Market Trends of Polyolefin (PO) Industry
Increasing Demand in the Films and Sheets Segment to Drive Market Growth
- Films and sheets can be used in the transportation, packaging, construction, and building industries.
- The agricultural sector is driving the market's expansion, with demand for polyolefin films and sheets for greenhouses, mulch, and silage stretch films. The demand is also seen in silage sheets and window films, as well as in the medical industry.
- Polyolefin-based agricultural films also protect vegetables from frost, wind, rain, and pests while speeding up the ripening of fruits, vegetables, and flowers, allowing farmers to grow several crops in a year. Polyolefin films also help reduce evaporation, thus saving water.
- On the other hand, polyolefin sheets are used in the building industry. Polyethylene sheeting, which works as a vapor retarder, is installed beneath the slab. These sheets can retard for a longer time without degrading. As a result, the demand for polyolefin from the construction industry is expanding.
- The Asia-Pacific construction industry is projected to become the world's largest and fastest-growing industry, with a 45% share of global construction spending coming from the region. In the coming years, this is likely to make more people opt for films and sheets.
- In fiscal year 2022, India had a total polyolefins production capacity of over 12 thousand kilotons. Most polyolefins were made by Reliance Industries Limited, which made up almost 47% of India's total polyolefins production capacity.
- Thus, due to these factors, the polyolefin market is likely to grow in the coming years as the demand for films and sheets rises.
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Asia-Pacific to Dominate the Market
- Asia-Pacific is the dominant region in the polyolefins market, owing to China being the major consumer of polyolefins worldwide. The growth is driven by increasing e-commerce, as the strong courier business led to a spike in demand for plastic packaging. The country's manufacturing industry is one of the major contributors to its economy.
- The Chinese government announced big building plans for the next 10 years, including plans to move 250 million people to new megacities. This is a big chance for construction chemicals to be used in a variety of ways to improve building properties during construction.
- Electronic items, such as smartphones, OLED TVs, tablets, and other consumer electronics, are recording the fastest growth in the market. With more money in the pockets of the middle class, there will be more demand for electronics, which may drive the demand for polyolefins in the country.
- In China, the electronics segment was projected to reach over USD 385 billion by the end of 2023.
- All the above-mentioned factors are expected to increase the demand for polyolefins over the forecast period.
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