High Chain Alpha Olefins Market - Forecast(2023 - 2028)

High Chain Alpha Olefins Market size is forecast to reach $12 billion by 2026, after growing at a CAGR of 5% during 2021-2026. With the rising demand for polyolefin co-monomers such as high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and others from packaging industries, consumer goods, and industrial processes, aid in the growth of high chain alpha olefins market. Alpha olefins (alkenes) are propene like 1-butene, 1-hexene, amines, and others are used in the production of plastic. Hence, the surging demand for plastics from packaging industries is augmenting the growth of the high chain alpha olefins market. Increasing use of alpha-olefin in the formulation of drilling fluids for oil and gas industries is also boosting the growth of the high chain alpha olefin industry. Also, in this forecast period, increasing demand for paper and pulp is further expected to drive the regional market.

The report: “High Chain Alpha Olefins Market– Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the High chain alpha olefins industry.

By Product: 1-Butene (Polybutene, Butadine, Butylene Oxide, Ethylkeyone, others), 1-Decene (Tetradecene, Hexadecane, Octadecene, others), 1-Hexene (Polyethylene, Cyclohexene, Neohexene, others), 1-Octene, 1-Dodecene, Amines (C12-C14, C14-C16, C16-C18, others), Ethylene (Tetraethylene, Hexaethylene, Octaethylene, others), and Others.

By Application: Polyolefin Co-monomers (High-Density Polyethylene, Linear Low-Density Polyethylene, others), Lubricants, Plasticization, Household Detergents (Dishwasher, Glass Cleaners, Stain Removers, others), Food & Beverages, Perfume & Fragrances, Detergent Alcohols, and Others.

By End Use Industry: Packaging {Food & Beverage (Dairy Products, Confectionery Packaging, Pet Food, Wine/beer/spirits Packaging, others), Healthcare & Medical (Pharmaceutical, Medical Devices, Vaccines, others), General Goods (Home Care, Personal Care & Cosmetics, others)}, Electronics, Paper & Pulp, Textile, Automotive, Mining, Consumer Goods, and Others.

By Geography: North America (U.S., Canada, and Mexico), Europe (U.K., Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, ANZ, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa).

1-Hexene is expected to dominate the high chain alpha olefins market size throughout the forecast period. 1-hexene majorly used in the production of polyethylene and plasticizers, also used in production of Oxo alcohols, and synthetic fatty acid. Apart from this 1-butene (propene) is the most common material used for the production of low-density polyethylene and high-density polyethylene (both are polyolefin). Thus, the high demand for polyethylene due to growth in the packaging industry is expected to boost the hexane sector. It is also used for lubricants that are expected to further growth of the market. On the other hand, isobutylene olefin is used in automotive sector for manufacturing of tires of cars and other vehicles, which is likely to grow the market demand.

Polyolefin co-monomer segment dominated the high chain alpha olefins market is 2020 and is growing at a CAGR 6.5% during this forecast period. Polyolefin co-monomers are majorly used in industrial sector, automotive sector and construction activities. Polyolefin is also used in medical and pharmaceutical sector for high efficiency particulate absorbing filter certification, which is an efficiency standard of air filter. Thus, increase in demand of polyolefin fuels the growth of high chain alpha olefin market.

Packaging segment by end use industry leads the high chain alpha olefins market share in 2020, with increasing use of polyethylene in food packaging sector, healthcare sector, medical packaging, consumer goods, and so on. Also, alpha olefins (like isobutylene, 1-butene, alkenes) are used as raw material in pharmaceutical packaging due to easily availability, which boost growth of the high chain alpha olefins market. Polyethylene & papers, both are widely used in packaging industry for wrapping or covering application. According to All India Plastics Manufacturers' Association (AIPMA), India’s polyethylene demand may increase by 129%, surpassing Asia’s projected growth rate of 81% by 2023. Plastic sheet use for safety purpose of product and protect the food from moisture. Hence, increases in sales of packaging have promote the growth of high chain alpha olefins, which are used as lubricants.

North America dominating the high chain alpha olefins market share with 40%, due to widely utilizing in polyethylene, house hold detergents, lubricants, and plasticizers. Polyethylene is consumed in large quantities in North America whereby increases the production capacity of plastic, which helps to increase the market. Olefins are used as the raw material for making polyolefin which is widely accepted in polyethylene and paper resins. United State is one of the largest consumers of plastics products. According to American Chemistry Council (ACC) in 2018, plastics were generated 35.7 million tons in the United States, which was 12.2 % Municipal Solid Waste of (MSW) generation. While plastics are found in all major MSW categories, the containers and packaging category had the most plastic tonnage at over 14.5 million tons in 2018. Growing adoption of lubricants in automotive and isobutylene, alkene & 1-butene in pharmaceutical industry, due to maintenance of tools, bearing capacity, and solvency along with reducing environmental impact will favor regional growth.

Synthetic lubricants are highly desirable characteristics such as high viscosity index, thermal stability, oxidative stability, and low toxicity. Polyalphaolefins (PAOs) are high-performance based synthetic lubricant. PAOs offer superior performance in environmental concerns and highly compatibility with minerals oils. PAOs can be used as a substitute for vegetable-based oils because PAOs are biodegradable lubricants. PAOs based synthetics lubricants eliminate the drilling operations with no errors. Lubricants offers high viscosity and low toxicity, due to these benefits, the application of high chain alpha olefins market in lubricant production is growing.

Paper & pulp has played an important role in helping to fight the spread in COVID-19. Papers and pulps are too hygiene products. Many paper mills are implemented social distancing and produce essential products such as packaging, medical & health care, and personal care goods, paper & pulp industry is more sustainable & environmentally practices, recycled fiber is growing as a major source of raw material. Recycling can helps reduce growth in energy intensity & emission. Increasing demand for lightweight paper packaging has been fostering the growth of the high chain alpha olefins market. Paper bags are used in wrapping materials, packaging films, and fluid containers.

The volatile raw material prices have a considerable impact on the alpha olefins market. With the increment in prices of raw material, the cost of production of high chain alpha olefins also increased, and when cost of production increases then also the price of polyolefin may surge. In addition, new technologies & manufacturers requires high capital, it hampers the growth of the high chain alpha olefins market. Fluctuating price of the raw material is considered to have a huge impact on high chain alpha olefins market. Rising price of raw material will impact on production cost, which will lead the overall cost of manufacturing, thus, the rising cost of production increases in the price of high chain alpha olefins market, which will hamper to the growth of the high chain alpha olefins market.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the high chain alpha olefins market. Major players in high chain alpha olefins market top 10 companies are Royal Dutch Shell, Chevron Phillips Chemical Company, INEOS, SABIC, Sasol, Evonik Industries, Dow Chemical Company, ExxonMobil, Mitsubishi Chemical, and JAM Petrochemicals Company, among others.