India High-Density Polyethylene (HDPE) Market to Grow at a CAGR of 7.25% by 2030
by Chem Analyst Chemical Database PriceAccording to
ChemAnalyst report, “India High
Density Polyethylene (HDPE): Plant Capacity, Production, Operating Efficiency,
Demand & Supply, Grade, End Use, Distribution Channel, Region, Competition,
Trade, Customer & Price Intelligence Market Analysis, 2015-2030”,
India High Density Polyethylene (HDPE) market is anticipated
to grow at a healthy CAGR of 7.25% during the forecast period due to
rising demand for HDPE pipes from the country’s developing agriculture sector further strengthened by Indian
government’s initiatives towards adapting sustainable agricultural practices.
Moreover, strong demand for HDPE specially formulated Blow Molding grade for
manufacturing medical products, amid rising health consciousness will drive the
HDPE demand during the forecast period.
Browse Complete
Report : India
High Density Polyethylene (HDPE) Price, News and Analysis
HDPE is a
relatively stiff polyethylene and possesses useful thermal characteristics with
high recycling rate. HDPE containers and woven sacks hold more than 40% share
in the domestic high-density polyethylene demand. Due to its desirable
properties, HDPE is preferably used for manufacturing cereal box liners, shipping
containers, bottles for non-food items, such as shampoo, liquid laundry
detergent, household cleaners etc. Increasing demand for liquid detergent and positive
transformation in India’s FMCG market is likely to accelerate demand for HDPE
containers in the forecast period.
Among all other
grades, the Blow Molding grade holds the largest market share due to its desirable
characteristics such as high tensile strength and temperature resistance. These
attributes make Blow Molded HDPE increasingly preferred in manufacturing
bottles used in dairy, medical applications, water, and other packaging
sectors. HDPE Pipe Grade is potentially the strongest growing grade in the
forecast period owing to its remarkable corrosion resistance. Rising
applications for Pipe Grade HDPE in agriculture sector for transporting water
and developing channels for drainage and irrigation, will drive the HDPE demand
in the forecast period. Moreover, government initiatives like Pradhan Mantri
Krishi Sinchai Yojana (PMKSY) towards the development of irrigation sources in
agricultural fields will augment the growth in demand of Pipe Grade HDPE.
Outbreak of
novel coronavirus caused indefinite halt in country’s production activities and
demand downturn hard hit the overall HDPE prices in the final quarter of FY20.
HDPE Blow Molding grade price hovered between $965-$968 per MT while that of
Pipe grade remained around $1020 per MT in the final quarter of 2020. However, with ease in lockdown restrictions
and hope of quick economic recovery, there has been a quite optimism among the domestic
HDPE players. With local manufacturers starting to scale up their plant
operating efficiencies from 45 per cent in March to 80 per cent in May, the
industry is all set towards recover the incurred losses. In addition, a significant
surge in demand for HDPE could be observed after central government procured
huge volumes of HDPE bags to combat the shortage of gunny bags to procure and
distribute wheat stocks for addressing food security issues amid lockdown.
According to ChemAnalyst report, ““India
High Density Polyethylene (HDPE): Plant Capacity, Production, Operating
Efficiency, Demand & Supply, Grade, End Use, Distribution Channel, Region,
Competition, Trade, Customer & Price Intelligence Market Analysis,
2015-2030”, key players operating in High Density Polyethylene (HDPE) market are
Haldia Petrochemicals Ltd., ONGC Petro additions Ltd., Reliance Industries
Limited, Indian Oil Corporation Limited, GAIL India Limited, HPCL-Mittal Energy
Limited, Brahmaputra Cracker and Polymers Limited, etc. Huge capacity expansion
plans and technological investments will drive the HDPE market growth in India in
the years to come. HPCL-Mittal Energy Ltd (HMEL) received environmental
clearance in FY19 for addition of polymer unit at its Guru Gobind Singh
refinery and Petrochemical complex. The proposed unit will tentatively complete
by April 2021 and would house two LLDPE/HDPE swing plants of capacity 400 KTPA
each, a 500 KTPA PP plant, a 450 KTPA HDPE unit and a 55 KTPA butane-1 line. Dow,
INEOS, SABIC and LyondellBasell Industries Holdings B.V. are some of the
international players operating in the India HDPE market.
“As
the government of India is strenuously promoting its “Make in India” strategy, with
its keen focus on expansion of sectors like agriculture, MSMEs, healthcare and
infrastructure, the demand for several grades of HDPE is likely to grow by
leaps and bounds. Under the Union Budget 2020-21, the country’s FMCG sector is expected
to achieve tremendous growth in the forecast period which will create a vast
growth potential for HDPE Blow Molding grade. Moreover, growing awareness for
wellness products and changing lifestyles are the key growth drivers for the
consumer goods sector. With stronger expansion of
country’s agriculture sector and Indian government’s strenuous efforts to
enhance surplus water availability in the agricultural fields by encouraging
farmers to make use of advanced irrigation technologies, a strong boost in
demand for HDPE pipes is expected. Moreover, domestic refiners actively
planning to expand their polyolefins footprints and increasing Foreign Direct
Investments (FDI) will drive the growth of HDPE market in the years to come.
HDPE being a crucial part of the industrial value chain, indicates a consistent
growth potential in the polyethylene industry in the next five years.” said Mr. Karan Chechi, Research Director with TechSci
Research, a research based global
management consulting firm promoting ChemAnalyst.
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Created on May 29th 2020 07:19. Viewed 269 times.