April 20, 2024

Film And Sheets Segment Is The Largest Segment Driving The Growth Of Low-Density Polyethylene Market

The global Low-Density Polyethylene Market is estimated to be valued at US$ 47.08 Bn or Mn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Low-density polyethylene (LDPE) is a versatile plastic polymer that is widely used for various industrial applications. LDPE films and sheets have excellent cling properties, flexibility, puncture resistance and are inexpensive. Owing to these properties, LDPE finds usage in packaging of various food, non-food and industrial products.

Market key trends:

One of the key trends in the LDPE market is the increasing demand from the packaging industry. LDPE accounts for over 50% of the total polymers used in packaging globally. Its excellent moisture barrier and tough yet flexible properties make it suitable for various packaging applications such as shrink wrap films, stretch wrap films, bags and pouches for food, consumer goods and industrial/agricultural products. The growth in e-commerce and organized retail has further augmented the demand for LDPE in flexible packaging. In addition, the development of new manufacturing processes that improves productivity and reduces costs is also driving the market growth. For instance, advanced gas phase process technology lowers the capital and operational expenditure of LDPE production.

Market key trends:

The global Low-Density Polyethylene market has been witnessing rising demand from various end-use industries such as packaging, construction, and automotive. LDPE has excellent properties such as lightweight, flexibility, chemical resistance, and impact strength which make it suitable for packaging applications. Over the forecast period, the packaging industry is expected to continue driving the consumption of LDPE. Good sealing properties and low manufacturing costs of LDPE also contribute to its increasing use in food packaging. In the construction sector, LDPE pipes and fittings are gaining popularity due to properties like durability, corrosion resistance and lightweight.

SWOT Analysis

Strength: LDPE has excellent sealing and chemical resistance properties which make it suitable for various packaging and industrial applications.
Weakness: LDPE has lower melting point and stiffness compared to other plastics like HDPE.
Opportunity: Rising demand from emerging economies due to increasing consumption in food packaging, plastic pipes etc provides new opportunities.
Threats: Stringent regulations around plastic waste and adoption of bio-based and recyclable alternatives can threaten the LDPE market. Volatility in crude oil prices is another threat.

Key Takeaways

The global Low-Density Polyethylene market is expected to witness high growth, exhibiting CAGR of 5.8% over the forecast period, due to increasing demand from the packaging industry for food and other consumer goods packaging. The packaging segment currently accounts for over 50% share of the total LDPE consumption.

North America dominated the global LDPE market in 2023, however Asia Pacific is anticipated to surpass North America and emerge as the fastest growing as well as the largest market for LDPE during the forecast period. The growth in Asia Pacific is attributed to developments in industrial and infrastructural activities along with rising disposable income in the region.

Key players operating in the Low-Density Polyethylene market are Lyondell Basell Industries N.V, ExxonMobil Corporation, The Dow Chemical Company, Saudi Basic Industries Corporation, BASF-YPC Company Limited, Qatar Petrochemical Company Q.S.C, LG Chem Ltd., E.I. du Pont de Nemours and Company, Braskem S.A., Formosa Plastics Corporation. The market is consolidated in nature with top five players accounting for over 50% of the global production.