World demand for polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) will grow more than 4% in the five years ending in 2025, according to IHS.
Likewise, it estimates that the world demand for PE, PP and PVC in 2021 was 115 million metric tons, 85 million metric tons and 49 million metric tons, respectively.
Between 2020 and 2025, IHS projects global demand for PE, PP, and PVC to grow 4.2%, 4.7%, and 4.5% per year, respectively.
This is due to strong end-market dynamics, global gross domestic product growth, and spending on infrastructure and construction projects.
From their perspective, polymers are likely to continue to replace traditional materials, such as aluminum, steel, wood and glass, in applications where they can provide economic advantages and better performance.
In particular, green PE and green ethylene could represent a $10 billion addressable market by 2025 and $15 billion by the end of 2030.
This represents growth of 18.5% per year between 2025 and 2030 for green PE and green ethylene, which together would represent approximately 5.0% of the total PE and ethylene market, including fossil and biobased products in 2030.
PVC
Latin America and the United States are Braskem’s markets of origin, but this company is also competitive in exports to Asia.
According to Braskem, Latin America, in particular, has a high potential for growth in demand for polyolefins, due to its low rates of per capita consumption of plastics.
Although market participants have announced a strong portfolio of supply additions, Braskem believes that many of these projects will be delayed and cancelled, as has been the case over the last decade, which will see this industry enjoy high operating rates and solid margins.
Braskem is the largest plastics producer in the Americas, based on the annual production capacity of its plants in Brazil, the United States and Mexico as of December 31, 2021, according to IHS.
Braskem is the only integrated petrochemical producer of basic chemicals and polymers in Brazil, and the largest producer of PE in Mexico and PP in the United States.
Demand, PVC, polypropylene, polyvinyl chloride, polyvinyl chloride, IHS, market, gross domestic product, aluminum, steel, wood, glass, green ethylene, United States, Braskem, exports, Asia, Latin America, plastics, America, production, Brazil, United States, Mexico
