H1 2023: During the first half of 2023, ethylene prices on the European market displayed conflicting sentiments. Due to steady demand from the downstream polyethylene industry and plenty of supply in the area, ethylene prices stayed stable initially in 2023. However, as market participants restocked the material in the European market in February 2023 as ethylene prices rose sharply. Additionally, the cost of producing ethylene in Europe increased due to hike in feedstock naphtha costs. Furthermore, when prices continued to surge in the Asian market, imported ethylene prices remained high in the European market. Although there were a small number of new orders, and the demand from the downstream polyethylene and glycol chain industries remained consistent in the European market. However, a declining trend of ethylene pricing occurred in March 2023, supported by both excess supply and weak downstream demand. The region had improved access to raw materials owing to the persistent Asian market imports. Additionally, the cost of electricity fell, which further lowered the production cost of ethylene in the European market. Although, ethylene prices in the European market remained depressed till June 2023 due to constant gloomy demand by the downstream polyethylene industry. The cost assistance from the feedstock naphtha was insufficient because its prices declined during the course of this time period. Additionally, low end-user use and ample of inventory in Europe led to a decline in the price of naphtha.
The Europe Ethylene market has reached approximately 23.5 million tonnes in 2022 and is expected to grow at a CAGR of 4.67% during the forecast period until 2032. Ethylene is used to make several types of plastics for usage in a variety of industries, including packaging, consumer products, construction, automotive, and more. Additionally, as required by the industry, technological development has resulted in an effective and expanded usage of plastics like LDPE and HDPE.
The primary driver of the Europe Ethylene market is the synthesis of Polyethylene. In 2022, approximately 54% of Europe Ethylene was utilized by the Polyethylene Industry. Demand for polyethylene for producing plastic items has increased as customers' awareness of the need for safe packaged goods has grown in the past years. Plastic packaging has seen a dramatic increase in demand for a variety of uses, including transportation, e-commerce healthcare, and grocery stores and is likely to augment the expansion of the polyethylene sector in Europe. Additionally, the market is anticipated to increase and be driven by demand for high-end industrial applications. The market is being driven by customer demand for premium food in suitable packaging. The need for ethanol is also fueled by the need to produce ethanol oxide, which is a necessary precursor for the creation of compounds like ethanol amines and (mono) ethanol glycol. Owing to these reasons, the Europe Ethylene market is expected to reach about 37 million tonnes by 2032.
Based on demand by region, the European Ethylene market is segmented into Western Europe, Central Europe, Northern Europe, and Southern Europe. Although, Western Europe is the largest consumer of Ethylene with a consumption of roughly 40% of the Europe Ethylene market in the year 2022. Public and private investment in infrastructure has increased as a result of Europe's ongoing expansion in the building and packaging industries. The drivers of the European Ethylene market include end-use industries like packaging, building, and the automotive industries, among others. Additionally, the UK's ethylene market has one of the had the quickest rate of growth in the European region, with Germany's ethylene market also having a large market share.
Based on the end-user industry, the Europe Ethylene market is segmented into different industrial sectors that include Polyethylene, Ethylene Oxide, Ethylene Dichloride, Ethylene Benzene, and Others. The Polyethylene Industry is dominating the Ethylene market. The Ethylene Oxide industry is also a prominent consumer of the Ethylene market. Cleansers, solvents, resins as well, coolants, textiles, and pharmaceuticals are all produced from ethylene oxide. In the chemical sector, Ethylene dichloride (EDC) is used primarily to make vinyl chloride monomer (VCM), which is crucial for the polymerization process used to create polyvinyl chloride (PVC). Pipes, fittings, doors, sidings, wire, cable, film, sheets, and flooring are some of the products made using PVC.
Significant players in the Europe Ethylene market are Dow Chemical Company, Total Energies (TOA), BASF SE, SABIC, Royal Dutch Shell, LyondellBasell, Versalis, Exxon Mobil Corporation, BP Plc, INEOS, Repsol, ZapSibNefteKhim, and others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Ethylene which covers production, demand and supply of Ethylene market in the globe.
• To analyse and forecast the market size of Ethylene
• To classify and forecast Europe Ethylene market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Ethylene market in the globe.
To extract data for Europe Ethylene market, primary research surveys were conducted with Ethylene manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Europe Ethylene market over the coming years.
ChemAnalyst calculated Ethylene demand in the globe by analyzing the historical data and demand forecast which was carried out considering the demand of Ethylene by the end-user industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Ethylene manufacturers and other stakeholders
• Organizations, forums and alliances related to Ethylene distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Ethylene manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Europe Ethylene market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
23.5 million tonnes
Market size Volume by 2032
37 million tonnes
Growth Rate
CAGR of 4.67% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity By Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap Company Share, Manufacturing Process.
Segments covered
By End-Use: (Polyethylene, Ethylene Oxide, Ethylene Dichloride, Ethylene Benzene, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Member - Board of Directors
Osaka Gas Co. Ltd
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What is the expected Europe market size of Ethylene in terms of volume for 2032?
Ans:
The Europe market size of Ethylene is expected to reach approximately 37 million tonnes by 2032.
Q2.
What are the major end-use industries of Ethylene?
Ans:
Ethylene is used majorly in Polyethylene, Ethylene Oxide, Ethylene Dichloride, and Ethylene Benzene end-use industries.
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