Ethylene Market - Regional Analysis
APAC Market Insights
The Asia Pacific market 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. In addition, rapid industrial growth and urbanisation in the region are increasing the demand for packaging and construction materials, which ultimately influences the growth of the ethylene market. One of the latest developments in the region is the agreement between Enilive and LG Chem in August 2025 to establish the very first HVO/SAF Plant in South Korea and cater to rising ethylene demand.
China is anticipated to expand at a CAGR of 7.2% during the forecast period due to rising demand for petrochemicals. The demand and prices for ethylene in China are the highest in the world as the country continues to import raw materials required for the production of the crucial chemicals. CNOOC Petrochemicals Investment Ltd and Shell Nanhai B.V. formed a joint venture in January 2025 to meet the rising demand for petrochemicals. Through this, investment decisions have been finalised for the expansion of the petrochemical complex in Daya Bay, Huizhou, south China.
India market is expected to evolve rapidly with a CAGR of 6.7% during the forecast period due to relevant government initiatives to enhance the sales of ethylene and its derivatives. One such example is the partnership of GAIL with Scientech Inc., a U.S.-based producer of biofuel, in August 2024 for the establishment of a 500 kilo-tonne bio-ethylene plant in India every year. The rising need for plastic packaging is another factor fuelling the growth of the market in India.
North America Market Insights
North America is expected to emerge as one of the fastest-growing ethylene markets, expanding at a CAGR of 6% due to the presence of organisations investing in ethylene production and export. The availability of oxidative dehydrogenation in North America is another factor that fosters the growth of the ethylene market, providing the opportunity to enhance the production of ethylene. As reported by the American Chemical Society (ACS) in July 2022, 50% stakes of the U.S and China ethylene complex were bought by LyondellBasell. The company also has plans to build a high-density plant for polyethylene in Corpus Christi, Texas.
The ethylene market in Canada is expected to expand at a CAGR of 6.7% throughout the forecast period due to investments in low-emission technologies. Several funding, incentive programs, and grants are managed by the Federal Government of Canada with the motive of encouraging research & development, and demonstration across the nation. One such example is the announcement to invest around USD 9.5 million by the local government in February 2025 for six innovative projects focused on carbon capture, storage, and technologies related to transportation.
The U.S is likely to register a CAGR of 5.9% during the forecast period due to rising production of ethane across the nation. In July 2022, TotalEnergies announced the establishment of a new ethane cracker in a joint venture with Borealis. The rising adoption of ethylene across multiple industries, including packaging, automobile, consumer goods, and others in the U.S, also fuels the growth of the ethylene market.
Europe Market Insights
Europe is expected to register rapid growth during the forecast period due to a focus on sustainability, resilience, and efficiency. Rising production of ethylene and growing demand for the same in the automotive sector is a key factor fueling market growth in the region. The increased production of ethylene fosters the market growth by meeting the rising demand for polyethylene. For instance, the announcement of Regulation (EU) 2022/1616 in September 2022 has fostered the safety of food packaging by obligating the use of recycled plastics in packaging.
Germany is expected to emerge as a steadily growing ethylene market, expanding at a CAGR of 7% during the forecast period due to the rising demand for sustainable packaging. Increasing investment in ethylene production is another factor that fuels the growth of the ethylene market. For example, an investment of USD 582.47 million was initiated by BASF in 2022 for increasing the production capacity of ethylene by 400000 metric tons per year. The plan also includes the increase of production capacity of ethylene in Germany as well, fostering the ethylene market growth across the nation.
The UK is anticipated to register a CAGR of 6.5% throughout the forecast period, due to the rising use of polyethylene in the production of sustainable packaging. For instance, in January 2023, Tesco revealed its plans to use discarded plastics for fish packaging. Controlled recycling of discarded plastics through processes such as pyrolysis can break them down into valuable hydrocarbons, including ethylene, which can then be reused in packaging production, thereby reducing reliance on fossil fuel–derived ethylene. The rising demand for lithium-ion batteries due to the rising adoption of EVs also fuels the growth of the ethylene market in the UK.
