Polyvinyl Chloride Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices

The global Polyvinyl Chloride market reached a value of about USD 38.44 billion in 2021. The industry is projected to grow at a CAGR of around 6.5% in the forecast period of 2022-2027 to reach a value of about USD 56 billion by 2027.

The global Polyvinyl Chloride industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The rapid development in the infrastructure sector is driving the market's growth.  In the industry report, the key demand indicator is the highest category spender by region—Asia.

Industry Definition and Segmentation

PVC or polyvinyl chloride is a thermoplastic made of chlorine (produced from common salt) and carbon (derived from ethylene from hydro-carbon feedstocks, sugar crops, crude oil and natural gas). It is a natural resource that preserves plastic because, unlike many other polymers, it is less reliant on oil or natural gas. It is available in rigid and flexible versions. It is made of cotton or linen and is used to create a canvas. The Polyvinyl Chloride industry report comprises segments by applications (Pipes & Fittings, Film & Sheet, Profiles, Wire and Cable, Bottles and Flooring and coatings) and region (North America, Europe, Asia Pacific, the Middle East, Africa, and South America).

The Asia Region is Driving the Growth of the Industry

Asia holds the largest share in the industry as China is one of the leading regions in electronics production. Furthermore, the growing medical device market in the region also contributes to the market's growth. Also, the rise in the use of PVC in several countries, including India, and Indonesia, among others owing to the development of industries such as automotive, manufacturing etc., is furthering the industry's expansion.

The market is being driven by the extensive application of the product in the construction and healthcare industry. The product is used to manufacture many products like cables, bottles, fittings, hoses etc., propelling the industry's expansion. The product has a wide range of properties like durability against weathering and rotting, making it a popular choice in manufacturing pipes, windows, etc., furthering the market's growth. PVC flooring also provides various benefits such as aesthetic effects, easy installation, recyclability etc. Furthermore, it is also employed in roofing, thus resulting in increased demand.

However, the adverse effect on the environment in disposing of PVC is likely to act as a market restraint.

Best Procurement Practices

The global Polyvinyl Chloride industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Polyvinyl Chloride regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Salt and oil are two of the most important essential ingredients for PVC production. Chlorine is produced by electrolysis of saltwater, and it is mixed with ethylene (obtained from oil) to generate vinyl chloride monomer (VCM). VCM molecules are polymerized to yield PVC resin, combined with suitable additives to create a specific PVC compound. There are five steps in the manufacturing process; Salt and hydro-carbon resources extraction, ethylene and chlorine generation from these materials, Making vinyl chloride monomer (VCM) by combining chlorine and ethylene; Polymerizing VCM to generate poly-vinyl-chloride (PVC) and Combining PVC polymer with other materials to create a variety of compositions with a variety of physical qualities.

Demand from the Automotive Sector, Further Augmenting the Procurement of Polyvinyl Chloride

The growing use of the product in electric vehicles boosts the market's potential. With the increasing emphasis on minimizing harmful emissions and bettering fuel economy paired with the need to reduce the vehicle's weight, the demand for PVC is accelerating, bolstering the industry's growth.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Polyvinyl Chloride Industry Report

• Shin-Etsu Chemical Co., Ltd.
• Westlake Chemical Corporation
• Formosa Plastics Corp.
• Occidental Chemical Corp.
• INOVYN

Market Landscape

The market is highly fragmented, with few major players that focus on enhancing the production of the material for a wide range of industries. The players are also keen on expanding their clientele, focusing on product differentiation.

Key Initiatives by Companies

• Shintech announced a USD 1.25 billion capital investment in January 2021 to strengthen its integrated PVC company, Shin-Etsu Chemical Co. Ltd, which would increase the production capacity of Shintech Inc., its US subsidiary. Shintech plans to expand its PVC production capacity to 3.62 million metric tonnes per year.
• Orbia intended to sell its PVC Unit in January 2021 because to demand restrictions. However, the final decision on the divestiture has not been made public.