Polyethylene (PE) Market Report: Size, Share & Forecast | 2031 (2024)

Global Polyethylene (PE) Market size was valued at USD 115.62 billion in 2022 and is poised to grow from USD 120.36 billion in 2023 to USD 165.99 billion by 2031, growing at a CAGR of 4.1% in the forecast period (2024-2031).

Plastics have a number of benefits, including low cost, water resistance, and ease of manufacture, which have led to a wide range of applications in sectors including construction and automotive. An additional aspect boosting market revenue development is the rising demand for plastic packaging solutions to safeguard diverse products. The building industry also records a significant demand for polyethylene. In building and infrastructure applications, polyethylene's high tensile strength and stiffness are generating a consistent demand.

The most widely used plastic in the world is polyethylene, which is used in everything from detergent bottles to car fuel tanks to transparent food wrapping and shopping bags. Additionally, it can be cut, spun into synthetic fibers, or altered to mimic rubber's elastic qualities. The demand for safe packaging solutions is driven by high moisture resistance properties that protect food and drinks from internal as well as exterior surroundings. Market revenue growth is anticipated to be further fueled by manufacturers' increased focus on finding efficient packaging materials and solutions to lower quality loss and the danger of food contamination.

US Polyethylene (PE) Market is poised to grow at a sustainable CAGR for the next forecast year.

The Global Polyethylene (PE) Market is segmented based on type, end-user and regions. Based on type the market is further sub segmented into High Density Polyethylene (HDPE) , Low Density Polyethylene (LDPE), Linear Low Density Polyethylene (LLDPE) segments. On the basis of end-user, the market can be bifurcated into packaging, automotive, infrastructure & construction, consumer goods/lifestyle, healthcare & pharmaceuticals, electrical & electronics, agriculture, and other segments. The regional insights of the Polyethylene (PE) Market are into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa.

Polyethylene (PE) Market Analysis by Type

Due to its qualities, including low manufacturing costs, high strength to density ratio, and high-temperature resistance, the HDPE sector has the highest market share. The molding process used to produce HDPE affects the material's physical characteristics. A wide range of applications, including ballistic plates, bottle caps, boats, chemical resistant pipework, food storage containers, and others, call for HDPE due to its strong resistance to different types of solvents.

Due to its attributes including chemical resistance, flexibility, and softness, LDPE is mostly utilized for packaging. For packaging purposes, it is mostly used in the food business. Further boosting the demand for LDPE in the polyethene market is the increased demand for lightweight packaging in sectors like electronics, healthcare, and food & beverage.

Polyethylene (PE) Market Analysis by End-User

The growing use of resin in the production of various packaging solutions in the food & beverage industry, the packaging segment accounted for the biggest polyethylene market share and is estimated to stay the largest during the projected period. According to our research, the market for flexible packaging is dominated by the food and beverage sector by more than 60%.

In terms of the end-use industry, the infrastructure & construction section is regarded as the second most significant segment. It is anticipated that demand for PE in this end-use industry would rise due to the expanding usage of PE in the production of various construction materials, including films and sheets for windows, flooring, countertops, roofing, covering building components, and sealing off rooms.

The region with the largest market share is Asia Pacific, which is expected to hold the position for the duration of the forecast. This is related to the fact that the region is home to major consumers like China and India. Reliance Industries Limited reports that the demand for PE increased by 4%. Growing demand from sectors like packaging and infrastructure & construction is what's fueling market expansion in this nation.

The second-largest portion of the worldwide market was accounted for by Europe. The automotive industry's growing demand for this polymer is anticipated to add to the high market revenue in the area. Due to its qualities including electric insulation, corrosion inhibition, strong heat resistance, and low density, PE is the most desired polymer among the several others used in Europe.

Polyethylene (PE) Market Driver

The rise in demand amongst various end user sectors for high strength plastic is boosting the market growth.

