Plastics to be the Main Driver for Crude Oil Demand
Industry experts at ArabPlast 2019 indicated that plastics will be the main driver for crude oil demand, accounting for more than 33 percent of oil demand growth globally in the period to 2030. ArabPlast 2019 – the biggest plastics, petrochemicals and rubber industry exhibition in the Middle East and North Africa (MENA) region, closed on a grand note witnessing the participation of more than 900 companies from 32 countries.
It has been observed that plastics – the key driver for petrochemicals from an energy perspective – has outpaced all other bulk materials (such as steel, aluminium, or cement), nearly doubling since 2000. Advanced economies currently use up to 20 times more plastic and up to 10 times more fertiliser than developing economies on a per capita basis, underscoring the huge potential for global growth.
“Plastics is experiencing a surge in demand, and the growth is fuelled by varied sectors. While packaging and infrastructure remain the key industries driving the growth of the plastics, construction plastics are also in high demand,” said Satish Khanna, General Manager, Al Fajer Information & Services, Dubai, organisers of ArabPlast 2019.
The construction plastics market was estimated to be USD 75.6 billion in 2018 and is projected to reach USD 105.7 billion by 2023, at a CAGR of 6.9 percent. About five percent of the world’s petroleum is estimated to be used to make plastics. Plastics are widely used in the construction industry for application in pipes and windows, among others.
“Plastics have exceptional utility. It is not only flexible and affordable, but can also resist severe weather conditions, making it a popular source of item in the Middle East, Asia and Europe,” added Khanna.
Asia Pacific (APAC) is the largest and the fastest-growing market for construction plastics. In addition, China continues to drive the global demand of plastics due to its rising population and rapidly growing infrastructure facilities. Given the rise in construction, Middle East, Europe and US also serve as key players for driving demand in the industry.
In addition to construction and buildings, packaging is another sector driving the global demand for plastics. From bottles to food wrappers, the largest segment of the packaging plastics market, account for about 36 per cent of global demand. For more information about Arabplast please visit: www.arabplast.info