PVC Compound Market Outlook - Supply and Demand Analysis 2024-2032

PVC Compound Market

PVC compounds are formed by combining the polymer/PVC resin and additives to achieve the formulation that is necessary for various applications across diverse end-uses. By intricately blending together these ingredients, the compound is prepared, which is then transformed to a gel-based substance. Based on the choice of additives and PVC-type used, the compound generated before gelation can be a free-flowing powder or a liquid. The compound, as a free-flowing powder, is known as a dry blend.

Different additive types that can be used for preparing PVC formulations include PVC resin, filler, flame retardant, plasticizer, impact modifier, pigment, viscosity modifier, UV absorber, and bonding agent, among others.

Upon using plasticizers, PVC compounds are generated as flexible materials, known as P-PVC. On the other hand, compounds generated without plasticizers are specific to rigid applications and are typically known as U-PVC.

Global Supply/Demand Outlook

The global PVC compound market stood at a volume of around 8,900 KT in the year 2023. The market is estimated to grow at a CAGR of 4.50% between 2024 and 2032 to reach a volume of about 11,670 KT by 2032. The versatility of PVC compounds makes them popular as a commodity thermoplastic, with its application ranging from medical uses, such as blood bags, to long life applications like window frames or thermal break Profiles. The key factors propelling the PVC compound market are the growing demand for the product from diverse end use industries, including construction and packaging. The electrical and electronics industry is the major consumer of PVC compounds, with an estimated 44% market share. It is followed by the building and construction sector as the second largest consumer. This growth is driven by the growth of the consumer electronics market, increasing demand for wire and cables, and rapid technological improvements in the electronics sector.

The global capacity of PVC compound was about 11,500 KT in the year 2023. It is estimated to reach 13,600 KT by 2032. The plant capacity utilization of PVC compound reached 80% in 2023.

Regional Market Analysis

In terms of consumption, the Asia Pacific leads the global market for PVC compound with an estimated 68% market share. It is followed by Europe as the second largest market.  In the Asia Pacific, countries like China and India are witnessing a significant demand for consumer electronics and they have emerged as global manufacturing hubs for electronic items, supported by favourable government measures. This favours the demand for PVC compounds in the region’s growing electrical and electronics market.

Key Market Players

The leading manufacturers of PVC compounds are Westlake Global Compounds, Shin-Estu, INEOS Compound, Orbia, and Formosa Chemicals & Fibre Crop.

Westlake is one of the world's leading producers of PVC compounds. Committed to innovation and excellence, the company brings an experience of more than 50 years to each of the industries it serves. The company’s operations in the United States include two PVC resin production facilities in Calvert City, Kentucky and Geismar, Louisana. Vertical integration benefits both these PVC plants, with the primary raw material VCM (vinyl chloride monomer) being produced at these locations.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for PVC compound by application and region?

• What are the major polymer types of PVC compound available by region?

• Which segments and regions are projected to grow at a faster pace and why in the PVC compound market?

• What is the nameplate capacity of PVC compound by region from 2018 to 2032?

• How does the plant capacity utilisation of PVC compound vary by region between 2018 and 2032?

• Who are the major players in the PVC compound market by capacity and region?

• What major plant shutdowns and expansions have occurred in the PVC compound market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the PVC compound market over the next year and quarters?

• How did export and import dynamics of PVC compound vary by region in terms of value between 2018 and 2023?

• How did export and import dynamics of PVC compound vary by region in terms of volume between 2018 and 2023?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of PVC compound?

• What are the environmental considerations and regulatory impacts affecting the PVC compound market?

• What technological innovations are having an impact on the production and application of PVC compound?

• What are the key trends and innovations in the PVC compound market?

• What are the challenges and opportunities faced by PVC compound manufacturers?

• What are the potential risks and barriers to entry for new players in the PVC compound market?

• What strategic investments and expansions have major players made in the PVC compound market?

• How are geopolitical factors and international trade policies affecting the global PVC compound market?

• What are the price trends for PVC compound, and how are they expected to change?

• How does the supply chain of PVC compound operate, and what are its key components?