Ethylene Market By Technology (Steam Cracking, Fischer-Tropsch Synthesis, Oxidative Dehydrogenation, & Others), By Feedstock (Naphtha, Propane, Butane, Ethane, & Others), By Application (Polyethylene (HDPE & LDPE), Ethylene Oxide, Ethyl Benzene, Ethylene Dichloride, Fibers, Refrigerant, & Others), By End Use Industry (Construction (Residential, Commercial, & Industrial), Automotive (Passenger & Commercial), Packaging Industry (Food Packaging, Fresh Fruits, Beverage Packaging, & Others), Agriculture, Textile, & Others) - Global Opportunity Analysis & Industry Forecast, 2022-2027

Report Code: CMR 75567 Report Format: PDF + Excel

Ethylene Market Overview

The global ethylene market size is estimated to reach US$195.3 billion by 2027, growing at a CAGR of around 5.4% from 2022 to 2027. The ethylene is a colorless and flammable gas that consists of double bond carbons. The ethylene has major application in the production of vinyl acetate, ethyl oxide, polyethylene (PE), high density and low density polyethylene, and other compounds. It is used as a natural plant hormone and helps in ripening of the fruits. The inclination of ethylene for producing PE plastics, which is used in packaging industry, is creating a drive in the global ethylene market. Furthermore, rising application of ethylene in construction, packaging, agriculture, and other end-use industries is offering growth opportunities during the forecast period.

COVID-19 Impact

The global production shutdown and disruption in functioning due to covid outbreak impacted the global ethylene market. The restricted manufacturing activities, falling demand, logistics disruptions, and supply chain disturbances led to fall in growth for the market. The ethylene has major applications in various end-use industries such as agriculture, packaging, and construction, and others. The agriculture sector was impacted in the covid-19 outbreak. Furthermore, the lack of demand for various perishable food items affected the growth in the market. However, the packaging industry saw a growth during the covid-19 phase. The rise in polyethylene plastics for packaging of food items, consumer goods, and other items boosted the growth of packaging sector. This is due to rising demand of packaging in e-commerce, online food delivery, groceries, and others during the pandemic. According to the United States Department of Agriculture (USDA), the food away-from-home sector reached USD 76 billion in April 2021, compared to USD 36 billion in April 2020. The rise in demand for the packaging sector was primarily influenced by the growing online food delivery system and growing e-commerce sector, thereby leading to increase in applications of ethylene in the packaging industry. Thus, the global ethylene market saw a rise in demand and growth opportunities post pandemic phase.

Report Coverage

The “Ethylene Market Report – Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the global ethylene industry.

By Technology: Steam Cracking, Fischer-Tropsch Synthesis, Oxidative Dehydrogenation, and Others
By Feedstock: Naphtha, Propane, Butane, Ethane, and Others
By Application: Polyethylene (HDPE and LDPE), Ethylene Oxide, Ethyl Benzene, Ethylene Dichloride, Fibers, Refrigerant, and Others
By End Use Industry: Construction (Residential, Commercial, and Industrial), Automotive (Passenger and Commercial), Packaging Industry (Food Packaging, Fresh Fruits, Beverage Packaging, and Others), Agriculture, Textile, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Middle East (Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa, Nigeria, Rest of Africa)

Key Takeaways

  • The global ethylene market size will increase owing to increasing demand for ethylene in packaging, agriculture, construction, and automotive end-use industry.
  • The Asia Pacific region held the largest market share in the global ethylene industry due to boosting plastic production, packaged food trends, and agriculture sector, in thereby leading to high demand of ethylene in this region.
  • The oxidative dehydrogenation technology type for ethylene production is growing due to low carbon emission and cost efficiency in the market.
Figure: Asia Pacific Ethylene Market Revenue, 2021-2027 (US$ Billions)
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Ethylene Market Segment Analysis – By Technology

