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Low Density Polyethylene Market

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  • 118 Pages
  • November 2021
  • Region: Global
  • IndustryARC
  • ID: 3973847
Low-Density Polyethylene Market size is forecast to reach US$54.8 billion by 2027, after growing at a CAGR of 4.8% during 2022-2027. Low-density polyethylene (LDPE) is a thermoplastic resin that is manufactured at a high pressure ranging from 0.910g/cc to 0.940g/cc resulting in low tensile strength but with high ductility. The growing demand for low-density polyethylene (LCPs) in the construction, packaging, and automotive industry is expected to be the key growth driver during the forecast period. It is non-toxic, non-contaminating, and resistant against impact, moisture, chemicals, tear, and stress crack. Owing to these properties, it is widely used in the production of packaging, trash bins, floor tiles, shipping envelopes, and dropper bottles. Moreover, its renewability and electrical insulating properties have resulted in the expanding application of the LDPE in several end-use industries across the globe. However, substitute products such as polyethylene terephthalate, acrylonitrile butadiene styrene, and linear low-density polyethylene might hamper the low-density polyethylene Market growth in the forecast period.

COVID-19 Impact

The COVID 19 outbreak has impacted the development of the low-density polyethylene (LDPE) industry owing to the lockdown measure in various regions such as Asia-Pacific, North America, and others. Delay in manufacturing of low-density polyethylene (LDPE) which are utilized in construction and automotive have experienced a downfall as the governments of several countries have imposed lockdowns that have forced people to stay at home, which, in turn, has reduced the physical interaction among people along with the commercial work. The escalating focal point on remote working is expected to restrict the growth of the construction industry, which, in turn, is likely to hamper the growth of the low-density polyethylene market.

Report Coverage

The report: “Low-Density Polyethylene Market”- Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Low-Density Polyethylene Market Industry.

By Product Type: Blow Molded, Films, Injection Molded, Sheets, and Others

By Production Process: Stirred Autoclave and Tubular Routes

By Application: General Packaging, Carrier Bags, Squeeze bottles, Chemical Tank Lining, Orthotics, Prosthetics, Gas and Water pipes, High-Frequency Insulation, Toys, Furniture, Heavy Duty Sacks, Wires and Cables, and Others

By End-Use Industry: Food and Beverages, Automotive, Medical, Electrical and Electronics, Agriculture, Building and Construction, Energy and Resource, Paper and Pulp, Textile, Chemical, Aerospace, and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and Rest of the world (the Middle East and Africa).

Key Takeaways

  • The Asia Pacific dominates the Low-Density Polyethylene Market owing to a rapid increase in the building and construction sector. For instance, according to Invest India, the Indian construction industry is anticipated to witness a CAGR of 15.7% to touch US$738.5 billion by 2022.
  • The market drivers and restraints have been assessed to understand their impact over the forecast period.
  • The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
  • The other key areas of focus include the various applications and end-use industry in Low-Density Polyethylene Market and their specific segmented revenue

The films segment held the largest share in the low-density polyethylene Market in 2020. Uprising demand for films as well as sheets for packaging, electronics, and other applications is anticipated to drive the growth of the low-density polyethylene (LDPE) market over the forecast period. LDPE is one of the most frequently used packaging films in the packaging industry owing to its flexibility and toughness. Apart from film uses, LDPE is used as heat seal coatings, board, extruded onto paper, and aluminum foil, as well as for lamination. Most importantly, they are not single-use plastic and can be recycled for low-grade uses, such as bin liners.

The packaging segment held the largest share in the low-density polyethylene Market in 2020 up to 35% and is expected to grow significantly during the forecast period. The packaging market is growing as low-density polyethylene is rapidly endorsing its trade in food and beverage packaging as well as construction. The Indian packaging sector has witnessed considerable growth largely due to increased globalization of trade in goods and services and the emergence of new trade models, such as e-commerce and organized retailing. As per the Indian Institute of Packaging, the packaging consumption in India has increased to 200% in the past decade, rising from 4.3 to 8.6 kg per person per annum. The rising growth of the packaging industry will drive the demand for the low-density polyethylene market in the forecast period.

