The global ethylene market size was $166,520 Mn in 2019 and is projected to reach $245,005 Mn by 2027, exhibiting a CAGR of 5.6%.

In 2021, the global market size of ethylene amounted to *** billion U.S. dollars. This figure is projected to increase over the upcoming years, reaching a market size of *** billion U.S. dollars by 2030. The main application of ethylene is to produce polyethylene, which is widely used in the plastic industry.

The ethylene market size was USD 205.2 billion in 2025 and is estimated to reach USD 374.05 billion by the end of 2036, expanding at a CAGR of 5.8% during the forecast timeline, i.e., 2026-2036. Asia Pacific industry is expected to account for a 54.5% share during the forecast period, owing to rising demand for ethylene across the packaging, automotive, and construction sectors, especially in India and China.

The Asia Pacific region dominated the ethylene market in 2021, accounting for some **** percent of the total revenue worldwide. This was followed by Europe and North America, each representing approximately ** and ** percent of the global market, respectively. That same year, the market size of ethylene across the globe stood at *** billion U.S. dollars.

The global Ethylene market has reached approximately 177 million tonnes in 2024 and is expected to grow at a CAGR of 3.62% during the forecast period until 2035.

Ethylene market by end use (polyethylene (pe), ethylene oxide, ethylene dichloride (edc) & others). As per TechSci Research, Ethylene market is expected to grow at a CAGR of around 11.26% during 2025.

Global Ethylene Market valued at USD 220.36 Bn in 2025, is anticipated to reaching USD 329.16 Bn by 2032, with a steady annual growth rate of 5.9%.

The global ethylene market, valued at USD 198.2 billion in 2025, is anticipated to exhibit a CAGR of 5.30% during the forecast period, reaching USD 274.9 billion by 2033. The burgeoning demand for plastics, particularly polyethylene (PE), ethylene oxide (EO), and ethylene dichloride (EDC), is primarily driving the market growth. These chemicals are widely used in various end-use industries, including packaging, automotive, building & construction, and agriculture. The market is highly fragmented, with the top five players accounting for a substantial share. Key industry participants include SABIC (Saudi Arabia), Dow (US), Exxon Mobil Corporation (US), Shell Global (UK), and China Petrochemical Corporation (China). These companies are focusing on expanding their production capacities and geographic reach to cater to the growing demand for ethylene and its derivatives. Emerging economies, particularly in Asia Pacific, are expected to offer significant growth opportunities for market participants due to the rapidly expanding manufacturing and construction sectors in these regions. Recent developments include: March 2022: Dow and New Energy Blue have signed a long-term supply contract for North America. New Energy Blue would use renewable agricultural leftovers to produce bio-based ethylene. In order to lower carbon emissions from the production of plastic, Dow plans to buy this bio-based ethylene and use it in recyclable applications such as packaging, footwear, and transportation., April 2022: The start of construction on the Verbund site extension by BASF and SINOPEC. BASF-YPC Co., Ltd. (BASF-YPC) is a 50/50 joint venture between the two corporations located in Nanjing. The expansion aims to meet the increasing demand from different industries in the Chinese market by adding a new tert-butyl acrylate plant and expanding the capabilities of other downstream chemical factories.. Notable trends are: Widespread use of polyethylene in the packaging industry.

Ethylene market was valued at USD 201.25 Billion in 2024 and is expected to reach USD 261.19 Billion by 2030 with a CAGR of 4.42%.

According to Cognitive Market Research, the global Ethylene Market size will be USD 217650.1 million in 2025. It will expand at a compound annual growth rate (CAGR) of 5.70% from 2025 to 2033.

North America held the major market share for more than 40% of the global revenue with a market size of USD 63118.53 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.5% from 2025 to 2033.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 52236.02 million.
APAC held a market share of around 23% of the global revenue with a market size of USD 80530.54 million in 2025 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2025 to 2033.
South America has a market share of more than 5% of the global revenue with a market size of USD 8270.70 million in 2025 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2025 to 2033.
Middle East had a market share of around 2% of the global revenue and was estimated at a market size of USD 8706.00 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.0% from 2025 to 2033.
Africa had a market share of around 1% of the global revenue and was estimated at a market size of USD 4788.30 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2025 to 2033.
Ethylene Oxide category is the fastest growing segment of the Ethylene industry

