The global polyolefin market is anticipated to grow at a considerable CAGR of 8.9% during the forecast period.  Polyolefins are high molecular weight hydrocarbons which comprise low-density, linear low-density and high-density polyethylene (PE) polypropylene copolymer, polypropylene and polymethyl pentene. These all are break-resistant, nontoxic, and non-contaminating. These are the only plastics lighter than water. These materials easily withstand exposure to nearly all chemicals at room temperature for up to 24 hours. Strong oxidizing agents eventually cause embrittlement. All polyolefins can be damaged by long exposure to light. The polyolefins derive their physical properties from the arrangement or the entanglement of the atoms in the chain molecules. Branching caused by radical transfer influences the physical properties as well as the molecular distribution. Therefore, these properties enable the application of polyolefins in various industries such as packaging, automotive and others. Moreover, increasing application of polyolefins in automotive industry propels the growth of the market during the forecast period. 

The concern for environmental issues has restrained the growth of the market. The use of polyolefin plastics such as HDPE, LLDPE, and LDPE bags is considered to be one of the major reasons for environmental and health risks. The impact of plastic waste on marine organisms, humans, and the environment, in general, is a major concern in public lives. Hence growing carbon footprint and concern for the environment lead to hampering the growth of the global polyolefins market. 

Impact of COVID-19 Pandemic on Global Polyolefin Market 

The COVID-19 pandemic had a negative impact on the global polyolefin market. The governments of the countries had ordered nationwide lockdowns which disrupted the supply chain operation of several industries. As a result, there was a considerable decline in transportation, building and construction related activities which in turn impacted or delayed the supply of polyolefin. Hence, the COVID-19 pandemic affected the growth of the global polyolefin market. However, as the COVID-19 situation normalizes, the global polyolefin market started recovering as industrial operations normalized after the recovery.

Segmental Outlook 

The global polyolefin market is segmented based on product, and application. Based on the product the market is bifurcated into polyethylene (pe), polypropylene (pp), ethylene propylene diene monomer (epdm), others (eva). Based on application the market is sub-divided into packaging, consumer goods, building & construction, electronics, and automotive. Based on the product, the polyethylene (pe) segment is anticipated to grow at the highest rate during the forecast period. The increase in the plastic recycling practices globally, and its application among the end-user industries such as packaging and construction, propelled the growth of the segment in the global polyolefin market.   

Global Polyolefin Market Share by Application, 2021 (%)

The Packaging application has significant market share in polyolefin market 

Packaging application segment is projected to have a significant market share during the forecast period. The market is growing due to the high application of polyolefin in different packaging applications. The use of polyolefin in packaging is increasing in various industries such as food packaging, bulk packaging, cosmetics packaging, drugs packaging, and the textile industry. The polyolefin packaging offers stronger, safer, cleaner and more sustainable packaging options compared to traditional materials. Its innovations in flexible packaging significantly contribute to minimizing food waste. The foam packaging with multiple types of shapes can provide protection, thermal isolation, and special physical, chemical needs. For instance, a foam food container is a disposable container for various foods, including beverages. Polystyrene foam is in one of the most common types of plastics used for foodservice packaging. Polyethylene foams are also used for closures and seals. 

Regional Outlooks

The global polyolefin market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East &Africa, and Latin America).  North American market is estimated to have considerable growth during the forecast period. The market growth is mainly attributed to the contribution from the major economies such as the US and Canada.  High consumption of polyolefins, large automotive market, government regulations is some of the factors which will drive the market growth in the region. 

Global Polyolefin Market Growth, by Region 2021-2028

The Asia-Pacific is the Fastest Growing Region for Global Polyolefin Market  

Geographically, Asia-Pacific is estimated to have a significant market share in the global Polyolefin market during the forecast period. The major economies such as China, Australia, Japan, South Korea, India, and Singapore are significantly contributing to the growth of the market during the forecast period. Numerous factors are driving the growth of the market in the region; this includes augmenting the automotive sector in the region and the growing food processing packaging industry. For instance, in 2022, according to the National Investment Promotion & Facilitation Agency, during the last five years ending 2019-20, the Food Processing Industries sector has been growing at an average annual growth rate of around 11.18%. As per the Annual Survey of Industries (ASI) 2018-19, food processing was ranked 1st in total persons engaged in the manufacturing sector. Moreover, as a result of urbanization, growing energy demands, climate change, and technological advancements, plastic manufacturers are focusing on adapting the latest technology to manufacture advanced polyolefin materials. 

Market Players Outlook

The major companies serving the global polyolefin market are Exxon Mobil Corp., Lyondell Basell, Saudi Basic Industries Corp. (SABIC), Sumitomo Chemical Co. Ltd., The Dow Chemical Co., INEOS AG, Lyondell Basell Industries Holdings B.V., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in December 2021, Adnoc and Borealis AG entered into a partnership to build the fourth Borouge facility Borouge-4 at the polyolefin manufacturing complex in Ruwais, Abu Dhabi, United Arab Emirates (UAE).  Borouge-4 capitalizes on the projected growth in customer demand for polyolefins, driven by their use in the Middle East, Africa, and Asia. 

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global polyolefin market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.