Polyvinyl Chloride (PVC) Market

The polyvinyl chloride market report describes that the polyvinyl chloride market valued at USD 41.2 billion in 2021, is expected to grow steadily. It is projected to increase from USD 45 billion in 2023 to USD 60 billion by 2031 with a CAGR of 3.7%. Poly Vinyl Chloride (PVC) is a thermoplastic material that is the third most widely produced plastic. PVC is manufactured by the polymerization of Vinyl Chloride Monomer (VCM).

Poly Vinyl Chloride (PVC) Demand Analysis:

In terms of applications, the PVC market is segmented into Pipes & Fittings, Rigid films & plates, Tubes & Profiles, Cables, and Rigid Packaging. They are commonly used in plumbing and irrigation systems for transporting water, as they are lightweight, durable, and resistant to corrosion. PVC pipes are also widely employed in sewage systems, drainage networks, and underground cable protection due to their high strength and low cost.

PVC is widely used in construction, packaging, automotive, and electrical industries due to its properties such as lightweight, good mechanical strength, abrasion resistance, and toughness. The construction industry accounts for the largest share of the PVC market owing to the rising demand for better infrastructure facilities, including rising urbanization and quickening industrialization, increasing demand for this segment. The construction industry accounts for most of the PVC which is commonly used in pipes and fittings that include sewer, water pipes, conduit (electrical, telecommunications), irrigation pipes, and others.

Poly Vinyl Chloride (PVC) Region Analysis:

In 2023, the demand for polyvinyl chloride(PVC) is estimated to be approximately 63000 kilotons. Asia Pacific is the largest market for PVC accounting for more than 50% of the global demand due to the rapid growth of the building and construction industry in the past decade. China is currently the largest player in the global polyvinyl market, holding the largest capacity, production, and demand. Europe is the second largest market for PVC, followed by North America. In Asia Pacific, China will be the leading country in terms of capacity additions followed by India.

China exported a total of 5,961 Kiloton of PVC between 2016 and 2021. The total value of these imports was USD 5,543,071.

In 2016, India imported 560 Kiloton of PVC, worth USD 472,892. The imports increased in the following year, with 1158 Kiloton of PVC worth USD 1,083,314 being imported in 2017. The imports grew significantly in the next two years with a 20% drop in 2020 owing to the nationwide lockdown due to the COVID-19 pandemic.

In India, Haldia Petrochemicals, Reliance Industries, Kakinada PVC Plant, and other key manufacturers have announced capacity additions in the forecast period.

• Reliance is the largest producer of PVC in India with three manufacturing units located in Hazira, Dahej, and Vadodara with a combined capacity of more than 700 Kiloton.

• Adani Enterprises has planned to invest $4 billion in a PVC facility at Mundra, Gujarat which will produce different types of PVC grades such as Suspension PVC, Chlorinated PVC, and Emulsion PVC. The project was expected to be operational within four years of acquiring all required clearances, with a target completion date of 2025–2026 but now the company has decided to put the project on hold.

• In December 2022, Indian Oil Corporation has assured to invest more than Rs 4000 Crore in a PVC manufacturing facility in Gujarat making it India’s largest oil refinery.

Owing to the rising demand from all the end-use industries, manufacturers are setting up new plants and increasing the capacities at the existing plants to cater to the demand for PVC all around the world. For instance, Oman is set to start its first-ever PVC plant by mid-2025 in Mesaieed.

Rising demand from the End-Use Industries

• They are used in the construction sector for electrical conduit installations and as conduits for HVAC systems. PVC fittings, such as couplings, elbows, and tees, facilitate easy installation and allow for efficient pipe connections. PVC pipes and fittings provide reliable and cost-effective solutions for fluid transportation and infrastructure development.

• It is used in the automotive industry for the manufacture of underbody coatings and sealants, wire harnesses, synthetic leather for seats, passenger compartment parts, and small exterior trims and fittings as the light weight of plastics makes the vehicles more fuel-efficient.  Every 10% reduction in vehicle weight results in a 5% - 7% reduction in fuel usage which will produce less environmental pollution and less carbon emissions which will positively impact the PVC market. The use of PVC helps in making it cost-effective, and environmentally sound. It helps to make vehicles more affordable.

• PVC has excellent organoleptic properties (it does not affect the taste of the packaged food), and it also protects the food against any contamination by preventing the spread of germs during manufacture, distribution and display. In the packaging industry, it is mainly used in the form of cling film.

• PVC is commonly used in wire & cable insulation and jacketing, as well as in rigid nonmetallic (NM) conduit and cable management systems.

Environmental Impact of PVC

PVC is a synthetic plastic that is derived from non-renewable fossil fuels and requires energy-intensive processes for its production. This raises concerns about its carbon footprint and contribution to greenhouse gas emissions. Additionally, the manufacturing of PVC involves the use of certain chemicals, such as chlorine, which can have harmful effects on human health and the environment. Due to these reasons, several countries are banning the use of PVC. E.g., Taiwan has banned the use of PVC in food packaging.

When PVC is incinerated or improperly disposed of, it can release toxic by-products, including dioxins and phthalates, which have adverse effects on ecosystems and human health.