North America Linear Low-Density Polyethylene Market Likely To Touch At $19.6 Billion By 2027: Grand View Research Inc.
The North
America linear low-density polyethylene market size is anticipated to reach USD 19.6 billion by 2027, according to
a new report by Grand View Research, Inc. It is projected to register at a CAGR of 3.9% during the forecast
period. Increasing popularity of packaged foods is likely to boost the demand
for linear low density polyethylene. The rapid expansion of retail stores
across U.S. and Canada has driven the demand for packaged foods coupled with
increasing consumption of fresh food products, positively influencing the
market growth.
Favorable federal regulations laid
down by agencies, such as the Environmental Protection Agency (EPA) and
National Highway Traffic Safety Administration (NHTSA) regarding carbon
emissions along with the initiatives to develop plastics application for the
development of lightweight and fuel efficient cars are likely to augment the
growth of North America LLDPE market.
Packaged foods have been gaining
popularity in U.S. owing to various factors such as fast-paced lifestyle and
increasing consumer spending on convenient food products. These food products
are characterized by the ease of consumption and cleanliness. Plastic packaging
for food provides resistance and protection against microorganisms and
bacteria, which reduces the risk of foodborne illnesses. It also increases the
shelf life of the product. Moreover, plastic food packaging provides safety
during handling and transportation.
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Packaging end-use segment is expected
to create lucrative opportunities for linear low density polyethylene films.
Smaller amount of plastic may be utilized for the packaging of beverages in
comparison to other conventional materials. This saves transportation costs,
energy and time by trimming waste in all aspects. Unlike other conventional
materials, LLDPE may also be reused for multiple applications and recycling
processes are simple and effective for plastic compounds.
North America
Linear Low-Density Polyethylene Market Report Highlights
- Films product segment occupied the
largest revenue share and is expected to maintain its dominance throughout
the forecast period
- Extrusion process has dominated the
overall linear low density polyethylene market and accounted for more than
85% of the total revenue Share. Extrusion is a very economical
manufacturing process utilized to produce LLDPE components in large
quantities
- LLDPE, in the form of transparent films,
adhesive tapes, sachets, and others is widely utilized in food and
beverage packaging end use, thereby driving its demand over the forecast
period
- Key market players include Exxon Mobil
Corporation; Formosa Plastics Corporation; INEOS; Dow, Inc.;
LyondellBasell Industries N.V.; Westlake Chemical Corporation; Chevron
Phillips Chemical Co., LLC; Arkema; Borealis AG; and Lotte Chemical
Corporation
North America is one of the prominent
suppliers of polyethylene owing to the abundant availability of raw materials
to manufacture ethylene and other derivatives. Linear Low-Density Polyethylene
(LLDPE) is significantly consumed in applications such as liners, covers,
packaging films, and other products. Consumption in these applications is
anticipated to witness a significant rise owing to the properties of LLDPE,
such as strength, durability, easy to handle, and inexpensive.
Ethylene and crude oil are among the
key raw materials used to manufacture plastics. Ethylene and co-monomers such
as butane, hexane, and octene are the main raw materials utilized in the
production of LLDPE. Fluctuating raw material costs associated with plastics is
expected to pose hindrances in terms of profitability. Major companies, such as
BASF and Exxon Mobil, are actively investing in R&D to improve their production
processes by adopting strategic initiatives in an attempt to reduce costs and
improve efficiency.
Ethylene prices have been witnessing
high fluctuations since the past few years, while its demand was affected by
downstream polyethylene outages. Ethylene has witnessed a significant demand in
North America with increased consumption in automobile and packaging
applications. Moreover, production cost is also relatively lower owing to high
availability of low carbon feedstock in the region. Canada and Mexico are
anticipated to witness an exponential rise in manufacturing activities, which
is driven by economic growth, favorable credit landscape, and increased
spending capacities in. Plastics and the related raw materials, which are
consumed in the manufacturing of tangible goods, are likely to gain traction in
terms of demand in the coming years, thereby positively affecting plastics
industry, including the LLDPE industry.
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Prominent companies involved in the marketplace such as INEOS,
BASF SE, and SABIC are integrated across three stages of value chain, i.e. raw
materials supply, production of LLDPE, and product supply. This enables the companies
to reduce raw material procurement costs and diversify their operations into
various industries that are served by the raw materials, such as construction,
automotive, food packaging, and pharmaceutical packaging among others.
Some of the prominent companies involved in manufacturing linear
low density polyethylene include Exxon Mobil Corporation; Formosa Plastics
Corporation; INEOS; Dow, Inc.; LyondellBasell Industries N.V.; Westlake
Chemical Corporation; Chevron Phillips Chemical Co., LLC; Arkema; Borealis AG;
and Lotte Chemical Corporation.
Key manufacturers are focusing on strengthening their positions
through geographical expansion, mergers and acquisitions, and strategic
partnerships. For instance, in August 2018, LyondellBasell Industries Holdings
B.V. completed the acquisition of A. Schulman, Inc., a supplier of
high-performance plastic compounds, composites, and powders.
Grand View Research has segmented the North America
linear low-density polyethylene market on the basis of product, process, end
use, layer, and country:
North America Linear Low-Density
Polyethylene Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 -
2027)
·
Films
·
Liners
·
Bags & Pouches
·
Covers
·
Others
North America Linear Low-Density
Polyethylene Process Outlook (Volume, Kilotons; Revenue, USD Million, 2016 -
2027)
·
Injection Molding
·
Rotomolding
·
Extrusion
North America Linear Low-Density
Polyethylene End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 -
2027)
·
Packaging
o
Pharmaceutical Packaging
o
Food & Beverage Packaging
·
Building and Construction
·
Automotive
·
Electrical & Electronics
·
Others
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and
consulting company, registered in the State of California and headquartered in
San Francisco. The company provides syndicated research reports,
customized research reports, and consulting services. To help clients make
informed business decisions, we offer market intelligence studies ensuring
relevant and fact-based research across a range of industries, from technology
to chemicals, materials and healthcare.
For
More Information:www.grandviewresearch.com
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