United States High-density Polyethylene (HDPE) Market: Market Driver and Restraint
The industry is expected to remain innovation-led, with frequent acquisitions and strategic alliances adopted as the key strategies by the players to increase their industry presence. Market stays in mature period with a clear concentration. Meanwhile, optimize product mix and further develop value-added capabilities to maximize margins.
As China’s economy has opened up, the nation’s rising middle and upper classes have created a sharp increase in demand for High-density Polyethylene (HDPE)s. Tempted by the enormous potential of the Chinese domestic market, as well as by the lure of cheap goods manufactured for the West, foreign interests have built new High-density Polyethylene (HDPE) factories in China, bought existing factories, or contracted with existing factories for the manufacture of High-density Polyethylene (HDPE)s. The government has also poured money into its own factories to make them more quality competitive and to accommodate the growing demand.
United States High-density Polyethylene (HDPE) Market: Key Takeaways
High Density Polyethylene (HDPE) is one of the most widely used plastics in a range of industrial sectors. HDPE is highly versatile, suggested by the broad portfolio of its applications that ranges from food packaging, beverage bottles, cosmetics, care products and household goods to technical parts and products for the construction sector. It is also the world's third largest commodity plastic resin after polyvinyl chloride (PVC) and polypropylene (PP).
Various processing techniques are used to produce different grades of HDPE including injection moulding, profile extrusion, film and sheet extrusion, pipe extrusion and blow moulding. HDPE is used in a wide array of end use industries including personal care & cosmetics, blow molded bottles, telecom ducts, fireworks, household goods, electrical & plumbing boxes, films, construction and pipes. Packaging was the largest market for HDPE followed by construction sector in 2013. Food & beverages was the largest market for HDPE within the packaging sector owing to the increasing demand for blow molded bottles over the past few years and trend is expected to continue over the projected period. Rising construction expenditure is expected to augment HDPE demand over the forecast period on account of rising demand for pipes and related products such as electrical & plumbing boxes and telephone ducts. Increasing application scope of HDPE in niche markets including fireworks and household goods is expected to fuel HDPE market growth over the forecast period.
United States High-density Polyethylene (HDPE) Market: Forecast by Nature
The United States High-density Polyethylene (HDPE) industry has a high concentration. The major manufacturers are Chevron Phillips, lyondellbasell, Ineos. At present, Chevron Phillips is the leader in United States, holding 25 % market share in 2017.
Fluctuating costs of raw materials used for manufacturing of high density polyethylene is a key concern for all the market players. For instance, large amount of ethylene is used for manufacturing of HDPE, due to overall scarcity of petroleum based byproducts, the market for ethylene is exhibiting fluctuating costs, reflecting its effects on the HDPE market. Furthermore, low thermal and mechanical properties and poor dimensional accuracy provided by HDPE could motivate manufacturers to opt for other alternatives such as polyethylene terephthalate. Nevertheless, major public health concern bodies have approved use of high density polyethylene for food packaging, which is expected to bolster the HDPE global market.
United States High-density Polyethylene (HDPE) Market: Forecast by Application
In general, high-density grades of polyethylene have densities up to 0.97 g/cm^. Low-density grades are as low as 0.91 g/cm^. Typically, the high-density material is linear and consequently crystalline. As might be expected, this higher crystallinity permits use at temperatures up to 130 C with somewhat better creep resistance below that temperature. Low-density polyethylene has less stiffness than the high-density type. Blends of the two types are common.
Typical Application:Toys, utensils, films, bottles, pipe and processing equipment. Wire and cable insulations.
United States High-density Polyethylene (HDPE) Market: Forecast by Form
High-density Polyethylene (HDPE) can be mainly divided into Blow Molding, Injection Molding and Extrusion Molding. which Blow Molding captures about 42% of High-density Polyethylene (HDPE) market in 2017.
United States High-density Polyethylene (HDPE) Market: Forecast by Region
The United States consumption of High-density Polyethylene (HDPE) increases from 7.12 Million MT in 2013 to 8.02Million MT in 2017, at a CAGR of more than 3.05%. However, HDPE in the U.S. market is over-produced. This phenomenon will be more prominent after 2018.
The US has traditionally directed the bulk of its PE exports to Latin America. While US producers are expected to aggressively pursue additional market share in Latin America, exporters will also be directing much of their attention to Asia, particularly China, as Latin American markets are not large enough to absorb the incremental additions in US capacity.
United States High-density Polyethylene (HDPE) Market: Key Players
ExxonMobil, Dow Chemical, lyondellbasell, Chevron Phillips, Ineos, Formosa Plastics, Westlake, Bayport Polymers (Total).
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