylene, Ethylene Oxide, Ethyl Benzene, Ethylene Dichloride, and Others. The Polyethylene category can be further bifurcated into HDPE and LDPE with LDPE expected to witness higher adoption during the forecast period. This is mainly due to the increasing use of films & sheets in the packaging industry. LDPE is used in the production of food and non-food packaging.
Apart from this, films & sheets have low toughness, stiffness, strength, and high ductility. This plastic has a high density, sturdy construction, and long life. Hence, they are also used in the manufacturing of tubes, vessels, bubblers, dosing bottles, and molded laboratory equipment due to their property of being opaque. Hence, all these factors are contributing to the growth of the market. A wide range of investments have adopted strategic alliances in this area, thus suggesting huge potential in this area. Some of the recent investments and strategic alliances are:
· In August 2018, ExxonMobil and Saudi Basic Industries Corporation, under a joint venture, announced their decision to construct the world’s largest ethylene production plant, estimated to be developed for USD 1.4 billion.
· In July 2023, Braskem announced a 30% increase in the production capacity of its bio-based ethylene plant located Petrochemical Complex of Triunfo, Rio Grande do Sul, Brazil. The investment amount announced to be about USD 87 million aimed to cater to the elevated global demand for sustainable products.
· In November 2022, Shell begins operations at its new polymer plant in Pennsylvania, where it will produce 3.5 billion pounds (1.6 million tonnes) of polyethylene annually and is expected to achieve full capacity utilization of the plant by the second half of 2023.
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Global consumption of ethylene is forecasted to expand soon where a majority of demand and consumption is primarily driven by the growing needs of emerging markets. The demand for ethylene will primarily be driven by the traction of polyethylene-based consumables, increasing PET fibers, bottle and packaging demand, and increasing requirements for PVC used in construction.
“Mainland China is expected to account for a high percentage of new ethylene demand through 2027 with its growing middle class and rapidly developing infrastructure.”
Ethylene Production Sustainability Trends is Quickly Gaining Momentum in the Market
As the world is facing the challenges of climate change and environmental degradation, sustainable ethylene production has emerged as a beacon of hope for an eco-friendlier future. This innovative technology harnesses renewable energy sources like wind, solar, and biomass to produce ethylene, a crucial building block for plastics and other materials. With governments and corporations alike prioritizing sustainability and reducing carbon footprints, investments in sustainable ethylene production are gaining significant momentum. The demand is mainly driven by rising demand from industries such as packaging, automotive, and construction. As the race towards a greener future intensifies, sustainable ethylene production is poised to play a critical role in shaping a better tomorrow.”. In addition to these government initiatives, several energy and power companies are also taking increased participation to create a suitable environment for them, thus driving the growth of the segment in the forthcoming years. For instance,
Conclusion
With production exceeding 140 million tons per year, Ethylene is by far the largest bulk chemical (in volume) used to produce around half of all plastics. Owing to the growth of emerging economies, the demand for Ethylene is projected to continue to rise. Currently, almost all Ethylene is derived from petroleum derivatives, yet biomass can also be utilized as an alternative feedstock to produce bio-Ethylene. Ethylene and bio-Ethylene are chemically identical, thus existing equipment and production capacity can be employed to produce plastics or other downstream commodities. As of now, the first bio-Ethylene plants in Brazil and India are responsible for approximately 0.3% of the global Ethylene capacity, with the largest plants yielding around 200 kt of bio-Ethylene per year. Notwithstanding, the global market for biopolymer production is rapidly expanding and multiple production plants are in the process of being constructed or planned (e.g. China).
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