Polyolefin market is anticipated to grow at a considerable CAGR of 8.9% during the forecast period (2024-2031). Polyolefin is a high molecular weight hydrocarbon that comprises low-density, linear low-density, and high-density polyethylene (PE) polypropylene copolymer, polypropylene, and polymethyl pentene. These are all 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 polyolefin derives its physical properties from the arrangement or the entanglement of the atoms in the chain molecules. Branching caused by radical transfer influences the physical properties and the molecular distribution. Therefore, these properties enable polyolefin application in various industries such as packaging, automotive, and others. The growing demand for polyolefin in end-user industries owing to its advantages is a key factor driving the growth of the global polyolefin market. The concern for environmental issues has restrained market growth.

Market Dynamics

Development of Renewable Polyolefin

The growing demand for eco-friendly chemicals has prompted manufacturers to produce renewable polyolefin. For instance, in March 2024, Bazan Ltd. is working to produce polypropylene and polyethylene from renewable feedstock at the company’s integrated refining and petrochemical operations in the Haifa Bay area of northern Israel along the eastern Mediterranean Sea. The development of renewable polyolefin is likely to offer a lucrative opportunity for the growth of the global polyolefin market.

Growing Automotive Industry

There are numerous new possibilities for polyolefin applications in automobiles. The growing demand for lightweight materials to reduce emissions and improve fuel efficiency has led to a boom in the use of polyolefin in the automobile industry. According to the ACEA - European Automobile Manufacturers' Association, in May 2023 the global production of motor vehicles increased by 5.7% in 2022, with a total of 85.4 million vehicles being manufactured globally. 

Global Motor Vehicle Production in 2021 VS 2022

Source: ACEA - European Automobile Manufacturers' Association

The growing automotive industry globally has promoted manufacturers to introduce advanced polyolefin to meet the demand of the automotive industry. 

Market Segmentation

• Based on the product, the market is segmented into Polyethylene (PE), Polypropylene (PP), Ethylene Propylene Diene Monomer (EPDM), and others (EVM (Ethylene Vinyl Acetate)).

• Based on the application, the market is segmented into packaging, consumer goods, building and construction, electronics, and automotive.

Packaging Holds Considerable Share Based on Application

The packaging application segment is projected to have a significant market share during the forecast period. The growth of this market is driven by 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, drug packaging, and the textile industry. 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 in the food & beverage industry. The foam packaging with multiple types of shapes can provide protection, thermal isolation, and special physical, and chemical needs. For instance, a foam food container is a disposable container for various foods, including beverages. Polystyrene foam is one of the most common plastics used for food service packaging. Polyethylene foams are also used for closures and seals.

Regional Outlook

The global polyolefins market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Global Polyolefins Market Growth by Region 2024-2031

Asia-Pacific Holds Significant Share in the Global Market

The region is both a major manufacturer and user of polyolefin. Many polyolefin manufacturing plants are concentrated in the China region. In March 2024, LyondellBasell, the major provider of polyolefin technologies announced that Inner Mongolia Rongxin Co., Ltd. will utilize the LyondellBasell Spheripol and Hostalen Advanced Cascade Process (Hostalen ACP) technologies for its upcoming facility. The planned plant will include a 500 kilotons per annum (KTA) Spheripol polypropylene plant and a 400 KTA Hostalen ACP high-density polyethylene plant, to be constructed in Ordos City, Inner Mongolia Autonomous Region, and P.R. China. The fifth-generation Spheripol technology incorporates process enhancements that further enhance operational efficiency. Such developments are aiding the high share of the regional market.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global polyolefin market include Exxon Mobile Corp., Lyondell Basell Industries, SABIC, The Dow Chemical Co., and Toray Industries Inc. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. 

Recent Development

• In September 2023, Braskem announced a novel demonstrator of Braskem's polypropylene (PP) in combination with WEAV3D Inc., an advanced manufacturing and materials startup, leveraging WEAV3D's thermoplastic composite lattice technology to enhance the performance of PP for structural and automotive material applications.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• 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 products, 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.