Polymer Resin for Packaging and Oil Gas Market

EXPANSION OF OIL & GAS INDUSTRY

One of the most in-demand commodities in the world right now is oil and gas. Its numerous applications include producing electricity as well as serving as a feedstock for the production of petrochemical goods including polymers, solvents, and adhesives. As a result, the oil industry is one of the most significant sectors of the global economy, and fluctuations in the benchmark price of oil and gas have a significant impact on the majority of manufacturing industries as well as consumers.

During the projected period, the oil and gas industry will benefit from low interest rates in the majority of wealthy nations. For instance, the UK lowered interest rates to a record-low 0,1% in March 2020.  Also lowering interest rates in 2020 were the central banks of North Macedonia, South Africa, Malaysia, Kenya, Argentina, Ukraine, Sri Lanka, Azerbaijan, and Turkey. A combination of favourable policies and increasing O&G cash flows in 2022 have made it possible for O&G corporations to enhance their investment in renewable energy.

Even though it is anticipated that this investment will continue to rise, a number of reasons could change the direction of investment or the emphasis on clean energy over the anticipated time frame.

With so many uses for oil, it is not surprise that oil (and gas) businesses are among of the biggest enterprises in the world. On a list of the largest companies in the world based on revenue in 2021, the Sinopec Group and the Chinese state-owned China National Petroleum Corporation (CNPC) were rated fourth and fifth, respectively. While the U.S. continues to be the world's greatest consumer of oil, China is the largest importer. Oil consumption has maintained at an all-time high despite mounting worries about the usage of fossil fuels.

The United States consumes the most oil globally, followed by China, whose demand for oil has been gradually rising over the past ten years. China is also the world's largest importer of oil due to the lack of significant domestic reserves. In light of all these advancements and developments in the oil and gas sector, it is predicted that the market would grow significantly throughout the anticipated time.

SURGING GROWTH OF THE PACKAGING INDUSTRY

Packaging has evolved into a significant element of many businesses due to its cutting-edge design, which helps to give innovative packaging solutions. Polymer-based packaging is used to protect delicate goods that are difficult to transport and handle. For individuals who create various types of packaging materials, polymer resin is the perfect material. The liquid form of this substance is useful for creating distinctively shaped yet robust types of packaging for goods with unusual shapes.

It is also possible to carve this material into screws and bolts, which are common components of packing materials.  Polymer resins can also be used to create durable bottles and containers for chemicals that need to be stored in sealed containers (such as nail polish, etc.), as well as solid and svelte cases for pricey powders and cosmetics. Plastic products are renowned for being affordable and high-quality. Packaging is used to safeguard products throughout distribution, storage, and transit. Additionally, it increases and protects the shelf life of products by preventing damage, spoilage, and contamination.

It serves as a technique to handle brand identity and variance, as well as to tell people about the goods. Packaging made of polymer resin is widely accepted and approved for consumer goods, including everything from food items and electronics to large company machinery and equipment. Many firms use it as an affordable and reliable method of packing. With the development of technology and general environmental consciousness, the packaging industry has grown.

The worldwide packaging market is expanding at a rapid rate, with mature markets delivering a modest rate of growth and emerging regions providing the most recent prospects for potential expansion rates. Products made of plastic often include altered versions of materials including glass, metal, paper, and wood. Packaging is a technique used to contain and safeguard a variety of commodities for use, distribution, sale, and storage. Plastic has good performance and is typically more affordable. Plastic is a recyclable material that benefits the environment by reducing waste and utilising less energy.

The Global Polymer Resin for Packaging and Oil & Gas Market Industry is experiencing a notable shift towards sustainable packaging solutions. As consumers increasingly prioritize eco-friendly products, manufacturers are compelled to adopt biodegradable and recyclable polymer resins. This trend is reflected in the projected market value of 172.1 USD Billion in 2024, driven by the growing emphasis on reducing plastic waste. Companies are innovating to create resins that meet sustainability criteria while maintaining performance standards. This demand for sustainable materials is likely to propel the market forward, aligning with global initiatives aimed at environmental conservation.

