Industry Analysis of CO2-based Polymers in East Asia

CO2-based Polymer Demand Outlook for East Asia (2023 to 2033)

Expanding at a high-value 12.2% CAGR from 2023 to 2033, sales of CO2-based polymers in East Asia are pegged at US$ 674.9 million for 2023 and are expected to reach US$ 2.13 billion by 2033.

East Asian countries provide an opportune setting for CO2-based polymer manufacturers owing to the extensive manufacturing activity in industry verticals such as electronics, textiles, automotive, etc. Economies such as China and Japan in the region have set ambitious goals to reduce the use of plastic and shift toward more sustainable materials, where CO2-based polymers come into play.

• Around 27% of global carbon dioxide-based polymer sales revenue is estimated to come from East Asia in 2023, and CO2-based polymer consumption in the region is predicted to reach 1,219.8 KT by the end of 2033.

Presence of key chemical manufacturing companies such as Mitsubishi Chemical, LG Chem, and Asahi Kasei in East Asian countries is also projected to boost the demand growth for CO2-based polymers in the region over the next ten years.

Report Attributes	Details
CO2-based Polymer Sales in East Asia (2023)	US$ 674.9 Million
Projected Sales Value (2033F)	US$ 2.13 Billion
CO2-based Polymer Demand Growth (2023 to 2033)	12.2% CAGR
CO2-based Polymer Sales Volume of China (2033F)	758.5 KT
CO2-based Polymer Sales Growth in South Korea (2023 to 2033)	10.8% CAGR
Revenue Share of Polycarbonates (2023)	62.8%
Key Companies Profiled	Changhua Chemical Technology Company Ltd.; Asahi Kasei; Mitsubishi Chemical; Sumitomo Chemical; Toray Industries; Lotte Chemical; SK Global Chemical; LG Chem

Why Should CO2-based Polymer Suppliers Invest in East Asia?

“Availability of Cheap Labor and Supportive Government Initiatives Promoting Manufacturing”

East Asian economies such as China and Japan have emerged as major manufacturing hubs for products such as semiconductors, electronics, etc. The availability of cheap labor and raw materials coupled with supportive government initiatives and incentives is attracting CO2-based polymer companies to set up their businesses in the East Asian region.

Growing consumer awareness regarding sustainability, expanding chemical manufacturing activity, and increasing foreign investments in countries such as China, Japan, and South Korea are also predicted to boost shipments of CO2-based polymer over the coming years.

• Sales of CO2-based polymers in South Korea are forecasted to rise at a stellar 10.8% CAGR over the next ten years and reach US$ 260.1 million by 2033-end.

Learn more about growth-augmenting aspects such as local supply, pricing trends, product standards, safety regulations, and new developments in this research study for CO2-based polymers by skilled analysts at Fact.MR, a market research and competitive intelligence provider.

Country-wise Insights

China and Japan are unmissable markets for all CO2-based polymer companies looking to make a mark and set their business in the East Asian region going forward.

Why is China a Place of High Interest for CO2-based Polymer Companies?

“Ambitious Targets to Reduce Plastic Waste Driving Market Growth”

China is one of the foremost producers and consumers of plastic products in the world. As the focus on sustainability bolsters in the country, the government is taking steps to reduce plastic waste and swap plastic materials with sustainable materials such as CO2 polymers.

• Demand for CO2-based polymers in China in terms of volume is projected to reach 758.5 KT by the end of the study period.
• In September 2021, China unveiled its plan to curb plastic pollution in the country by 2025 and this plan encourages the production of sustainable plastic alternatives while winding down the production of plastic at the same time.

Availability of cheap labor and manufacturing makes China a highly attractive space for CO2-based polymer manufacturers not just in the Asian region but across the world. Companies from around the world are establishing production plants for CO2-based polymers in the country to take advantage of the aforementioned factors and amplify their business potential.

• In September 2023, Saudi Basic Industries Corporation (SABIC) and China Petroleum and Chemical Corporation (Sinopec), announced the commencement of operations at their polycarbonate production facility in China.

How Opportune is Japan for CO2-based Polymer Manufacturers?

“Development of Novel CO2-based Polymer Technologies Creating Lucrative Business Scope”

Japan is home to some of the most prominent chemical manufacturing companies in the world and this has always allowed the country to lead in terms of development and adoption of novel material technologies. Increasing investments in the R&D of new sustainable materials in Japan by different companies and government organizations are predicted to benefit CO2-based polymer sales in the long run.

• In 2023, Kaneka Corporation, a chemical manufacturer based in Japan is planning to produce polymers using CO2 as a direct raw material. Kaneka is leading a Japanese Green Innovation Fund project, which will help it achieve direct CO2 polymer synthesis.

Presence of robust electronics manufacturing activity and advanced CO2-based polymer technologies in Japan make it a highly opportune space for new as well as established CO2-based polymer distributors in the long run.

• CO2-based polymer demand in Japan accounts for a value of US$ 180.9 million and is projected to increase at 11.7% CAGR from 2023 to 2033.

Category-wise Insights

CO2-based polymer suppliers in the East Asian region should focus on the development and sales of polycarbonates if they want to get the best return on their investments going forward. Adopting microbial synthesis as the preferred production method for CO2-based polymers will pay off big time for companies in the long run.

Which Type of CO2-based Polymers are Used Extensively across the World?

“Sales of Polycarbonates Account for Most Revenue and Profits”

Polycarbonates are being utilized in different applications owing to their properties such as high durability, heat resistance, and transparency. Polycarbonates are also sustainable in nature, which is why they are being used as a replacement for fossil-based materials as consumer inclination toward sustainable products increases.

• Sales of polycarbonates account for 62.8% of revenue share in East Asia at present and are forecasted to reach US$ 1.45 billion by 2033-end.

How are Most CO2-based Polymers Being Produced?

“Majority of CO2-based Polymers Produced through Microbial Synthesis”

As the focus on sustainability increases, polymer manufacturers are projected to opt for eco-friendly manufacturing practices to attain their sustainability goals. Microbial synthesis is an environmentally friendly way to manufacture CO2-based polymers, which the majority of manufacturers are projected to opt for over the next ten years and beyond.

• Around 652.4 KT of carbon dioxide-based polymers are forecasted to be produced through the microbial synthesis production process by the end of 2033.

Competitive Landscape

CO2-based polymer manufacturers in East Asia are projected to focus on the expansion of their production capacities to satisfy the increasing demand for eco-friendly materials in the wake of rising focus on sustainability. Supportive initiatives and subsidies offered by governments of East Asian countries to promote manufacturing activity are projected to attract CO2-based polymer suppliers from other parts of the world to this region going forward.

Segmentation of CO2-based Polymer Study in East Asia

• By Type :

  • Polycarbonates
    • Propylene Carbonate
    • Ethylene Carbonate
    • Cyclohexene Carbonate
  • Polyols for Poly(urethane) Foam

• By Production Process :

  • Electrochemistry
  • Microbial Synthesis
  • Thermocatalysis

• By Application :

  • Packaging
    • Films
    • Bottles
    • Containers
    • Trays
  • Automotive Component Manufacturing
    • Interior components
    • Structural parts
  • Construction Material Production
    • Pipes
    • Panels
    • Insulation
  • Electronics Component Manufacturing
    • Casings
    • Connectors
    • Circuit Boards
  • Textile Processing
    • Fibers
    • Non-Woven Fabrics
  • Others (Medical Devices, Consumer Goods, etc.)

• By Country :

  • China
  • Japan
  • South Korea