by Polyvinyl chloride or PVC is a versatile thermoplastic polymer compound that can be molded into different shapes and designs. PVC has superior physical properties and offers excellent resistance to moisture, chemicals, corrosion and abrasion. Flexible PVC is lightweight, durable and cost effective compared to other materials. It is predominantly used in construction applications such as pipes, door & window profiles, flooring, wallpapers and roofing sheets. The growth of the construction industry especially in developing countries is driving increased demand for construction materials.
The global Flexible PVC Market is estimated to be valued at US$ 55.73 Bn in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the Flexible PVC market is the increasing R&D towards bio-based and recyclable Flexible PVC materials. Traditionally, Flexible PVC contains chlorine which makes it non-biodegradable and poses environmental challenges in terms of disposal. Leading Flexible PVC manufacturers are investing in developing bio-based formulations containing plant-based materials like starch, cellulose or vegetal oils instead of regular fillers and plasticizers. This makes the final product partially biodegradable and sustainable. Switching to bio-based raw materials can help reduce dependency on crude oil and address concerns around plastic waste management.
Porter’s Analysis
Threat of new entrants: Low barrier for entry but high costs for setting up manufacturing plants limits new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to presence of numerous manufacturers offering substitutable products.
Bargaining power of suppliers: Suppliers have moderate bargaining power as raw materials for PVC production including chlorine, ethylene, and propylene are commoditized.
Threat of new substitutes: Low threat as PVC has strong applications and limited viable alternatives exist.
Competitive rivalry: High rivalry due to presence of numerous global and regional players offering similar products.
Key Takeaways
The global polyvinyl chloride (PVC) market is expected to witness high growth. Regional analysis related content comprises Asia Pacific region dominates the PVC market and is expected to grow at a steady pace during the forecast period. Factors such fast industrialization and construction activities are driving the market in the region.
Key players operating in the polyvinyl chloride (PVC) market are ChemChina, Formosa Plastics Corporation, Ineos, Inner Mongolia Junzheng Energy & Chemical Group, Kem One, LG Chem, Occidental Petroleum Corporation, Orbia, SABIC, Shaanxi Coal and Chemical Industry Group Co. Ltd, Shin-Etsu Chemical Co. Ltd, Xinjiang Tianye (Group) Co. Ltd, Westlake Chemical Corporation, and Xinjiang Zhongtai Chemicals. The key players are focusing on adopting growth strategies such as expansions, mergers & acquisitions and new product launches to gain competitive advantage in the market. For instance, in 2022, Formosa Plastics Corp obtained approval to invest $25 billion in petrochemical complex on the U.S. Gulf Coast.
The global polyvinyl chloride (PVC) market is expected to witness high growth. The construction industry accounts for over 60% of global PVC demand attributed to its versatile properties and applications in pipes & fittings, windows & doors, cables, flooring etc. Asia Pacific led by China dominates over 40% of market share due to strong industrial infrastructure and growth in construction activities in the region. Europe and North America are also prominent markets expected to grow at moderate rate during the forecast period. Key players operating in the polyvinyl chloride (PVC) market are focusing on significant investments and expansions to tap into growing opportunities.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
