A new report suggests that investors should look to developing regions for growth in polyethylene (PE). As per the report by Townsend Solutions, global consumption of polyethylene resin declined -3.7% in 2008, as 66.7 mln tons of polyethylene were consumed globally, down from about 69 mln tons in 2007. This is below the five year annual average of 3.4% seen during 2003-2008. Interestingly, positive growth was seen in 2008 in the Middle East/Africa, India, Central/Eastern Europe and Central/South America. The regions that saw a decline were China, other Asia/Pacific, North America, Western Europe and Japan.
Townsend’s report suggests that the developing regions of China, Central/Eastern Europe, Central/South America, India, Middle East/Africa and other Asia-Pacific are exhibiting broad-based growth fundamentals, with a combined growth rate projected to be 4.6% pa over the five year time period. In the future, while growth in developing regions is well above the average global projected annual growth rate of 3.2% pa, the more developed regions of North America, Western Europe, and Japan will have a 5 year growth rate of only 1.6% pa on average over 2008-2013.