Downstream Polyethylene Market Expected to Reach $180.49 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Downstream Polyethylene Market," The downstream polyethylene market was valued at $109.53 billion in 2021, and is estimated to reach $180.49 billion by 2031, growing at a CAGR of 5.2% from 2022 to 2031.

Polyethylene is a tough, light flexible synthetic resin made by polymerizing ethylene, majorly used for plastic bags, food containers, and other packaging operations. Polythene in most of the cases are thermoplastics that can remold to different kinds of modified polythene plastics on applying heat. There are various types of polyethylene such as high modulus polyethylene or ultra-high molecular weight polyethylene (UHMWPE), ultra-low molecular weight polyethylene (ULMWPE), high density cross-linked polyethylene (HDXLPE), high density polyethylene (HDPE), high molecular weight polyethylene (HMWPE), cross-linked polyethylene (XLPE), medium density polyethylene (MDPE), low density polyethylene (LDPE), linear low-density polyethylene (LLDPE) and chlorinated polyethylene (CPE). HDPE is used in insulation of electricity carrying wires as it is a poor conductor of electricity. It is also used is plastic bags, used for packing in pharmaceutical industries, films for food packaging.

Characteristics of Polyethylene:

• Polyethylene has relatively lower mechanical strength, stiffness, and hardness than metal.
• Owing to its high electrical treeing resistance, they are regarded as a very good electrical current insulator.
• High resistance to acids and alkalis and low oxidizing power.

PE finds application in a wide range of industries, including plastic, packaging, and pipes & energy, owing to these properties. These properties make polyethylene famous in enterprises mainly connected with bundling and development. Polyethylene offers decreased weight, high flexibility, incredible synthetic obstruction, great electrical treeing opposition, and expanded influence strength for items at a lower cost. It is the most generally involved polymer in various items such as shopping packs, food wraps, cleanser containers, and auto gas tanks.

Growth of food business, which is involved with hygiene and health care, is a key benefit for the downstream polyethylene market; as a result, this market is gaining traction in a number of sectors, including automotive, electric & electronics, foods & beverages, and consumer goods industries. Properties consisting of excessive stress make it appropriate for commercial uses, specifically for packaging of automobile and electric spare parts. Manufacturing companies in the automotive industry focus on increasing performance of vehicles by reducing their weight. PE is favored as it is far low in weight, gives smooth processability, sealing, and stiffness properties. In the foods and beverage industry, demand for polyethylene is growing at a high pace, owing to rise in demand for production of packaging materials for foods & beverages. Manufacturers demand effective packaging to reduce possibility of food contamination and loss of quality. Polyethene has a moisture barrier property that protects foods & beverages from external and internal environments. This property is expected to boost demand for plastic materials from food, transport, and health care industries. Use of polyethylene in fashion apparel, sporting goods, and toys is increasing, owing to its ability to withstand physical stress, provide durability, and flexibility. It provides easy molding of products. In the agricultural industry, the application of this polymer is increasing, owing to rise in demand for drippers.

The downstream polyethylene market is segmented on the basis of type, technology, end-use industry and region. On the basis of type, Low-density polyethylene (LDPE), Medium-density polyethylene (MDPE), High-density polyethylene (HDPE).  MDPE segment is projected as the fastest growing segment. On the basis of technology, the market is categorized into films & sheets extrusion, pipe extrusion, injection molding, blow molding and others. Films & sheets extrusion segment has garnered highest share and is projected as the fastest growing segment. On the basis of end-use industry, the market is categorized into building & construction, electrical & electronics, automotive, paper & textile, packaging and others. Automotive industry is projected as fastest growing segment and building & construction industry has garnered highest share in downstream polyethylene market. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Major players operating in the global downstream polyethylene market Borealis AG, Chevron Phillips Chemical Company LLC, China National Petroleum Corporation, Dow Inc., Ducor Petrochemicals, DuPont, Exxon Mobil Corporation, Formosa Plastics Corporation, U.S.A, Ineos, Lone Star Chemical, LyondellBasell Industries Holdings, Mitsubishi Chemical Holdings Corporation, Mitsui Chemicals, Petroliam Nasional Berhad, SABIC.  

Other players operating in the downstream polyethylene market are LOTTE Chemical Corporation, Braskem S.A., Abu Dhabi Polymers Company Ltd.

Key findings of the study

• Based on type, the high-density polyethylene (HDPE) segment is expected to grow at a CAGR of 5.1%, in terms of revenue, during the forecast period.
• Based on technology, the films & sheets extrusion segment is expected to grow at a CAGR of 5.8%, in terms of revenue, during the forecast period.
• Based on end-use industry, the packaging segment is expected to grow at a CAGR of 5.1%, in terms of revenue, during the forecast period.
• Region wise, Europe is estiate dto grow at a CAGR of 4.1% during the forecast period, in terms of revenue.

IMPACT OF COVID-19 ON THE GLOBAL DOWNSTREAM POLYETHYLENE MARKET

• Emergence of COVID-19 had a brief favorable influence on the expansion of the global market for downstream polyethylene.
• During the COVID-19 epidemic, the increased demand for plastic-made personal protective equipment (PPE) played a key role in ensuring the safety of individuals.
• Since the start of the coronavirus pandemic, there has been an unprecedented surge in single-use plastics (SUPs) such as protective medical suits, gloves, hand sanitizer bottles, masks, food & packaging products, and medical test kits. This is also anticipated to contribute positively to the expansion of the downstream polyethylene market.
• Thus, the above reasons are anticipated to stimulate the expansion of the global downstream polyethylene market.