Polyethylene Market to 2020 - North American Dominance Eroding as Polyethylene Production Shifts to Middle East

Additional Information

GBI Research’s report, “Polyethylene Market to 2020 - North American Dominance Eroding as Polyethylene Production Shifts to Middle East”, provides an in-depth analysis of the global Polyethylene (PE) industry. The research presents detailed analysis and forecasts of the major economic and market trends affecting the PE markets in the major regions of the world. The report contains demand, production analysis and forecasts, drivers and restraints, end use analysis and forecasts, and market share analysis of the major producers in the major regions of the world. In addition, it includes demand and production forecasts for the major countries in all geographies. The report also contains the historic and forecast price trends for all the major countries. Overall, the report presents a comprehensive analysis of the global PE market covering all the major parameters. Key points from the report are given below as

Polyethylene (PE) Market Is Expected to Grow at a Healthy Rate of 5.7% During the Period 2009-2020

The global demand for PE increased from around 37.3 million tons in 2000 to 51.4 million tons approximately in 2009. Demand grew at a CAGR of 3.6% during this period. The packaging and construction industries were the major consumers of PE. In 2009, the combined share of both industries was more than 85% of the global demand for PE. Some of the major markets for PE have started showing signs of saturation, which has limited the demand for PE in their respective regions. Countries such as the US and other developed countries in Europe, such as Germany and France, have reached the saturation level. Demand for PE is rising in other developing countries, such as China, India and Brazil.

In the forecast period from 2009 to 2020, demand is expected to grow at a CAGR of 5.7% and reach approximately 94.7 million tons by 2020. Asia-Pacific is expected to emerge as the leading region, with more than 40% of the global demand for PE. The packaging and construction industries are expected to continue their dominance in the global PE business in the forecast period.

The following figure illustrates the global demand for PE from 2000 to 2020:

PE, Global, Demand, Million Tons, 2000-2020

Source: GBI Research

Asia-Pacific Leads the Demand for PE Market

In 2009, Asia-Pacific emerged as the region with the highest demand for PE, with a demand share of 42.1%. This increase in demand primarily arose from the developing economies of China and India. North America was the second largest region in terms of demand for PE, with a share of 25.2%. With a share of 19.3% of the demand for PE, Europe was the third largest player. South and Central America had a demand share of 8.3%. Brazil was the prominent developing country in the region with a significant demand share in 2009. The Middle East was the region with the least demand, as most of the PE produced in the region was exported across the globe. The Middle East had a share of 5.1% of the total demand for PE.

The following figure illustrates the global demand share analysis of PE, by percentages, for 2009:

PE, Global, Demand Share Analysis by Regions, %, 2009

Source: GBI Research

Middle East to Register the Highest Increase in PE Exports

In 2009, North America, with a share of 28.4%, had the most exports of PE. The Middle East came after North America with a share of 22.7%. Asia-Pacific was another major region, with a high share of 21.4%. Europe, with a share of 20.8%, and South and Central America, with a share of 6.7%, were the other regions which exported PE.

By 2020, the share of the Middle East is expected to increase and reach 27.6%. With its cost advantage, it will emerge as the top exporter of PE, sharing the top position with North America, which is expected to have the same export share after losing some of its current share to other, faster developing regions. The share of Asia-Pacific is expected to reach 21.9%. South and Central America is also expected to increase its share of PE marginally, to reach 7%. Europe is expected to lose some of its current share and drop to 15.9%.

The following figure illustrates the global export share analysis of PE, by percentages, for 2009:

Global, Export Share Analysis by Regions, %, 2000-2020

Source: GBI Research