Technavio (technavio.com) market research analysts forecast the global low-density polyethylene (LDPE) market to grow at a CAGR of close to 3% during the forecast period, according to their latest report. The report further segments the global low-density polyethylene market by application (films, extrusion coating, and injection molding) and by geography (APAC, EMEA, and the Americas).
Technavio analysts highlight the following three market drivers that are contributing to the growth of the global low-density polyethylene market:
- Growing demand from films application
- Increase in demand from developing countries
- Growing demand from flexible packaging
Growing demand from films application
The increasing demand for films and sheets for packaging, agricultural, electronics, and other applications is expected to foster the demand for LDPE. The films produced from LDPE show good impact resistance and heat sealing characteristics. The incorporation of necessary additives in the polymer ensures a good surface slip and smooth flow of film on packaging machines. The growing demand for plastic packaging is expected to increase the growth of the global LDPE industry because of its use in packaging products.
According to Hitesh Bhatia, a lead analyst at Technavio for plastics, polymers, and elastomers research, “Food and beverages must be protected by packaging them in containers, sachets, plastic bags, and pouches. Consumers inclination towards transparent and easy-to-open packaging that facilitates the protection and preservation of food from moisture and oxygen is also expected to supplement the market growth. The film segment is the largest segment of the LDPE market because of the growing demand for films for packaging due to their low cost, better protection, and ease of sealing.”
Increase in demand from developing countries
The global LDPE market is witnessing a high growth rate in developing economies such as India, China, Brazil, Mexico, Philippines, and Indonesia. Many OEMs of LDPE are shifting their manufacturing activities to these countries because of factors such as the availability of land, cheap labor, low transportation costs, easy availability of raw materials, and less stringent government regulations and policies. The growing population and the increasing income and purchasing power in the developing countries of APAC and South America are prompting higher investments in packaging and printing industries.
The LDPE manufacturing companies have opportunities to capitalize on the growth of emerging markets such as Mexico, South Africa, and Brazil that have a high contribution in the spending on food and beverages, printing, and other industries. Therefore, the LDPE market is expected to have a high growth rate in these regions during the forecast period.
Growing demand from flexible packaging
Flexible packaging is the packaging made of easily yielding materials that can readily take different shapes when it is filled or closed. Flexible packaging is used in various applications such as food and beverages, consumer products, medical products, and others. Flexible packaging can be made of paper, foil, plastic films, or a combination of any of these. The use of films to produce flexible packaging because of their moisture barrier, favorable sealing, stiffness, and clarity properties is increasing.