By technology, the oxidative dehydrogenation segment held the largest global ethylene market share and is expected to grow by over 5.1% during the forecast period. The production of ethylene through steam cracking of ethane or naphtha is growing due to its lower carbon emission and low wastage of energy. Moreover, various olefin plants have switched to oxidative dehydrogenation technology for ethylene production using ethane or natural gas feedstock. For instance, Shell and Linde Engineering collaborated for the agreement on the rising ethylene production through oxidative dehydrogenation (E-ODH) technology in 2020. The cost savings and reduction in carbon emission under the oxidative dehydrogenation technology is gaining high demand for the ethylene industry. Thus, with major growth of oxidative dehydrogenation process owing to its high efficiency, less wastage, and cost benefits, the global ethylene market will grow in the coming years.

Ethylene Market Segment Analysis – By Application

By application, the polyethylene segment accounted for the largest share in the global ethylene market and is expected to grow by around 5.9% during the forecast period. The high demand of polyethylene is influenced by its increasing application in the plastics manufacturing. Furthermore, the growing use of high density polyethylene and low density polyethylene across various and used industries is offering major growth in the market. The demand of high density polyethylene (HDPE) for food packaging is increasing owing to its excellent tensile strength, durability, and non- toxic properties. According to the Indian Institute of Packaging (IIP), the packaging consumption increased from 4.3 kgs per person per annum to around 8.5 kgs per person per annum in 2019-2020. Furthermore, polyethylene is also used in the plastic manufacturing and a dominant application in food packaging, bottles, films, and others. Thus, with high demand of polyethylene plastics for various packaging applications, the global ethylene industry will rise during the forecast period.

Ethylene Market Segment Analysis – By End-Use Industry

By end-use industry, the packaging segment holds the largest global ethylene market share and will grow at a CAGR of over 6.2% during the forecast period. The growth of ethylene in packaging industry is influenced by its rising demand and application in plastic packaging forms, majorly polyethylene. The ethylene has dominant application in the packaging sector for food packaging, fresh produce packaging, and others. The use of vinyl acetate, high density polyethylene and low density polyethylene is rising in the packaging sector owing to its superior features such as extended shelf life, non-toxicity, and strength. According to the Associated Chambers of Commerce and Industry of India, the packaged food sector expected to reach USD 102 million in 2020. Moreover, the rise in application of ethylene in plastics for the packaging sector is offering major drive in the market and will boost the growth opportunities for global ethylene market in the coming years.

Ethylene Market Segment Analysis – By Geography

By geography, the Asia Pacific segment is the fastest-growing region in the global ethylene market for the year 2021 and will grow by over 35.0% during the forecast period. The global ethylene market is growing in the APAC region due to its rising demand in packaging, agriculture, construction, and other end-use industries. The growth of agriculture sector in this region is boosting the growth prospects for the ethylene market. The ethylene is a natural plant hormone and used as a ripening agent for fruits such as bananas, citrus fruits, and others. The growing agriculture harvest and production trend in countries such as India, China, and other is boosting growth of the ethylene market. According to the World Bank and OECD national data, the value added by agriculture sector in the GDP accounted to 7.6% for 2020 in China. Moreover, the ethylene has major demand for plastic packaging applications in the food sector, due to increasing growth of packaged foods in APAC. Thus, with increasing demand and production of ethylene for applications in plastics, construction, agriculture, automotive, and others in APAC, the global ethylene market will grow rapidly during the forecast period.

Ethylene Market Drivers

Growing demand from packaging and metal fabrication application

The high demand of ethylene for applications in food packaging and metal fabrication activities is driving the market. The ethylene is used in the plastic packaging applications for food, fresh produce, consumer goods, bottles, and others owing to its excellent features such as flexibility, ductility, tensile strength, and non-toxicity. The growth of packaged food items across the world is offering growth prospects for the ethylene market. According to the India Brand Equity Foundation (IBEF), the packaging sector in India is expected to reach around USD 205 billion by 2025. Furthermore, the ethylene is also used as oxy fuel gas for metal fabrication activities, metal cutting, welding, and thermal spraying. The high demand for metal processing projects and usage in automotive, aerospace, and others is offering major growth in the market. Thus, the ethylene market is driving owing to high demand from packaging and metal fabrication sectors.

