Market Trends of Latin America LDPE Industry
Rising Demand for Low-Density Polyethylene (LDPE) from Packaging Industry
- The use of low-density polyethylene (LDPE) in the packaging industry for making bottles, tubing, surgical bags, and plastic bags is increasing its demand, thereby promoting the growth of the low-density polyethylene (LDPE) market in Latin America.
- Low-density polyethylene is used in the packaging industry due to its properties such as low chemical resistance, low density, good flexibility, optimal temperature resistance, and transparency over other plastic polymers.
- Generally, low-density polyethylene is used for the packaging of foods due to its less chemical resistance property, which helps to keep food products at a temperature up to 100 degrees Celsius without emitting harmful chemicals.
- In May 2021, Amcor introduced recycled plastic packaging for powder chocolates in Latin America, reducing carbon emissions by 52% and water consumption by 80% after recycling. This innovation changes the plastics industry and may offer more growth opportunities for LDPE.
- Therefore, considering the abovementioned factors, the demand for the low-density polyethylene (LDPE) market is expected to rise significantly in the packaging application segment shortly.
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Brazil is Expected to Hold Significant Market Share
- Brazil is expected to dominate the market for low-density polyethylene (LDPE) in Latin America during the forecast period owing to the demand from major end-user industries such as agriculture, automotive, electrical and electronics, packaging, construction, healthcare, and others.
- Low-density polyethylene (LDPE) is an insulating substance used in the electrical and electronic industries. Brazil has the greatest market share in Latin America's electrical and electronic industry, which further results in the growing usage of low-density polyethylene (LDPE).
- Brazil's food and beverage industry generated revenue of 920 billion Brazilian reals (BRL) in 2021 and 788 billion Brazilian reals (BRL) in 2020, which is expected to grow in the future. According to this growth rate, the food and beverage industry in Latin America consumes the most LDPE packaging plastics in Brazil, witnessing the highest growth rate within the country.
- In Brazil, over 91,000 supermarkets (POPs) are visited by over 28 million consumers daily. In addition, by 2025, retail sales of the Brazilian processed food market are expected to reach USD 117.5 billion, growing at a rate of 32.5%. Therefore, the use of low-density polyethylene (LDPE) in food packaging will also grow in the future within the country.
- Agriculture is an important industry in Brazil, as this country has immense agricultural resources available to it. The country's agricultural production has grown rapidly over the past two decades, driven by rising global demand, high prices, and technological advances.
- Brazil has traditionally been one of the strongest farming countries to build its economy. In Brazil, about 41% of the total land is covered by agriculture. It has an entire land area of 2.1 billion acres, and nearly 867.4 million acres in Brazil are consumed by agriculture. LDPE is used in agriculture for mulching, greenhouse, walk-in tunnel, and other applications, thus expansion of the agricultural segment in the country is expected to benefit the growth of the LDPE market.
- All aforementioned factors are likely to fuel the growth of the low-density polyethylene (LDPE) market in Brazil over the forecast period.
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