What is the current projection for global PVC capacity and demand?
The demand is predicted to reach 45.03 million metric tons (MMT) by the end of 2023, while the capacity of PVC worldwide is anticipated to reach 64.02 million MMT. For the PVC industry, these forecasts show an impressive development trajectory.
Which PVC procurement market segments are growing at a substantial rate?
Sustainable building materials are becoming increasingly necessary as urbanization accelerates, and the construction industry is leading this move. Packaging, automotive, textiles, and healthcare are just a few industries dominated by the flexible PVC market.
Which crucial topics are part of the PVC procurement market research report?
In addition to significant players influencing the PVC market environment, noteworthy industry niches, regional dynamics, and factors driving market expansion, the research report includes details on the anticipated capacity and demand for PVC globally.
DESCRIPTION
Global PVC Procurement Market Size
The PVC procurement market research report by ELINT Market Research provides data that indicates a positive outlook for the PVC industry amidst the ever-changing PVC surroundings. According to the most recent data, PVC is expected to reach a global capacity of 64.2 million metric tons (MMT) by the end of 2023, which shows that the industry is on a significant development trajectory. There is a vast market demand for this versatile material, and by the same year, PVC demand is projected to surge globally to 45.3 MMT. By and large, the burgeoning need for PVC means still its use in most parts of the industries, be it healthcare or construction. The flexibility provided by this material makes a PVC market gain new points of view across a range of industries and, in doing so, occupies a significant position in meeting customers’ new requirements worldwide.
The demand for PVC worldwide is expected to increase at a CAGR of 3-4% in the coming years, particularly from 2023 to 2026. This promising growth trend portends that illuminations with PVC sourcing market growth shall build up, progressively but sustainably, supported by infrastructure development across the industries and associated rising demand for cost-efficient and durable materials. This will result in an optimistic future for the PVC market, in which the sector will be ready to continue its profitable growth track. ELINT, a leading procurement intelligence company, offers a comprehensive procurement market analysis in its latest research report.
Market Definition
The polymerization of vinyl chloride monomers into polyvinyl chloride, or PVC, requires mixing them with ethylene. An engineered thermoplastic polymer with various properties, including stiffness and flexibility, is the product of this chemical reaction. Sustainability is becoming more and more popular, which has led to a greater focus on creating PVC formulations that are environmentally friendly, integrate recycling, and minimize environmental impact.
PVC Procurement Market Drivers
1. Increasing Construction Activities: Global building initiatives are one of the main factors propelling the PVC industry, particularly in developing nations. The PVC material is gaining popularity in many building applications because of its affordability and versatility.
2. High Demand in the Automotive Industry: The current vehicle boom has increased the demand for PVC in the automotive industry; this versatile hardware, therefore, foregrounds solid and light materials. With the PVC being adaptable in the parts it requires, such as interior trim and wiring, it follows that the automotive industry is taken with its use.
PVC Procurement Market Challenges
1. Environmental Issues: Several ecological problems have been growing steadily for the last couple of years, and they could hamper the sustainability of the PVC industry. As it is made from chlorine, it may result in a concern that it may release dangerous byproducts, damaging the industry’s sustainability.
2. Stringent Regulatory Standards: With higher standards in the use of PVC, especially in consumer applications and packaging, the manufacturing sector faces a compliance burden. R&D and constant innovation investments are needed to comply with developing environmental needs.
PVC Procurement Market Opportunities
1. Growing Infrastructure Investments: The increased investment in infrastructure projects by the public and private sectors has created more opportunities for the PVC industry to grow. As infrastructure projects expand, PVC will be more in demand for construction applications like pipes and fittings.
2. Technological Innovations: PVC may find new uses if research and development efforts for technological innovations continue. Market growth may be aided by creating PVC products with improved performance traits and reduced environmental impact.
PVC Procurement Market Segmentation
1. Product Type: According to product type, the PVC procurement market research report classifies the market into Rigid PVC, Flexible PVC, and Low-smoke PVC.
2. Application: In terms of application, the PVC procurement market research report segments the market into Construction, Automotive, Healthcare, Electrical and Electronics, and Packaging.