Increasing usage in the agricultural sector

The demand for ethylene is rising rapidly in the agricultural sector. The ethylene is used as a ripening agent for fruits such as bananas, citrus fruits, seed germination, and others. This natural plant hormone offers maturing of the crops, ripens the fruits, and helps in the conversion of stored assets and starches into sugars. Furthermore, the growth in agricultural harvest and crop production across the globe is creating high demand for the ethylene market. According to the World Bank, the global agricultural, fishing, and forestry growth accounted to around 2.04% in 2020. Thus, the increasing productions and development in the agricultural sector is driving the market and offering growth in the global ethylene industry.

Ethylene Market Challenges

Hazardous environmental impact and strict government regulations

The ethylene has rising applications across various end use industries. However, the ethylene has major harmful effects on the environment. The ethylene oxide, which is an intermediary from the hydrohalogenation, is a harmful air pollutant and toxicant and has serious impacts on health as well. Furthermore, the stringent regulations by government for producing bio-based substitute are hindering the growth of global ethylene market. The shift towards substitutes such as bioethanol, which is derived from natural sources, is restricting the growth opportunities for the global ethylene industry. Thus, with hazardous impacts on the environment and strict regulations imposed on ethylene, the ethylene market faces major challenge.

Ethylene Industry Outlook

The global ethylene top 10 companies include:
SABIC
Royal Dutch Shell
BASF SE
Nova Chemicals
Mitsubishi Chemical Corporation
Westlake Chemical Corporation
Repsol
Chevron Phillips Chemical Company
Lonza Group
Exxon Mobil Corporation

Recent Developments

  • In October 2021, Clariant announced the use of oxidative dehydrogenation of ethane (ODG-E) for ethylene production in new plants by year 2024-25. The Clariant and Linde Engineering look forward to boost the ethylene-production with the help of ODG-E to reduce the carbon footprint.
  • In July 2021, the Clariant and India Glycols Limited (IGL) announced the joint venture for producing ethylene oxide (EO) derivatives in order to provide sustainability and renewability options in market.
  • In October 2019, the Sinopec and SABIC had a joint venture in order to boost the expansion and production at the Tianjin ethylene plant. This venture will uplift the production capacity to around 1.3 million tons yearly. 

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1. Ethylene Market- Market Overview
    1.1 Definitions and Scope
2. Ethylene Market - Executive Summary
    2.1 Key Trends by Technology
    2.2 Key Trends by Feedstock
    2.3 Key Trends by Application
    2.4 Key Trends by End-Use Industry
    2.5 Key Trends by Geography
3. Ethylene Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Ethylene Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Ethylene Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Ethylene Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Ethylene Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Ethylene Market – By Technology (Market Size -$Million/Billion)
    8.1 Steam Cracking
    8.2 Fischer-Tropsch Synthesis
    8.3 Oxidative Dehydrogenation
    8.4 Others
9. Ethylene Market – By Feedstock (Market Size -$Million/Billion)
    9.1 Naphtha
    9.2 Propane
    9.3 Butane
    9.4 Ethane
    9.5 Others
10. Ethylene Market – By Application (Market Size -$Million/Billion)
    10.1 Polyethylene
        10.1.1 HDPE
        10.1.2 LDPE
    10.2 Ethylene Oxide
    10.3 Ethyl Benzene
    10.4 Ethylene Dichloride
    10.5 Fibers
    10.6 Refrigerant
    10.7 Others
11. Ethylene Market - By End-Use Industry (Market Size -$Million/Billion)
    11.1 Construction
        11.1.1 Residential
        11.1.2 Commercial
        11.1.3 Industrial
    11.2 Automotive
        11.2.1 Passenger
        11.2.2 Commercial
    11.3 Packaging Industry
        11.3.1 Food Packaging
        11.3.2 Fresh Fruits
        11.3.3 Beverage Packaging
        11.3.4 Others
    11.4 Agriculture
    11.5 Textile
    11.6 Others
12. Ethylene Market - By Geography (Market Size -$Million/Billion)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherlands
        12.2.6 Spain
        12.2.7 Russia
        12.2.8 Belgium
        12.2.9 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zeeland
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
            12.5.1.1 Saudi Arabia
            12.5.1.2 UAE
            12.5.1.3 Israel
            12.5.1.4 Rest of the Middle East
        12.5.2 Africa
            12.5.2.1 South Africa
            12.5.2.2 Nigeria
            12.5.2.3 Rest of Africa
13. Ethylene Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Ethylene Market – Industry/Competition Segment Analysis Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Region - Major companies
    14.4 Market Share by Key Country - Major companies
    14.5 Market Share by Key Application - Major companies
    14.6 Market Share by Key Product Type/Product category - Major companies
15. Ethylene Market – Key Company List by Country Premium Premium
16. Ethylene Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
"*Financials would be provided on a best effort basis for private companies"

