RALEIGH, North Carolina, Oct. 22, 2019 /PRNewswire/ -- The global PVC market is currently estimated to be worth $41.4 billion and is growing at a CAGR of 4.7 percent till 2023, according to Beroe Inc, a procurement intelligence firm. The global demand for PVC is growing at a rate of 3.8 percent CAGR till 2023, with the current capacity estimated to be 61.6 MMT with a demand of 44.5 MMT. By 2023, the capacity is expected to reach 63.7 MMT with the demand of 51.6 MMT.
Asia is the largest consumer of PVC, accounting for about 58 percent of total demand at 40.6 MMT, followed by Europe accounting for about 17 percent at 8.2 MMT. Asia holds a majority of the capacity at 48 percent and has the highest demand growth at a CAGR of 4.2 percent, followed by North America with 13 percent capacity and demand growth of 3.4 percent CAGR. Asia and South America are likely to witness higher growth compared to other regions.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The major growth drivers for the PVC global market are its applications in construction, and electrical & electronics segments. PVC is used in construction for pipes, fittings, window/door frames, flooring solutions, roofing, irrigation pipes; in electronics for insulation purposes and in pharmaceuticals as tablet packaging. The PVC market faces challenges from the threat of substitutes, operating constraints, environmental concerns and a reducing market share in the medical industry.
Significant trends in the PVC market are the development of mercury-free catalysts of polymers, copolymerization of vinyls with olefins and development and use of new plasticizers. Mercury-free catalysts provide an economically available alternative to traditionally harmful mercury-based catalysts. Cross-linking of polymers leads to improved thermomechanical properties and chemical resistance.
- Phthalates other than DEHP, such as DIDP and DINP, which have lower extraction compared to DEHP, have been used for plasticizing PVC for making medical devices.
- The PVC market does not have a single supplier, holding a major share of the capacity. Shin-Etsu Chemical has the largest market share of 6 percent followed by Westlake and Formosa Plastics each having a 5 percent market share.
- Buyers engaging in contract structures are recommended to engage in quarterly revised contract structures to benefit from the fall in feedstock prices.
- CPG companies outsource their packaging requirements to their converters because it helps them to focus on their core business.
- PVC producers are anticipated to explore more applications in electrical and electronic segments other than wires and tapes with profiles for doors, windows, and applications in CPG segments projected to witness moderate growth.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
The most impactful cost component is raw materials, accounting for 80 percent of costs in Asia, 79 percent in the EU and 78 percent in North America. The key pricing formulas are based on monomer contract prices and based on index prices. Pricing structure between a resin producer and a converter is monomer-based pricing, and in some cases, an index-based pricing structure. Producer margins are observed to be the highest in North America (20–25 percent), followed by Europe (15–18 percent) and Asia (12–15 percent).
The report also includes:
- Global Market Size: PVC
- Global Capacity–Demand Analysis
- Global Demand by Application
- Global Market Outlook
- Global Trade Dynamics
- Global Imports
- Global Exports
- Regional Market Outlook (US, Europe, and Asia)
- Supply–Demand Trends and Outlook
- Trade Dynamics
- Industry Outlook (US, Europe, and Asia)
- Porter's Five Forces Analysis
- Industry Drivers and Constraints
- Industry Updates
Cost and Pricing Analysis:
- Cost and Price Analysis (US, Europe, and Asia)
- Cost Structure Analysis
- Price Forecast: PVC
- Global Capacity Share by Suppliers
- Global Capacity Addition by Suppliers
- Regional Capacity Share
- Exhaustive Supplier List
- Key Global Supplier Profiles
- SWOT Analysis for Global Suppliers
- Financial Risk for Top Five Global Suppliers (if publicly listed)
Industry Best Practices:
- Contract Structures
- Engagement Models
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
SOURCE Beroe Inc.