Polyethylene Film Market Expected to Reach $128.2 Billion by 2030

According to a new published report by Allied Market Research titled, “Polyethylene Film Market by Type, Material, Technology, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,” The global polyethylene film market was valued at $82.6 billion in 2020, and is projected to reach $128.2 billion by 2030, growing at a CAGR of 4.5% from 2021 to 2030.

Polyethylene is a thermoplastic that possesses properties such as toughness and high tensile strength. It is used in packaging industry to heat seal the packages due to low melting point. These characteristics vary with the basic polyethylene parameters of density/crystallinity, molecular weight, and molecular weight distribution. Blow film extrusion is the common method used to make plastic films. High-density polyethylene (HDPE) and low-density polyethylene (LDPE) plastics are majorly used material for blow molding process. Process of making Polyethylene Film is called extrusion. Cast films are manufactured by processing the polymer resins at higher temperatures through a flat die/slot leading to formation of a film or a thin sheet.  It is the surface of the rotating roller that gives cast film its characteristic smooth and clear appearance.  

Cast extruded films are used in applications such as heavy-duty bags, liners, refuse sacks & bags, agricultural films, construction films, and heavy duty shrink films. Cast films offer advantages such as film gauge uniformity and higher production rate, owing to utilization of processors during manufacturing. Applications such as food packaging, textile packaging, flower wrapping, and photo album pages drive the demand for the global Polyethylene Film market. Applications that require uniform properties along the length and width adopts polyethylene blown films. Around 10-50% of LDPE with octene linear low-density polyethylene (LLDPE) are used in sealants webs of lamination films in specialty packaging applications. In addition, monolayer films of LLDPE with 30-60% LDPE are used in collation shrink films applications. These factors drive the demand for global Polyethylene Film market.  

However, fluctuating costs of raw material and stringent regulations across Europe that forbid the use of plastic films in the agriculture industry are some factors expected to hamper the growth of the market during the forecast period.

Polyethylene Film offer various significant properties such as lightweight, flexible, glossy finish, moisture resistance, and other characteristics that make them suitable for a wide range of applications. However, several robust applications such as construction, tubes, laminates, and others require multi-layer polyethylene film (ranging from 2-9 layers) with high flexibility and moisture resistant capabilities. Moreover, multi-layer Polyethylene Film are widely utilized in agricultural sectors for crop protection in harsh climatic conditions. According to a research article published by Hindwani, the use of multi-layered Polyethylene Film has resulted in increased yield, less reliance on pesticides & herbicides, more efficient water conservation, and better protection of crops. This may increase the customer preference toward the use of multi-layer polyethylene film; thus, creating lucrative opportunities for the polyethylene film market in the future.

Depending on the technology, the global Polyethylene Film market is segmented into blow film extrusion and cast film extrusion. The cast film extrusion segment dominated the global market in terms of revenue in 2019, with over two-third of the total share in 2019. This is attributed to the fact that application that requires multi-layered films such as food packaging adds to the demand in the global market. In addition, other applications of cast film include fine shrink films, packaging films for sanitary products, freezer films, lamination films, cling films, and label films, which escalate the adoption of polyethylene cast films.

On the basis of type, the Polyethylene Film market is segmented into shrink films and stretch films. The stretch films segment dominated the global market, with over three-fourth of the total share in 2019, stretch films are strong and highly flexible films that can be stretched to take the shape of a product or products. They are used in a variety of applications ranging from overwrapping fresh meats to securing shipping cartons to pallets. Stretch wrap usually is made of co-extruded LLDPE and LDPE, although it can be made from individual plastic resins, such as LLDPE and LDPE. Properties such as durability and low thickness make them perfect choice of material for protective packaging and wrapping of products.

On the basis of material, the global Polyethylene Film market is segmented into low-density polyethylene (LDPE), high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE). The LLDPE segment dominated the global market, with over half of the total share in 2019, as LLDPE films are widely adopted for food packaging, non-food packaging, and manufacturing of shrink & stretch films, owing to its properties such as tensile strength and impact. LLDPE with blend of branched LDPE enhances properties such as clarity, toughness, performance, flexibility, and other barrier properties. Other applications of LLDPE films are high-performance bags, supplemental bag packaging, elastic films, tire separator films, garbage bags, and cushioning films.

Depending on the application, the global Polyethylene Film market is segmented into food & beverage, agriculture, construction, household, and others. The food & beverage application dominated the global market in terms of revenue in 2019, with over four-seventh of the total share in 2019. This is attributed to the fact that Polyethylene Film are used in food & beverage for various applications such as packaging of in-store products such as apples & potatoes, non-frozen baked products such as rolls & breads, and tray covers for delivery of baked food products. In addition, use of PE films for packaging of fluid products in a supportive box such as boxed wine and candy & confectionery bags.

Region wise, the Polyethylene Film market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific Polyethylene Film market size is projected to grow at the highest CAGR during the forecast period and accounted for a major Polyethylene Film market share in 2019.

Key players operating in the global Polyethylene Film market include Amcor Ltd., Berry Global Inc., Constantia Flexibles Group GmbH, KlocknerPentaplast Group, Printpack Inc. RKW Group, Inteplast Group, Sealed Air Corporation, Sumitomo Bakelite Co., Ltd., and Toray Industries Inc.

Key Findings Of The Study

• On the basis of type, the stretch films segment emerged as the global leader by acquiring more than 74.4% of the market share in 2020.
• On the basis of material, the ceramicssegment emerged as the global leader by acquiring more than 49.2% of the market share in 2020.
• On the basis of technology, the LLDPE segment emerged as the global leader by acquiring more than 67.4 % of the market share in 2020.
• On the basis of application, the food and beverages segment emerged as the global leader by acquiring more than 57.6% of the market share in 2020.
• On the basis of region, Asia-Pacific is the major consumer of polyethylene film among other regions. It accounted for around 46.0% of the global market share in 2020.

Impact Of Covid-19 On The Global Polyethylene Film market

• The COVID-19 pandemic has negatively affected the global economy and is subsequently shrinking the GDP in global economies; thereby, changing consumer spending patterns globally.
• The major end users of Polyethylene Film such as food & beverages, construction, packaging, automotive, and transportation have been negatively impacted due to the ongoing pandemic outbreak. The ongoing health crisis has increased the supply-demand gap, hampering the global polyethylene film supply chain.
• According to a report published by Molecular Diversity Preservation International (MDPI), the South African food and non-alcoholic beverage sector have gone through a moderate decline of the flow of income by 10% to 30%, whereas the alcoholic beverages have experienced a negative impact of 60% in 2020. This in turn has decreased the demand for polyethylene film in the food & beverages sector amid the COVID-19 period.
• Furthermore, the temporary shutdown of construction and infrastructure activities amid the COVID-19 period has reduced the consumption of Polyethylene Film for the curing of concrete from the ground. For instance, according to a report published by a research journal, the COVID-19 pandemic has reduced the investment in the construction industry in India by 30%. This has resulted in decreased consumption of polyethylene film in the construction industry. 
• In 2020, polyethylene film prices were higher in Asia. The price rise is due to continued regional demand trends and tight product availability. Firm downstream polyethylene demand and stronger upstream costs are expected to sustain the price gain. Few of the plants are under renovation and a few are shut down currently. For instance, Berry Global Inc. sold its U.S. polyethylene-based flexible film business, which was primarily operated in the engineered materials segment for $140 million in October 2020, owing to the decreased sales and loss of revenue in the region.