Asia-Pacific Linear Alpha Olefin Market – Butene-1

Asia-Pacific Linear Alpha Olefin Market  –Butene-1

 In terms of Butene-1 consumption, China is expected to grow at 10.5% during the forecast period due to strong growth in its polyethylene applications. In Asia Pacific, the polyethylene application accounts for more than 86%of making it one of the major applications of Butene-1  on account of the strong demand from LLDPE and HDPE end-use applications and rising middle class, and increase in disposable income in China, India, Indonesia and other developing economies. China has a strong petrochemicals industry with a lot of focus on research and development activities and a lot of new polyethylene, polypropylene and other chemical capacities were added in 2009 –2014. China further plans to add new swing HDPE/LLDPE and dedicated HDPE polymers capacities during the forecast period. India has also invested in polyethylene plants in the country and it is now a net exporter of polyethylene. There is one capacity planned by Long Son Petrochemical Company in Vietnam and other mid-sized polyethylene plants in Thailand as well. This can prove to be a driving force for butene-1 demand in the Asia Pacific region.

China is the biggest market for butene-1in the region in 2017 with a consumption of almost 226 kilotons accounting for almost 41% of the regional demand. It has benefited owing to the huge demand for polyethylene to meet its infrastructure and construction needs. South Korea is the second biggest market and the total demand was estimated to be 72.1 kilotons accounting for a share of 13.1% and estimated to grow at a CAGR of 2.3% on account of an increase in consumption of LLDPE in the region. India’s butene-1 consumption in 2017 has been estimated at 63.3 kilotons followed by Thailand 61.1 kilotons. All of the other countries like Vietnam, Malaysia, Thailand, Singapore and other Rest of Asia-Pacific individually consume between10 kilotons to 25 kilotons each. China and India will see the strongest level of demand growth spurred on by new investments for polyethylene plants and increasing the manufacturing sector. Both countries have one of the largest and most diverse plastics manufacturing sectors and still remain an attractive location for manufacturing. 

The Asia-Pacific Butene-1 in terms of value was estimated to be around USD 467.7 million while the higher LAO market was valued at USD 149.6 million. The Asia-Pacific region is expected to be one of the largest markets in the long-term forecast owing to strong plastics and polymers industry and fast-growing market in major Asian countries like China, Japan, India, South Korea, and other Asia-Pacific countries. The regional Butene-1market is projected to reach USD 895.3 million by 2025, at a CAGR of almost 8.5%. Increasing demand for Polyethylene applications especially LDPE and some demand from HDPE are expected to fuel the demand for butene-1.

In terms of value, the biggest market in Asia-Pacific for butene-1 is China followed by South Korea. The Asia-Pacific Butene-1 market was valued at USD 467.7 million. The third biggest market was India estimated at USD 53.8 million. The Higher LAOs value market was around USD149.6 million in 2017 and it is expected to grow at a CAGR of 3.7% during the forecast period to reach USD 199.2 million. 

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