Ethylene Suppliers in ASEAN, the Demand, and the Growth

Ethylene is one of the crucial building blocks in the industry, especially in polyethylene manufacturing. Recently, the petrochemical industry in ASEAN has made great progress to meet the building block needs, including ethylene.

This article discusses the ethylene suppliers in ASEAN and the market. Read the complete information below!

What Is Ethylene?

Ethylene is considered the world’s most important chemical because it is the key starter material for various industries. Ethylene is derived from natural gas and oil. In fact, you can also find it naturally in plants as a growth hormone.

According to the National Library of Medicine, steam cracking of petroleum hydrocarbons accounts for more than 95% of the yearly commercial production of ethylene worldwide. Several compounds are used in producing ethylene, including propane, butane, naphtha, and ethane.

Generally, ethylene is the simplest alkene that is colorless and flammable. It falls into two categories: monomer and starting material for other compounds.

Given those roles, ethylene is widely used in many sectors, such as construction, textiles, plastic, and so on. Its main byproduct is polyethylene, which is later used to manufacture food containers, packaging, plastic bottles, and other plastic-based items.

Aside from that, ethylene is also used to produce ethylene glycol for polyester fiber, ethylene oxide for antifreeze, ethylene dichloride for vinyl products, and styrene for synthetic rubber.

The Ethylene Market in Asia and Globally

Straits Research mentioned that in 2024, the global ethylene market size had reached USD 206.53 billion. Currently, the Asia Pacific has become the largest market share holder globally with a growing Compound Annual Growth Rate (CAGR) of 7.9% (2023–2030).

This growth is driven by ASEAN, China, Japan, South Korea, India, Oceania, and the rest of the Asia-Pacific regions.

Polyethylene is in high demand for packaging applications in food and beverage, personal care, and industrial packaging because of the rapidly growing packaging industry in the Asia-Pacific region, which is primarily driven by the growth of e-commerce and shifting consumer preferences.

A major factor in the growth of the ethylene market is also the expanding automotive industry in Asia-Pacific, which is supported by growing disposable incomes, urbanization, and increased mobility needs.

This is primarily due to the widespread use of ethylene derivatives in various automotive applications, such as electrical wiring, fuel systems, and interior components.

MarkNtel Advisors analyzed the Asia-Pacific ethylene market trends and classified the segments into two: application and end-user.

Based on the application, high-density polyethylene (HDPE), low-density polyethylene (LDPE), ethylene oxide, ethyl benzene, and other ethylene derivatives contributed to the ethylene market, with HDPE holding the largest share. This is because HDPE is widely used for pipes, packaging, food containers, and wiring.

On the other hand, based on end-user, packaging holds the largest share, followed by chemicals, construction, personal care, automotive, textiles, and food and beverage (FnB).

Polyethylene is famous for its flexibility, durability, barrier properties, and chemical resistance, making it suitable for producing various packaging formats (bottles, containers, bags, and films).

Grand View Research added that polyethylene was the largest revenue-generating additive in 2022. Also, the Asia-Pacific contributed 42.2% of the global ethylene market in 2022.

Meanwhile, Indonesia is also experiencing rapid growth in the ethylene production sector. The Chemical Market Analytics by OPIS mentioned that the domestic demand for ethylene is anticipated to increase at a compound annual growth rate (CAGR) in the high single digits until 2030.

Moving ahead to the Malay Peninsula, there is Singapore with an ethylene import growth rate of 3.41% (2023–2024) and a CAGR of 10.73% (2020–2024). These figures reveal that the ethylene demand in the nation keeps increasing and indicate market stability.

Ethylene Suppliers in ASEAN

From the data above, it can be concluded that the demand for ethylene is high, given that it is one of the primary building blocks of various industrial items. That’s why prominent ethylene suppliers in ASEAN must handle this.

Chandra Asri Group, as #YourGrowthPartner, offers chemical solutions providing ethylene of 99.95% purity. Most of our ethylene is used to produce polyethylene and styrene monomers.

We also provide polyethylene resin under the trademark of Asrene®, which covers HDPE and LDPE products. Asrene® has been certified Halal by Majelis Ulama Indonesia (MUI).

In addition, Chandra Asri Group acquired Aster Chemicals and Energy Pte. Ltd. (Aster) with Glencore in 2025. Aster operates a refinery of 237,000 barrels of oil per day, an ethylene cracker of 1.1 million metric tons annually, and other downstream chemical assets.

Aster’s products include ethylene, HDPE, high-purity ethylene glycol, monoethylene glycol, diethylene glycol, styrene, and many more.

Aside from ethylene products, Chandra Asri Group also produces butadiene, B1MTBE, chlor alkali, and ethylene dichloride. Our CA-EDC plant aims to fulfill ethylene dichloride and polyvinyl chloride needs in Indonesia and Southeast Asia. Strategically, our plants will reduce imports in Indonesia and boost exports overseas.

That is the information about ethylene suppliers in ASEAN, as well as the demand and the growth. The ethylene uses vary from household items to industrial processes.

So, if your company needs ethylene or other chemicals for industrial processes, do not hesitate to entrust it to us! Contact us now!