Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Global Polyolefin Elastomers Market – Insights
Polyolefin elastomers (POE) are produced by copolymerization of ethylene and different comonomers including butene, propylenehexane, and octane. It shows properties including low density, toughness, elasticity, low temperature ductility, UV resistance, and thermal stability. Increasing demand from various end-use industries such as medical, electrical, electronics, and automotive is expected to propel growth of global polyolefin elastomer market during the forecast period.
Among applications, packaging segment accounted for the largest market share in 2018, in terms of revenue. Polyolefin elastomers (POE) are extensively used in food and non-food packaging. POE has high levels of comonomer, producing soft, flexible, and very low density materials, owing to which it has applications in seals, closures, wads for caps, liners and flexible bags, and pouches especially for the food and beverages packaging. They are also used for case and carton sealing, plastic bags, vacuum bags, and others.
Growing disposable income among the populace and growing consumer preference towards packaged goods coupled with growing retail industry, especially in Asia Pacific and Latin America is expected to drive growth of the global polyolefin elastomers market. For instance, India Brand Equity Foundation (IBEF), a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India, reported that the retail sector is expected to nearly double in valuation from US$ 600 billion in 2015 to US$ 1 trillion by 2020. Therefore, significant growth in food and beverage industry is expected to boost global polyolefin market in the region during the forecast period.
Various factors such as increasing demand for flexible & sustainable food packaging, technological advancement by leading manufacturers, and many more are expected to moderately impact growth of the polyolefin elastomers. Increased innovation and adoption of new technologies has led to increase the product yields. Polyolefin elastomer (POE) blends are prepared by melt mixing for recyclable high voltage direct current (HVDC) cable insulation applications. Enhanced flexibility, high volume resistivity, high breakdown strength as well as excellent thermal properties increase the potential HVDC cable application of (polypropylene) PP/POE blends.
According to United Nations Environment Program, around 322 million tons of plastic was produced in 2015, which accounted to over 900 Empire State Buildings. Moreover, according to a study published in the scientific journal Science Advances, 8.3 billion metric tons of plastic was manufactured, amongst which 6.3 billion metric tons of this had become plastic waste, and only 9% had been recycled. This further stands as one of the major restraints in the polyolefin elastomers market, globally.
Figure 1. Global Polyolefin Elastomers Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
The global polyolefin elastomers market was valued at US$ 1,723.8 million in 2018 and is expected to register a CAGR of 8.7% in terms of revenue over the forecast period (2019–2027), to reach US$ 3,602.5 million by 2027.
Asia Pacific polyolefin elastomers market is growing rapidly and is expected to show significant growth during the forecast period. Furthermore, growing demand for molded plastic products such as toys and other household goods along with growing packaging industry is driving growth of the polyolefin elastomers market in Asia Pacific.
Rise in applications of polyolefin elastomer in automotive, adhesives, master batches, consumer goods, packaging, molded rubber goods, pipes, footwear, hoses, and wire and cable is driving growth of the global polyolefin elastomers market. This significant growth in footwear market is fuelling growth of global polyolefin elastomer market as it finds applications in flexible foams in athletic footwear, sandal, and others, owing to its properties such as resiliency, softness, and light weight.
Figure 2. Global Polyolefin Elastomers Market Share (%), By Application, 2018
Source: Coherent Market Insights, 2018-19
Asia Pacific is expected to witness the fastest growth in the global polyolefin elastomers over the forecast period. This is owing to increasing demand for automobiles and significant growth of the automobile industry in India and China. According to the U.S. International Trade Administration (ITA), China was the largest vehicle producer between 2012 and 2014 and the average number of vehicles produced between 2012 and 2014 was 17.8 million. Moreover, vehicle production in China is expected to cross 27 million by 2020, thereby fuelling growth of the polyolefin elastomer market in this region.
Major players operating in the global polyolefin elastomers market include Mitsui Chemical, Inc., LG Chem Ltd., RTP Company, Inc., DowDuPont Inc., PolyOne Corporation, Siloxane Aggrandize Innovative Industries, Dalmia Polymers LLP, Tricon Energy Inc., Borealis AG, and SK Global Chemical Co., Ltd., and others.