The extremely fragmented global high density
polyethylene market comprises a vast majority of regional and local
producers that cater to local businesses. The three leading producers
of high density polyethylene had barely taken up 16.3% of the global
HDPE volume generated in 2014. These producers – Chevron Philips
Chemical Company, LyondellBasell Industries, and INEOS Olefins and
Polymers – currently offer large plant capacities and hold a strong
distribution chain in key consumption regions.
According to a new publication by Transparency Market
Research, the degree of competition in the global market of high
density polyethylene is expected to remain high over the coming
years. The small number of players that currently hold a global and
regional prominence in HDPE production are vying to increase their
plant capacities.
This 200 page report gives readers a comprehensive
overview of the High Density Polyethylene market. Browse Market
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The threat of new entrants is expected to remain low
till 2023, owing to the very challenging aspect of procuring raw
materials for producing high density polyethylene. Additionally, the
high capital required to set up the technically intensive production
plants also deter many entities from entering this market.
In terms of revenue, the global market for high
density polyethylene is expected to progress at a CAGR of 4.5% within
a forecast period from 2015 to 2023. By the end of 2016, this revenue
is expected to reach US$62.8 bn by the end of 2016 and US$84.79 bn by
2023. In terms of volume, the global market for high density
polyethylene is expected to progress at a CAGR of 4.2% from 2015 to
2023.
Blow molding has been a consistently popular method
of producing high density polyethylene. By the end of 2023, this
segment will take up 29.1% of the global HDPE volume.
APAC Dominance in High Density Polyethylene
Consumption Continues
Asia Pacific has been the top consumer of high
density polyethylene over the recent past, owing to a fast-growing
economy and the rise of consumerist trends. By the end of 2023,
nearly 46.8% of the global volume of high density polyethylene will
be taken up by Asia Pacific.
Packaging and agriculture have dominated the demand
for high density polyethylene over the years. Till 2023, the leading
demand for high density polyethylene is expected to be derived from
the packaging industry, which will take up 31.2% of the global HDPE
volume by then.
Growth in Packaging and Agriculture Industries
Lead to Increase in HDPE Demand
“Nearly 30% of the various materials used in
packaging is high density polyethylene,” states a TMR analyst.
“This is a massive chunk of the global high density polyethylene
production that is taken up by the packaging industry. Current trends
in consumer goods and food and beverage industries are pointing
towards a surge in consumption rates, further increasing the demand
for high density polyethylene. Rigid plastic packaging and aesthetic
qualities hold top priority in these industries, and therefore need
HDPE to provide the same,” the analyst adds.
Similar growth rates can be seen in the agriculture
industry, where high density polyethylene is used to manufacture high
quality sheets and tarpaulins. These sheets offer great protective
properties, especially against UV rays and different weather
conditions. Therefore, the currently high growth rate of the
agriculture industry is a direct driver of the demand for high
density polyethylene.
Raw Material Cost Volatility Deters HDPE Producers
The raw materials required to produce high density
polyethylene come from crude oil, which holds one of the more
unpredictable rates of production and consumption. Any fluctuations
in the costs of crude oil will directly reflect in all its downstream
activities, including the production of HDPE.
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This will continue to hamper the steady and healthy
growth rate of HDPE producers in the coming years. The sheer
difficulty for small-scale producers to procure crude oil raw
materials is also enough to keep a large number of entities from
entering HDPE production.
The TMR analyst states, “Instead of depending on
crude oil for raw materials, HDPE producers can look towards
developments in bio-based HDPE, which can be produced from
sugarcane-based ethanol rather than the petroleum-based ethylene.”
The information presented in this review is based on
a Transparency Market Research report, titled, “High Density
Polyethylene Market - Global Industry Analysis, Size, Share, Growth,
Trends and Forecast 2015 - 2023.”
Key Takeaways:
- Blow molding requirement of high density polyethylene estimated to generate US$23.6 bn by 2023.
- The HDPE demand from the packaging industry is estimated to value US$25.2 bn by 2023.
- The HDPE demand from Asia Pacific is projected to reach US$36.4 bn by 2023.
Key segments of the Global High Density
Polyethylene Market
Global High Density Polyethylene Market, by
Product Segment
- Blow molding
- Pipe and extrusion
- Film & sheet
- Injection molding
- Others (including rotomolding, etc.)
Global High Density Polyethylene Market, by
Application Segment
- Agriculture
- Building & Construction
- Automotive
- Packaging
- Others (including industrial, etc.)
Global High Density Polyethylene Market, by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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