Enjoy complimentary customisation on priority with our Enterprise License!
The polyethylene market size is forecasts to increase by USD 36.83 billion with a growth/decline at a CAGR of 5.53% between 2024 and 2028.
The growth rate of the market depends on several factors, including the growing sectoral demand for polyethylene products, the increasing demand for packaging material, and the increasing demand for polyethylene from developing countries. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
Polyethylene (PE) or polythene refers to a polymer of ethylene, particularly belonging to lightweight thermoplastics that are partially crystalline in nature and are resistant to moisture and chemicals. Polyethylene is the most commonly used plastic globally. It is used in the production of products ranging from shopping and food wrap bags to automobile fuel tanks and detergent bottles.
To Know more about the market report Request Free Sample
Increasing demand for polyethylene from developing countries is notably driving the market growth during the forecast period. Developing nations such as Brazil, South Africa, India, Indonesia, China, and India make substantial contributions to the global market. In addition, many producers of polyethylene are moving their production facilities to these developing nations because of the easy access to land, cheap labor, abundant supply of raw materials, and low cost of transportation.
Moreover, the packaging and automotive industries are seeing significant investments due to the growing population and high purchasing power in Asia-Pacific. In addition, the use of polyethylene is predicted to increase as China and India become the packaging industry's manufacturing centers in Asia-Pacific. Furthermore, the FMCG sector in APAC is booming, as India and China have sizable consumer populations, which drives up demand for polyethylene. Hence, such factors are driving the market growth during the forecast period.
New developments in the application of polyethylene is an emerging trend in the market. The trend in the market is the increased application of UHMWPE in high-performance applications, including gaskets, gear wheels, hammers, filters, and cutting boards. In addition, another innovation in the global market is the development of a new polyethylene named metallocene polyethylene (mPE).
Moreover, along with the inherent film toughness, it can also be processed like LDPE. It was developed to eliminate the use of LDPE from film formulations, thereby significantly improving film properties without compromising the efficiency of film production. In addition, developments in mPE include shrink properties that have led to improvements in modern high-performance shrink films. Furthermore, the combination of these mPEs with traditional mPEs helps to produce shrink films (downgauged) with enhanced stiffness and toughness. Hence, such factors are driving the market growth during the forecast period.
Volatility in raw material prices of polyethylene is a major challenge hindering the market growth. The prices of raw materials used to produce polyethylene packaging are highly unpredictable. In addition, this is mainly due to the high dependence on crude oil prices. Furthermore, the price volatility of petroleum-based raw materials and the increasing demand for polyethylene packaging products in emerging economies are hindering the growth of the market.
Moreover, the prices of polyethylene packaging types, such as LDPE and HDPE, frequently fluctuate as they depend on crude oil prices (because they are petroleum derivatives). Thus, their prices fluctuate depending on the prevailing prices of natural gas and crude oil. In addition, a decline in crude oil prices in recent years prompted players in the oil and gas industry to implement cost-cutting measures such as workforce layoffs and rig idling. Hence, such factors are hindering the market growth during the forecast period.
The packaging segment is estimated to witness significant growth during the forecast period. In the packaging industry, polyethylene is used to make a wide range of goods, including bottles, containers, plastic bags, sheets, films, and geomembranes. In addition, plastics are used by manufacturers and are necessary components of the packaging industry because they are strong and serve as a barrier between moisture and the product.
Get a glance at the market contribution of the End User segment Request Free Sample
The packaging segment was the largest segment and was valued at USD 39.95 billion in 2018. Moreover, packaging for toys, clothes, and appliances is using more and more plastics like PET and polyethylene. In addition, milk and fresh juice products are packaged in the liquid packaging market using PET and high-density polyethylene (HDPE) polymers. Furthermore, over 70% of soft drinks in the global food and beverage market are packaged in PET plastic bottles, according to the British Plastic Federation (BPF). In addition, food and pharmaceutical companies prefer polyethylene packaging that minimizes product quality degradation and avoids contamination. Hence, such factors are fuelling the growth of the segment which in turn drives the market growth during the forecast period.
