Global Polyethylene Packaging Market To Register CAGR Of 5.03% From 2016 To 2020

Global Polyethylene packaging market to register CAGR of 5.03% from 2016 to 2020

22-Dec-16

The global polyethylene packaging market to grow at a CAGR of 5.03% during the period 2016-2020, as per Market Research Reports, Inc.
Plastics are preferred over other forms of packaging because of their physical and chemical properties. They have certain inherent properties that make them ideal packaging materials. They are tough, durable, light in weight, easy to transport, and are not brittle like glass. Their cost per unit of production is low and they have a wide variety of applications. Plastic packaging even aids companies in marketing and advertising campaigns by allowing innovative and attractive designs. One of the factors driving the growth of this market is the growing pharmaceuticals and healthcare sectors, which have witnessed an increase in demand for plastic packaging products.

According to the report, the demand for HDPE bottles is the main driver of the polyethylene packaging market. The share of HDPE bottles in this market is the highest, and the increasing demand for packaged bottled products such as milk, juices, and water will drive the market during the forecast period. The beverage industry accounts for more than 60% of the global polyethylene packaging market. During the forecast period, the demand from different segments of the beverage industry such as milk, juices, and water will be the key driver of the market. Bottled water sales grew by more than 6% from 2014 to 2015. The share of bottled water in the beverage market was 18% in 2015; in 2009, it was 14%. However, the demand from the carbonated soft drinks (CSD) segment declined slightly. Packaged water consumption was at more than 230 billion liters, while CSD consumption was at 220 billion liters in 2015.
The report further states that China is the biggest importer of rHDPE, accounting for 60% of the global rHDPE imports. The major trading partners of China are the US and the UK. Two-thirds of the UK's rHDPE was exported to China in 2015. In 2013, China introduced Operation Green Fence (OGF), which resulted in the formation of strict rules regarding the quality of imported recycled products. This law adversely affected rHDPE imports to China, reducing them by 9% in 2013 and further by 12% in 2015. In 2015, recycled plastic exports to China from the UK fell to 65% of the amount exported in 2008-2009.