U.S. Polyethylene Market Size, Share & COVID-19 Impact Analysis, By Type (HDPE/MDPE, LDPE, and LLDPE), By End-use Industry (Packaging, Automotive, Infrastructure & Construction, Consumer Goods/Lifestyle, Healthcare & Pharmaceuticals, Electrical & Electronics, Agriculture, and Others), and Country Forecast, 2023-2030

The U.S. polyethylene market size was worth USD 15.29 billion in 2022 and is projected to grow at a CAGR of 3.8% during the forecast period.

Polyethylene is the most commonly produced polymer or plastic. It has a lower weight, excellent chemical resistance, high ductility, good electrical resistance, and high impact strength. These properties of polyethylene are driving its demand from different industries, including packaging, automotive, infrastructure & construction, consumer goods/lifestyle, healthcare & pharmaceuticals, electrical & electronics, agriculture, and others. It is witnessing a very high demand from the packaging industry for plastic films, plastic bags, geomembranes, and plastic containers, including bottles and pouches. Therefore, higher demand from the packaging industry coupled with rising industrialization is anticipated to boost market growth.

However, the outbreak of the COVID-19 pandemic negatively impacted the U.S. polyethylene market in 2020. The product demand decreased due to the stoppage or reduced production by different industries, which mainly include automotive, infrastructure & construction, consumer goods/lifestyle, and electrical & electronics. However, higher demand from the healthcare and packaging industry helped to keep the momentum of market growth during the pandemic.

U.S. Polyethylene Market Trends

Rising Demand from the Packaging Industry to Present Lucrative Growth Opportunities

Polyethylene is emerging as a cost-efficient solution for the packaging industry. It provides higher resistance to moisture and chemicals, and has good durability. It enables the manufacturing of customized packaging solutions, including plastic bags, plastic containers, and films. This polymer is recyclable. These characteristics are increasing its adoption in the packaging of food & beverages, consumer goods, and electrical & electronics. Rising consumer expenditure in emerging economies will raise product demand from consumer goods and packaged food & beverages, presenting lucrative growth opportunities for the U.S. polyethylene market.

U.S. Polyethylene Market Growth Factors

Increasing Demand from Different End-use Sectors to Drive Market Growth

Polyethylene is witnessing a significant rise in demand from various industries, including automotive, food & beverage, electrical & electronics, pharmaceuticals & healthcare and agriculture. High rigidity and customized molding properties offered by the product are driving its demand for manufacturing different products and packaging solutions for the electrical & electronics, automotive and medical industries. Increased demand for packaged food and beverages is propelling the product demand for cost-effective packaging with high durability. Advancements in agriculture and increasing water scarcity demand efficient irrigation solutions, including drippers, nozzles, films, and microtubes, positively impacting the market growth. 

RESTRAINING FACTORS

Existence of Alternatives is Likely to Limit Market Growth

The availability of substitutes, including Polyethylene Terephthalate (PET) and Polypropylene (PP), is anticipated to restrain the U.S. polyethylene market growth. Both PET and PP exhibit properties similar to polyethylene, including chemical resistance, moldability, flexibility, impact resistance, and low cost. These properties of PET and PP enable them to replace polyethylene in packaging, consumer goods, and automotive industries, limiting their demand.

U.S. Polyethylene Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into HDPE/MDPE, LDPE, and LLDPE.

Among these segments, the HDPE/MDPE (High Density Polyethylene/Medium Density Polyethylene) segment accounted for the largest U.S. polyethylene market share in 2022 owing to its characteristics, such as high-strength-to-density ratio, good heat resistance and low manufacturing cost. It shows resistance to various solvents and chemicals, resulting in higher demand for bottle caps, food storage containers, and chemical-resistant piping.

LDPE (Low Density Polyethylene) and LLDPE (Linear Low Density Polyethylene) have structural similarities. They show high tensile strength and flexibility, driving their demand moderately from various industries, including agriculture, packaging, construction, and pharmaceuticals & healthcare.

By End-use Industry Analysis

On the basis of the end-use industry, the market is divided into automotive, consumer goods/lifestyle, healthcare & pharmaceuticals, infrastructure & construction, packaging, electrical & electronics, agriculture, and others.

Among these, the packaging segment held the largest share of the market in 2022 and is anticipated to grow at a considerable growth rate during the forecast period. The higher share held by the packaging segment is attributed to the surging product demand for the manufacturing of packaging solutions in continuously rising food & beverages and consumer goods industries.

Polyethylene is also used in interior and exterior automobile components. It is also utilized in consumer electronics.  Unprecedented growth in automotive especially passenger vehicles and consumer goods in the post-pandemic period is also anticipated to impact market growth significantly.

List of Key Companies in U.S. Polyethylene Market

In terms of the competitive landscape, the market has a significant number of established players, including LyondellBasell Industries N.V., ExxonMobil Chemical, SABIC, Reliance Industries Limited, INEOS, Borealis AG, and Braskem, among others. Major players in the market are engaged in business expansion through joint ventures and acquisition of regional players.  Companies are also focusing on production innovation and expansion of product lines.

LIST OF KEY COMPANIES PROFILED:

• LyondellBasell Industries N.V. (Netherlands)


• ExxonMobil Chemical (U.S.)


• SABIC (Saudi Arabia)


• Reliance Industries Limited (India)


• INEOS (U.K.)


• China National Petroleum Corporation (China)


• China Petroleum & Chemical Corporation (China)


• Ducor Petrochemicals (Netherlands)


• Formosa Plastic Group (Taiwan)


• Braskem (Brazil)


• Nova Chemicals Corporation (Canada)


• ISCO Industries (U.S.)


• Borealis AG (Austria)


• MOL Group (Hungary)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Nova Chemicals Corporation entered into a memorandum of understanding with Amcor, a global leader in packaging solutions, for the supply of mechanically recycled polyethylene (rPE) resin. According to the memorandum of understanding, NoVA Chemicals will supply SYNDIGO rPE resin to Amcor, manufactured at its facility in Indiana, and it is projected to be operational by 2025.


• April 2022: ExxonMobil announced the launch of Exceed S performance PE resins, which offer stiffness and toughness properties while being easy to process. The newly launched product offers decreased complexity of film design and improves conversion efficiency.


• August 2021: Braskem announced the launch of HD1954M, a high-density PE, which provides a combination of high rigidity, excellent impact strength, and Environmental Stress Cracking (ESCR), which offers packaging optimization and productivity gains. The newly launched product will enable the company to meet the demands of the agrochemical and chemical markets.

REPORT COVERAGE

The study report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities, as well as historical data and revenue growth estimates at the country level.

Report Scope & Segmentation