They have low tensile strength but high flexibility and offer superior resistance property to chemical and electricity which makes it ideal to use across automotive, packaging, construction, and insulation coax application.
It is also used in the food industry for the packaging of food products such as snacks, dairy, sweets, and baked &frozen food products.
The global low-density poly ethylene (LDPE) is projected to surpass US$ 60.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 5.6% during the forecast period (2020 to 2027).
Growth in the retail industry is expected to raise demand for LDPE across the packaging of consumer goods that are sold in retail outlets is predominantly propelling the market growth of LDPE. According to the India Brand Equity Foundation, the Indian retail industry reached to US$ 950 billion in 2018 at CAGR of 13% and expected to reach US$ 1.1 trillion by 2020. Hence, growth in the retail the industry is projected to fuel the market growth of the LDPE.
The rise in construction activities is expected to foster the market growth of low-density polyethylene. General containers, trays, pipes, various bathroom and kitchen products are produced by using LDPE. According to Building Design & Construction, the global construction output is forecast to rise to US$ 12.9 trillion by 2022, up from US$ 10.8 trillion in 2017. Thus, growth in the construction is expected to augment market growth LDPE.
Regionally, Asia-pacific dominated the global green packaging market in 2019, reporting 36% market share in terms of revenue, followed by Europe and North America, respectively.
Rising use of linear low-density polyethylene (LLDPE) in place of LDPE or blend with it is expected to hinder the market growth of low density polyethylene. The use of LLDPE save material improves the performance of the product and is also environmentally friendly. Moreover, it also improves clarity and processing properties thus is likely to pose a threat to the LDPE market.
Strict regulation regarding the environmental impact of LDPE as they are not biodegradable encourage the user to opt for bio-degradable products such as paper bags and other recycled materials. Thus, strict environmental regulations are expected to hamper the market growth of the LDPE.
The development of bio-based polyethylene from sugarcane is expected to offer immense growth opportunity to the market of LDPE over the forecast period.
The rising demand for building energy infrastructure across developed countries is expected to foster the market growth of LDPE. LDPE is widely used in the insulation product in the construction industry.
Shifting preferences of consumers towards lightweight packaging solution is expected to be a major trend in the market. Moreover, the growing demand for flexible packaging is also projected to foster the market growth of the low-density polyethylene over the forecast period.
The rising trend of increasing production capacity of polyethylene to cater to growing demand across the globe is expected to augment the market growth of LDPE. For instance, in November 2020, Dow plans to install a new furnace in its steam cracker at Fort Saskatchewan, Alberta, Canada, to increase its ethylene capacity, currently 1.42 million metric tons/year by 130,000 metric tons/year.
On the basis of application, films & sheet dominated the global low-density polyethylene (LDPE) in 2019 with around 27% of market share in terms of revenue, followed by others and extrusion coating, respectively.
Key players are operating in the global low-density polyethylene (LDPE) market is LyondellBasell 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., and Formosa Plastics Corporation
Few Recent Developments
In July 2018, ExxonMobil announced the startup of a new 650,000 mt/year polyethylene plant at its Beaumont, Texas, refining, and chemical complex, the latest in more than 13 million tons/year of new US PE capacity online, under construction or planned through 2028.
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