Mar 8, 2025
IndexBox has just published a new report: China – Liquefied Petroleum Gas (LPG) – Market Analysis, Forecast, Size, Trends And Insights.
Driven by rising demand, the LPG market in China is expected to see a moderate increase in volume and value over the period from 2024 to 2035. Market performance is forecasted to decelerate, with a projected CAGR of +1.1% in volume and +3.7% in value, bringing the market volume to 108M tons and market value to $67B by the end of 2035.
Market Forecast
Driven by increasing demand for liquefied petroleum gas (LPG) in China, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.1% for the period from 2024 to 2035, which is projected to bring the market volume to 108M tons by the end of 2035.
In value terms, the market is forecast to increase with an anticipated CAGR of +3.7% for the period from 2024 to 2035, which is projected to bring the market value to $67B (in nominal wholesale prices) by the end of 2035.
ConsumptionChina’s Consumption of Liquefied Petroleum Gas (LPG)
For the fourth consecutive year, China recorded growth in consumption of liquefied petroleum gas (LPG), which increased by 49% to 96M tons in 2024. In general, consumption recorded a remarkable increase. As a result, consumption attained the peak volume and is likely to continue growth in the immediate term.
The value of the liquefied petroleum gas (LPG) market in China rose sharply to $45B in 2024, increasing by 12% 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). Overall, the total consumption indicated a buoyant expansion from 2013 to 2024: its value increased at an average annual rate of +6.2% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption increased by +74.9% against 2020 indices. Over the period under review, the market hit record highs in 2024 and is likely to see gradual growth in the immediate term.
ProductionChina’s Production of Liquefied Petroleum Gas (LPG)
In 2024, approx. 32M tons of liquefied petroleum gas (LPG) were produced in China; remaining relatively unchanged against the year before. The total output volume increased at an average annual rate of +2.3% over the period from 2013 to 2024; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2016 with an increase of 19%. Over the period under review, production hit record highs at 42M tons in 2019; however, from 2020 to 2024, production failed to regain momentum.
In value terms, liquefied petroleum gas (LPG) production stood at $22.1B in 2024 estimated in export price. In general, production, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 when the production volume increased by 29%. Liquefied petroleum gas (LPG) production peaked at $24.8B in 2018; however, from 2019 to 2024, production stood at a somewhat lower figure.
ImportsChina’s Imports of Liquefied Petroleum Gas (LPG)
For the fourth consecutive year, China recorded growth in supplies from abroad of liquefied petroleum gas (LPG), which increased by 98% to 65M tons in 2024. Over the period under review, imports enjoyed a significant increase. As a result, imports attained the peak and are likely to continue growth in the immediate term.
In value terms, liquefied petroleum gas (LPG) imports skyrocketed to $24B in 2024. Overall, imports recorded a resilient increase. The most prominent rate of growth was recorded in 2021 when imports increased by 89% against the previous year. Imports peaked in 2024 and are expected to retain growth in years to come.
Imports By Country
In 2024, the United States (50M tons) constituted the largest liquefied petroleum gas (LPG) supplier to China, accounting for a 77% share of total imports. Moreover, liquefied petroleum gas (LPG) imports from the United States exceeded the figures recorded by the second-largest supplier, the United Arab Emirates (7M tons), sevenfold. The third position in this ranking was held by Oman (2.7M tons), with a 4.1% share.
From 2013 to 2024, the average annual rate of growth in terms of volume from the United States totaled +74.2%. The remaining supplying countries recorded the following average annual rates of imports growth: the United Arab Emirates (+18.5% per year) and Oman (+45.1% per year).
In value terms, the United States ($13.5B) constituted the largest supplier of liquefied petroleum gas (LPG) to China, comprising 56% of total imports. The second position in the ranking was held by the United Arab Emirates ($5B), with a 21% share of total imports. It was followed by Qatar, with a 7.7% share.
From 2013 to 2024, the average annual growth rate of value from the United States amounted to +57.7%. The remaining supplying countries recorded the following average annual rates of imports growth: the United Arab Emirates (+15.6% per year) and Qatar (+6.8% per year).
Imports By Type
In 2024, liquefied propane (58M tons) was the main type of liquefied petroleum gas (LPG) supplied to China, accounting for a 90% share of total imports. Moreover, liquefied propane exceeded the figures recorded for the second-largest type, liquefied butanes (6.1M tons), tenfold. The third position in this ranking was taken by liquefied ethylene, propylene, butylene and butadiene (348K tons), with a 0.5% share.
From 2013 to 2024, the average annual growth rate of the volume of liquefied propane imports stood at +33.3%. With regard to the other supplied products, the following average annual rates of growth were recorded: liquefied butanes (+12.2% per year) and liquefied ethylene, propylene, butylene and butadiene (+0.9% per year).
In value terms, liquefied propane ($19.9B) constituted the largest type of liquefied petroleum gas (LPG) supplied to China, comprising 83% of total imports. The second position in the ranking was taken by liquefied butanes ($3.8B), with a 16% share of total imports. It was followed by liquefied ethylene, propylene, butylene and butadiene, with a 1% share.
From 2013 to 2024, the average annual growth rate of the value of liquefied propane imports amounted to +22.2%. With regard to the other supplied products, the following average annual rates of growth were recorded: liquefied butanes (+8.3% per year) and liquefied ethylene, propylene, butylene and butadiene (-3.1% per year).
