Market Trends of Global PE Films Industry
This section covers the major market trends shaping the PE Films Market according to our research experts:
Food & Beverage Industry to Hold Significant Market Share
- Food and beverage product manufacturers are increasingly adopting polyethylene-based flexible films because they offer distinct barrier properties that help with longer shelf life and better protection during the storage and transportation phase. Additionally, food-grade plastics must follow stringent, government-monitored manufacturing processes to ensure they are safe for food contact.
- Hence, the vendors are increasingly focusing on developing solutions to fulfill the above requirements. For instance, in July 2021, a high-density polyethylene (HDPE) was introduced by Nova Chemicals. The resin enables the development of more recyclable polyethylene (PE) by offering an improved moisture barrier for multilayer flexible packaging. According to the company, the new resin delivers up to a 20% increase in water-vapor transmission performance in multilayer coextruded films, which increases the shelf life of packaged foods.
- The retail sales of food and beverage products have significantly impacted the demand for PE films. For instance, according to the US Census Bureau, the retail sales of food and beverage stores in the United States increased from USD 77,521 million in November 2021 to USD 84,629 million in December 2021.
- The growing demand also encourages the vendors to launch new products to serve the changing need of the food & beverage market. For instance, in May 2022, Walki Group launched several new products, including Lamibel MDO-PE, a film-based material for pillow pouches made of solvent-free laminated with low sealing LDPE and reverse printed MDO-film.
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Asia Pacific to Register Significant Growth
- The rapid growth of sectors such as packaging, food & beverage, and construction is driving the demand for PE films in the region. The consumption of packaged and processed food has also increased significantly in the urban markets of the area. For instance, the food processing sector accounts for 32% of the entire food industry in India and is expected to reach USD 535 billion by 2025-26, according to IBEF.
- A similar trend has been observed in the food processing industry of other countries in the APAC region. For instance, according to the United States Department of Agriculture, the total production value of the Japanese food-processing sector amounted to USD 216.4 billion in 2021.
- PE films also play an essential role in the construction industry as they are used to cover specific spaces and protect valuable equipment and machinery. As the Asia Pacific region is witnessing a significant rise in construction activities with several regional governments focusing on upgrading their public infrastructure, the sector is expected to drive the growth of the studied market.
- For instance, according to the General Statistics Office of Vietnam, the construction sector's contribution to Vietnam's GDP amounted to 5.95 percent and 6.19 percent for 2021 and 2020, respectively.
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