3. End-Use Industry: As per the end-use industry, the PVC procurement market research report divides the market into Building and Construction, Automotive, Healthcare, Electrical and Electronics, and Packaging.
4. Process Technology: According to process technology, the PVC procurement intelligence market research report classifies the market into Suspension PVC, Emulsion PVC, and Bulk PVC.
Regional Outlook of the PVC Procurement Market
Understanding the implications and distribution of significant supplier markets is crucial in the ever-changing PVC market environment. Herein lies the value of the regional viewpoint. If taken from the most recent estimates, the market share figures are 13% in North America, 14% in the EU, and 66% in Asia. It is without doubt that, from every angle, Asia is the top region. The fact that the remaining 7% comes from other regions speaks much for the size of Asia’s contribution to the PVC market as a whole. Shared Asian suppliers are essential pointers to global supply chain dynamics.
A closer look at incidences in business segments gives a different and broader picture. The suppliers with disproportional power are mostly, in fact, situated in North America, although the EU and Asia bear some power. There is competition and high North American suppliers bearing power, giving them good chances to influence. Though Asia and the EU have some influence, North America is a weak buyer’s market. With the help of these perspectives on buyer and supplier power, a dynamic company can make strategic decisions by thoroughly understanding the regional differences in the PVC market.
Cost Component in the PVC Procurement Market
Determining the overall economic state of the PVC industry requires an understanding of its cost components. Seventy-eight percent of North American costs are related to raw materials, indicating the region’s reliance on specific suppliers. By comparison, the European Union receives 79%, indicating a similar dependence on raw materials. In contrast, raw materials account for approximately 80% of costs in Asia. It highlights how important it is for strategic plan developers in the PVC industry to consider regional differences in cost structures.
Pricing Outlook in the PVC Procurement Market
Some exciting developments are revealed when significant regions from Q1 2023 and Q4 2022 are compared. Market dynamics may have changed, as indicated by a projected 13–15% price increase in North America. The European Union has alluded to a more complex pricing trend by predicting a more moderate growth range of 9–11%. Conversely, Asia’s growth is expected to be between 10 and 12%, a positive outlook. It highlights that stakeholders must know regional peculiarities to maximize their market positions.
Engagement Strategies in the PVC Procurement Market
Understanding the industry standard is essential to develop interaction strategies in the PVC market. Direct purchasing is the tactic used by players in this market. The preference for direct transactions emphasizes how crucial it is for buyers and sellers to establish sincere, effective, and open relationships. While industry participants negotiate the intricacies of the PVC market, direct purchase guarantees a smooth flow of resources and goods.
Contract Period in the PVC Procurement Market
The term of the contract begins playing one of the critical elements that can be managed in the operation of the PVC market. The industry practice recommendation is to make quarterly changes in the contract. A quarterly change in the contract may give room to the stakeholders in the PVC business time to take actions that enable taking the opportunities and mitigating risks in the market.
Pricing Models in the PVC Procurement Market
Pricing strategy decisions substantially affect the seller and the buyer. Commonly, coming across approaches in pricing include seller value-based, competitive, and competitive cost-plus approaches. Each model has advantages and drawbacks, such as the choice of customers and strategic objectives, which it is necessary to consider in the market.
Negotiation Factors in the PVC Procurement Market
Several factors significantly impact the dynamics of discussions, including the cost of raw materials, market demand, and geopolitical issues. When both parties know these factors, they can negotiate more effectively and reach mutually beneficial agreements. As the PVC industry expands, effectively leveraging bargaining factors will be even more critical for establishing mutually beneficial relationships.
Leading Players in the PVC Procurement Market
Leading businesses in the incredibly dynamic PVC market significantly influence the industry’s growth. Among the top companies in the sector are Vinnolit, Occidental Chemical Corp, Formosa, INOVYN, Kem One, VYNOVA, Westlake, Shin-Etsu, Sinopec, Formosa, Xinjiang Tianye, and Xinjiang Zhongtai.
Cart is empty 
