by The global Low-Density Polyethylene Market is estimated to be valued at US$ 47.08 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Low-density polyethylene (LDPE) is a thermoplastic made from petroleum. It is known for its flexibility and is commonly used in making plastic bags, plastic films, containers, lids, and pipes due to its flexibility and impact strength. LDPE is a light, flexible and translucent plastic with high elongation properties and good chemical resistance. It has excellent resistance to moisture with low manufacturing costs compared to other plastics. Owing to its lightweight and durable properties, LDPE is widely used in packaging industry for packaging food, cosmetics, pharmaceuticals and other household products.
Market key trends:
One of the major trends in the low-density polyethylene market is the increasing usage of LDPE in packaging industry. The packaging industry accounts for the largest share of total LDPE consumption globally. LDPE is widely used in packaging applications owing to its flexibility and moisture barrier properties. It is used in making plastic bags, pouches, bottles, containers and films. The growing e-commerce sector and increasing demand for convenience and packaged food have boosted the demand for plastic packaging. LDPE provides an excellent moisture and gas barrier at low costs and is highly flexible making it ideal for packaging applications. Growing consumption of packaged food and consumer goods is expected to drive the demand for LDPE in packaging industry over the forecast period.
Porter’s Analysis
Threat of new entrants: Low-density polyethylene being a commodity plastic there is threat of new players entering the market. However, large investments require for setting up manufacturing facilities act as a barrier.
Bargaining power of buyers: Buyers have high bargaining power in the LDPE market as it is a bulk commodity and there are numerous domestic and international suppliers. Buyers can negotiate on price and quality standards.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major raw materials for LDPE production include naphtha and natural gas. Suppliers have limited power given availability of substitutes.
Threat of new substitutes: Threat from substitution is moderate as LDPE has applications across packaging, consumer goods, construction, agriculture due to properties like flexibility and durability. However, other plastics and bio-based materials pose competition.
Competitive rivalry: The LDPE market is highly competitive with major global players operating facilities across key regions. Price wars and new product innovations have intensified competition.
Key Takeaways
The global Low-Density Polyethylene market is expected to witness high growth, exhibiting CAGR of 5.8% over the forecast period 2023 to 2030, due to increasing use in packaging industry. Strong demand from food packaging and non-food consumer goods will drive volumes.
Regionally, Asia Pacific dominated the LDPE market in 2022 attributed to large packaging and consumer goods sector in China and India. China accounted for over 30% of global LDPE demand. North America and Europe are other major consumers.
Key players operating in the Low-Density Polyethylene market are Lyondell Basell Industries N.V, ExxonMobil Corporation, The Dow Chemical Company, Saudi Basic Industries Corporation, BASF-YPC Company Limited, Qatar Petrochemical Company Q.S.C, LG Chem Ltd., E.I. du Pont de Nemours and Company, Braskem S.A., Formosa Plastics Corporation. Major players are focusing on capacity expansion plans and development of bio-based LDPE to strengthen market presence.
