Global Low-density Polyethylene (LDPE) Market 2017-2021
About Low-density Polyethylene (LDPE)
Polyethylene (PE) refers to a polymer of ethylene, particularly belonging to the category of lightweight thermoplastics. Polyethylene is partially crystalline in nature and has a high resistance to chemicals and moisture. Globally, it is the most commonly used plastic. It is used in the production of products ranging from packaging, construction, automotive, and other applications. The global polyethylene market was valued at $142.01 billion in 2016 and is expected to reach $170.95 billion by 2021, growing at a CAGR of 3.78% during the forecast period. LDPE is a type of polyethylene with a density of less than 940 kg/m³ and is mainly produced through a high-pressure process. It is part of the polyolefins family.
Technavio’s analysts forecast the global low-density polyethylene (LDPE) market to grow at a CAGR of 2.63% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global low-density polyethylene (LDPE) market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Low-density Polyethylene (LDPE) Market 2017-2021
Technavio recognizes the following companies as the key players in the global low-density polyethylene (LDPE) market: Borealis, China Petroleum & Chemical Corporation, ExxonMobil, LyondellBasell Industries Holdings, and The Dow Chemical Company.
Other Prominent Vendors in the market are: Braskem, Chevron Phillips, INEOS, Mitsui Chemicals, NOVA Chemicals, Reliance Industries, SABIC, Sasol, USI Corporation, Versalis, and Westlake Chemical.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is increase in demand for LDPE recycling. The increasing recycling rate of plastics in developed countries such as the US, Germany, and the UK due to the stringent regulations will drive the demand for LLDPE during the forecast period. The circular economy is gaining growing attention due to the growing concern for the environment. The growing demand for environmental sustainability is also expected to increase the recycling and reuse of materials.”
According to the report, one driver in the market is growing demand from films application. The growing demand for films and sheets for packaging, agricultural, electronics, and other applications is expected to foster the demand for LDPE. The films produced from LDPE exhibit good impact resistance and heat sealing characteristics. The incorporation of necessary additives in the polymer ensures a good surface slip and smooth flow of film on packaging machines. The increase in demand for plastic packaging is expected to foster the growth of the global LDPE industry owing to its use in packaging products. Food and beverages have to be protected by packaging them in containers, sachets, plastic bags, and pouches.
Further, the report states that one challenge in the market is volatility in raw material prices. Raw materials such as naphtha are used to produce LDPE. Naphtha is also called petroleum and is a crude oil extract. Ethylene is released when naphtha is strongly heated. This ethylene is further processed to form LDPE. LDPE, therefore, is made of many ethylene parts. These ethylene parts act as building blocks for LDPE. The increase in the price of ethylene will have a negative impact on the overall LDPE market owing to the high production cost. In 2016, the global ethylene price declined at a rate of 23% when compared with 2014.
Borealis, China Petroleum & Chemical Corporation, ExxonMobil, LyondellBasell Industries Holdings, and The Dow Chemical Company, Braskem, Chevron Phillips, INEOS, Mitsui Chemicals, NOVA Chemicals, Reliance Industries, SABIC, Sasol, USI Corporation, Versalis, and Westlake Chemical.