Need for efficient and long-lasting packaging with better versatility, along with easy process ability, and growing demand for bio-based polyethylene packaging in Asia-Pacific (APAC) regionis expected to drive the market growth during the forecast period 2020-2025. Polyethylene Market size is forecast to reach $144.17 billion by 2025, after growing at a CAGR of 4.17% during 2020-2025.
Polyethyleneis lightweight, simple to handle and give near-zero moisture absorption. Also, polyethylene offers excellent chemical and impact resistance, electrical properties and low friction coefficient owing to which it isused in applications ranging from films, tubes, plastic parts and others. Polyethylene are mainly used in the sports, apparel, and toy industries which has emergence growing trend due to various factors such as strength and durability in packaging. Also, increasing demand for Bio-based polyethylene and rise in consumption of polyethylene across various industrial verticals willoverall increase the growth of the Polyethylene Industry over the forecast period.
The production and demand in top countries for polyethylene is expected to boom over the next five years.In terms of revenue and volume High Density Polyethylene (HDPE) is the dominant type, accounting for the largest share in polyethylenemarket in 2019.High Density Polyethylene is used in several packaging applications due to its impact strength including crates, trays, bottles for milk and fruit juices, caps for food packaging, jerry cans, drums, industrial bulk containers and more. Also, due to its high tensile strength, HDPE is widely used in ropes, fishing and sport nets, nets for agricultural use, Industrial and decorative fabrics, and more.
According to Open Government Data (OGD) Platform India, the total export of high-density polyethylene (HDPE) in India increased from 1,48,142 metric tonne in 2016-17 to 2,05,797 metric tonne in 2017-18, which further increased to 4,57,416 metric tonne in 2018-19. Thus, owing to its extensive characteristics the demand for high density polyethylene is increasing in various end-use industries, which is expected to drive the market growth during the forecast period. Also,the demand for flexible Packaging is growing due to its convenient shape, ease of use, reseal able properties, lightweight, and lower environmental impact. Use of flexible packaging in vegetables and ready to eat food products fuels the market growth. Also, the use of rigid and semi-rigid packaging extends the life of the food products through outstanding protection from heat and other external factors.Furthermore, increasing e-commerce business across the globe is also augmenting the demand for the packaging market, which will boost the polyethylene market during the forecast period.
Asia-Pacific (APAC) dominated the Polyethylene Market with a share of 45% in terms of revenue in 2019 and is projected to dominate the market during the forecast period (2020-2025).Polyethylene (PE) has always been one of the major polymers used in India, China, South Korea and the world at large. Its application spans multiple industries, including automotive, plastic and packaging, construction, electrical and electronics, consumer goods, among others.According to the Trade map (ITC) India is around the top 20 largest exporter of polyethylene in 2019, exporting 538,301 tones in the year. Also, South Korea is the 6thlargest exporter of polyethylene around the world. The country has exported 1,288,454 tons of polyethylene and generated $1,427,928 thousands in terms of value. Increasing demand for HDPE pipes in agricultural and manufacturing sector will enhance the overall market growth for polyethylene market. Also, the continuation of economic and demographic trends, further healthcare reforms and policies articulated by government influence on the growth of polyethylene market in various countries. Thus, growing development in various end use industries in this region will further drive the market for Polyethylene Marketin the forecast period.
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Polyethylene Market Growth Driver
Increasing demand for bio-based polyethylene
Bio-based polyethylene is perfect to reduce the number of carbon emissions they create in the world, lower their overall energy consumption and protect the environment. So many companies are now looking towards this fantastic plastic-alternative because it ends up being a win-win for both the consumer and for packaging companies. Additionally, it is crucial to understand that bio-based plastics like bio-based polyethylene contain renewable carbon elements. This is one of the main reasons so many manufacturers are making the switch to bio-based and not fossil-fuel based plastics. At the end of a bio-based plastic’s life cycle, it will return to the atmosphere, but will not add any elements of new carbon to the environment. Bio-based polyethylene offers the advantages of being one hundred percent recyclable and carbon positive, a benefit that North American businesses can use in their marketing for new packaging as well as to boost their corporate social responsibility. Prior to having this substitute, most bio-based products were thrown into the garbage which was then incinerated at waste plants, contributing heavily to global warming. By switching to this recyclable material and packaging, businesses can help reduce greenhouse gasses by up to 35%.
Rising demand for polyethylene in various end-use industries
The demand for polyethylene is gaining momentum in various industries such as automotive, electrical and electronics, food and beverage, and consumer goods. In addition, good moisture and chemical resistance of polyethylene have become focal points for many industries. This project the polyethylene market in good light and ensures its prospects in the coming years.Properties such as high rigidity,light in weight, easy process ability, sealing and stiffness properties makes polyethylene suitable for industrial uses, mainly for packaging of automotive and electrical spare parts. In the automotive industry, manufactures are focusing on increasing the efficiency of vehicles by reducing the weight of the vehicles.In the packaging industry polyethylene continues to be the most widely used plastic resin in the world, benefiting from its versatility, easy processability, and recyclability. The technological research and developments, raw material availability, plastics demand and more are some of the factors augmenting the growth of global polyethylene market. Led by rising demand from the packaging industry in developing countries, as well as increasing demand from consumer electronics, global PS demand is expected to grow.
The Major Players in this Market Include
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Polyethylene Market. In 2019, the market of Polyethylene has been consolidated by the top ten seven players accounting for 18% of the share. Major players in the Polyethylene Market are The Dow Chemical Company, Exxon Mobil Corporation, LyondellBasell Industries N.V., SABIC, China Petrochemical Corporation (Sinopec Group), Mitsubishi Chemical Corporation, INEOS, Borealis AG, Chevron Phillips Chemical Co.,SCG Chemicalamong others.
In July 2020, The Dow Chemical Corporation introduced INNATE™ TF Polyethylene Resins for Tenter Frame Biaxial Orientation. The TF-BOPE film made with INNATETM TF Polyethylene Resins for Tenter Frame Biaxial Orientation has higher mechanical properties and material rigidity compared to conventional polyethylene (PE) films, better optical and printing efficiency, and provides significant sustainability benefits including the potential for all-PE recyclability structures.
In July 2019, ExxonMobil Corporation started production at its Beaumont, Texas polyethylene factory, on a new line of high-performance polyethylene. The expansion raised the volume of plant production by 65% or 650,000 tons per year, increasing site volume to about 1.7 million tons per year.
In May 2018, SABIC and ExxonMobil formed a new joint venture to advance the development of the Gulf Coast Growth Ventures project, a 1.8 million-ton ethane cracker currently planned for construction in San Patricio County, Texas. The facility also included a monoethylene glycol unit and two polyethylene units.
Furthermore, due to the COVID-19 pandemic, the entire world has gone under lockdown, owing to which all the manufacturing activities are stopped. No new orders can be taken over neither the existing order production could be completed due to which the demand for LDPE/LLDPE films and sheets have been affected, which is limiting the global polyethylene market growth. Polyethylene importers are trying to keep a condensed output, in order to shrink product inventory and keep their feedstock consumption at low levels. Some companies have delayed their feedstock shipments, while many others are still minimizing their spot purchases. Amid the COVID-19 pandemic, reducing global demand has led to decreasing global polyethylene prices, a process that began with the outbreak in China, who is the world’s largest importer of polyethylene. As the pandemic grew, trading slowed down, which led to a decline in spot purchase demand in the European and Asian markets. Chinese plants and refineries reduced their operating rates, disrupting product flows. Thus, weak demand will further reduce imports of polyethylene (PE) and will hamper the growth of the market.
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