Market Dynamics of Ethylene Market

Key Drivers for Ethylene Market

Rise of Bio-based Ethylene Production to Boost Market Growth

The growth of bio-based ethylene production is a major factor propelling the ethylene industry. The need for sustainable and eco-friendly products is growing as environmental concerns continue to influence industrial processes worldwide. Traditionally made from fossil fuels like naphtha and natural gas, ethylene is now showing signs of moving toward bio-based substitutes. This change not only supports international environmental objectives but also gives the chemical sector access to new markets and innovative opportunities. Furthermore, companies that rely significantly on ethylene are increasingly likely to obtain greener alternatives in order to satisfy customer expectations and compliance standards as a result of growing governmental pressure to lessen environmental effects and improve corporate sustainability. Moreover, investing in bio-based ethylene manufacturing plants could also help local economies and advance energy security in areas with a surplus of biomass resources but a shortage of fossil fuel reserves. For instance, an MOU for joint investment in the production of bio-polyethylene utilizing ethylene derived from renewable resources was signed in September 2021 by Braskem and SCG Chemicals. This funding will enable businesses to generate twice as many bio-based products.

https://www.braskem.com.br/usa/news-detail/braskem-and-scg-chemicals-to-study-joint-investment-into-bio-based-ethylene-production-for-bio-based-polyethylene-in-thailand

Increased Consumer Preference for Lightweight Plastics to Boost Market Growth

The increased consumer preference for lightweight plastics is opening up new markets for cosmetic companies of all sizes. Consumers' increasing awareness of the different kinds and forms of plastic products will help the market flourish. The need is being increased by the growing trend of lightweight plastic materials in the building and automotive sectors. Manufacturers of Ethylene are focusing on high-quality, lightweight packaging to give consumers better packaging options. Additionally, because of the new coronavirus rules, customers are pushing for better product packaging as a result of the spread of the virus. The market is seeing an increase in product demand because of the increased demand for plastic consumer items because of their affordable and convenient availability. Furthermore, the market for ethylene is expanding due to the high demand for plastic consumer goods for packaging applications.

Restraint Factor for the Ethylene Market

Strict Environmental Laws Governing the Manufacture and Use of Ethylene Will Limit Market Growth

The strict environmental laws governing the manufacture and use of ethylene and its derivatives are one of the main factors limiting the market's expansion. The manufacture of ethylene is mostly dependent on fossil fuels like natural gas and naphtha, which entail procedures...

The US ethylene market is poised to expand at a CAGR of 4.4% from 2025 to 2033, driven by rising demand from various end-use industries. Ethylene, a versatile petrochemical, serves as a key building block for a wide range of products, including plastics, textiles, and packaging materials. The growing population and urbanization in the US are fueling the demand for consumer goods and durable products, which in turn is driving the demand for ethylene. Major market trends include technological advancements in ethylene production, such as the adoption of ethane-based feedstocks, which offer cost efficiency and environmental benefits. The focus on sustainability and the adoption of circular economy practices are expected to shape market growth. Additionally, the rising use of bio-based ethylene, derived from renewable resources, is gaining traction as a sustainable alternative to traditional fossil fuel-based ethylene sources. Key drivers for this market are: . Rising Demand for Flavors and Fragrances. Notable trends are: Growing need for energy-efficient and high-performance semiconductors is driving the market growth.

The global ethylene market expanded markedly to $191B in 2024, growing by 11% against the previous year. In general, consumption, however, continues to indicate a relatively flat trend pattern. Over the period under review, the global market hit record highs in 2024 and is likely to see steady growth in the immediate term.

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Ethylene Market Size 2025-2029

The ethylene market size is forecast to increase by USD 63.3 billion at a CAGR of 6.5% between 2024 and 2029.

The market is experiencing significant growth driven by the increasing demand for polyethylene products across various industries, including packaging, construction, and automotive. This trend is expected to continue as ethylene-derived plastics offer advantages such as durability, lightweight, and cost-effectiveness. However, market dynamics are influenced by the emergence of bio-ethylene, a sustainable alternative to traditional ethylene derived from fossil fuels. This shift towards renewable sources presents both opportunities and challenges for market participants.
On the one hand, bio-ethylene offers a more sustainable production process and potential cost savings through government incentives and carbon credits. On the other hand, the production of bio-ethylene is currently more expensive than traditional ethylene, and scaling up production remains a significant challenge. Additionally, volatility in raw material prices, particularly for natural gas and crude oil, continues to impact the market's profitability and strategic planning. Companies seeking to capitalize on market opportunities and navigate challenges effectively must stay informed of these trends and be agile in their business strategies.

What will be the Size of the Ethylene Market during the forecast period?

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The market encompasses the production, trade, and application of ethylene, a colorless, flammable organic compound. Ethylene is a key petrochemical derivative and the primary building block for various ethylene-based derivatives, including polyethylene (PE), ethylene oxide, ethylene glycol, high-density polyethylene (HDPE), and low-density polyethylene (LDPE). These materials are widely used in various industries, including construction, flexible packaging, and the production of bio-based products, lightweight plastics, and market derivatives. The market size is substantial, driven by the increasing demand for ethylene-based derivatives in consumer goods, food, beverages, medications, and various industrial applications. The market's growth is influenced by factors such as the availability of shale oil output, which has led to increased ethylene production capacity.
Additionally, the shift towards sustainable and eco-friendly alternatives, such as bio-polyethylene, is gaining momentum due to growing concerns about carbon footprint and the need for improved barrier qualities in packaging materials. Overall, the market is expected to continue its strong growth trajectory, driven by the diverse applications and demand for ethylene-based derivatives in various industries.

