HDPE packaging: Key market research findings
- China and India are two of the key revenue generating regions
- Increasing popularity of HDPE recycling
- Key vendors – Amcor, Bemis, Berry Plastics, Sealed Air, and Sonoco
The industry experts at Technavio predict the global HDPE packaging market to grow at a CAGR of around 5% between 2016 and 2020. The growth of this market can be attributed to the reduced cost of procuring raw materials. As crude oil is one of the principal raw materials used in making HDPE and more than 70% of virgin HDPE is used in the HDPE packaging market, the fall in the price of crude oil has benefitted both consumers and vendors in the market. Although there are factors other than the declining prices of crude oil that affect the price of HDPE, such as the relative value of the dollar against other currencies, the impact of crude oil price is the most prominent one. In 2015, APAC accounted for the use of more than 12 million tons of HDPE in 2015. The market in this region will showcase substantial growth during the forecast period, fueled by the flourishing packaging industry in China and India.
The new market research report from Technavio presents a breakdown and analysis of the HDPE segments based on the end user.
“One of the biggest advantages of HDPE is its ability to be recycled. Because of environmental concerns associated with plastic use, there are restrictions on the use of HDPE. As a result, recycling HDPE is a trend that is becoming increasingly popular in the market. The Plastic Industry Recycling Action Plan (PIRAP) was launched in 2015 by WRAP, a UK-based organization. Its main target is to create co-operation among the various stakeholders in the waste plastic supply chain, such as waste management companies and local authorities to achieve the recycling target in the UK and Europe,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
During 2015, the beverage industry led the global market for HDPE packaging by accounting for over 66% of the overall market revenue. The compatibility of HDPE for the packaging of beverages and the growing demand for bottled drinks, such as milk, water, and juices. HDPE bottles are the most recycled among all HDPE packaging products used for food and beverages. This recycled HDPE is also used in other applications such as pipes, which can use recycled HDPE mixed with some other materials.
The key vendors in the global HDPE packaging market include Amcor, Bemis, Berry Plastics, Sealed Air, and Sonoco. Intense competition among vendors and rapid technological changes constitute significant risk factors for vendor operations. Intense vendor competition has led to an increase in M&A, where smaller entities are being acquired by or merged with major players. For example, in May 2016, Bemis completed the acquisition of the medical device packaging operations and associated value-added services of SteriPack Group, a manufacturer of sterile packaging solutions for pharmaceutical and medical device applications. In June 2016, Amcor completed the acquisition of Alusa, a flexible packaging business in South America.
A more detailed analysis is available in the Technavio report, Global HDPE Packaging Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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