The Low Density Polyethylene (LDPE) is forecast to smooth over the next few years. According to the WK-chem Research "Global Low Density Polyethylene (LDPE) Professional Survey Report 2022, Forecast to 2027", with the increasing demand of the Film and Sheet industry,the Low Density Polyethylene (LDPE) industry is developing at an incredible speed. According to the WK-chem regression analysis model, the compound annual growth rate (CAGR) for the period 2022-2027 is expected to be 4.50%.
Analysts' Viewpoint
In the medium term, the major factors driving the growth of the studied market are increasing packaging demand and surging demand for films and sheets. On the other hand, substitution of other polyethylene products and plastic bans reduce the market growth over the forecast period. Asia Pacific is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Market insight
LDPE helps protect edible products from pathogens and environmental factors, extending their shelf life and maintaining their taste and nutritional value. As such, it is used in the food and beverage (F&B) sector to package snacks, baked goods, meat products, as well as dairy and frozen foods. It is also used in the production of liners, tamper-evident packaging and several other products. Apart from this, it is used in the pipe and fitting industry due to its low water absorption and plasticity. In addition, LDPE-based compounds can be used in insulating materials to cover telecommunication wire and cable applications. This, coupled with growing environmental concerns, is positively impacting the global demand for LDPE as it is non-toxic, renewable, and can be recycled in a variety of conditions. Growth rates in 2020 have been severely impacted due to the impact of COVID-19. However, the market is in a recovery phase in 2021. The construction and packaging industry is one of the major end-user industries for LDPE. The construction industry has been severely impacted by contractual obligations, resource availability, deliverables, health and safety measures, and project delays or cancellations due to the pandemic. There has been a surge in the packaging industry due to hygiene and safety concerns, thereby increasing the demand for the LDPE market.
Competition Landscape
: This WK-chem market report is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading Low Density Polyethylene (LDPE) companys that include LyondellBasell Industries N.V.,GE Analytical Instruments,ExxonMobil Corporation,The Dow Chemical Company,Saudi Basic Industries Corporation (SABIC),BASF-YPC Company Limited,Qatar Petrochemical Company Q.S.C,LG Chem Ltd,DuPont de Nemours, Inc.,Braskem S.A. .etc.
Market Segmentation
: LDPE is produced using two technologies, autoclave reactors and tubular reactors. During the forecast period, autoclave reactors dominate the market. The autoclave reactor is a multi-zone mixed adiabatic vessel reactor, the reaction heat is only taken away by the reactants, and the conversion rate is higher. In autoclave reactors, lower operating pressures are required, while tubular reactors require higher operating pressures, which in turn translates into higher costs. Autoclave product grades are suitable for extrusion coating and special applications. The above factors are responsible for the growth of the autoclave segment. Furthermore, the higher adaptability of autoclave technology by manufacturers is driving the segment across the globe. On the basis of Application, the market is segmented into: Agriculture, Electrical & Electronics, Packaging, Construction, Others. Low density polyethylene is mainly used in packaging applications in the food industry. It can hold products without releasing harmful chemicals. It is used to store food due to its low moisture content. After a dip in 2020, the global packaging industry returned to steady growth in 2021 as Covid-19 affected numerous end-use industries. Linear low density polyethylene is considered an alternative in today's packaging industry due to its higher impact strength, tensile strength, puncture resistance and elongation. All the above mentioned factors are expected to significantly impact the demand for LDPE in the packaging industry over the forecast period. Low Density Polyethylene (LDPE)
Regional Market Analysis
In terms of geography, the global Low Density Polyethylene (LDPE) market has been segmented into: North America, Asia Pacific, Europe, South America, and the Middle East and Africa. Asia Pacific will dominate the market with industries such as food and beverages, electrical and electronics, packaging and construction, which are driving the market growth. In addition, factors such as the rise of pharmaceuticals, food processing, manufacturing, FMCG, healthcare industries and auxiliary products in emerging countries such as China, India, Brazil, Russia and some other Eastern European countries are driving this growth. China is considered the most promising country for LDPE growth, and the country's growing packaging industry is expected to boost demand for LDPE in the coming years. For more than two decades, China's economy has maintained a relatively high growth rate, driven by continuous growth in factory production, import and export, consumption and capital investment.
Cagr: 4.50%
Region with the largest share: Asia-Pacific
Largest country in largest share region: China
Product Type: Autoclave Reactors and Tubular Reactors
Application: Agriculture, Electrical & Electronics, Packaging, Construction, Others
Leading Company: LyondellBasell Industries N.V.,GE Analytical Instruments,ExxonMobil Corporation,The Dow Chemical Company,Saudi Basic Industries Corporation (SABIC)
