The global market of polyethylene (PE) is expected to observe a heightened demand due to the demand for packaged goods. Along with this, the ease in the availability and affordability of polyethylene has also boosted the market. The introduction and development of bio-based and bio-degradable polyethylene are foreseen to be potential growth-boosting factors. This growth, however, is hindered by an increase in environmental advocacy and health awareness among consumers and pressure groups.
Global polyethylene market
Polyethylene is commonly known as polythene and is the most commonly available form of plastic in the world. Its chemical synthesis is done through ethylene after which is gets extensively used in the daily life of consumers living in developing and developed countries. Polyethylene is consumed in various forms and colors and finds application in products such as plastic bags, films, and containers. The extensive population surge is expected to initiate the growth of polyethylene in the developing nations. Manufacture of polyethylene is getting easier as its feedstock procurement has become simpler than ever before. Its feedstock can be derived from unconventional sources such as bio-based materials, shale gas as well as coal. The feedstock procured from these materials further ensure the availability of raw materials from sustainable resources.
Even though there is high ease of manufacturing, PE is considered harmful for the environment as it takes a fairly large amount of time to decompose. It further undergoes a time consuming and comprehensive mechanism of recycling. Factors such as restricted sales and consumption of PE, governmental policies and international trade conditions dictate the marketing strategies of polyethylene suppliers.
Trends In The Polyethylene Manufacture And Ways Of End-User Usage
Development of new technologies and additives for polyethylene manufacture is expected to help expand market avenues and improve the overall performance of the polyethylene market reach and influence in the coming decade. Extensive use of plastic containers across the verticals of industries and domestic households is another major reason behind the growth of Polyethylene industry. This will be augmented by a developing world economy.
Another impacting trend in the market of PE is newer and unconventional ways of its application. The versatility in the application of PE through the usage of UHMWPE (Ultra-High Molecular Weight Polyethylene which is also known as High Modulus Polyethylene) has been one of the latest and most influential market trends in the PE industry. Asia is witnessing a high demand for plastic products. India, as well as China, have observed a heightened demand for PE in the packaging and finishing of electronic products.
In spite of experiencing growth and development, the PE industry faces some hinderances due to the price volatility of raw materials such as ethane, naphtha and natural gas. This coupled with the commoditization of the product is another reason for market uncertainties of the PE industry. BASF, DuPont and Exxon Mobil are few of the market giants in the Polyethylene industry. The PE industrialists are benefiting from increasing urbanization and consumerization in developing economies as they observe a rise in the consumption of Polyethylene.