Import Prices By Type
The average liquefied petroleum gas (LPG) import price stood at $371 per ton in 2024, reducing by -39.9% against the previous year. In general, the import price saw a abrupt decline. The growth pace was the most rapid in 2021 when the average import price increased by 53% against the previous year. The import price peaked at $923 per ton in 2013; however, from 2014 to 2024, import prices stood at a somewhat lower figure.
Prices varied noticeably by the product type; the product with the highest price was liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene ($1,721 per ton), while the price for liquefied propane ($342 per ton) was amongst the lowest.
From 2013 to 2024, the most notable rate of growth in terms of prices was attained by liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (+16.5%), while the prices for the other products experienced a decline.
Import Prices By Country
In 2024, the average liquefied petroleum gas (LPG) import price amounted to $371 per ton, shrinking by -39.9% against the previous year. Over the period under review, the import price saw a abrupt setback. The pace of growth was the most pronounced in 2021 when the average import price increased by 53%. Over the period under review, average import prices attained the peak figure at $923 per ton in 2013; however, from 2014 to 2024, import prices remained at a lower figure.
Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Nigeria ($764 per ton), while the price for the United States ($270 per ton) was amongst the lowest.
From 2013 to 2024, the most notable rate of growth in terms of prices was attained by Nigeria (-1.5%), while the prices for the other major suppliers experienced a decline.
ExportsChina’s Exports of Liquefied Petroleum Gas (LPG)
In 2024, approx. 1.2M tons of liquefied petroleum gas (LPG) were exported from China; increasing by 31% on the previous year. Over the period under review, exports, however, showed a relatively flat trend pattern. Over the period under review, the exports hit record highs at 1.4M tons in 2014; however, from 2015 to 2024, the exports stood at a somewhat lower figure.
In value terms, liquefied petroleum gas (LPG) exports soared to $826M in 2024. Overall, exports, however, recorded a pronounced curtailment. The most prominent rate of growth was recorded in 2021 when exports increased by 49% against the previous year. The exports peaked at $1.3B in 2014; however, from 2015 to 2024, the exports remained at a lower figure.
Exports By Country
The Philippines (527K tons), Vietnam (285K tons) and Hong Kong SAR (242K tons) were the main destinations of liquefied petroleum gas (LPG) exports from China, together comprising 88% of total exports.
From 2013 to 2024, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by the Philippines (with a CAGR of +3.8%), while the other leaders experienced a decline.
In value terms, the largest markets for liquefied petroleum gas (LPG) exported from China were the Philippines ($350M), Vietnam ($190M) and Hong Kong SAR ($164M), with a combined 85% share of total exports.
Among the main countries of destination, the Philippines, with a CAGR of +0.5%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced a decline.
Exports By Type
Liquefied butanes (698K tons), liquefied propane (483K tons) and liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (14K tons) were the main products of liquefied petroleum gas (LPG) exports from China, together accounting for 100% of total exports.
From 2013 to 2024, the biggest increases were recorded for liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (with a CAGR of +3.2%), while shipments for the other products experienced mixed trend patterns.
In value terms, liquefied butanes ($479M), liquefied propane ($332M) and liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene ($12M) constituted the most exported types of liquefied petroleum gas (LPG) from China worldwide, with a combined 100% share of total exports.
In terms of the main product categories, liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene, with a CAGR of +15.0%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other products experienced a decline.
Export Prices By Type
The average liquefied petroleum gas (LPG) export price stood at $689 per ton in 2024, picking up by 6.5% against the previous year. Overall, the export price, however, continues to indicate a noticeable setback. The most prominent rate of growth was recorded in 2021 when the average export price increased by 43%. Over the period under review, the average export prices reached the peak figure at $958 per ton in 2013; however, from 2014 to 2024, the export prices stood at a somewhat lower figure.
Average prices varied somewhat for the major types of exported product. In 2024, the products with the highest prices were liquefied ethylene, propylene, butylene and butadiene ($915 per ton) and liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene ($879 per ton), while the average price for exports of liquefied butanes ($686 per ton) and liquefied propane ($688 per ton) were amongst the lowest.
From 2013 to 2024, the most notable rate of growth in terms of prices was recorded for the following types: liquefied petroleum gases other than propane, butanes, ethylene, propylene, butylene or butadiene (+11.4%), while the prices for the other products experienced a decline.
Export Prices By Country
The average liquefied petroleum gas (LPG) export price stood at $689 per ton in 2024, growing by 6.5% against the previous year. In general, the export price, however, continues to indicate a perceptible curtailment. The most prominent rate of growth was recorded in 2021 when the average export price increased by 43% against the previous year. The export price peaked at $958 per ton in 2013; however, from 2014 to 2024, the export prices remained at a lower figure.
Average prices varied noticeably for the major export markets. In 2024, amid the top suppliers, the countries with the highest prices were Hong Kong SAR ($676 per ton) and Vietnam ($666 per ton), while the average price for exports to the Philippines ($663 per ton) and Macao SAR ($665 per ton) were amongst the lowest.
From 2013 to 2024, the most notable rate of growth in terms of prices was recorded for supplies to Hong Kong SAR (-2.9%), while the prices for the other major destinations experienced a decline.