Low Density Polyethylene Market

Low Density Polyethylene (LDPE) Market: Growing Demand for Films and Sheets for Packaging to Drive the Market; Global Industry Analysis and Opportunity Assessment 2015–2025

Polyethylene, by far, is the most popular thermoplastic, which is classified based on the densities of its grades. Low-Density Polyethylene (LDPE) is the most common form of polyethylene, which was also the first grade of polyethylene to be produced on a commercial scale. LDPE is produced from polymerisation of the monomer ethylene at high pressures. LDPE finds major application in the manufacturing of film & sheets and coatings, which are utilised primarily in the packaging and construction industry.

Market Dynamics

LDPE is a form of polyethylene possessing lower density as compared to other grades of polyethylene. Molecules of LDPE are not packed tightly and their branching is high. These properties make LDPE suitable for applications such as film & sheets, extrusion coating, injection moulding, etc. High demand for film & sheets and coatings for general packaging, liquid packaging, paper coating and other coating applications, in turn, is leading to the rise in demand for LDPE worldwide. Besides, packaging plays a crucial role in the retail industry. With the retail industry, especially the e-retail industry, growing at a significant rate, demand of LDPE for packaging purpose is also expected to boost up in these industries.

Growing urbanisation and construction industry is also fuelling the demand for LDPE in the global market. Several house-hold goods, such as general purpose containers, kitchen products, bathroom products, etc., are manufactured using LDPE, through the injection moulding process. Growing population and GDP, are further propelling the demand for LDPE worldwide.

Currently, crude oil feedstock prices are low. This is driving the market players, especially in Europe and Asia, to increase LDPE production in order to gain low raw material cost benefits. As a result, the LDPE market is expected to grow, not only from the demand side, but also from the supply side, over the forecast period.

Technology Analysis

On the basis of technology, the LDPE market is segmented into autoclave and tubular reactor segments. In terms of market value, the tubular segment is projected to exhibit above average CAGR during the forecast period, with an incremental $ opportunity approximately three times more when compared to the autoclave segment.

Application Analysis

On the basis of applications, the LDPE market is segmented into film & sheets, extrusion coating, injection moulding and other applications. In terms of market value, the film & sheets segment is projected to exhibit the highest growth rate during the forecast period. The incremental $ opportunity for this application segment is expected to reach around US$ 16,080.7 million over the forecast period, which is approximately more than double the total incremental opportunity for the other three application segments during the forecast period.

Regional Analysis

On the basis of regions, the global LDPE market is segmented into seven main regions, which include Asia Pacific (Excluding Japan), Latin America, Western Europe, North America, Japan, Eastern Europe and the Middle East and Africa. In terms of market value, Asia Pacific excluding Japan, the Middle East and Africa and Latin America are anticipated to expand at a higher CAGR when compared to other regions while all the other regions, together, are projected to expand at a collective CAGR of 3.7% over the forecast period.

Markets in the developing economies are expected to represent an incremental opportunity of more than 2.5X for LDPE manufacturers as compared to the incremental opportunity in developed markets over the forecast period. Market value share of Asia Pacific excluding Japan in the global market is expected to increase by over 8% between 2015 and 2025, followed by the Middle East & Africa and Latin America. The BRICS LDPE market, in terms of value, is projected to expand at a promising CAGR of 7.7% during the forecast period.

Key Players

Some of the key players in the LDPE market that have been covered in this study include LyondellBasell Industries N.V., ExxonMobil Corporation, The Dow Chemical Company, Saudi Basic Industries Corporation (SABIC), BASF-YPC Company Limited, LG Chem Ltd., E.I. du Pont de Nemours and Company, Braskem S.A., Formosa Plastics Corporation and Qatar Petrochemical Company.

Low Density Polyethylene (LDPE) Market Size

FMI study offers a 10-year forecast for the global Low Density Polyethylene (LDPE) market between 2015 and 2025. The market is expected to expand at a CAGR of 5.6% in terms of value during the projected period. The study demonstrates the market dynamics and trends across the globe that are expected to influence the current status and future prospects of the Low Density Polyethylene (LDPE) market over the forecast period.

The Future Market Insights report examines the global LDPE market for the period 2015–2025. The primary objective of the report is to offer updates on the developments made in the global LDPE market and conduct quantitative assessment of the market across various applications, technologies and regional market segments.

Low density polyethylene is mainly used to manufacture film & sheets and coatings, which are utilised primarily in the packaging and construction industry.    

On the basis of applications, the low density polyethylene market is segmented into:

  • Film & sheets
  • Extrusion coating
  • Injection moulding
  • Others

On the basis of technology, the low density polyethylene market is segmented into:

  • Autoclave reactor
  • Tubular reactor

On the basis of regions, the global antimicrobial additives market is segmented into:

  • Asia Pacific
  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • Middle East and Africa
  • Japan

To understand and assess the market opportunities and trends, the report is categorically split into sections such as market overview, analysis by application, analysis by technology and analysis by region including the competition landscape. Each section discusses about the qualitative and quantitative aspects of the global low density polyethylene market.

The report starts with the market overview and provides market definition, and analysis about the drivers (demand side as well as supply side), restraints and key trends in the market. Next section includes market analysis, by technology, followed by application and regional analysis.

All the above sections evaluate the market on the basis of various segments, covering present scenario and future prospects. The report considers 2014 as base year with market numbers estimated for 2015; meanwhile, the forecast has been done from 2015 onwards.

To calculate the market size, the report considers average price of LDPE across geographies on a regional basis. Furthermore, data points such as regional split and market split, by application and technology, and qualitative inputs from primary respondents have been incorporated to arrive at apt market estimates. The forecast presented here assesses the total revenue as well as volume of LDPE. When developing the market forecast, the starting point involves sizing the current market, which forms the basis for the forecast of how the market would take shape in the near future. Given the characteristics of the market, we triangulated the outcome based on different analysis considering the supply side, demand side and dynamics of the parent market. However, quantifying the market across aforementioned segments and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalising them after the forecast has been completed.

In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters, such as Year-On-Year (Y-o-Y) growth, to understand the predictability of the market and to identify the right opportunities in the low density polyethylene market.

As previously highlighted, the market for LDPE is split into various sub categories based on region, technology and application. These sub segments or categories have been analysed in terms of Basis Point Share (BPS) to understand the individual segments’ relative contribution to market growth. This detailed level of information is important for identification of many key trends in the low density polyethylene market.

Another key feature of this report is the analysis of LDPE market by region, application and technology, and their revenue forecast in terms of absolute $ opportunity. This is traditionally overlooked while forecasting the market. However, absolute $ opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global LDPE market.

In the final section of the report, the LDPE market landscape is included to provide report audiences a dashboard view, companies’ presence in LDPE product portfolio and key differentiators. Some of the market players featured in the section include:

  • LyondellBasell Industries N.V.
  • ExxonMobil Corporation
  • The Dow Chemical Company
  • Saudi Basic Industries Corporation (SABIC)
  • BASF-YPC Company Limited
  • LG Chem Ltd.
  • E.I. du Pont de Nemours and Company
  • Braskem S.A.
  • Formosa Plastics Corporation
  • Qatar Petrochemical Company