Low Density Polyethylene (LDPE) Market - Industry Outlook by 2014-2020
Rising demand from automotive and construction industry is expected to drive LDPE market. Changing lifestyle and rising disposable income is driving the automotive market. LDPE offers transparency at low weight which is expected to boost the demand from automotive industry, owing to stringent government regulations to increase the vehicle efficiency. Further, growth of food packaging industry is expected to drive the market where transparency of the packaging is important and consumer groups prefer transparent packaging. Food packaging includes meat and poultry wrapping, snacks, dairy and sweets, baked goods and frozen goods. Owing to rising population, demand from construction industry is expected to boost the market in developing countries. Demand for energy efficient civil and industrial infrastructure in developed countries is expected to fuel LDPE market. In addition, government regulations in developing countries regarding energy efficient industrial infrastructure is anticipated to drive the market.
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Replacement of LDPE by linear low density polyethylene (LLDPE) in many applications due to its low cost and environment regulations may hamper the market growth. Further, replacement by HDPE in agricultural films and volatility in raw material prices may hamper the market growth. Polyethylene is manufactured from petrochemical derivatives, rising crude oil price and complex manufacturing process may hamper the market growth. Rising demand for use of LDPE in medical film is expected to provide opportunity for market players in the near future. In addition, demand from molded laboratory equipments, injection moulding and adhesive laminate is expected to provide opportunities for LDPE market in the near future. Bio-derived polyethylene production from sugarcane by some companies in expected to open new opportunity in developing country such as Brazil.
Europe was largest producer and exporter of LDPE and is expected to remain in the near future. Demand from automobile industry due to government regulations’ regarding vehicle efficiency is expected to drive the market in this region. Building energy efficient infrastructure is driving the demand for insulation products and is expected to drive the LDPE market. Asia Pacific region is expected to grow at higher pace owing to rising demand from automotive and construction industry. Large capacity additions in China and Middle East are expected to increase the supply of LDPE. Increase in industrial constructions in China is expected to drive the market in this region. North America region is expected to grow at moderate rate due to demand from food packaging industry and automotive industry.
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Some of the key players in the Low Density Polyethylene market include British Polythene Industries, Borealis AG, Dow Chemical Company, GE Oil & Gas, Chevron Phillips Chemical Company LLC, Exxon Mobil Chemical Company, Huntsman Corporation, DuPont, Formosa Plastics Corporation, Ineos PLC, Nova Chemicals Corporation, PEMEX, LyondellBasell Industries, SINOPEC, Qatar Chemical Company Ltd SABIC, Westlake Chemical Corp. among others.
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