The construction segment held the largest share in the Low-Density Polyethylene Market in 2020 and is growing at a CAGR of 6.5% during 2022-2027. Low-density polyethylene can be blended with virgin plastic to reduce cost without sacrificing performance. Consuming plastics as a primary construction material is sufficient to encounter the average annual energy needs of 4.6 million US households which is equivalent to all the households in 11 out of 50 states. The rapid increase in applications like roofing tiles, concrete for sideways, driveways, and more for its properties like lighter material, durability, long term energy saving are certainly impacting the growing demand of the low-density polyethylene market. It also provides a corrosion protection layer for work surfaces. The construction sector is expected to be the fastest-growing market due to high demand, particularly in the emerging economies which drive the low-density polyethylene market in the forecast period.

Asia-Pacific region held the largest share of 37% in the Low-Density Polyethylene Market in 2020 followed by North America and Europe. The rapidly growing demand from the construction industry along with packaging in food and beverages, owing to rising population particularly in emerging economies such as India and Indonesia are anticipated to drive demand for low-density polyethylene (LDPE). It is outlined that partially spending of the global construction is coming from Asia-Pacific countries, with China, India, Indonesia, Japan, and Malaysia showing the greatest potential for expansion. According to International Trade Administration, China is expected to witness an increase in construction industry revenue value from US$968 billion to US$1.1 trillion in 2019 -2022. Besides, In India, according to the Department for Promotion of Industry and Internal Trade (DPIIT), the construction development sector activities stood at US$25.93 billion between 2000-2020. Such continual expansion of these sectors is anticipated to drive the need for low-density polyethylene over the forecast period in Asia-Pacific.

Low-Density Polyethylene Market Drivers

Rising demand from Construction Industry in a different region

The global construction industry is the world's largest consumer of raw materials. The construction taking place for the development in the different regions all over the world initiate to boost the low-density polyethylene market. The European construction industry is growing at a rapid pace due to low-interest rates, strong economic growth, and pent-up needs. For instance, 2022 real estate developer Artisan Real Estate announced its new US$78.7 million residential development named Kirkstall Place in the UK. On the other hand, the African construction industry has seen rapid growth for instance, Kenya has embarked on the construction of a US$14.5 billion technology city in Machakos County in a bid to appeal to technology geniuses and financiers to boost its economic growth.

Demand from Food and Beverage Industry

Low-Density Polyethylene (LDPE) is extensively consumed in packagings like trays, plastic bags, and foils for both foods as well as nonfood purposes. It is used for packing snacks, bakery, dairy, and frozen items which helps in preserving these foodstuffs from pathogens and environmental factors. As one of the best applications is in milk cartons, where it forms part of multiple plastic layers. Thereby extending the shelf life as well as keeping the proper taste and nutrition value. Other applications are wrapping foil for packaging, garbage bags, ice cube plastic bags, and others. Rising demand from the food industry is driving the growth of the low-density polyethylene (LDPE) market.

Low-Density Polyethylene Market Challenges

Alternative substitute and plastic ban may hinder the market

The rise of development in the cost-effective substitute like linear low-density polyethylene (LLDPE), polyethylene terephthalate (PET), acrylonitrile butadiene styrene (ABS), and high-density polyethylene (HDPE) is pulling back the growth of the market. On the other hand, waste plastic bags pollute the land and water and certainly have become a threat to the life of animals living on earth as well as in water. Due to which plastic ban took effect all over that prohibits the country from using single-use plastic in any factor, which might hamper the growth of low-density polyethylene market.

Low-Density Polyethylene Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Low-Density Polyethylene. Major players in the Low-Density Polyethylene Market include:

  • Exxon Mobil
  • Dow Chemical Company
  • LyondellBasell
  • Reliance Industries Ltd.
  • The National Petrochemical Company
  • The China Petroleum and Chemical Corporation

Acquisitions/Technology Launches/ Product Launches

In October 2019, Dow announced the development of a new resin made with 70% recycled plastic. This new resin consists of low-density polyethylene (LDPE) into which recycled plastic shrink film is incorporated.

