The Future of Petrochemicals: Dynamic Strategies to Survive in an Evolving Industry
The petrochemical industry is one of the largest subsectors of the chemical industry. As the chemical industry grows, the future of petrochemicals is faced with a series of major challenges. However, the world continues to consume and the need for petrochemical products continues to rise. Although developed economies are turning towards sustainable sources of energy […]
The petrochemical industry is one of the largest subsectors of the chemical industry. As the chemical industry grows, the future of petrochemicals is faced with a series of major challenges. However, the world continues to consume and the need for petrochemical products continues to rise. Although developed economies are turning towards sustainable sources of energy and fuel, preparing for this change can lead the future of petrochemicals towards growth.
Over the past few years, as prices have dropped globally, petrochemical industry producers have been faced with major losses. More recently, the global pandemic, Covid-19 has caused major losses to industries and economies across the globe. With petrochemicals being the source of, and a crucial ingredient in various major industries that have come to a jarring halt, the industry has suffered substantially Industry research experts at Infiniti suggest efficient market intelligence solutions and brand strategies for petrochemical manufacturers to see the industry through to its potential return to growth.
The petrochemicals industry is faced with a wide range of challenges currently. Learn how Infiniti can help petrochemicals producers strategize and develop actionable solutions to overcome these challenges. Request more information to propel the future of petrochemicals in the right direction.
As of 2019, the US, Germany, Belgium, France, Netherlands, China, India, the UK, Japan, Saudi Arabia, Indonesia, Brazil, and South Korea were the major contributors to the global petrochemical industry. Over the recent months, all these countries have seen a steady fall in demand and prices, which in turn has made returning to their previous standard challenging, and growth seem like a distant possibility. However, the growth of the future of petrochemicals can be possible if the appropriate steps are taken.
Key Challenges of the Petrochemicals Industry
Infiniti’s research experts believe growth in the future of petrochemicals is possible, if appropriately strategized. However, it is important to first understand the major challenges of the industry. The following three current and major challenges are affecting the petrochemical industry globally.
- Advantaged Feedstock Opportunities: As North America and the Middle East move to alternative options for raw materials and chemicals, such as liquid feedstocks, naphtha, gasoil, or mixed gas/oil feedstock. Being the two largest markets for advantaged feedstock opportunities, the toll on the future of petrochemicals is vast.
- Maturing Economies: It is estimated that as economies continue to mature, the demand for the chemical industry will reduce substantially. Taking the chemicals industry giant China as an example, progress of their economy has slowed down, however, it continues to grow. As it continues to grow, the investment on infrastructure and other industries that use petrochemicals will reduce, while more service -based development will become the focal point. The service and upgrade-based economy has very low demand for the petrochemicals industry.
- COVID-19: With the recent global pandemic, manufacturing, construction, travelling, and other major industries that require petrochemicals as a raw material have slowed down, if not come to a halt. Europe, the US, and China stopped travel, transport, and manufacturing for substantial amounts of time, taking a major toll on the future of petrochemicals.
Speak to our experts, to gain in-depth insights into the challenges faced by the future of petrochemicals.
The Future of Petrochemicals
The future of petrochemicals is highly dependent on the strategic approach employed by petrochemicals manufacturers. To propel growth in the future of petrochemicals, the following three changes are crucial:
Adapting to Change
As industries evolve and move away from advantaged feedstock demands, and investment increases in other raw materials, it is important for producers to evolve as well. Petrochemical producers with a cohort in the gas-based sector are more likely to evolve and grow with the changes in the industry. As the industry shifts to ethylene cracker investments based liquid feedstocks such as, naphtha, gasoil, and heavier feedstocks, returns will be closer to cost-of-capital. To therefore cope with this change, petrochemical producers must return to their innovative roots, and invest in developing the alternatives that the future of petrochemicals demands.
Digitizing and Analytics
As the industry changes, so should the approach of players within the industry. While innovation is essential, so is re-evaluating current systems and finding opportunities for higher returns within them. Digitization is an important change for all industries in the COVID and post-COVID era. However, the petrochemical industry has highly complex and integrated operations, that can be majorly improved through digitization. Further, applying advanced analytics can help improve commercial processes, and operations.
Market Intelligence Solutions for the Petrochemical Industry
Developing strategic plans and effectively executing all operations while accounting for market trends and changes within the industry is possible. Market Intelligence Solutions can assist petrochemical industry manufacturers change the future of petrochemicals for the better. Infiniti’s industry research experts can assist petrochemical producers achieve the following:
- Understand upcoming and impacting market trends
- Profile and understand competitors’ strategies
- Appropriately prepare for regulation changes
- Identify the ideal opportunities and clients
- Reduce time to market
- Prepare efficient operation and brand strategies
Our market intelligence solutions have proven to be highly effective and helpful in establishing brand strategies for petrochemical industry players. As petrochemical producers attempt to improve the future of petrochemicals, utilizing appropriate market intelligence solutions and strategizing appropriately is highly crucial to them.
As petrochemicals producers work to recover from and grow past the recent years of loss faced by the industry, they must devise strategies and solutions that can help the future of petrochemicals. Request a free proposal to leverage Infiniti’s market intelligence solutions and develop efficient strategies.