Global Polyethylene Packaging Market To Register CAGR Of Around 5% From 2016 To 2020

Global polyethylene packaging market to register CAGR of around 5% from 2016 to 2020

08-Dec-16

The global polyethylene packaging market is expected grow at a CAGR of around 5% during the period 2016-2020, according to Technavio. The market is further categorized into four end-user segments, which include beverage industry, consumer goods industry, food industry, pharmaceutical industry, and other industries. “There is huge potential for polyethylene packaging in the beverage packaging industry as they offer significant cost advantages due to the fact that they can be easily printed without special coating and lamination which is required for PET bottles,” says Sharan Raj, a lead packaging research expert from Technavio.

APAC was the leading region in the global polyethylene packaging market in 2015. The packaging industry in APAC is growing at a rate of 5.5% and is responsible for the high demand for polyethylene packaging in the region. The major markets in APAC are China and India. China accounts for the highest share of polyethylene use in the world. In India, polyethylene accounted for 21% of the total plastic used in 2015, and 65% of this was used in packaging applications. As per the industry analysis, the food and beverage sector in APAC is expected to have a turnover of more than US$3 trillion in 2016, growing at a rate of more than 10%. The growth in this sector will lead to considerable demand for polyethylene packaging.

The major markets in the Americas are the US, Brazil, and Mexico. The polyethylene market in the US is fueled by the availability of cheap natural gas-based feedstock from its highly productive shale gas industry, which is used in the production of polyethylene. More than 82% of the milk in the US is packaged in polyethylene jugs. The market forecast for the US economy envisions a growth rate of 3% during 2016-2017, which is expected to have a positive impact on the polyethylene market in the country. “South America has developing economies like Argentina, Brazil, and Chile. Argentina and Venezuela are expected to witness high growth during the forecast period, which is likely to have a positive effect on the polyethylene market,” says Sharan.

The major markets in this region are Italy, Germany, and France. These countries together account for 40% of the total market share of the polyethylene packaging market in the region. The market in EMEA is growing due to the replacement of rigid packaging products with more flexible packaging options and an increase in the use of HDPE films in comparison to that of LDPE films. Reduced oil prices will affect the economies of OPEC (Organization of Petroleum Exporting Countries) and this may result in slow growth rates in these countries. Thus, the market demand for polyethylene packaging in these countries will grow at a slower pace.