Overview of the global petrochemical industry

The petrochemical industry is a growing driver of global oil demand and greenhouse gas emissions, with nitrogen fertilisers and plastics as primary contributors. Rapid capacity expansion, particularly in China, is projected to increase emissions beyond 1.5°C warming limits. While technical solutions and recycling are proposed, the low cost of virgin plastics and the limitations of 'downcycling' hinder progress, suggesting that policy should prioritise reuse and the reduction of single-use materials over simple substitution or recycling.

• Nitrogen fertilisers, primarily produced from gas, contribute approximately 30% of the petrochemical industry's emissions. Their agricultural application releases nitrous oxide, a greenhouse gas with a lifetime exceeding 100 years and a potency 300 times that of carbon dioxide.
• Plastics constitute 63% of global petrochemical output by weight (excluding fertilisers) as of 2018, with packaging (36%), construction (16%), and textiles (15%) being the largest sectors. Demand is forecast to grow between two and 3.5 times recent levels by 2050, driven largely by China and developing Asia.
• The petrochemical sector is significantly increasing its share of the global oil market, projected to reach nearly 20% by 2050. In the IEA's Net Zero Emissions scenario, petrochemicals and other non-combustion uses (such as bitumen and asphalt) would account for 70% of oil demand by 2050.
• China is expanding its petrochemical capacity at an unprecedented rate. Between 2019 and 2024, China's additions to ethylene and propylene production capacity are expected to equal the total existing capacity of Europe, Japan, and Korea combined.
• Recycling is an insufficient solution for the climate impact of plastics because only 9% are recycled globally and virgin plastics are often cheaper than recycled versions. For example, in the US between 2021 and 2023, virgin high-density polyethylene (HDPE) cost USD 943 per tonne, while recycled HDPE cost USD 1,631.
• Many petrochemical products, including cosmetics, pesticides, and plastics, contain endocrine-disrupting chemicals linked to infertility, cancer, and neurodevelopmental harm.

APA

Team, Z. (2024). Overview of the global petrochemical industry. Zero Carbon Analytics. https://zerocarbon-analytics.org/insights/briefings/overview-of-the-global-petrochemical-industry/

Chicago

Team, ZCA. Overview of the global petrochemical industry. Zero Carbon Analytics, 2024. https://zerocarbon-analytics.org/insights/briefings/overview-of-the-global-petrochemical-industry/.

Wikipedia

{{cite report |last1=Team |first1=ZCA |title=Overview of the global petrochemical industry |publisher=Zero Carbon Analytics |date=13 May 2024 |url=https://zerocarbon-analytics.org/insights/briefings/overview-of-the-global-petrochemical-industry/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{team2024overview, author = {Team, ZCA}, title = {{Overview of the global petrochemical industry}}, institution = {Zero Carbon Analytics}, year = {2024}, month = may, url = {https://zerocarbon-analytics.org/insights/briefings/overview-of-the-global-petrochemical-industry/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }