Global HDPE market to reach $70 billion by 2019

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KONSTANZ, GERMANY — The versatility of high density polyethylene will help the global market sell to almost $70 billion by 2019, according to a new report from Ceresana Research.

Demand from Asia Pacific will be particularly strong, increasing at average growth rates of 4.4 percent per annum. Eastern Europe, the Middle East and South American will also generate double-digit growth rates, but growth in North America and Western Europe will be slower.

Changes in regional demand will also have an effect on the global production structure, says Ceresana. Over the next eight years, Asia Pacific will add more than 8 million metric tons in new capacities, while the Middle East will add 7 million metric tons.

The major application for HDPE in 2011 was blow molded bottles and other hollow items, accounting for 28 percent of the global market volume. The next most common applications were film and injection molded products.

Film production is dominant in Asia Pacific, while injection and blow molding are more popular in North America and Western Europe.

However, moving forward the HDPE pipe segment will show the strongest growth, driven by demand from the construction sector in China and other emerging markets.