Global plastic production increased from 348 million tonnes in 2017 to 359 million tonnes in 2018, as per PlasticsEurope. Among all types of plastics, polypropylene (PP) and polyethylene are produced and consumed in the highest volumes. Common uses of PP are hinged caps, food packaging, microwave-proof containers and other pieces of houseware, plastic furniture, pipes, automotive components, medical supplies (syringes, vials, Petri dishes, and non-absorbable sutures), and even banknotes and items of clothing.

Similarly, PE, in both its low-density (LDPE) and high-density (HDPE) forms, is used in trays and containers, reusable bags, agricultural films, toys, food packaging, milk bottles, textiles & fibers, fittings & pipes, wires & cables, and houseware. The increasing demand for PP and PE products, according to P&S Intelligence, will be the key factor to take the alpha olefins market to $15,846.5 million by 2023 from $11,704.2 million in 2017, at a 5.4% CAGR between 2018 and 2023. This is because alpha-olefins are widely used in the production of polyolefin comonomers, of which PP and PE are the most-widely used.

Similarly, lubricants are used to reduce friction between the moving parts in the engine and outside. This allows the engine to run with little resistance, which ultimately decreases the consumption of fuel and the emission of greenhouse gases (GHGs). This is also why lubricants are used in industrial machinery, as they help reduce the consumption of electricity, which ultimately decreases the requirement for fossil fuels at power plants.

Additionally, the demand for oilfield chemicals, such as hexyl mercaptans, is rising. Although a high concentration of mercaptans in oil and gas is considered unfavorable, often, they are added to gas in order to detect leakage. This is because mercaptans have a foul smell and natural gas is odorless, which is why the addition of these chemicals to the gas allows one to know if there is a leak. Unchecked leakage of gas is a major fire hazard; thus, with fire safety norms strengthening around the world, the addition of mercaptans to detect a gas leak is increasing.

As a result of the rising demand for all such products, the alpha olefins market is presently dominated by North America. In addition, a lot of petrochemical companies, such as Chevron Phillips Chemical Company LLC and Royal Dutch Shell Plc, are operational here. They not only provide alpha-olefins but also use them, in the form of oilfield chemicals. Moreover, the region is home to the largest medical device industry in the world, which is one of the reasons for its high requirement for PP. Similarly, the stringent Environmental Protection Agency (EPA) emission standards are forcing people to use lubricants and petroleum additives in on-road and non-road engines.

Hence, with the increasing demand for plastics, fuel additives, and lubricants, the consumption of alpha-olefins will surge.