Based on the type, the market has been segmented into HDPE, LDPE, and LLDPE. The HDPE segment will account for the largest share of this segment. HDPE segment is the most inflexible and sturdiest type of polyethylene. In addition, this property of HDPE makes it ideal to be used in a wide range of applications. Moreover, HDPE is extensively used globally to produce bottles and gift containers. In addition, HDPE is a heavy material, it finds application in extremely lightweight materials, such as paper-thin foil. Furthermore, these foils are used globally on a day-to-day basis. In addition, some other applications in which HDPE finds use include pedal bin bags, sandwich bags, and packing for fruit, vegetables, and meat. Hence, such factors are fuelling the growth of the segment which in turn drives the market growth during the forecast period.
APAC is estimated to contribute 45% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
For more insights on the market share of various regions Request Free Sample
Polyethylene has witnessed increased demand in APAC, with countries including India and China dominating the regional market. In addition, an increase in the number of middle-class consumers in Asia drives the demand in the region. Moreover, the annual consumption of plastic per individual in India is estimated to be approximately 9.5 kilograms annually. In addition, consumption is expected to rise considerably during the forecast period, backed by the rapid increase in population. Furthermore, over the past 40 years, the region's material consumption has increased dramatically, making up over 50% of global consumption. In addition, in this region, it is mainly used for applications such as packaging films, detergent bottles, pipes for construction, and grocery bags. Hence, such factors are driving the market growth in APAC during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
BASF SE: The company offers polyethylene such as Kollisolv PEG 400 LA, Kollisolv PEG 600 LA, Kollisolv PEG 300, Kollisolv PEG 300 G and many more.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arkema Group, Borealis AG, Braskem SA, Chevron Corp., China National Petroleum Corp., China Petrochemical Corp., Dow Chemical Co., Ducor Petrochemicals B.V., Eni SpA, Exxon Mobil Corp., Formosa Plastics Corp., INEOS Group Holdings SA, LyondellBasell Industries N.V., NOVA Chemicals Corp., Reliance Industries Ltd., Saudi Basic Industries Corp., Sumitomo Chemical Co. Ltd., TotalEnergies SE, and USI Corp.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing significant growth driven by its high-temperature resistance and versatile applications across various industries. Polyethylene finds extensive use in manufacturing caps, chemical-resistant pipes, and ballistic plates due to its exceptional properties. The adoption of metallocene catalyst technology has further enhanced its tensile strength and puncture resistance, making it ideal for demanding environments.
Polyethylene's moisture-resistant nature makes it indispensable in protective structures across diverse sectors such as food and beverages, automotive vehicles, and under-construction sites. Moreover, its efficacy in safeguarding against groundwater and during the oil drilling process underscores its importance in critical operations. With its remarkable attributes and wide-ranging applications, Polyethylene continues to be a cornerstone material in modern industries. As demand grows across sectors, the Market is poised for sustained expansion, offering durable solutions and contributing to advancements in various fields.
|
Polyethylene Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
187 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 5.53% |
|
Market Growth 2024-2028 |
USD 36.83 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
4.69 |
|
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
|
Performing market contribution |
APAC at 45% |
|
Key countries |
US, China, India, Germany, and France |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Arkema Group, BASF SE, Borealis AG, Braskem SA, Chevron Corp., China National Petroleum Corp., China Petrochemical Corp., Dow Chemical Co., Ducor Petrochemicals B.V., Eni SpA, Exxon Mobil Corp., Formosa Plastics Corp., INEOS Group Holdings SA, LyondellBasell Industries N.V., NOVA Chemicals Corp., Reliance Industries Ltd., Saudi Basic Industries Corp., Sumitomo Chemical Co. Ltd., TotalEnergies SE, and USI Corp. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
Get the report (PDF) sent to your email within minutes.