How is this Ethylene Industry segmented?

The ethylene industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Feedstock

  Naphtha
  Ethane
  LPG
  Others


Application

  LDPE
  HDPE
  Ethylene oxide
  Vinyls
  Others


Packaging

  Automotive
  Building & Construction
  Agrochemical
  Textile
  Chemicals
  Others


Geography

  APAC

    China
    India
    Japan


  North America

    US
    Canada


  Middle East and Africa

    UAE


  Europe

    France
    Germany
    UK


  South America

    Brazil


  Rest of World (ROW)

By Feedstock Insights

The naphtha segment is estimated to witness significant growth during the forecast period. Ethylene is a colorless, flammable organic compound used extensively as a raw material in the production of various plastics and petrochemical derivatives. The largest source of ethylene is naphtha, which accounted for over half of the global ethylene production in 2024. However, the naphtha segment is expected to lose market share due to its energy-intensive production process, which results in significant carbon emissions. One kilogram of ethylene production emits approximately 1.8-2 kilograms of carbon dioxide. Europe and APAC are the leading regions in naphtha-based ethylene production. Ethylene is a key ingredient in the production of polyethylene, ethylene glycol, high-density polyethylene (HDPE), low-density polyethylene (LDPE), vinyl acetate, and various ethylene-based derivatives.

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The naphtha segment was valued at USD 56.00 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market size of various regions, R

Global ethylene market size is expected at $117.93 Bn by 2027 at a growth rate of 2.8% Growth And Demand By The Business Research Company.

Ethylene Market size was valued at USD 155.36 Billion in 2024 and is projected to reach USD 210.23 Billion by 2031, growing at a CAGR of 4.25% from 2024 to 2031.

Ethylene Market: Definition/ Overview

Ethylene is a colorless, flammable gas with a sweet odor and taste, primarily composed of two carbon atoms and four hydrogen atoms (C2H4). It is one of the simplest alkenes and is a key building block in producing various chemicals and materials. Ethylene is primarily produced through steam cracking of hydrocarbons derived from petroleum or natural gas. Its most notable application is in the manufacture of polyethylene, the world’s most widely used plastic. Ethylene plays a crucial role in the agricultural sector, where it acts as a plant hormone that regulates processes such as fruit ripening and leaf abscission.

The Ethylene Marketsize was valued at USD 196.4 Billion in 2023 and is projected to reach USD 274.9 Billion by 2032, exhibiting a CAGR of 5.1 % during the forecast period. Ethylene, which is a chemical gas that can be seen on NaCl bonds, has many applications in the field of chemical production, and it’s used for the manufacture of a wide range of other compounds. But this simple alkene, ethyne, with two carbon atoms linked back-to-back by the double bond, is the smallest alkene. However, the term over and above being, if you consider ethylene, then you will be entering into polyethylene, which is the most applied plastic on the market, and based on that, it could also be ethylene oxide as well as ethylene glycol, which are also two greatly used chemicals. Because this viability arises from the identification of ethylene as a molecule having a simple, hard-to-replicate structure and being reactive, the application range is very broad, from plastic-making to being a hormone for plants. Ethylene is viewed as a phytohormone by stress due to fruit ripening and artificial exposure to be good for agribusiness production. Ethylene is important as it is used in the production of detergents and polymer materials. In agriculture, it is used in transporting fruit. Key drivers for this market are: Increasing Demand for Packaging Solutions During Pandemic to Boost Growth . Potential restraints include: Depleting Raw Material Sources and Introduction of Substitutes to Hinder Market Growth.

The ASEAN ethylene market stood at $10.1B in 2024, surging by 6% against the previous year. Overall, consumption, however, showed a relatively flat trend pattern. Over the period under review, the market hit record highs at $10.6B in 2022; however, from 2023 to 2024, consumption stood at a somewhat lower figure.

Global Ethylene Market size is expected to be worth around USD 304.6 Billion by 2033 from USD 177.7 Billion in 2023, | growing at a CAGR of 5.6% during the forecast period from 2023 to 2033.

Ethylene Market size is expected to be worth around USD 320.9 billion by 2033, from USD 182.6 billion in 2023, growing at a CAGR of 5.8%

The India Ethylene market stood at approximately 7.4 million tonnes in FY2023 and is anticipated to grow at a healthy CAGR of 6.12% by FY2030.