Global High-Density Polyethylene Market Research Report: Forecast (2021-2026)

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."

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.

Market Segmentation

By End-User:

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:

• Packaging
• Transportation
• Electrical & Electronics
• Building & Construction
• Agriculture
• Industry & Machinery
• Others, including Pharmaceuticals, Energy, Irrigation, etc.

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.

By Form:

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:

• Injection Molding
• Profile Extrusion
• Film & Sheet Extrusion
• Pipe Extrusion
• Blow Molding

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.

Regional Landscape:

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:

• North America
• South America
• Europe
• Asia-Pacific
• Middle East and Africa

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.

Market Driver

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.

• Its ability to withstand high temperature & rigidity makes it suitable for industrial uses, especially in the automotive sector & electrical spare parts, as it is lightweight yet strong.
• The demand for HDPE is also increasing in the agriculture sector due to the surging requirements for emitting pipes in irrigation fields.
• Moreover, HDPE, being lightweight and offers easy processability, sealing, & stiffness, its consumption is increasing rapidly as a packaging material used for food & beverages.

Market Challenge

Fluctuation in Petroleum Prices Might Affect the Global High-Density Polyethylene Market Growth During 2021-26

• Producing one kilogram of HDPE requires 1.75 kilograms of petroleum (raw material & energy), the price fluctuations of which can affect the cost of HDPE accordingly and hamper the market growth.
• Further, HDPE takes a long time to break down & ends up in landfill sites for years. Incineration is required to dispose of HDPE, but it results in harmful gas emissions, which is another crucial aspect likely to hinder the market growth during the forecast period.

Key Questions Answered in the Market Research Report:

1. What are the overall market statistics or estimates (Market Overview, Market Size- by Value, Forecast Numbers, Market Segmentation, and Market Shares) of the Global High-Density Polyethylene Market?
2. What are the region-wise industry size, growth drivers, & challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global High-Density Polyethylene Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global High-Density Polyethylene Market based on a competitive benchmarking matrix?
5. What are the key results derived from the surveys conducted during the Global High-Density Polyethylene Market study?

Market Outlook, Segmentation, and Statistics 

• Impact of COVID-19 on Global High-Density Polyethylene Market
• Market Size & Analysis
  • By Revenue
• Market Share & Analysis
  • By Form
    • Injection Molding
    • Profile Extrusion
    • Film and Sheet Extrusion
    • Pipe Extrusion
    • Blow Molding
      • Extrusion Blow Molding
      • Injection Blow Molding
      • Injection Stretch Blow Molding
  • By End-User
    • Packaging
    • Transportation
    • Electrical and Electronics
    • Building and Construction
    • Agriculture
    • Industry and Machinery
    • Other (Pharmaceuticals, Energy, Irrigation, etc)
  • By Region
    • North America
    • South America
    • Europe
    • Asia Pacific
    • Middle East and Africa
  • By Competitors
    • Competition Characteristics
    • Market Share & Analysis
    • Competitive Metrix
• Global High-Density Polyethylene Market Hotspots & Opportunities
• Global High-Density Polyethylene Market Regulations & Policy
• Key Strategic Imperatives for Success and Growth
• Global Competition Outlook
  • Competition Matrix
  • Company Profile