Global HDPE Packaging Market 2016-2020
HDPE packaging is used in industries such as food, beverage, pharmaceuticals, and consumer goods. Its properties of stiffness, moldability, and chemical resistance make it suitable for use in making various types of packaging including bottles, containers, cartons, bags, and others. Almost 70% of HDPE produced is used in packaging, both flexible and rigid. Its inert nature and ability to preserve products for long periods of time make it a popular choice in the food and beverage sector. The material also allows for easy printing, which is an important criterion for product promotion.
Technavio’s analysts forecast the global HDPE packaging market to grow at a CAGR of 4.86% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global HDPE packaging market for 2016-2020. To calculate the market size, the report considers the volume of HDPE used in the packaging sector by vendors.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global HDPE Packaging Market 2016-2020
Technavio recognizes the following companies as the key players in the global HDPE packaging market: Amcor, Bemis, Berry Plastics, Sealed Air, and Sonoco.
Other Prominent Vendors in the market are: Constantia Flexibles, Coveris¸ Daibochi Plastic, DS Smith, Flextrus¸ Graham Packaging, Greiner Packaging, Huhtamaki, LINPAC, Man Luen, Nampak Plastics¸ Printpack, Resilux¸ Rexam¸ Reynolds¸ RPC¸ Serioplast, Silgan¸ Winpak, and Wipak.
Commenting on the report, an analyst from Technavio’s team said: “Cost saving by the Americas and Europe through sourcing of HDPE resins will be a key trend for market growth. The primary parent products for the production of HDPE are crude oil and natural gas. Natural gas is the main raw material used in HDPE production in Europe and North America, whereas crude oil is the main raw material used in other parts of the world. This is because the ease of availability of different raw materials differs across regions. Africa, Asia, and the Middle East are expected to have a high production rate of HDPE of above 5% during the forecast period. Therefore, these regions will be the main source of raw materials for other regions.”
According to the report, product differentiation using HDPE will be a key driver for market growth. PET is the primary substitute for HDPE in the packaging market. Over 70% of plastic water bottles are made of PET. However, despite low cost and more transparency, PET has one major disadvantage: PET packaging products are not available in many colors. HDPE packaging is available in different colors and thus helps in product differentiation. The colors of the packaging products increase the aesthetic value of the products and draw the attention of the consumer resulting in more sales.
Further, the report states that improper procurement channels and shortage of raw materials will be a challenge for the market. There has been a shortage in the supply of plastic in the packaging market, resulting in inconvenience and loss for vendors. In 2015, there were more than 31 instances of supply contract breaches by leading manufacturers of polymers in Europe. This resulted in the supply of only 78% of the raw materials required in the packaging market, causing losses for vendors in the market. Information on the shortage was intimated to the vendors with a very short notice period, leaving them with few and costly alternatives.
Amcor, Bemis, Berry Plastics, Sealed Air, Sonoco, Constantia Flexibles, Coveris¸ Daibochi Plastic, DS Smith, Flextrus¸ Graham Packaging, Greiner Packaging, Huhtamaki, LINPAC, Man Luen, Nampak Plastics¸ Printpack, Resilux¸ Rexam¸ Reynolds¸ RPC¸ Serioplast, Silgan¸ Winpak, and Wipak.