Global Polyethylene Packaging Market - 2019-2026
Global Polyethylene Packaging Market Overview
The Global Polyethylene Packaging market was valued at USD XX million in 2019 and expected to grow at a CAGR of XX% to reach a market value of USD XX million by 2027.
The global plastic packaging market shows some growth potential because of the emergence of certain trends. The popularity of biodegradable rigid plastic packaging is fueling the market's growth. With stringent environmental compliance regulations worldwide, vendors are more likely to use biodegradable plastics as substitutes to avoid paying hefty penalties. Other trends that are likely to affect the market are technological upheavals in product quality, increased adoption of lightweight rigid plastics, and increasing demand from APAC. Polyethylene is chemically synthesized from ethylene and is the most commonly used plastic. As polyethylene can be easily remolded, it is used in various products. It is used in pond liners, packaging, pipes, molds, wires, and cables, general purpose tubing, drums, carrier bags, and household goods.
Global Polyethylene Packaging Market - Market Dynamics
The demand for HDPE bottles is the main driver of the polyethylene packaging market. The share of HDPE bottles in this market is the highest, and the increasing demand for packaged bottled products such as milk, juices, and water will drive the market during the forecast period. The beverage industry accounts for more than 60% of the global polyethylene packaging market. During the forecast period, the demand from different segments of the beverage industry such as milk, juices, and water will be the key driver of the market. Growing urbanization and high disposable income have increased the consumption of beverages. The growth in disposable income is evident from the GDP per capita growth of developing countries. Between 2011 and 2014, China's GDP per capita increased by 22.73%, while that of India grew by 16.3%. During the same period, the GDP per capita in the US grew by 4.69%, while that of the UK grew by 2.91%. Another factor that has increased the consumption of beverages is increased health awareness.
HDPE, being a plastic product, has harmful effects on the environment. It is non- decomposable in nature and releases harmful greenhouse gases. Due to the environmental concerns associated with the material, governments across countries are taking steps to reduce its use. In European countries such as Scotland, Wales, and England, single-use carrier bags made of HDPE are no longer available for free. As a result, demand has fallen by more than 70%. The European Food Safety Authority (EFSA) requires that at least 99% of the feed material for a food grade HDPE polymer recycling process must have been used for food contact in its first life.
Global Polyethylene Packaging Market - Segment Analysis
Polyethylene packaging is made of a variety of polymers, which are mainly different grades of polyethylene (PE). Grades such as LLDPE, LDPE, and HDPE are gaining popularity in the manufacture of plastic packaging. LDPE is widely used in making packaging films and sheets, which account for 68% of the global LDPE market share. This is followed by extrusion coating and injection molding, which contribute 9% and 8% to the market share, respectively. The remaining 15% is contributed by others, which include pipette washing equipment, wash bottles, bags, tanks, and general-purpose tubing. LDPE is made from the polymerization of ethylene at high temperatures in an autoclave or tubular reactor.
HDPE contains less than one side chain per 200 carbon atoms in the main chain, which helps in forming long linear chains, thus leading to high crystallinity. HDPE is formed by a tight cell structure, which makes it difficult for other molecules to pass through, making it the strongest PE. It is tough, resistant to chemicals, resistant to UV radiation, and is the least flexible compared to other PE types. HDPE has a density of 0.94-0.97 grams per cubic centimeter.
Global Polyethylene Packaging Market- Geographical Analysis
By Geography, the global Polyethylene Packaging market is segmented into North America, Asia-Pacific, Europe, South America and the Middle East and Africa.
APAC will have the highest market share in the global polyethylene packaging market during the forecast period, growing at a CAGR of XX%, which will be the highest among the markets of all the regions. China dominates the polyethylene packaging market in APAC because of the large-scale manufacturing activity in the country. The major markets in APAC are China and India. China accounts for the highest share of polyethylene use in the world. In India, polyethylene accounted for 21% of the total plastic used in 2019, and 65% of this was used in packaging applications. The food and beverage sector in APAC are expected to have a turnover of more than USD 3 trillion in 2016, growing at a rate of more than 10%. The growth in this sector will lead to a considerable demand for polyethylene packaging.
Global Polyethylene Packaging Market- Competitive Analysis
The global polyethylene packaging market is highly fragmented because of the presence of numerous small vendors such as CKS Packaging (Atlanta, US) and large vendors such as Amcor (Victoria, Australia). Vendors compete on the basis of price, quality, innovation, reputation, distribution, and promotion. The increase in vendor competition may lead to vendors reducing their product prices, which could negatively affect margins and market growth.