Liquefied Petroleum Gas (LPG) Market

The article provides a detailed analysis of the global liquefied petroleum gas (LPG) market, forecasting an upward consumption trend driven by increasing demand worldwide. Market performance is expected to see growth in both volume and value terms, with key countries such as China, India, and the United States leading in consumption and production. The text delves into import/export statistics, highlighting key products, price trends, and major exporting countries like the United States and Canada. Overall, the data presented covers the period from 2012 to 2022, offering valuable insights into the trends shaping the LPG market.

Market Forecast

Driven by increasing demand for liquefied petroleum gas (LPG) worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +2.7% for the period from 2022 to 2030, which is projected to bring the market volume to 384M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.3% for the period from 2022 to 2030, which is projected to bring the market value to $298.2B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Liquefied Petroleum Gas (LPG)

In 2022, the amount of liquefied petroleum gas (LPG) consumed worldwide contracted to 309M tons, waning by -3.3% on the previous year. The total consumption volume increased at an average annual rate of +2.6% from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The pace of growth appeared the most rapid in 2021 when the consumption volume increased by 9.7% against the previous year. As a result, consumption reached the peak volume of 320M tons, and then dropped modestly in the following year.

The global liquefied petroleum gas (LPG) market value expanded to $213B in 2022, picking up by 2% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.7% over the period from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being observed in certain years. Global consumption peaked in 2022 and is likely to continue growth in years to come.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (58M tons), India (36M tons) and the United States (31M tons), with a combined 40% share of global consumption.

From 2012 to 2022, the biggest increases were recorded for China (with a CAGR of +8.8%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($42.7B), India ($23.7B) and the United States ($16.2B) constituted the countries with the highest levels of market value in 2022, with a combined 39% share of the global market.

China, with a CAGR of +7.7%, recorded the highest rates of growth with regard to market size in terms of the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of liquefied petroleum gas (LPG) per capita consumption was registered in Saudi Arabia (503 kg per person), followed by South Korea (165 kg per person), Russia (164 kg per person) and Japan (106 kg per person), while the world average per capita consumption of liquefied petroleum gas (LPG) was estimated at 39 kg per person.

In Saudi Arabia, liquefied petroleum gas (LPG) per capita consumption decreased by an average annual rate of -4.0% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: South Korea (+8.3% per year) and Russia (+5.7% per year).

Production

World Production of Liquefied Petroleum Gas (LPG)

Global liquefied petroleum gas (LPG) production reduced to 320M tons in 2022, with a decrease of -2.7% compared with the previous year's figure. The total output volume increased at an average annual rate of +3.0% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2021 when the production volume increased by 11%. As a result, production reached the peak volume of 329M tons, and then reduced slightly in the following year.

In value terms, liquefied petroleum gas (LPG) production expanded slightly to $210.2B in 2022 estimated in export price. The total output value increased at an average annual rate of +1.5% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2021 when the production volume increased by 26% against the previous year. Over the period under review, global production hit record highs in 2022 and is likely to continue growth in years to come.

Production By Country

The United States (82M tons) constituted the country with the largest volume of liquefied petroleum gas (LPG) production, comprising approx. 26% of total volume. Moreover, liquefied petroleum gas (LPG) production in the United States exceeded the figures recorded by the second-largest producer, China (32M tons), threefold. The third position in this ranking was held by Saudi Arabia (26M tons), with an 8% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in the United States stood at +9.3%. In the other countries, the average annual rates were as follows: China (+3.6% per year) and Saudi Arabia (-0.8% per year).

Imports

World Imports of Liquefied Petroleum Gas (LPG)

Global liquefied petroleum gas (LPG) imports stood at 140M tons in 2022, growing by 7.9% on the previous year. Over the period under review, total imports indicated a buoyant expansion from 2012 to 2022: its volume increased at an average annual rate of +5.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +71.9% against 2012 indices. The pace of growth was the most pronounced in 2014 when imports increased by 17%. Global imports peaked in 2022 and are expected to retain growth in the near future.

In value terms, liquefied petroleum gas (LPG) imports soared to $96.7B in 2022. In general, total imports indicated moderate growth from 2012 to 2022: its value increased at an average annual rate of +3.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +84.8% against 2020 indices. The growth pace was the most rapid in 2021 with an increase of 59% against the previous year. Over the period under review, global imports reached the maximum in 2022 and are likely to continue growth in the immediate term.

