The consumption of polyolefins (PO) in Europe is currently estimated to be XX million tons in 2016. The consumption is expected to reach XX million tons by 2021, with a CAGR of XX%. Polyethylene (PE) and polypropylene (PP) are globally the most widely used commodity plastic resins. Their individual markets are expected to grow at a CAGR of XX% and XX% respectively, with PE holding a share of XX% of the total European plastics market.
Polyolefins are polymers of alkenes. The polyolefin market is expected to grow significantly in the near future, owing to a shift of focus towards flexible packaging and growing demand for these plastics from the automotive sector. Moreover, the global shale gas boom, along with lower crude oil prices in the recent years, has resulted in the availability of cheaper raw material. This, in turn, has widened profit margins for the producers, thus providing a boost to the industry. Though the high capacity-to-demand ratio is expected to act as a barrier for the growth of the polyolefin industry, a growing demand for polyolefins, owing to its increased applications, is expected to balance it out. Growing environmental concerns leading to the ban on fracking in several European countries is also going to affect the market negatively.
Polyolefins, based on their excellent and varied physical and chemical properties, have applications in nearly all end-user industries. In the Europe polyolefins report, we have considered the following major end-user sectors:
The packaging industry is the largest end-user industry in terms of consumption of polyolefins. The market is also segmented, based on applications, into film & sheet, blow molding, injection molding, fibers and others, with injection molding being the major segment. Based on the type, the market is segmented into polyethylene (HDPE, LDPE, LLDPE and others), polypropylene, polybutene and others.
Europe ranks second in the global plastic material production. Two thirds of the demand for plastics in Europe is concentrated in five countries, namely Germany, Italy, France, United Kingdom, and Spain. In 2015, the plastics production was still below the pre-crisis level. Currently, Germany is the largest polyolefins market, with more than XX% share of the European market.
Growing focus towards green polyolefins and the possibility of commercialization of polymer solar cells are the major opportunities for the market in the coming years. Key participants in the Europe polyolefins market include LyondellBasell Industries NV, China Petroleum & Chemical Corporation, The Dow Chemical Company, and Saudi Basic Industries Corporation (SABIC) among others.