Low-Density Polyethylene (LDPE) Market - Growth, Trends, and Forecasts (2023 - 2028)

Key Highlights

• The low-density polyethylene (LDPE) market is projected to register a CAGR of over 3% during the forecast period.

COVID-19 had an impact on industrial growth across industries, with authorities delaying several major projects.This had a negative impact on the demand for LDPE. However, the market was in the recovery phase in 2021.

Key Highlights

• Over the medium term, the major factors driving the growth of the market studied are the rise in demand from packaging and the surging demand for film and sheets.
• On the other hand, substitution of other polyethylene products and plastic bans reduce market growth during the forecast period.
• Nevertheless, increasing demands from the pharmaceutical industry are expected to boost the growth of the studied market during the forecast period.
• The Asia-Pacific region is expected to have the biggest share of the market and the highest CAGR over the next five years.

Low-density Polyethylene (LDPE) Market Trends

Rise in Demand from the Packaging and Electrical & Electronics Industries

• Low-density polyethylene is used in the packaging industry because it can resist chemicals, bend, and be soft, among other things.
• Low-density polyethylene is primarily used in the food industry for packaging applications. It can hold products without emitting harmful chemicals. Owing to its lower moisture content, it is used in the storage of food items.
• Following a dip in 2020, the global packaging industry has resumed steady growth in 2021, as COVID-19 affected numerous end-use sectors.
• Linear low-density polyethylene is considered an alternative in the packaging industry today on account of its higher impact strength, tensile strength, puncture resistance, and elongation.
• Packaging is the largest application of LDPE. China, the United States, Japan, India, and Germany are amongst the top countries with the fastest growth rate in the packaging industry across the world.
• Plastics and packaging made from renewable resources like biomass are likely to hinder the market in the coming years.
• According to ZVEI, the global market for the electric industry was valued at USD 4821 billion in 2021, while registering a growth of around 9.1% as compared to the previous year.
• All the aforementioned factors are expected to significantly impact the demand for LDPE from the packaging industry during the forecast period.

Asia-Pacific Region to Dominate the Market

• The worldwide packaging business is evolving and expanding at a rapid pace, and the Indian packaging sector is no exception. Factors such as rising pharmaceutical, food processing, manufacturing, FMCG, healthcare sector, and auxiliary industries in emerging nations such as China, India, Brazil, Russia, and a few other East European countries are driving this rise.
• Industries in Asia-Pacific, such as food and beverages, electrical and electronics, packaging, and construction, are propelling market growth.
• In 2021, the shipment value of materials and containers for the packaging industry in Japan was around USD 41.8 billion, an increase of 2.1% compared to the previous year.
• In China, the rise of e-commerce giants like Alibaba is expected to drive the packaging market over the forecast period. For instance, Alibaba generated sales of around 540.3 billion yuan (USD 84.5 billion) in spending over the ten-day festival in November 2021, with a growth of 14% compared to last year.
• According to the Packaging Industry Association of India, the packaging industry is the fifth largest sector of the Indian economy; the industry has reported steady growth over the past several years and has a high potential for significant expansion, particularly in the export market.
• In the food and beverage industry, total packaging is expected to be around 450.000 million units in 2023.There is a significant rise in the growth of the packaging market owing to the upsurge of the e-commerce industry globally.
• Food processing and packaging costs in India may be up to 40% lower than in Europe, which, when paired with India's trained labor pool, makes it an appealing investment destination. Almost all user sectors with significant growth potential, such as processed foods, hard and soft beverages, fruit, and marine goods, have a lot of opportunity.

Due to all these factors, the market for low-density polyethylene is expected to have a high demand in the Asia-Pacific region during the forecast period.

Low-density Polyethylene (LDPE) Market Competitor Analysis

The low-density polyethylene market is consolidated in nature. Some of the major players in the market (Not in any particular order) include Exxon Mobil Corporation, LyondellBasell Industries Holdings BV, Dow, LG Chem, and Chevron Phillips Chemical Company, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support