Imports By Country

China (27M tons) and India (20M tons) represented the major importers of liquefied petroleum gas (LPG) in 2022, finishing at approx. 19% and 14% of total imports, respectively. It was distantly followed by Japan (10M tons), South Korea (8.8M tons), Mexico (8.3M tons) and Indonesia (6.8M tons), together making up a 24% share of total imports. The following importers - Belgium (3.8M tons), Turkey (3.3M tons), the Netherlands (3.2M tons), France (3.1M tons), Morocco (3M tons), Italy (2.3M tons) and Germany (2.2M tons) - together made up 15% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by China (with a CAGR of +22.3%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, China ($20.7B), India ($12.7B) and Japan ($7.9B) were the countries with the highest levels of imports in 2022, together accounting for 43% of global imports.

In terms of the main importing countries, China, with a CAGR of +20.0%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

Liquefied propane represented the key imported product with an import of about 86M tons, which finished at 61% of total imports. Liquefied butanes (40M tons) took the second position in the ranking, distantly followed by liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (12M tons). All these products together took near 37% share of total imports. Liquefied ethylene, propylene, butylene and butadiene (2.9M tons) followed a long way behind the leaders.

Liquefied propane was also the fastest-growing in terms of imports, with a CAGR of +6.5% from 2012 to 2022. At the same time, liquefied butanes (+5.6%) and liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (+2.4%) displayed positive paces of growth. By contrast, liquefied ethylene, propylene, butylene and butadiene (-1.1%) illustrated a downward trend over the same period. From 2012 to 2022, the share of liquefied propane increased by +5 percentage points. The shares of the other products remained relatively stable throughout the analyzed period.

In value terms, the largest types of imported liquefied petroleum gas (LPG) were liquefied propane ($56.6B), liquefied butanes ($29.9B) and liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene ($7.7B), together comprising 97% of global imports.

Liquefied propane, with a CAGR of +4.6%, recorded the highest rates of growth with regard to the value of imports, among the main imported products over the period under review, while purchases for the other products experienced more modest paces of growth.

Import Prices By Type

In 2022, the average liquefied petroleum gas (LPG) import price amounted to $689 per ton, rising by 7.7% against the previous year. Overall, the import price, however, showed a pronounced descent. The pace of growth appeared the most rapid in 2021 when the average import price increased by 47% against the previous year. Over the period under review, average import prices hit record highs at $840 per ton in 2012; however, from 2013 to 2022, import prices stood at a somewhat lower figure.

Average prices varied somewhat amongst the major imported products. In 2022, major imported products recorded the following prices: in liquefied ethylene, propylene, butylene and butadiene ($876 per ton) and liquefied butanes ($756 per ton), while the price for liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene ($639 per ton) and liquefied propane ($659 per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by liquefied propane (-1.8%), while the other products experienced a decline in the import price figures.

Import Prices By Country

In 2022, the average liquefied petroleum gas (LPG) import price amounted to $689 per ton, rising by 7.7% against the previous year. In general, the import price, however, continues to indicate a noticeable contraction. The pace of growth appeared the most rapid in 2021 when the average import price increased by 47% against the previous year. Global import price peaked at $840 per ton in 2012; however, from 2013 to 2022, import prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was China ($769 per ton), while Mexico ($377 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Turkey (+4.4%), while the other global leaders experienced a decline in the import price figures.

Exports

World Exports of Liquefied Petroleum Gas (LPG)

Global liquefied petroleum gas (LPG) exports expanded rapidly to 151M tons in 2022, picking up by 8.5% against 2021. Over the period under review, total exports indicated a prominent expansion from 2012 to 2022: its volume increased at an average annual rate of +6.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +90.5% against 2012 indices. The most prominent rate of growth was recorded in 2014 with an increase of 17%. Over the period under review, the global exports attained the peak figure in 2022 and are expected to retain growth in years to come.

In value terms, liquefied petroleum gas (LPG) exports surged to $92.4B in 2022. In general, total exports indicated temperate growth from 2012 to 2022: its value increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +72.3% against 2020 indices. The pace of growth appeared the most rapid in 2021 when exports increased by 45% against the previous year. The global exports peaked in 2022 and are likely to continue growth in the near future.

