In a new study published by the Germany-headquartered market research institute Ceresana, low-density polyethylene (LDPE) worth almost US$33 billion was sold worldwide in 2013. Global sales are expected to rise by 1.5% annually until 2021.

LDPE is one of the most commonly produced plastics, used for the production of films. About 63% of total demand stem from film production, especially packaging films as well as bags and sacks. Other important applications are rigid packaging and construction products, which can profit from new investments in infrastructure around the globe. In Asia, on the other hand, it is especially films, LDPE packaging films in particular, that offer the largest growth potential, since Asian countries are increasingly adapting to Western standards for packaged food.

About 7.1 million tonnes of LDPE have been processed in Asia-Pacific in 2013; of which, 58% were consumed in China. Asian countries, China and India in particular, and the Middle East will remain the largest growth markets for LDPE, according to Ceresana. Due to strong competition by other types of polyethylene, future growth rates for LDPE demand are likely to fall short of overall economic development. The LDPE markets in Western Europe and North America are largely saturated already and will grow only slightly.

The report also finds that several world regions are rapidly increasing their production capacities for LDPE. The Middle East’s LDPE output is projected to rise at a high growth rate of 5.0% per year. New large-scale petrochemical complexes will commence production in upcoming years. These are often joint ventures of large international companies and regional enterprises. Various larger productions sites are to be constructed in North America and Asia-Pacific as well. Western Europe, on the other hand, will see the closure of LDPE plants.

Meanwhile, in a global comparison, film extrusion is the most common technology for processing LDPE. Other technologies, namely extrusion coating, injection moulding, and other processes like blow moulding and retooling, account for a market share of only 37%. The various world regions show only minor differences in regard to processing technologies. For example, extrusion coating is disproportionally often used in North America, while Eastern European countries use large amounts of LDPE not only in film extrusion, but also injection moulding.