High-density Polyethylene (HDPE) is a thermoplastic polymer manufactured by low-pressure polymerization of ethylene. It takes 1.75 kilograms of petroleum (in terms of energy & raw materials) to make one kilogram of HDPE. It is highly applicable while producing geomembranes, corrosion-resistant piping, plastic lumber, and plastic bottles.
According to a recent study by MarkNtel Advisors, the Global High-Density Polyethylene Market is anticipated to grow at a CAGR of around 5% during the forecast period, i.e., 2021-26.
HDPE is lightweight yet super-strong and has superior characteristics like excellent chemical resistance & moisture barrier, a good balance of impact & stiffness, safe for food contact, etc. These properties of HDPE make it a tremendous packaging material. Moreover, to achieve increased fuel efficiency in vehicles, many automakers use HDPE fuel tanks.
Besides this, HDPE is used widely in construction & building applications as it is long-lasting & weather-resistant. Hence, based on these aspects, there is an immense demand for HDPE across the construction sector with the increase in housing & building activities spreading in urban & rural areas, further states the research report, "Global High-Density Polyethylene Market Analysis, 2021."
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, The UK, France, Italy|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil|
|Middle East & Africa: UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||LOTTE Chemical Corporation, Borealis AG, The Dow Chemical Company, PetroChina Company Limited, Abu Dhabi Polymers Company Ltd., Formosa Plastics Corp, LyondellBasell Industries Holdings, Exxon Mobil Corporation, Braskem S.A, Chevron Phillips Chemical Co., Others|
|Unit Denominations||USD Million/Billion|
COVID-19 Outbreak Significantly Impacted the Global High-Density Polyethylene Market
The impact of the COVID-19 pandemic on HDPE demand was uneven across value chains. Construction & automotive applications witnessed steep declines, and the demand for packaging, especially in sanitary products, food, & medical applications, remained robust. Additionally, the pandemic led to a surge in delivery services & healthcare-focused activities, which, in turn, increased the demand for HDPE for packaging purposes and positively impacted the market growth globally.
Moreover, with ease in lockdown restrictions and rising initiatives towards economic recovery, there has been quite an optimism among the HDPE market players. Hence, with this, the market is likely to witness steady growth across the globe in the forecast years.
Packaging Industry to Dominate the Global High-Density Polyethylene Market During 2021-26
Based on the End-User, the Global High-Density Polyethylene Market bifurcates into:
Of them all, the Packaging industry acquired the largest share of the Global High-Density Polyethylene Market in the past few years and is likely to maintain its dominance in the future. Manufacturers prefer HDPE for packaging purposes owing to its properties like resistance to moisture, easy customization, high durability, and economical. The easy recyclability and ability to protect the product from external factors make HDPE an ideal packaging material.
Hence, owing to the factors cited above, the demand for HDPE is propelling across consumer goods and food & beverage industries. Besides, the significant rise in the online food orders for food delivery globally due to the Covid-19 pandemic had an optimistic impact on the overall market growth.
During the pandemic, the permissible limit for HDPE in food packaging surged in India due to the shutdown of the jute mill industry, which has provided potential growth opportunities for the market to grow in the coming years. Additionally, in 2020, the Government of India’s Ministry of Textiles extended the limit for HDPE bags from 180,000 bales to 262,000 to further overcome the issues of food grains packaging, which also aided the overall market growth.
Pipe Extrusion to Acquire a Substantial Share of Global High-Density Polyethylene Market During 2021-26
Based on the Form, the Global High-Density Polyethylene Market segments into:
Of these segments, Pipe Extrusion is expected to capture a substantial share of the Global High-Density Polyethylene Market during the forecast period.
HDPE pipes can maintain a uniform temperature in the pipeline system as they can resist several chemicals & severe environmental factors. These pipes are applicable in mining, underwater supply, gas extraction, agriculture, etc.
Besides, Pipe Extrusion is used widely in the manufacturing of HDPE water & gas supply pipes. Across Asia-Pacific, India is a huge market for HDPE pipes due to the low production costs, environmentally sustainable footprints, and extensive use of HDPE in the agriculture industry.
Moreover, the upsurge in infrastructure developments, mounting number of chemical & petrochemical plants, and rising housing activities in urban & rural areas are also expected to place lucrative growth opportunities for pipe extrusion in the coming years.
Asia-Pacific to Lead the Global High-Density Polyethylene Market During 2021-26
According to MarkNtel Advisors, the Global High-Density Polyethylene Market expands across:
Of them all, Asia-Pacific is the leading region in HDPE production and occupies more than 36% share of its global production capacity. China, the region's largest economy in terms of GDP, dominates the HDPE demand, and the same trend is likely to be followed in the forecast period.
The mounting application of HDPE in construction pipes & chemical industries in countries like China & India due to its property of lower thermal deformation temperature & chemical resistance, respectively, is the prime aspect that boosts the market growth in the region. Besides, HDPE is among the main polymers used for manufacturing single-use plastic like in drinking bottles & caps, food wrappers, grocery bags, etc.
However, in January 2021, China banned restaurants & stores from providing single-use plastic straws & shopping bags in the country's major cities. A similar ban by the Environment Ministry of India is likely to take effect from July 2022 onwards on the manufacturing, import, distribution, sale, and use of single-use plastic. Hence, these bans on the use of single-use plastic in China & India are the prime aspects that might hinder the market growth in the region during 2021-26.
Extensive Applications of High-Density Polyethylene to Favor the Market Growth
HDPE offers an excellent moisture barrier, easy processing, and the ability to produce an opaque packaging product. It also possesses high strength & internal pressure to withstand external loads, temperature, and chemical resistance. Owing to these properties exhibited by HDPE, its demand is gaining momentum across several end-user industries, including food & beverage, automotive, electrical & electronics, and consumer goods.
Fluctuation in Petroleum Prices Might Affect the Global High-Density Polyethylene Market Growth During 2021-26
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Global High-Density Polyethylene Market is forecast to grow at a CAGR of around 5% during 2021-26.
A. The Packaging industry is likely to attain the largest market share during the forecast period.
A. The High-Density Polyethylene Market in Asia-Pacific is projected to continue growing at the highest CAGR during 2021-26 and present immense opportunities to the leading market players.
A. The soaring demand for food & medical packaging and burgeoning use of HDPE among products, such as shopping bags, agricultural tubes, composite plastic wood, wall pipes, etc., are the major factors likely to drive the market in the forecast years.
A. Post-COVID-19 pandemic, the Global High-Density Polyethylene Market is expected to grow significantly owing to the surging requirements for HDPE in construction industries and the mounting demand for packaged products.