Global HDPE Market Will Grow At 4% CAGR To Hit US$88 Bln By 2024

Global HDPE Market will grow at 4% CAGR to hit US$88 bln by 2024

03-Sep-19

The global HDPE Market will grow at 4% CAGR to hit US$88 bln by 2024, as per Global Market Insights, Inc. The high-density polyethylene (HDPE) market has been experiencing an exponential growth over the last couple of decades, owing to the rise in disposable income thereby driving demand for cosmetics, pharmaceuticals and packaged food products. HDPE’s robust mechanical properties coupled with high strength to density ratio makes it an effective packaging material in the food and beverage industry. Ever expanding food and beverage and consumer goods sectors worldwide, have been significantly boosting high-density polyethylene market share. Additionally, accelerating transformation in the consumer good industry has propelled the demand for HDPE films and sheets in the market.

Rising disposable incomes especially in emerging regions like Asia Pacific are driving innovations in the existing industrial sectors. For instance, owing to the increasing FDIs in India, there has been a significant rise in the rate of employment in the country thereby raising the consumer affordability capacity. Furthermore, by 2023, the per capita GDP of India is slated to amass US$3273.85.

The rising employment in the country has led to a boom in on-the- go food products thereby requiring a strong packaging base to facilitate the growing demand. Evidently, rising innovations in F&B industry worldwide will amplify HDPE market outlook over the forecast duration. In terms of application spectrum, high-density polyethylene market is segmented into packaging, agriculture, automotive, building and construction. Automotive is one of the lucrative application segments of HDPE industry. Pertaining to rise in technological advancements in the automobile sector and urbanization, demand for innovations in vehicles has increased.

According to European Automobile Manufacturers Association, in the year 2018, over 19.2 million vehicles were manufactured in European Union. The establishment of European Green Vehicle Initiative that focuses on improving the energy efficiency in vehicles by 50% from 2010 to 2030. Additionally, the platform further aims at deployment of over 5 million hybrid and electric vehicles in the European Union by 2020. The burgeoning vehicle industry in Europe has led to increased high-density polyethylene market share. The packaging sector is also one of the vital end-users of HDPE market. As per estimates, packaging was a dominant end-use segment in 2015 with a valuation of US$16 billion. The deep-rooted construction, automotive, communications, food and beverage and other crucial industries is a vital contributor to the global high-density polyethylene market share.

Europe is expected to evolve as a highly significant regional ground for high-density polyethylene market. The European Commission states that over 9% of the European Union’s GDP is contributed by its construction industry. Additionally, growing realization of green buildings in the region, HDPE are increasingly being used in water and wastewater mechanisms that install buried pipelines with large diameters. Moreover, high density polyethylene pipes are also used in cold water delivery systems that contain smaller diameters. The installation of HDPE pipes is considered to be a relatively easier process than the traditional pipelines making them an integral part of construction industry. Europe’s stringent yet strong packaging industry is further magnifying high-density polyethylene industry size. The European packaging and packaging waste directive focuses on enhancing environmental performance of packaging along with facilitating of the internal market of EU. Packaging techniques especially in the food and beverage industry have to be carried out under strict guidelines set by the respective authorities. The authorities lay emphasis on the use of HDPE as a packaging material owing to its characteristics of being recycled. High-density polyethylene market share is depicting immense traction in Europe majorly due to its environmental benefits along with being a highly economical material.