Home > Bulk Chemicals > Global Petroleum Liquid Feedstock Market Analysis, Size - Industry Overview, 2029
Straits Research

Petroleum Liquid Feedstock Market

Petroleum Liquid Feedstock Market: Information by Type (Naphtha (Heavy, Light), Gas Oil), End Product (Ethylene, Benzene, Propylene, Hexane, Naphthalene), and Region — Forecast till 2030

Table of Content Download Sample

Market Snapshot

market snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
6.7 %
Fastest Growing Market:
Asia Pacific
Largest Market:
North America

Feedstock is a raw material that is used in the industrial process to generate energy. Petroleum liquid feedstock is a blend of several different types of hydrocarbons that are extremely volatile and highly flammable in nature. It is mainly derived by the process of distillation if coal, petroleum, and wood. For instance, Naphtha one of the petroleum products is extracted and obtained from the distillation of crude oil and is used as feedstock for petrochemical and fertilizer industries.

Market Drivers

Increasing Demand for Plastic to Drive the Petroleum Liquid Feedstock Market

Natural gas oil is a key input for plastic production and difficult to transport. Petrochemical manufacturers have a strong dependency on natural gas oils or ethane as a feedstock. The new plastics infrastructure in the Gulf region is highly driven by the U.S. shale gas boom. 

Naphtha is another essential element for a plastic product that is extracted from oil refining. The production of naphtha is done in key oil companies with refining capacity. The five prominent players, namely Chevron, Shell, British Petroleum, ExxonMobil, and China National Petroleum Corporation, together account for over half the global naphtha sales.  The plastic packaging used for food and other commercial products is derived from petrochemical products, including polyethylene and polystyrene. Thus, the massive demand for plastic will eventually drive the petroleum liquid feedstock market.

As per the International Energy Agency, advanced economies of the world, such as the U.S. and those in Europe, currently use as much as 20 times more plastic compared to developing countries, such as Indonesia and India, on a per capita basis. This offers an enormous break for the increasing demand for petroleum liquid feedstock.

Figure 1: Per Capita Demand for Key Plastics in Selected Countries, 2015

Per-Capita-Demand-for-Key-Plastics-in-Selected-CountriesDespite the considerable rise in recycling, measures to repress the single-use of plastics are gaining traction, particularly in countries of Europe, Japan, and Korea. With a considerable amount of harmful plastic litter in oceans and seas, the European Commission proposed new EU-wide rules to target the 10 most single-use plastic products found on the sea and beaches of Europe. Put together these single-use plastic products constitute 70% of all marine litters. Consequently, the proposed regulations are expected to bring both environmental and economic benefits like it aid in preventing the emission of almost 3.4 million tons of CO2 equivalent. These efforts are expected to be offset as developing countries are rapidly increasing their plastic consumption. The unavailability of alternatives for petroleum liquid products is another drawback that will impact the growth of the market.

Rising Oil Prices to Nudge the Demand for Petroleum Liquid Feedstock

The oil and gas prices’ crash of 2014–2016 adversely impacted the petroleum refining market along with the petroleum liquid feedstock market. However, the markets have recovered, with oil prices reaching almost USD 70 per barrel in 2017 from USD 40 per barrel in 2014. The petrochemical industry is a key driver for the petroleum liquid feedstock market. Transportation, construction, and plastic, among other end-use industries, propel the demand for petrochemical products, eventually contributing to the growth of the petroleum liquid feedstock market. Globally, oil consumption is not only enhancing the growth of the petroleum liquid feedstock market but also calling for significant expenditure and substantial investment. The global upstream CAPEX for oil and gas increased by 4% in 2019.

Figure 2: Global Oil and Gas Upstream Capital Spending, 2014–2019

Global-Oil-and-Gas-Upstream-Capital-SpendingSegmental Overview

Chemical Industry: The Most Prominent End User of Petroleum Liquid Feedstock

Ethylene, an end product of petroleum liquid feedstock, acts as a starting element for various industrial synthesis. It is extensively used in the chemical industry for the production of polymers. In the past few years, the chemical industry has witnessed a considerable surge in growth. In 2018, the top ten chemical-producing countries accounted for 86.7% of global chemical sales. China alone accounted for USD 1,338 billion, which was almost equivalent to both Europe and NAFTA’s chemical sales of USD 1,223 billion.

The chemical industry is pivotal to the economic development of growing countries, such as India. India’s chemical sector accounts for about 10.5% of the country’s foreign trade. Although chemicals are vital, their implications on human health and environmental degradation are immense. The chemical industry is expected to witness a gradual eastward shift towards Asia, looking at the debouching trends and proclivities in the manufacturing sector, which will further drive the growth of the petroleum liquid feedstock market in Asia-Pacific.

Global chemical sales were valued at around USD 3,730 billion in 2018. The chemical industry is an important part of the world economic landscape and plays an essential role in economic growth across the globe. Growth and developments in the chemical industry are essential to meet the various targets set by the United Nations Sustainable Developmental Goals (SDGs).

The global market is witnessing a significant upsurge in the FDI and government investments in the chemical and petrochemical industry. In addition, several governments around the globe have introduced favorable policies in terms of aid and subsidies for boosting industrial growth. As per data by Oxford Economics, the total contribution of the chemical industry to the global GDP was valued at around USD 5.7 trillion, and the total global amount spent on R&D activities accounted for USD 51 billion.