This product will be delivered within 2 business days.

Table of Contents

1. Low Density Polyethylene Market- Market Overview
1.1 Definitions and Scope
2. Low Density Polyethylene Market - Executive Summary
2.1 Key Trends by Product Type
2.2 Key Trends by Production Process
2.3 Key Trends by Application
2.4 Key Trends by End-Use Industry
2.5 Key Trends by Geography
3. Low Density Polyethylene Market - Comparative analysis
3.1 Market Share Analysis- Major Companies
3.2 Product Benchmarking- Major Companies
3.3 Top 5 Financials Analysis
3.4 Patent Analysis- Major Companies
3.5 Pricing Analysis (ASPs will be provided)
4. Low Density Polyethylene Market - Market Forces
4.1 Market Drivers
4.2 Market Constraints
4.3 Porters Five Force Model
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Powers of Buyers
4.3.3 Threat of New Entrants
4.3.4 Competitive Rivalry
4.3.5 Threat of Substitutes
5. Low Density Polyethylene Market - Strategic Analysis
5.1 Value/Supply Chain Analysis
5.2 Opportunity Analysis
5.3 Product/Market Life Cycle
5.4 Distributor Analysis - Major Companies
6. Low Density Polyethylene Market- By Product Type (Market Size-US$ Million/Billion)
6.1 Blow Molded
6.2 Films
6.3 Injection Molded
6.4 Sheets
6.5 Others
7. Low Density Polyethylene Market- By Production Process (Market Size-US$ Million/Billion)
7.1 Stirred Autoclave
7.2 Tubular Routes
8. Low Density Polyethylene Market - By Application (Market Size -US$ Million/Billion)
8.1 General Packaging
8.2 Carrier Bags
8.3 Squeeze bottles
8.4 Chemical Tank Lining
8.5 Orthotics
8.6 Prosthetics
8.7 Gas and Waterpipes
8.8 High-Frequency Insulation
8.9 Toys
8.10 Furniture
8.11 Heavy Duty Sacks
8.12 Wires and Cables
8.13 Others
9. Low Density Polyethylene Market - By End-Use Industry (Market Size -US$ Million/Billion)
9.1 Food and Beverages
9.2 Automotive
9.3 Medical
9.4 Electrical and Electronics
9.5 Agriculture
9.6 Building and Construction
9.7 Energy and Resource
9.8 Paper and Pulp
9.9 Textile
9.10 Chemical
9.11 Aerospace
9.12 Others
10. Low Density Polyethylene Market - By Geography (Market Size -US$ Million/Billion)
10.1 North America
10.1.1 USA
10.1.2 Canada
10.1.3 Mexico
10.2 Europe
10.2.1 UK
10.2.2 Germany
10.2.3 France
10.2.4 Italy
10.2.5 Netherlands
10.2.6 Spain
10.2.7 Russia
10.2.8 Belgium
10.2.9 Rest of Europe
10.3 Asia-Pacific
10.3.1 China
10.3.2 Japan
10.3.3 India
10.3.4 South Korea
10.3.5 Australia and New Zealand
10.3.6 Indonesia
10.3.7 Taiwan
10.3.8 Malaysia
10.3.9 Rest of APAC
10.4 South America
10.4.1 Brazil
10.4.2 Argentina
10.4.3 Colombia
10.4.4 Chile
10.4.5 Rest of South America
10.5 Rest of the World
10.5.1 Middle East Saudi Arabia UAE Israel Rest of the Middle East
10.5.2 Africa South Africa Nigeria Rest of Africa
11. Low-Density Polyethylene Market - Entropy
11.1 New Product Launches
11.2 M&As, Collaborations, JVs and Partnerships
12. Low-Density Polyethylene Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
12.1 Company 1
12.2 Company 2
12.3 Company 3
12.4 Company 4
12.5 Company 5
12.6 Company 6
12.7 Company 7
12.8 Company 8
12.9 Company 9
12.10 Company 10 and more
*Financials would be provided on a best efforts basis for private companies