Market Trends of Linear Low-density Polyethylene Industry
This section covers the major market trends shaping the Linear Low-density Polyethylene Market according to our research experts:
Rise in Demand for LLDPE Films
- Linear low-density polyethylene is used in the packaging industry because of its properties, such as higher impact strength, tensile strength, puncture resistance, elongation, etc.
- Food and beverage manufacturing companies use LLDPE films for packaging to secure their product from harmful chemicals and less moisture content. The recent increase in ready-to-eat and pre-cooked products globally has surged LLDPE's market share.
- The growth in disposable income and the increasing preference for fast food and food delivery services contributed to increasing demand for LLDPE films.
- Following a dip in 2020, the global packaging industry resumed steady growth in 2021, as COVID-19 affected numerous end-use sectors.
- Packaging is the most extensive application of LLDPE films. China, the United States, Japan, India, and Germany are amongst the top countries with the fastest growth rate in the packaging industry across the world.
- Rapid growth in the e-commerce industry directly correlates to the LLDPE demand for e-commerce packaging.
- All the above factors are expected to significantly impact the demand for LLDPE films from the packaging industry during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region accounts for the largest share of the Linear low-density polyethylene (LLDPE) market, owing to rapid industrialization and rising LLDPE-based packaging material demand in the region. The packaging business in the Asian market is expanding at a rapid pace with the increased manufacturing activities in the pharmaceutical, food processing, and automotive industries.
- The packaging industry in China is expected to register tremendous growth with a CAGR of nearly 6.8%, reaching USD 0.2 trillion by 2025. This positive momentum in the packaging industry is expected to boost the market demand for LLDPE in the country.
- The packaging industry primarily uses LLDPE films. LLDPE is also used in the injection molding manufacturing sectors in automotive plastic parts, toys, and water bottles. An increase in injection molding also increases the LLDPE market.
- According to the OICA, the Asia-Pacific automotive plastic parts market is expected to grow. In 2021, automotive production in China reached USD 26.08 million. The increase in automotive production is estimated to drive the demand for the market studied.
- Indian food processing is the largest consumer of packaging at 45%, followed by pharmaceuticals and personal care products. Increasing demand from these end-user segments is creating a huge potential for expansion.
- Due to all these factors, the market for linear low-density polyethylene is expected to have a high demand in the Asia-Pacific region during the forecast period.
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