Based on Region, the Polymer Resin for Packaging and Oil & Gas market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. The Asia Pacific region in Polymer Resin for Packaging and Oil & Gas market emerged as the leading and the fastest-growing segment with a CAGR of 7.12%. The segment is projected to reach a value of USD 100,213.5 million by the end of the forecast period. Rapid economic development in countries like China, India, and Southeast Asian nations has led to increased disposable incomes, which in turn boosts consumer spending on packaged goods.

This surge in consumer demand necessitates more sophisticated and efficient packaging solutions, fueling the need for polymer resins known for their versatility, durability, and cost-effectiveness.

The oil & gas industry in the Asia-Pacific region also heavily relies on polymer resins due to the ongoing industrialization and infrastructural development. Countries in this region are investing heavily in expanding their oil & gas exploration, production, and transportation capabilities. Polymer resins, particularly in the form of high-density polyethylene (HDPE) pipes, are essential for constructing pipelines and other infrastructure because of their resistance to corrosion, flexibility, and durability under extreme conditions. This makes them ideal for the demanding environments often encountered in oil & gas operations.

Many regional and local vendors characterize polymer resin for packaging and oil & gas market. The market is highly competitive, with all the players competing to gain maximum market share. The increasing polymer resin demand in the packaging and oil & gas sectors is boosting the sales of polymer resin. The vendors compete based on cost, product quality, and the availability of the products according to the geographies. The vendors must provide cost-effective and high-quality polymer resin to compete in the market.

The market players' growth depends on the market and economic conditions, government regulations, and industrial development. Thus, the players should focus on expanding their production capacity to meet the demand and enhance their product portfolio. Borealis AG, BASF SE, Evonik Industries AG, LyondellBasell Industries N.V, Shell Plc, Solvay, Roto Polymers, Dow Chemical Company, Nan Ya Plastics Corp, Saudi Arabia Basic Industries Corporation, Celanese Corporation, INEOS Group, and Exxon Mobil Corporation are the major companies in the market at the present that are competing in terms of quality, price, and availability.

These players are primarily focusing on the development of polymer resin. Although the international players dominate the market, regional and local players with small market shares also have a moderate presence. The international players with a global presence, with established manufacturing units or sales offices, have strengthened their presence across major regions such as North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Borealis AG: Borealis AG is a leader in polyolefin recycling in Europe and one of the world's top suppliers of cutting-edge, environmentally friendly polyolefin solutions. The company dominates the base chemical and fertilizer markets in Europe. The company has made a name for itself as a trustworthy business partner and a recognized global brand that continually adds value for its partners, clients, and customers.

The company is a joint venture between OMV, a global oil and gas business with headquarters in Austria, which holds 75% of shares, and Abu Dhabi National Oil Corporation (ADNOC), with headquarters in the United Arab Emirates (UAE), which has the remaining 25%. Through Borealis and two significant joint ventures, Borouge (with ADNOC, based in the UAE) and BaystarTM (with TotalEnergies, based in the US), provide services and goods to clients all over the world. The company has customer service centers in Austria, Belgium, Finland, France, Turkey, United States.

Production Plants are in Austria, Belgium, Brazil, Finland, France, Germany, Italy, South Korea, Sweden, The Netherlands, United States, and innovation centers are in Austria, Finland, and Sweden. The company has an operational presence in 120 counties across Europe, North America, Asia-Pacific, Latin America, Middle East, and Africa.

BASF SE: BASF SE (BASF) is one of the leading chemical producers in the world. The company is a market pioneer in driving the transition to net zero CO2 emissions with a comprehensive carbon management strategy. It has strong innovation using a wide range of technology to offer solutions for different industries of customers and to boost productivity. The company operates its business through six divisions: materials, industrial solutions, chemicals, surface technologies, agricultural solutions, and nutrition and care. It offers polymer resins across all sectors including packaging & oil & gas sector.

The company operates its business through 11 divisions that manage 54 global and regional business units and develop strategies for 72 strategic businesses. BASF marks its presence in 80 countries and operates through six Verbund sites, which interlink the working of production plants, energy flows, and infrastructure in different regions. It has around 240 manufacturing units worldwide including Ludwigshafen, Germany, the world’s largest integrated chemical complex owned by a single company. BASF primarily operates in Europe and has an active presence in the Americas, Asia-Pacific, the Middle East & Africa.

It serves around 82,000 customers from almost all sectors across the globe.