• Several industries, including the automotive, electrical & electronics, food & beverage, and consumer goods, are seeing an increase in demand for PE. It is suitable for industrial usage, primarily for the packaging of electrical and automotive replacement components, owing to qualities like high stiffness. Manufacturers in the automobile sector are concentrating on lightening their vehicles to increase their efficiency. PE is used because it is lightweight, easy to produce, good for sealing, and has rigidity properties.
• Due to the escalating demand for the creation of food and beverage packaging materials, the consumption of the product is expanding quickly in the food and beverage industry. Effective packaging is preferred by manufacturers to lower the risk of food contamination and quality degradation. Because of its ability to block moisture, polyethene shields food and beverages from both internal and exterior conditions. This asset is anticipated to increase demand for products made in this sector.

Polyethylene (PE) Market Restraint

• The market's expansion is threatened by the availability of PE replacement goods like polypropylene and polyethylene terephthalate (PET). The market expansion of these kinds of plastics is anticipated to be constrained by their similarity to PE in terms of impact resistance, chemical resistance, flexibility, moldability, and low cost. Additionally, the cost structure of the finished product would be impacted by the fluctuating raw material prices, which will hinder the market's expansion. An important market restraint would result from this.

All across the world, there are significant producers of polyethene. One of the well-known businesses, LyondellBasell, is involved in the plastics, chemicals, and refining industries. It offers a huge selection of PE items. The company's use of the acquisition strategy has demonstrated its superiority across the globe. On the other side, ExxonMobil is growing across the globe via tactics like joint ventures and by offering a wide variety of polymer goods.

Polyethylene (PE) Market Top Players Company Profiles

• Exxon Mobil Corporation
• Dow Chemical Company
• LyondellBasell Industries N.V.
• SABIC (Saudi Basic Industries Corporation)
• Formosa Plastics Corporation
• Braskem
• Chevron Phillips Chemical Company LLC
• INEOS
• Mitsubishi Chemical Corporation
• NOVA Chemicals Corporation
• Reliance Industries Limited
• Sinopec Group
• Total S.A.
• Borealis AG
• BASF SE
• LG Chem Ltd.
• China National Chemical Corporation (ChemChina)
• Lotte Chemical Corporation
• Versalis S.p.A.
• Westlake Chemical Corporation

Polyethylene (PE) Market Recent Developments

• In November 2021, a significant milestone in the widespread deployment of post-consumer resin (PCR) for elastic film applications was recently disclosed by Charter Next Generation and NOVA Chemicals Corporation. Both businesses have successfully worked together to increase the supply of more environmentally friendly packaging films and create a circular economy where valuable plastic components are reprocessed and reused repeatedly. In October, PCR railcar extensions arrived at the CNG production plants.
• In May 2021, LACTEL and INEOS collaborated to create the first HDPE milk bottles in the world by using circular polyethylene made from post-consumer recycled materials. LACTEL is the first dairy brand to investigate environmentally friendly packaging options. A trial run of the new product will be conducted in the Montauban manufacturing facility.

• Owing to its attributes, including durability, ease of customisation, and moisture resistance, manufacturers favour PE for packaging applications. The fact that polythene is a cheap material makes it useful for packaging. This polymer is the perfect choice because of its simple recycling capabilities, chemical resilience, and capacity to shield the contained product from any outside disturbances. Due to the aforementioned features, it is demonstrating a rapidly growing demand from the food and beverage and consumer goods industries.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, the Global Polyethylene (PE) Market is segmented based on type, end-user and regions. The HDPE sector has the highest market share, due to its qualities, including low manufacturing costs, a high strength to density ratio, and high-temperature resistance. The growing use of resin in the production of various packaging solutions in the food & beverage industry, the packaging segment accounted for the biggest polyethylene market share and is estimated to stay the largest during the projected period. The region with the largest market share is Asia Pacific, which is expected to hold the position for the duration of the forecast.