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

The Low-density Polyethylene (LDPE) Market is segmented by Product Type (Blow Molded, Films, Injection Molded, Sheets, and Other Product Types), End-user Industry (Agriculture, Electrical and Electronics, Packaging, Construction, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Low-Density Polyethylene LDPE Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >3 %
Low-Density Polyethylene LDPE Market Major Players

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Market Overview

The 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 was affected badly. However, the packaging for groceries, healthcare products, and e-commerce transportation was seen a significant increase in demand, and thus, this 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.
  • The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Scope of the Report

Low-density polyethylene (LDPE) is a thermoplastic polymer and is a class of polymers derived primarily from petrochemical feedstock. It can withstand continuous temperatures of 80 ° C and 90 ° C (194 ° F) for a short period of time. It is quite versatile and tough and is produced in translucent or opaque variations. The low-density polyethylene market is segmented by product type, end-user industry, and geography. By product type, the market is segmented into blow molded, films, injection molded, sheets, and other product types. By end-user industry, the market is segmented into agriculture, electrical and electronics, packaging, construction, and other end-user industries. The report also covers the market size and forecasts for the low-density polyethylene (LDPE) market in 15 countries across major regions. For each segment, the market sizing and forecast have been done on the basis of volume (kiloton) and revenue (USD million).

Product Type
Blow Molded
Films
Injection Molded
Sheets
Other Product Types
End-user Industry
Agriculture
Electrical and Electronics
Packaging
Construction
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Rise in Demand from the Packaging Industry

  • Low-density polyethylene is being used in the 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.
  • 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 the 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 significantly impact the demand for the LDPE from the packaging industry during the forecast period.
Low-Density Polyethylene LDPE Market Trends

Asia-Pacific Region to Dominate the Market

  • The 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%, increasing 2.8 percentage points compared to the previous quarter.
  • 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 Growth

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 BV, Dow, LG Chem, and Chevron Phillips Chemical Company, among others.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand from the Packaging Industry

      2. 4.1.2 Surging Demand for Film and Sheets

    2. 4.2 Restraints

      1. 4.2.1 Substitution of Other Polyethylene Products

      2. 4.2.2 Banning of Plastics

      3. 4.2.3 Impact of the COVID-19 Outbreak

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Blow Molded

      2. 5.1.2 Films

      3. 5.1.3 Injection Molded

      4. 5.1.4 Sheets

      5. 5.1.5 Other Product Types

    2. 5.2 End-user Industry

      1. 5.2.1 Agriculture

      2. 5.2.2 Electrical and Electronics

      3. 5.2.3 Packaging

      4. 5.2.4 Construction

      5. 5.2.5 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share/Ranking Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Chevron Phillips Chemical Company

      2. 6.4.2 Dow

      3. 6.4.3 Exxon Mobil Corporation

      4. 6.4.4 Formosa Plastics Corporation

      5. 6.4.5 LG Chem

      6. 6.4.6 LyondellBasell Industries Holdings BV

      7. 6.4.7 National Petrochemical Company

      8. 6.4.8 NOVA Chemicals Corporate

      9. 6.4.9 PetroChina Company Limited

      10. 6.4.10 Reliance Industries Limited

      11. 6.4.11 Westlake Chemical Corporation

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Demand for LDPE in the Pharmaceutical Industry

**Subject to Availability

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Frequently Asked Questions

The Low-density Polyethylene (LDPE) Market market is studied from 2016 - 2026.

The Low-density Polyethylene (LDPE) Market is growing at a CAGR of >3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Dow, Chevron Phillips Chemical Company , LyondellBasell Industries Holdings B.V , Exxon Mobil Corporation , LG Chem are the major companies operating in Low-density Polyethylene (LDPE) Market.

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