July 14, 2024
Polyolefin Resins Market

The Growing Construction Industry Fuelling Demand For Polyolefin Resins

The global Polyolefin Resins Market is estimated to be valued at US$ 255.82 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Polyolefin resins are classified as polypropylene (PP) and polyethylene (PE). They are commonly used thermoplastic polymers that are known for their durability, chemical resistance, low density, high temperature and moisture resistance properties. Due to their lightweight, good mechanical properties and ease of processing, polyolefin resins find wide application in the construction, packaging, automotive and other industries. Some key applications include pipes, bottles, rigid and flexible films, automobile parts, carpet backing materials etc. Their low cost of production and abundance also adds to their popularity over other polymers.

Market key trends:

One of the key trends driving the polyolefin resins market growth is the booming construction industry worldwide. Polyolefin resins are increasingly being used in the construction of buildings for applications like windows, doors, panels and pipes due to their light weight, durability and resistance against environmental factors like moisture. Moreover, with rising urbanization and infrastructure development projects in developing nations, the demand for polyolefin resins from the construction sector is expected to grow significantly over the forecast period. Another trend is the growing usage of bio-based and recycled polyolefin resins by manufacturers, supported by stringent environmental regulations, which is promoting sustainability in the market.

Porter’s Analysis

Threat of new entrants: The polyolefin resins market requires large capital investments and technical know-how which poses significant barriers for new players. Also, established brands have strong customer loyalty and economies of scale.

Bargaining power of buyers: The presence of numerous buyers and established suppliers in the polyolefin resins market gives buyers significant bargaining power to negotiate lower prices. Buyers can also switch to substitutes if prices increase drastically.

Bargaining power of suppliers: Major polyolefin resin producers such as Sinopec Corporations hold strong bargaining power over buyers due to proprietary production technologies and integrated value chains. Suppliers also differentiate products to maintain pricing power.

Threat of new substitutes: While petroleum-based polyolefin resins face competition from bio-based substitutes, their superior functionality keeps substitution threats relatively low. Polyolefin resins also have few direct substitutes for common applications.

Competitive rivalry: The global polyolefin resins market is fragmented with top players accounting for around 30% share. Market players focus on expanding capacities, mergers and acquisitions for gaining market share and competitive advantage.

Key Takeaways

The Global Polyolefin Resins Market Demand is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing use in packaging films, containers, automotive and construction applications.

By geography, Asia Pacific dominated the global polyolefin resin market and is expected to continue its dominance over the forecast period owing to growth in end use industries in emerging economies such as China and India.

Key players operating in the polyolefin resins market are Sinopec Corporations, LyondellBasell Industries Holdings N.V., ExxonMobil Chemicals, and Petrochina Company Limited. These market players have strong production capacities and focus on developing bio-based variants to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it