High Density Polyethylene Market Analysis by Major Vendors, Segmentation, Market Dynamics, Historical Data & Future Trends
Global High Density Polyethylene Market: Snapshot
Plastic packaging takes up a large volume of the high density polyethylene produced. Roughly 30% of the global packaging industry materials used is high density polyethylene (HDPE), as it is a core plastic in rigid packaging. Bags, films, containers, caps and closures, and bottles are the most common packaging products that use high density polyethylene. There is currently a very high demand for these types of packaging across the world, owing to a greater consumption of food and beverages and consumer goods. The growing importance of aesthetics is also a key factor that adds to the primary demand for HDPE.
The growing demand for pipes and films in the agriculture industry is another avenue where large quantities of high density polyethylene is used. This industry is one of the larger end users of high density polyethylene and therefore, any growth in it will create a direct increase in the demand for HDPE. High density polyethylene is used in manufacturing UV protective sheets and tarpaulins that offer high quality weather protection.
However, a key concern that all producers of high density polyethylene have to face is the fluctuating cost of raw materials. HDPE makes use of a large amount of ethylene, a material formed in the oil and gas industry. The market for ethylene has recently undergone major fluctuations in price and the overall scarcity of petroleum based byproducts.
The overall result is a CAGR of 4.5% for the revenue generation in the global market for high density polyethylene from 2015 to 2023. This revenue is expected to reach US$62.48 bn by the end of 2016 and US$84.79 bn by 2023.
Asia Pacific Demand for High Density Polyethylene Strengthens
Asia Pacific has led the global consumption of high density polyethylene for quite some time now, owing to a large agrarian population and a significant rise in consumer goods sales. By the end of 2023, Asia Pacific is expected to take up 46.9% of the high density polyethylene market’s global volume.
The region-based consumption of high density polyethylene is expected to be led by Asia Pacific till 2023, followed by Europe and North America. Europe and North America are relatively more mature than Asia Pacific in terms of high density polyethylene consumption, but are still showing a decent increase in consumption of the plastic owing to booming sales of consumer goods in rigid packaging. Additionally, high density polyethylene is approved by organizations such as the U.S. FDA, making users prefer it over other polymers.
Packaging Industry Ramps Up Demand for High Density Polyethylene
The packaging industry has always been the leading application segment for the global high density polyethylene market. By the end of 2023, the overall volume taken up by the packaging industry is expected to be 31.1% of the global high density polyethylene volume produced. The booming consumer goods sales across the world are causing the packaging industry to double up on its manufacturing processes as well as raw materials consumption, including high density polyethylene.
The key fact that works in favor of high density polyethylene is its approval for use by major public health concern bodies as a food grade polymer. It is therefore one of the more widely used polymers across packaging products for the food and beverage industry.
The top producers of high density polyethylene from a global standpoint include Chevron Phillips Chemical Company, LyondellBasell Industries, INEOS Olefins and Polymers, SABIC, and ExxonMobil.