Petrochemical industry worldwide - statistics & facts
In 2022, the petrochemical industry marked its significance in the global economy, accounting for more than 12.1 percent of oil demand within OECD countries. Petrochemicals transform raw materials derived from processing oil and gas into a myriad of products that are integral to daily life, ranging from plastics, synthetic fibers, and fertilizers to adhesives, dyes, detergents, and synthetic paints and coatings. The market value of petrochemicals surged to 584.5 billion U.S. dollars in 2022, reflecting the industry’s expansive reach and the persistent worldwide demand for its products.
Downstream industries use the basic petrochemicals produced in upstream industries as inputs and convert them into finished products such as plastics or synthetic fibers. For instance, a major share of ethylene production is used to manufacture polyethylene, a common plastic material that accounts for roughly 30 percent of global thermoplastic production. The market value of polyethylene stood at 168.4 billion U.S. dollars in 2022 and is expected to reach almost 205.29 billion by 2030.
Growing demand, along with an expected decline in the consumption of fossil-derived liquid fuels in the transportation sector, could make petrochemicals the largest driver for oil demand in the near future and as such it is important to note that the expansion of the petrochemical industry comes with significant environmental implications. Accordingly, improving the sustainability of this sector will become increasingly important.
How is the petrochemical industry structured?
The petrochemical sector can be roughly divided into upstream and downstream processing. Upstream industries convert feedstocks such as naphtha or natural gas into basic petrochemicals, namely olefins, aromatics, and methanol. Olefins include ethylene, propylene, and butadiene, while aromatics comprise benzene, toluene, and xylene. Ethylene is the most widely produced basic petrochemical worldwide. In 2022, the global production capacity of ethylene amounted to 225.52 million metric tons.Downstream industries use the basic petrochemicals produced in upstream industries as inputs and convert them into finished products such as plastics or synthetic fibers. For instance, a major share of ethylene production is used to manufacture polyethylene, a common plastic material that accounts for roughly 30 percent of global thermoplastic production. The market value of polyethylene stood at 168.4 billion U.S. dollars in 2022 and is expected to reach almost 205.29 billion by 2030.
Petrochemical industry outlook
The production capacity of petrochemicals worldwide reached almost 2.4 billion metric tons in 2023. By 2030, it is expected to grow significantly, with China, India, and Iran the countries with the largest petrochemical capacity additions announced or planned. China alone plans to add an additional capacity of 134 million metric tons per year, dominating the market in the medium term. Likewise, forecasts point to a growth in the petrochemical market in the next years. By 2030, the petrochemical industry’s global market value is expected to reach over one trillion U.S. dollars.Growing demand, along with an expected decline in the consumption of fossil-derived liquid fuels in the transportation sector, could make petrochemicals the largest driver for oil demand in the near future and as such it is important to note that the expansion of the petrochemical industry comes with significant environmental implications. Accordingly, improving the sustainability of this sector will become increasingly important.