LIST OF TABLES

1.Global Ethylene Market, by Type Market 2019-2024 ($M)
2.Global Ethylene Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
3.Global Ethylene Market, by Type Market 2019-2024 (Volume/Units)
4.Global Ethylene Market Analysis and Forecast by Type and Application Market 2019-2024 (Volume/Units)
5.North America Ethylene Market, by Type Market 2019-2024 ($M)
6.North America Ethylene Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
7.South America Ethylene Market, by Type Market 2019-2024 ($M)
8.South America Ethylene Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
9.Europe Ethylene Market, by Type Market 2019-2024 ($M)
10.Europe Ethylene Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
11.APAC Ethylene Market, by Type Market 2019-2024 ($M)
12.APAC Ethylene Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
13.MENA Ethylene Market, by Type Market 2019-2024 ($M)
14.MENA Ethylene Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)

LIST OF FIGURES

1.US Global Ethylene Market Revenue, 2019-2024 ($M)
2.Canada Global Ethylene Market Revenue, 2019-2024 ($M)
3.Mexico Global Ethylene Market Revenue, 2019-2024 ($M)
4.Brazil Global Ethylene Market Revenue, 2019-2024 ($M)
5.Argentina Global Ethylene Market Revenue, 2019-2024 ($M)
6.Peru Global Ethylene Market Revenue, 2019-2024 ($M)
7.Colombia Global Ethylene Market Revenue, 2019-2024 ($M)
8.Chile Global Ethylene Market Revenue, 2019-2024 ($M)
9.Rest of South America Global Ethylene Market Revenue, 2019-2024 ($M)
10.UK Global Ethylene Market Revenue, 2019-2024 ($M)
11.Germany Global Ethylene Market Revenue, 2019-2024 ($M)
12.France Global Ethylene Market Revenue, 2019-2024 ($M)
13.Italy Global Ethylene Market Revenue, 2019-2024 ($M)
14.Spain Global Ethylene Market Revenue, 2019-2024 ($M)
15.Rest of Europe Global Ethylene Market Revenue, 2019-2024 ($M)
16.China Global Ethylene Market Revenue, 2019-2024 ($M)
17.India Global Ethylene Market Revenue, 2019-2024 ($M)
18.Japan Global Ethylene Market Revenue, 2019-2024 ($M)
19.South Korea Global Ethylene Market Revenue, 2019-2024 ($M)
20.South Africa Global Ethylene Market Revenue, 2019-2024 ($M)
21.North America Global Ethylene Industry By Application
22.South America Global Ethylene Industry By Application
23.Europe Global Ethylene Industry By Application
24.APAC Global Ethylene Industry By Application
25.MENA Global Ethylene Industry By Application