Petrochemical Manufacturing in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: February 2024
NAICS 32511Revenue
$82.0bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
9,789
Businesses
34
Wages
$X.Xbn
Petrochemical Manufacturing in the US industry analysis
Petrochemicals are essential to producing various items, keeping the need for products relatively stable. Revenue is typically in line with commodity prices and is very sensitive to swings in the price of critical inputs, primarily crude oil and natural gas. Revenue fell drastically amid the pandemic as oil and gas prices plummeted while the country went into lockdown. Even so, the need for petrochemicals was slightly buffed as residential construction thrived following low interest rates. After lockdowns ended, oil and gas prices skyrocketed, which aided growth as revenue nearly doubled. While price hikes caused petrochemicals to become more expensive, manufacturers were able to pass these costs down to customers, bolstering profitability. For the remainder of the period, revenue continued to swing alongside oil and gas prices as they slowly stabilized. Overall, revenue is set to swell at a CAGR of 6.8% to $82.0 billion through 2024, including a 1.1% uptick in 2024 alone.
Trends and Insights
- Petrochemical prices are tied to the prices of essential commodities like oil and gas, rising and falling along with them. Increases in oil and gas prices have led to higher revenue for petrochemical manufacturers, who pass these cost hikes downstream.
- Ethylene prevails as a product through its downstream applications, producing plastics, packaging materials, beverage containers and personal care products. Being a key component of other chemical production, it's also used to make various alcohols and solvents.
- The Gulf Coast is a dominant petrochemical production region because of its location near the Gulf and proximity to major natural gas and oil hubs. This reflects the need for petrochemical manufacturers to be located near petroleum refineries to ensure an adequate feedstock supply, like refined petroleum or liquid hydrocarbons.
- There is high consolidation with major oil and gas exploration and production companies dominating both the industry and the broader chemical business as well. Because of large companies' sizes and global competitiveness, internal competition primarily stems from price and location; manufacturers can cut input costs by building plants close to suppliers' feedstock.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 6.8 % over the past five years, to reach an estimated $82.0bn in 2024.
Trends and Insights
Shifting prices for key inputs sways industry performance
- Revenue is closely tied to oil and natural gas prices, with shifts in these prices directly impacting revenue. Prices plummeted because of supply chain disruptions and lockdowns amid the pandemic, leading to a massive slump in revenue.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Input prices normalize causing revenue to regress
- Revenue is set to creep downward throughout the outlook period as oil and gas prices stabilize and supply chains are normalized. Even so, the threat of raw material price volatility may persist, hindering revenue and profitability at any given moment.
Biggest companies in the Petrochemical Manufacturing in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Lyondellbasell Industries N.V. | 11,711.6 | 1,009.3 | 8.6 | |
Enterprise Products Partners L.P. | 10,935.4 | 1,290.9 | 11.8 | |
Ineos Ltd | 8,066.1 | 941.5 | 11.7 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cyclic aromatic hydrocarbons, Aliphatic hydrocarbons and Other . Cyclic aromatic hydrocarbons is the largest segment of the Petrochemical Manufacturing in the US.
Trends and Insights
Ethylene production continues to flourish as the need for plastics soars
- Aliphatic hydrocarbons are a type of hydrocarbons based off chains of C-atoms. Ethylene is the most prominent as it is the key building block in the production of polyethylene, ethylene oxide and its range of derivatives. It's also used to produce vinyl acetate, polyvinyl chloride, polyester fiber and film and a range of alcohols and solvents.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Petroleum Refining in the US
- Oxygen & Hydrogen Gas Manufacturing in the US
- Organic Chemical Manufacturing in the US
International industries
- Petrochemical Manufacturing in Canada
- Lubricants and Other Petroleum Product Manufacturing in Australia
- Organic Basic Chemical Manufacturing in the UK
- Organic Chemical Material Manufacturing in China
Table of Contents
About this industry
Industry definition
This industry manufactures petrochemicals, which are chemicals derived from refined petroleum or liquid hydrocarbons. Key products include ethylene, propylene, butylene, benzene, toluene, styrene, xylene, ethyl benzene and cumene. These products are used in the production of consumer products, automotive components and various durable and nondurable goods. Organic compounds, such as ethyl alcohol, and inorganic chemicals, such as carbon black, are excluded from the industry.
What's included in this industry?
Aliphatic hydrocarbonsCyclic aromatic hydrocarbonsButadiene and styreneCompanies
Lyondellbasell Industries N.V.Enterprise Products Partners L.P.Ineos LtdPurchase this report to view all 4 major companies in this industry.
Related Terms
PROPYLENEETHYLENEPETROCHEMICALHAZARDOUS AIR POLLUTANTS (HAPS)Industry Code
NAICS 32511 - Petrochemical Manufacturing in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Petrochemical prices are tied to the prices of essential commodities like oil and gas, rising and falling along with them. Increases in oil and gas prices have led to higher ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Ethylene prevails as a product through its downstream applications, producing plastics, packaging materials, beverage containers and personal care products. Being a key compo...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Gulf Coast is a dominant petrochemical production region because of its location near the Gulf and proximity to major natural gas and oil hubs. This reflects the need for...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
There is high consolidation with major oil and gas exploration and production companies dominating both the industry and the broader chemical business as well. Because of lar...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Companies like LyondellBasell Industries and Shell take advantage of the proximity to the Gulf to integrate the petroleum and petrochemical refining process. These large comp...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Lyondellbasell Industries N.V.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Enterprise Products Partners L.P.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Ineos Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Lyondellbasell Industries N.V., and factors influencing its performance in the industry
- Description and key data for Enterprise Products Partners L.P., and factors influencing its performance in the industry
- Description and key data for Ineos Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Manufacturers face stringent regulatory frameworks like the Clean Air Act, influencing equipment usage. New regulations, like the Hazardous Organics National Emission Standar...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Oil and gas represent the critical input costs for this industry, which generally determines profitability. Profit shrunk amid the pandemic as prices fell but has bounced bac...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Petrochemical Manufacturing in the US industry in United States in 2024?
The market size of the Petrochemical Manufacturing in the US industry in United States is $82.0bn in 2024.
How many businesses are there in the Petrochemical Manufacturing in the US industry in 2024?
There are 34 businesses in the Petrochemical Manufacturing in the US industry in United States, which has grown at a CAGR of 1.9 % between 2019 and 2024.
Has the Petrochemical Manufacturing in the US industry in United States grown or declined over the past 5 years?
The market size of the Petrochemical Manufacturing in the US industry in United States has been growing at a CAGR of 6.8 % between 2019 and 2024.
What is the forecast growth of the Petrochemical Manufacturing in the US industry in United States over the next 5 years?
Over the next five years, the Petrochemical Manufacturing in the US industry in United States is expected to decline.
What are the biggest companies in the Petrochemical Manufacturing in the US market in United States?
The biggest companies operating in the Petrochemical Manufacturing market in United States are Lyondellbasell Industries N.V., Enterprise Products Partners L.P. and Ineos Ltd
What does the Petrochemical Manufacturing in the US in United States include?
Aliphatic hydrocarbons and Cyclic aromatic hydrocarbons are part of the Petrochemical Manufacturing in the US industry.
Which companies have the highest market share in the Petrochemical Manufacturing in the US in United States?
The company holding the most market share in United States is Lyondellbasell Industries N.V..
How competitive is the Petrochemical Manufacturing in the US industry in United States?
The level of competition is moderate and increasing in the Petrochemical Manufacturing in the US industry in United States.
