Renewable Polyethylene Market size is anticipated to reach USD 7.06 Billion by the end of 2036, growing at a CAGR of 18% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of renewable polyethylene was over USD 970 Million.
Increasing awareness of environmental sustainability and the need to reduce carbon emissions drive demand for bio-based alternatives in the plastic sector. As observed by Research Nester analysts, the global carbon dioxide emissions from fossil fuels and industry totaled around 37 billion metric tons in 2022, and are even projected to rise by 1.1 % in 2024. Renewable polyethylene provides a viable solution by utilizing renewable resources and reducing the carbon footprint associated with traditional polyethylene production.
Moreover, supportive government policies and regulations promoting the use of bio-based materials contribute to market growth. Incentives and initiatives aimed at fostering a circular economy and reducing plastic waste further enhance the prospects of the renewable polyethylene market. The market’s significance lies in its role as a sustainable solution in the plastics industry, addressing environmental concerns and contributing to the transition towards more eco-friendly materials.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 18% |
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Base Year Market Size (2023) |
~ USD 970 Million |
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Forecast Year Market Size (2036) |
~ USD 7.06 Billion |
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Regional Scope |
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Product Type (High-Density Polyethylene (HDPE), Low-Density Polyethylene (LDPE), Linear Low-Density Polyethylene (LLDPE))
The high-density polyethylene segment is estimated to hold 48% share of the global renewable polyethylene market by 2036. Increasing global emphasis on environmental sustainability is responsible for the segment’s growth. With growing concerns about plastic waste, the HDPE segment is gaining favour due to their recyclability and lower environmental impact compared to other plastics. Consumers and manufacturers are increasingly choosing HDPE for its eco-friendly attributes, driving the segment’s growth. Moreover, the flourishing e-commerce industry presents a significant opportunity for HDPE manufacturers. By 2025, the production of HDPE is expected to reach 53 million tonnes, as analyzed by Research Nester analysts.
Application (Agriculture, Food & Beverages, Cosmetics & Personal Care, Pharmaceutical, Textile)
Renewable polyethylene market from the food & beverage segment is poised to garner the majority revenue share. Considering there is an increasing need for packaging materials to be produced, the product's consumption is expanding quickly. Effective packaging is preferred by manufacturers to lower the risk of food contamination and quality loss. Because it produces less plastic pollution and has a moisture barrier that shields food and beverages from both internal and external surroundings, renewable polyethylene is a popular option that is anticipated to drive up demand for materials from this industry and propel the segment’s growth.
Our in-depth analysis of the global renewable polyethylene market includes the following segments:
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Product Type |
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Application |
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Raw Materials |
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North American Market Forecast
North America renewable polyethylene market is expected to account for 36% of the revenue share during the forecast period. In recent years, North America has witnessed a surge in demand for renewable polyethylene as companies and consumers alike prioritize eco-friendly alternatives. The region has been actively investing in renewable energy sources and sustainable practices, and this has translated into a growing market for renewable polyethylene. According to Research Nester's analysts, in 2022, the North American market for bioplastic polyethylene was valued at USD 289 million and is expected to increase significantly up to USD 441 million by 2030 across all application areas. With the United States and Canada leading the way, the North American market has seen increased adoption of renewable polyethylene in various industries, including packaging, automotive, construction, and more. The development of new and improved manufacturing processes for Renewable Polyethylene has made it easier and more cost-effective to produce in North America. This has helped to increase supply and reduce the cost of material, making it more accessible to businesses. Many businesses in North America are responding to the growing demand for sustainable products by adopting eco-friendlier practices and using renewable materials like Renewable Polyethylene in their products. This has created new opportunities for manufacturers and suppliers in the region and therefore accelerates the market growth.
European Market Statistics
Europe renewable polyethylene market is expected to hold significant growth during the forecast period 2036. Europe has witnessed a significant surge in the demand for renewable polyethylene. Countries like Germany, France, Italy, and the Netherlands have been at the forefront of this market expansion. This growth can be attributed to several factors, including increasing environmental consciousness, stringent regulations, and the need for sustainable alternatives to traditional plastics. Moreover, the European government is implementing supportive policies toward renewable plastic products and materials due to several reasons. Concerns and knowledge about how plastic garbage affects the environment are growing. Plastic pollution is now a major problem on a Europe scale, having a negative influence on ecosystems, wildlife, and public health. In reoccurrence with the situation, the government is promoting the usage of bio-based plastics, which is propelling the growth of the market in the region. As per estimates the revenue generated from the bio-based polyethylene is valued at USD 385 million in 2022 and is set to increase in the upcoming years, thus projecting the market’s growth in the region.
The first polyethylene (PE) wax derived from renewable resources was introduced by Braskem and is now used to make compounds, adhesives, cosmetics, and coatings. The product performs and has the same qualities as the counterpart made from fossil-based PE. It is frequently used as a viscosity-modifying agent in various formulations. The new solution, made from sugarcane ethanol, has a lower carbon footprint, is recyclable, and can be used in a variety of markets.
SABIC revealed that Hetbahn'햇반’ quick white rice packing bowls are made with a food-contact grade of its TRUCIRCLETM range of certified renewable polypropylene (PP) resins by CJ Cheiljedang, a worldwide food company with headquarters in South Korea.
Author Credits: Smruti Ranjan, Rajrani Baghel
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