Packaging Industry to drive the Petrochemical Market in Asia and the U.S
- 19-Apr-2022 2:52 PM
- Journalist: Xiang Hong
Petrochemicals like Propylene and its derivatives primarily find their usage in manufacturing plastics such as polypropylene, polyethylene, polystyrene, etc. The consumption of plastics, majorly in the packaging industry, is rising consistently, propelling the demand for Petrochemicals. The existing market trend for Petrochemical seems to continue in the future, especially in developing countries. Though authorities have been making several attempts to promote the recycling of plastics and restrain the usage of single-use plastic, an eco-friendly and cost-effective alternative to petrochemical-based plastics is yet to be known.
As per the International Energy Agency’s Assessment, developed countries like the USA and Europe use up to 20 times the plastic that developing countries like India and Indonesia consume, exhibiting an excellent scope for market expansion. The offtake of plastics would further increase in the developing nations, which would consequently cause the enhancement in Petrochemicals demand. Packaging, automotive, and construction are the prime sectors concerned with Petrochemicals, among which packaging has the maximum shares. The escalated inquiry from Food packaging or Non-food packaging augmented the demand for Petrochemicals. Another industry that would largely contribute to the soaring Petrochemical demand is automotive. The employment of Petrochemicals-based materials in automobile parts reduces their weight and encourages lesser fuel consumption.
Asia-Pacific would dominate the demand for Petrochemicals due to the growing demand from consumer goods industries. In countries like India and China, the expanding economy would put forth huge demand for Petrochemicals from packaging, fertilizer, electronics, detergents, and healthcare industries. Furthermore, China has been working towards switching the raw material for Petrochemicals from Coal to Naphtha and Natural gas. In addition, China’s crude oil refining capacity has been expanded, which is most likely to support the Petrochemicals market in the near future. The North American market would observe growth in the Petrochemical industry owing to increased investment in building more production facilities for Petrochemicals.
Contrary to the other parts of the world, the European market would exhibit steady sentiments for Petrochemical industries. The demand for Petrochemical would remain stagnant in Europe owing to the skyrocketed crude oil and upstream prices. Besides, the growing concerns regarding health, environment and climate change would also influence Europe’s, Petrochemical Market. Altogether, Asia and North America are most likely to witness growth in the Petrochemical market because of the Packaging industry; however, Europe would exhibit contradictory sentiments.