At 3.6% CAGR, Middle East & Africa Petrochemicals Market is Projected to be Worth US$ 27.97 Billion by 2031, says Business Market Insights

According to Business Market Insights' research, the Middle East & Africa petrochemicals market was valued at US$ 21.15 billion in 2023 and is expected to reach US$ 27.97 billion by 2031, registering a CAGR of 3.6% from 2023 to 2031. Growth in the packaging industry and surge in demand for polymers across various end-use industries are among the critical factors attributed to the Middle East & Africa petrochemicals market expansion.

The petrochemical industry is experiencing significant growth, primarily owing to the expansion of the packaging sector. Petrochemicals, which are derived from oil & natural gas, are essential raw materials for producing plastics, resins, and synthetic fibers, which are vital components of modern packaging. As the demand for packaged goods increases in sectors such as food and beverages, healthcare, consumer goods, and e-commerce, the packaging industry has become a major contributor to the petrochemical market.

The rise of e-commerce has heightened the need for durable, lightweight, and cost-effective packaging. These requirements significantly depend on petrochemical-based products, such as polypropylene, polyethylene, and polyethylene terephthalate (PET). These materials are preferred for their strength, versatility, and recyclability, making them suitable for protecting products during transportation as well as for extending shelf life.

Additionally, the shift toward sustainable packaging, which includes innovations in bioplastics and recycling initiatives, has encouraged the petrochemical industry to innovate further, thereby expanding its market. As consumer preferences evolve toward convenience and sustainability, the demand for advanced, eco-friendly packaging solutions will continue to support growth in the petrochemical sector. Thus, the growth of the packaging industry drives the petrochemicals market.

On the contrary, fluctuations in the crude oil prices hamper the growth of Middle East & Africa petrochemicals market.

Based on type, the Middle East & Africa petrochemicals market is segmented into ethylene, benzene, propylene, xylene, and others. The ethylene segment held 40.2% market share in 2023, amassing US$ 8.50 billion. It is projected to garner US$ 11.34 billion by 2031 to register 3.7% CAGR during 2023-2031.

In terms of application, the Middle East & Africa petrochemicals market is categorized into polymers, paints and coatings, solvent, rubber, adhesives, surfactants, and others. The polymers segment held 60.3% share of Middle East & Africa petrochemicals market in 2023, amassing US$ 12.76 billion. It is projected to garner US$ 17.55 billion by 2031 to expand at 4.1% CAGR during 2023-2031.

In terms of end-use industry, the Middle East & Africa petrochemicals market is segmented into packaging, automotive, construction, electrical and electronics, healthcare, agriculture, aerospace and defense, and others. The packaging segment held 27.0% share of Middle East & Africa petrochemicals market in 2023, amassing US$ 5.71 billion. It is projected to garner US$ 8.16 billion by 2031 to expand at 4.6% CAGR during 2023-2031.

Based on country, the Middle East & Africa petrochemicals market has been categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. Our regional analysis states that the Rest of Middle East & Africa captured 47.7% share of Middle East & Africa petrochemicals market in 2023. It was assessed at US$ 10.09 billion in 2023 and is likely to hit US$ 12.20 billion by 2031, exhibiting a CAGR of 2.4% during 2023-2031.

Key players operating in the Middle East & Africa petrochemicals market are Shell Plc, LyondellBasell Industries NV, Saudi Basic Industries Corp, BASF SE, Dow Inc, Chevron Phillips Chemical Company LLC, China Petroleum & Chemical Corp, Mitsubishi Chemical Group Corp, and Exxon Mobil Corp. among others.

• In October 2023, Aramco planned to use the ExxonMobil MTG technology to convert renewable methanol into renewable synthetic gasoline in NEOM. Commissioning of the licensed MTG unit is expected in 2025. The unit is planned to utilize methanol feedstock derived from green hydrogen and carbon dioxide (CO2) to produce a synthetic, high-octane, drop-in blend stock for potential use on/off road and in racing applications.
• In February 2024, QatarEnergy and Chevron Phillips Chemical celebrated the commencement of construction of a $6 billion integrated polymers complex in Ras Laffan Industrial City, Qatar. The 435-acre project site will include an ethane cracker with a capacity of 2,080 KTA of ethylene, making it the largest ethane cracker in the Middle East and one of the largest in the world. It will also include two high-density polyethylene derivative units with a total capacity of 1,680 KTA.
  
  

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