Organic compound: As input price volatility eases, industry revenue will grow more consistently

IBISWorld’s industry research report on Petrochemical Manufacturing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.


Industry Threats & Opportunities

  • Industry revenue is expected to recover as commodity prices eventually rise
  • Fluctuations in the price of oil and gas strongly impact industry revenue
  • Increasing domestic supply of petrochemical inputs has resulted in new industry entrants
  • Industry Analysis & Industry Trends

    The past five years have been volatile for the Petrochenical Manufacturing industry, as revenue has been sensitive to changes in prices of its key inputs, crude oil and natural gas. With oil and gas prices collapsing in 2014, vertically integrated major players were forced to pass on reduced prices down the supply chain. As a result, industry revenue fell over the five years to 2017. Over the five years to 2022, industry revenue is expected to recover as commodity prices eventually rise. Vertically integrated companies will be able to take advantage of their economies of scale and further expand production.


    Industry Report - Industry Investment Chapter

    The Petrochemical Manufacturing industry requires a high amount of capital investment. In 2017, industry companies will spend $1.02 on capital for every dollar spent on labor, reflecting the high-tech, high-cost nature of the plants used to manufacture the relevant products.

    The cost of new plants and equipment is significant; for example, industry operator Royal Dutch Shell recently announced plans to build a new $6.0 billion ethane cracker plant in Pennsylvania. The manufacturing process requires a highly-mechanized process that involves large complex machinery that turns feedstock into different chemicals through a process known as cracking.

    Capital intensity is expected to remain high over the five years to 2022. Whi

    Additional Insights for the Petrochemical Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petrochemical Manufacturing Industry are

  • Having contracts that are favorable to purchaser
  • Optimum capacity utilization
  • Upstream vertical integration (ownership links)
  • IBISWorld analysts also discuss how external factors such as Demand from plastic and resin manufacturing and Price of natural gas in the Petrochemical Manufacturing industry impact industry performance..

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    Industry Products

    What is the Petrochemical Manufacturing Industry?

    This industry manufactures petrochemicals, which are chemicals derived from refined petroleum or liquid hydrocarbons. Key products include ethylene, propylene, butylene, benzene, toluene, styrene, xylene, ethyl benzene and cumene. These products are used in the production of consumer products, automotive components and various durable and non-durable goods. Organic compounds like ethyl alcohol and inorganic chemicals like carbon black are excluded from the industry.

    Industry Products
    Aromatics (benzene, toluene, xylene, etc.)
    Liquefied refinery gases (aliphatics)
    All Other
    Industry Activities
    Manufacturing olefins made from refined petroleum or liquid hydrocarbons
    Manufacturing polyolefins made from refined petroleum or liquid hydrocarbons
    Manufacturing ethylene made from refined petroleum or liquid hydrocarbons.

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from plastic and resin manufacturing
  • Price of natural gas
  • World price of crude oil
  • Trade-weighted index

  • Current Performance
  • Production boom
  • Commodity prices crash
  • Trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Input price volatility
  • Downstream industries to buy more petrochemicals
  • New facilities come online
  • Table: Petrochemical Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petrochemical Manufacturing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Textile Mills
  • Plastic & Resin Manufacturing
  • Soap & Cleaning Compound Manufacturing
  • Polystyrene Foam Manufacturing
  • Plastic Bottle Manufacturing

  • Key Selling Industries
  • Oil Drilling & Gas Extraction
  • Petrochemical Manufacturing
  • Petroleum Refining

  • Products & Services
  • Liquefied refinery gases (aliphatics)
  • Aromatics (benzene, toluene, xylene, etc.)
  • All Other
  • Chart: Petrochemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Plastic, resin and synthetic rubber manufacturers
  • Polystyrene foam manufacturers
  • Other domestic chemical manufacturers
  • Exports
  • Chart: Major Market Segmentation for the Petrochemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Petrochemical Manufacturing

  • Basis of Competition
  • Internal Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petrochemical Manufacturing Industry

  • Industry Globalization
    Major Companies
    LyondellBasell Industries NVChevron Phillips Chemical Company LLCIneos Group
  • Table: LyondellBasell Industries NV - financial performance
  • Table: Chevron Phillips Chemical Company LLC - financial performance
  • Table: Ineos Group - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Petrochemical Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Petrochemical Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of Natural Gas (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
  • A gaseous organic compound used in chemical reactions to make other chemicals. It is used in polymerization, oxidation and halogenation.
  • Hazardous Air Pollutants (Haps)
  • Hazardous air pollutants are known or suspected carcinogens.
  • Petrochemical
  • A chemical product derived from petroleum, but that can also be obtained from other fossil fuels like coal or natural gas.
  • Propylene
  • An unsaturated organic compound used in the production of polypropylene, a versatile polymer used in packaging and other plastic products.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Petrochemical Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Petrochemical Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Petrochemical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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