Elements such as ethane and propylene are used abundantly in the chemical industry. Several gases, such as acetylene, benzene, propane, and ethylene, derived from the refining of petroleum and used in various end products, such as paper, paints, textiles, and pharmaceuticals, are propelling the petroleum liquid feedstock market.

Use of Ethylene in Controlling Fruit Ripening & Promoting Crop Growth

An ethylene or nitrogen mixture supplied in cylinders is used to control the ripening of fruit, especially bananas, wherein a concentration of a few ppm in the warehouse atmosphere. It also finds application in promoting crop growth, wherein the gas is directly injecting into the soil. Thus, the growth of the agriculture sector will directly translate to the growth of the petroleum liquid feedstock market.

The demand for petroleum liquid feedstock is on an upward trend in Asia-Pacific on account of the increasing number of food manufacturing plants. In 2017, Singapore’s food industry contributed USD 4.3 billion to the country’s GDP (1.1%). China accounts for about one-fourth of the world’s total population and, therefore, serves as one of the largest consumer markets. The country imported 53.48 million tons of food and beverage in 2017. With Asia’s vast food industry, the regional petroleum liquid feedstock market is bound to grow manifold during the forecast period.

Key Players

  • Chevron Phillips Chemical Company
  • Exxon Mobil Corporation
  • China National Petroleum Corporation
  • Shell
  • Flint Hills Resources
  • Idemitsu Kosan Co., Ltd.
  • China Petroleum and Chemical Corporation
  • Royal Dutch Shell plc
  • TOTAL S.A.
  • British Petroleum
  • Reliance Industries
  • YPF

Report Scope

Report Metric Details
Market Size USD in Billion By 2030
CAGR CAGR 6.7%
Historical Data 2019-2020
Base Year 2021
Forecast Period 2022-2030
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered by Type (Naphtha (Heavy, Light), Gas Oil), End Product (Ethylene, Benzene, Propylene, Hexane, Naphthalene)
Geographies Covered North America, Europe, Asia-Pacific, LAME and Rest of the World
Key Companies Profiled/Vendors Chevron Phillips Chemical Company, Exxon Mobil Corporation, China National Petroleum Corporation, Shell, Flint Hills Resources, Idemitsu Kosan Co., Ltd., China Petroleum and Chemical Corporation, Royal Dutch Shell plc, TOTAL S.A., British Petroleum, Reliance Industries, YPF ,
Key Market Opportunities The Bulk Chemicals Industry'S Substantial Growth Fuels The Petroleum Liquid Feedstock Market

Petroleum Liquid Feedstock Market Segmentation

By Type

  • Naphtha
    • Heavy Naphtha
    • Light Naphtha
  • Gas Oil

By End Product

  • Ethylene
  • Benzene
  • Propylene
  • Hexane
  • Naphthalene
  • Others

By Region

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • Germany
  • France
  • Italy
  • The U.K.
  • Spain
  • Russia
  • Poland
  • The Rest of Europe

Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Vietnam
  • Indonesia
  • Malaysia
  • Singapore
  • The Rest of APAC

Central and South America and the Caribbean

  • Brazil
  • Argentina
  • Colombia
  • The Rest of Central and South America and the Caribbean

The Middle East and Africa

  • Saudi Arabia
  • The UAE
  • Iran
  • Kuwait
  • Tanzania
  • South Africa
  • The Rest of MEA

Frequently Asked Questions (FAQs)

Shell, Flint Hills Resources, Idemitsu Kosan Co., Ltd., China Petroleum and Chemical Corporation, Royal Dutch Shell plc, TOTAL S.A., British Petroleum, Reliance Industries, and YPF are the top players in Petroleum Liquid Feedstock Market.
Ethylene End Product Segment is expected to be the leading segment in Petroleum Liquid Feedstock Market during the forecast period.
Increasing demand for plastic, and rising oil prices are the key factors expected to drive Petroleum Liquid Feedstock Market during the forecast period.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.
Price Starts From
USD4250

Purchase Benefits

  • Eligible for a free updated report next year
  • Completely customizable scope
  • 30% discount on your next purchase
  • Dedicated account manager
  • Query resolution within 24 hours
  • Permission to print the report
Want to learn more about recent trends and data ?
They Already Trust Us :
LG Chemicals
LCY chemical group
Bayer
Airrane
BASF
Lubrizol Corporation
HB Fuller
MITSUBISHI CHEMICAL
Need Assistance?
+1 646 480 7505 (U.S.)
+44 208 068 9665 (U.K.)
Looking For Custom Report ?

Report Benefits

  • Develop business strategies by understanding the trends shaping and driving the Market.
  • Drive revenues by understanding the key trends, innovative products and technologies, market segments, and companies likely to impact the Market in the future.
  • Formulate effective sales and marketing strategies by understanding the competitive landscape and by analysing the company share of market leaders.
  • Identify emerging players with potentially strong product portfolios and create effective counter-strategies to gain a competitive advantage.
  • Track sales in the global and country-specific Market.
  • Organize your sales and marketing efforts by identifying the market categories and segments that present maximum opportunities for consolidations, investments and strategic partnerships.
Check Our License Options :
Report Snapshot

As featured on :

clients
Trusted by Fortune 500
Over 30000+ subscribers