Japan polyolefins market size was valued at USD 10.54 billion in FY2023, which is expected to grow to USD 16.9 billion in FY2031, with a CAGR of 6.1% during the forecast period between FY2024 and FY2031. The bolstering transport industry and the increasing employment of polyolefins in packaging applications to protect products from external deteriorating elements are the vital factors accelerating the market growth in Japan.
The growth of the transport sector in Japan is credited to various determinants such as increasing research & development initiatives, expansion of the e-commerce industry, and others. In addition, the increased supply of healthcare products, the rapid pace of logistics growth, and boosting adoption of eco-friendly packaging are the prominent trends boosting the demand for packaging applications. Henceforth, the booming transport industry and the rising utilization of packaging are fostering the adoption of polyolefins in Japan to ensure superior chemical resistance, spurring market growth.
Flourishing Production of Transport Components in Japan Supplements Demand for Polyolefins
Polyolefins, including polyethylene, polypropylene, and other types of thermoplastics, are equipped with various beneficial technical properties, including withstanding temperature in the range of 80°C to 90°C and a density of 0.910–0.940 g/cm3. The above-listed technical properties ensure an efficient reduction in the coefficient of friction (COF) for transport manufacturers. Polyolefin is deployed in various transport components such as aircraft, automotive, etc.
For instance, according to the International Trade Administration (ITA), in 2021, the production of aircraft components in Japan was USD 10,515 million, and in 2022, it was USD 16,602 million, an increase of 57.89%. Thus, increasing the production of transport components fosters the demand for polyolefins to ensure significant weight reduction, accelerating market growth.
Rising Deployment of Polyolefins in Packaging Applications
Polyolefins are a vital material in packaging products to ensure cost-effectiveness and sustainability, packaging can comply with food-grade packaging norms. The polyolefins such as polyethylene and polypropylene are utilized in packaging applications, including films, bottles, wraps, and others. The increasing deployment of sustainable packaging solutions and the robust demand from the logistics sector are the prime factors fostering packaging adoption in various end-use industries.
For instance, according to the Japan Packaging Institute, in 2022, the packaging industry in Japan registered a year-on-year growth rate of 6.6%, reaching USD 50.3 billion (Japanese YEN 6,577.5 billion). Hence, the bolstering packaging industry in Japan is driving the production activities related to products such as containers and bottles. It, in turn, is boosting the adoption of polyolefins in Japan to ensure superior durability, thereby accelerating the Japan polyolefins market growth.
The Booming Electrical & Electronics Industry is Proliferating the Market
The polyolefin products such as ethylene vinyl acetate and others are primarily employed in the electrical & electronics industry due to their superior benefits, including flexibility, polarity, cost-effectiveness, and excellent processability. Polyolefin is utilized in a diverse range of electrical & electronic products, such as printed circuit boards (PCB) and smartphones. The favorable regulatory framework is increasing investment in new electronics manufacturing plants, amplifying the growth of the electrical and electronics industry in Japan.
For instance, according to the Japan Electronics and Information Technology Industries Association (JEITA), in 2022, the production of the electrical and electronics industry in Japan registered an annual growth rate of 0.2%, reaching USD 83,997.76 million (Japanese YEN 1,09,77,229 million). Henceforth, the advancement in Japan’s electrical & electronics industry is fueling the demand for polyolefins to ensure excellent electrical insulation, increasing the market growth.
Impact of COVID-19
The COVID-19 restrictions in 2020 significantly declined the import-export of polyolefin products as the international trade between countries was halted. For instance, according to the International Trade Centre (ITC), the imports of ethylene-vinyl acetate in Japan were valued at USD 5,781 thousand. In 2020, it was USD 5,597 thousand, a decline of 3.2%. Thus, the decrease in the import of polyolefin products in Japan resulted in diminishing revenue growth of the market in 2020. However, the ease of COVID-19-related regulation at the end of 2020 led to more substantial polyolefins market condition growth in Japan.
Impact of Russia-Ukraine War
The supply chain constraint due to the Russia-Ukrane war impacted the production activities associated with automotive in Japan during the 1st quarter of 2022.
According to the Organisation Internationale des Constructeurs d’Automobiles (OICA), 2021 passenger cars manufactured in Japan were 6,619,245 units, and in 2022, it was 6,566,356 units. In 2022, passenger cars manufactured in Japan registered a decline of 1% over 2021. Henceforth, the prolonged war between Russia and Ukraine is anticipated to impact the supply chain and pricing of materials. It, in turn, may influence the growth rate of the Japan polyolefins market in the forecasted period.
Japan Polyolefins Market: Report Scope
“Japan Polyolefins Market Assessment, Opportunities and Forecast, FY2017-FY2031F” is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Japan polyolefins market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities, and forecast between FY2024 and FY2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business model, competitive intelligence, etc.
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