Global growth and environmental concerns

Over the past two decades, the global polymer industry has seen rapid growth in demand and product diversity, becoming a key driver of the world economy. However, environmental challenges and the need for eco-friendly materials are shaping the future direction of the sector. Asia remains the main hub of consumption and growth, and Iran — with its massive oil and gas reserves — holds the potential to become a significant global player.

Polymers are now indispensable across industries such as automotive, medical equipment, renewable energy, consumer goods, and personal care. Packaging leads global polymer consumption with a 36% share, followed by construction and textiles, each at about 15%. Together, these three sectors account for nearly 70% of global polymer use.

China, the United States, and South Korea are the world’s top producers of propylene, polypropylene, and engineering plastics. The average value of polymers in developed countries is estimated at about $2,000 per ton. Global polymer production reached more than 400 million tons in 2022 and is projected to hit 1 billion tons by 2050. Despite robust demand and product diversity, issues such as plastic pollution, environmental restrictions, and the development of biodegradable polymers remain key challenges for the industry’s future.

 Asia: The center of polymer demand

Asia is the world’s main growth hub for polymer consumption, with China, India, South Korea, and Southeast Asian nations driving demand. Expanding middle classes, growth in the packaging and food industries, and industrial infrastructure development have fueled strong demand for base polymers such as polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC).

China, as one of the largest consumers and importers of polymers, plays a decisive role in influencing prices and supply-demand dynamics through its industrial policies. Meanwhile, Persian Gulf countries have invested heavily in petrochemical complexes, securing a major share of polymer exports to Asian markets.

 Iran’s strategic role in the polymer industry

Iran’s petrochemical industry began in the late 1950s with the establishment of the National Chemical Company and the construction of the Marvdasht fertilizer plant (now Shiraz Petrochemical). From the outset, polymer production was identified as a high-value sector due to its wide range of applications. The first polymer produced in Iran was polyvinyl chloride (PVC) at the Abadan Petrochemical Plant, launched in 1969.

As one of the world’s leading holders of oil and gas reserves, Iran occupies a strategic position in the petrochemical and polymer value chain. Over the past two decades, its polymer production capacity has grown significantly, with major outputs including high-density polyethylene (HDPE), low-density polyethylene (LDPE), linear polyethylene, PVC, and polypropylene.

According to the latest figures, an additional 1 million tons will be added this year to the current 9-million-ton capacity. By the end of the Seventh Development Plan, new projects are expected to raise total production capacity by 7 million tons, reaching 16 million tons annually.

The strategic importance of polymer production is underscored by its high value-added potential: while the value of methanol is roughly $300 per ton, common polymers produced in Iran are valued at about $1,000 per ton. For this reason, the CEO of the National Petrochemical Company has called for a shift from basic chemicals toward higher-value polymer production. This transition would not only expand downstream industries but also boost employment, reduce import dependency, and strengthen Iran’s position in global trade.

 Outlook for Iran’s polymer industry

Iran’s polymer production has expanded rapidly over the past two decades to meet both domestic and international demand — growing from 840,000 tons in 2002 to 9 million tons today. Planning and feasibility studies for new polymer plants are ongoing, signaling continued growth in the coming years.

According to the National Petrochemical Company, Iran’s polymer complexes have increased from just three in 2002 to 31 in 2024, with about 26 new projects currently under construction, expected to be completed by 2028. As of late 2024, total nominal capacity reached 2.85 million tons in Assaluyeh, 3.88 million tons in Mahshahr, and 2.64 million tons across other regions.

By product type, HDPE accounts for the largest share with 2.415 million tons, followed by LDPE at 1.375 million tons and PP at 1.27 million tons. In exports, HDPE leads with more than 1.48 million tons, while LDPE exceeds 1 million tons annually.

Iran’s petrochemical sector benefits from significant advantages — including access to affordable feedstock and proximity to key regional markets in the Persian Gulf, Central Asia, and South Asia. To capitalize on these strengths, investment attraction, technology development, and downstream industry growth are essential. Completing the polymer value chain would enable Iran to secure a larger share of the regional and global polymer markets.

By Younes Sadeqi