Exports By Country

In 2022, the United States (54M tons) was the largest exporter of liquefied petroleum gas (LPG), generating 36% of total exports. Canada (15M tons) held a 9.8% share (based on physical terms) of total exports, which put it in second place, followed by the United Arab Emirates (9.5%), Qatar (6.5%) and Saudi Arabia (5.1%). Iran (6.2M tons), Algeria (6M tons), Kuwait (5.3M tons) and Norway (3.7M tons) followed a long way behind the leaders.

The United States was also the fastest-growing in terms of the liquefied petroleum gas (LPG) exports, with a CAGR of +18.2% from 2012 to 2022. At the same time, Canada (+9.7%), Iran (+9.2%), Qatar (+7.8%), the United Arab Emirates (+5.1%), Saudi Arabia (+2.9%) and Kuwait (+2.0%) displayed positive paces of growth. Algeria experienced a relatively flat trend pattern. By contrast, Norway (-3.0%) illustrated a downward trend over the same period. While the share of the United States (+23 p.p.) and Canada (+2.4 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of Kuwait (-2 p.p.), Saudi Arabia (-2.2 p.p.), Algeria (-3.7 p.p.) and Norway (-3.9 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United States ($31.3B) remains the largest liquefied petroleum gas (LPG) supplier worldwide, comprising 34% of global exports. The second position in the ranking was taken by the United Arab Emirates ($11B), with a 12% share of global exports. It was followed by Qatar, with an 8.5% share.

In the United States, liquefied petroleum gas (LPG) exports increased at an average annual rate of +23.9% over the period from 2012-2022. In the other countries, the average annual rates were as follows: the United Arab Emirates (+2.8% per year) and Qatar (+7.6% per year).

Exports By Type

Liquefied propane was the key exported product with an export of around 97M tons, which amounted to 65% of total exports. Liquefied butanes (42M tons) took the second position in the ranking, distantly followed by liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (8.4M tons). All these products together took near 34% share of total exports. Liquefied ethylene, propylene, butylene and butadiene (2.8M tons) took a relatively small share of total exports.

Liquefied propane was also the fastest-growing in terms of exports, with a CAGR of +8.0% from 2012 to 2022. At the same time, liquefied butanes (+5.2%) and liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (+3.5%) displayed positive paces of growth. Liquefied ethylene, propylene, butylene and butadiene experienced a relatively flat trend pattern. Liquefied propane (+7.8 p.p.) significantly strengthened its position in terms of the global exports, while liquefied ethylene, propylene, butylene and butadiene, liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene and liquefied butanes saw its share reduced by -1.6%, -2% and -4.2% from 2012 to 2022, respectively.

In value terms, liquefied propane ($57.6B) remains the largest type of liquefied petroleum gas (LPG) supplied worldwide, comprising 62% of global exports. The second position in the ranking was taken by liquefied butanes ($27.5B), with a 30% share of global exports. It was followed by liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene, with a 5.5% share.

From 2012 to 2022, the average annual growth rate of the value of liquefied propane exports stood at +6.1%. For the other products, the average annual rates were as follows: liquefied butanes (+2.4% per year) and liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (-1.4% per year).

Export Prices By Type

The average liquefied petroleum gas (LPG) export price stood at $613 per ton in 2022, surging by 9.6% against the previous year. Over the period under review, the export price, however, saw a noticeable shrinkage. The pace of growth was the most pronounced in 2021 an increase of 29% against the previous year. Over the period under review, the average export prices reached the maximum at $788 per ton in 2012; however, from 2013 to 2022, the export prices remained at a lower figure.

Average prices varied somewhat amongst the major exported products. In 2022, major exported products recorded the following prices: in liquefied ethylene, propylene, butylene and butadiene ($816 per ton) and liquefied butanes ($650 per ton), while the average price for exports of liquefied propane ($592 per ton) and liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene ($598 per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by liquefied propane (-1.8%), while the other products experienced a decline in the export price figures.

Export Prices By Country

In 2022, the average liquefied petroleum gas (LPG) export price amounted to $613 per ton, growing by 9.6% against the previous year. In general, the export price, however, showed a perceptible setback. The most prominent rate of growth was recorded in 2021 an increase of 29%. The global export price peaked at $788 per ton in 2012; however, from 2013 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Qatar ($804 per ton), while Canada ($268 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+4.8%), while the other global leaders experienced a decline in the export price figures.

Source: IndexBox Market Intelligence Platform