Low-Density Polyethylene (LDPE) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Posted April 25, 2021 by Statzyreports

The Global Low-Density Polyethylene (LDPE) Market was valued at over 22 million tons in 2020 and the market is projected to register a CAGR of over 3% during the forecast period (2021-2026).
The Global Low-Density Polyethylene (LDPE) Market was valued at over 22 million tons in 2020 and the market is projected to register a CAGR of over 3% during the forecast period (2021-2026). Due to the impact of COVID-19, growth rates for 2020 were severely affected. The construction and packaging industries are among the major end-user industries of low-density polyethylene. Due to contractual obligations, resource availability, deliverables, health and safety measures, and project delays or cancellations created by pandemic, the construction industry affected badly. However, the packaging for groceries, healthcare products, and e-commerce transportation were seen a significant increase in demand and thus increased the consumption of low-density polyethylene.

- Over the medium term, the major factors driving the growth of the market studied are the rise in demand from packaging and surging demand for film and sheets.
- On the flip side, the substitution of other polyethylene products and the banning of plastics reduces the market growth during the forecast period.
- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market Trends

Rise in Demand from Packaging Industry

- Low-density polyethylene is being used in packaging industry because of its properties of chemical resistance, flexibility, softness, etc.
- Low-density polyethylene is majorly used in the food industry for packaging applications. It can hold products without emitting harmful chemicals. Owing to less moisture content it is used in the storage of food items.
- The packaging is the largest application sector for LDPE. The robust demand from developing countries such as India and China.

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- The largest outlet for LDPE is the film market, accounting for around 55% of global consumption and used mainly in food and non-food packaging. Food packaging applications include meat and poultry wrapping, dairy products, snacks and sweets, frozen food bags and baked goods. It is used where high clarity films are required such as produce bags and bakery film.
- Non-food packaging applications embrace industrial liners, stretch- and shrink-wrap, garment bags and merchant bags. Non-packaging film applications cover carry-out bags, waste bin liners and garbage bags, industrial sheeting, and construction and agricultural films.
- The growth in the packaging industry in the developing regions, such as Asia-Pacific, South America, and the Middle East, is expected to increase over the forecast period, due to the improving food packaging standards of various food and safety organizations in these regions.

- The Indian packaging sector, even in the pre-COVID era, has been witnessing considerable growth largely due to increased globalization of trade in goods and services and 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. Nonetheless, China dominates the sector and is the largest manufacturer and exporter of packaging materials and products globally.
- All the aforementioned factors are expected to have a significant impact on the demand for the LDPE from packaging industry during the forecast period.

Asia-Pacific Region to Dominate the Market

- Asia-Pacific region dominated the global market, with a share of more than 30%. This growth is majorly due to the rising demand from the packaging industry, in countries, such as China, India, and Japan.
- Industries in Asia-Pacific, such as food and beverages, electrical and electronics, packaging, and construction are propelling the market growth.

- The packaging industry in China is expected to witness tremendous growth, and it may record a CAGR of nearly 6.8% to reach CNY 2 trillion by 2025. This positive momentum in the packaging industry is expected to ignite the market demand.
- According to the Packaging Industry Association of India (PIAI), The India Packaging Market was valued at USD 50.5 billion in 2019, and it is expected to reach USD 204.81 billion by 2025, registering a CAGR of 26.7% during the period of 2020-2025.

- China is the largest consumer of electronics and electrical appliances in the region, owing to the largest population. According to the National Bureau of Statistics China, in the third quarter of 2020, China's electrical machinery and equipment manufacturing industry reached the utilization rate of 80.9 percent, increasing 2.8 percentage points compared to the previous quarter.
- Due to all these factors, the market for the low-density polyethylene is expected to have a high demand in Asia-Pacific region during the forecast period.

Competitive Landscape

The low-density polyethylene market is consolidated in nature. Some of the major players in the market include Exxon Mobil Corporation, LyondellBasell Industries Holdings B.V, Dow, LG Chem, and Chevron Phillips Chemical Company, among others.

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Tags covid19 impact , lowdensity polyethylene ldpe market , lowdensity polyethylene ldpe market forecast , lowdensity polyethylene ldpe market growth , lowdensity polyethylene ldpe market share , lowdensity polyethylene ldpe market size , lowdensity polyethylene ldpe market trends
Last Updated April 25, 2021