Renewable Polyethylene Market Size & Share, by Product Type (High-Density Polyethylene (HDPE), Low-Density Polyethylene (LDPE), Linear Low-Density Polyethylene); Application (Agriculture, Food & Beverages, Cosmetics & Personal Care, Pharmaceutical, Textile); Raw Materials (Sugarcane, Sugar Beet) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5543
  • Published Date: Jan 17, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

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.


Renewable Polyethylene Market
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Renewable Polyethylene Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 18%

Base Year Market Size (2023)

~ USD  970 Million

Forecast Year Market Size (2036)

~ USD 7.06 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Renewable Polyethylene Market: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Corporate Sustainability Initiatives- Many companies are incorporating sustainability goals in their business strategies. They are actively seeking renewable alternatives to reduce their carbon footprint and meet their sustainability targets. According to the survey, 80% of enterprises have set internal targets for energy development and efficiency as part of their environmental sustainability. This increased corporate focus on sustainability is driving the demand for renewable polyethylene market.
  • Technological Advancements- ongoing research and development efforts are leading to technological advancements in the production of renewable polyethylene. These advancements are improving the quality, performance, and cost-effectiveness of renewable polyethylene, making it a more attractive option for various industries.
  • Rising Utilization of Bio-based polyethylene products- The increased use of bio-based polyethylene (PE) colorants and compounds in pharmaceutical and medical applications will accelerate the overall market growth. Furthermore, rising beauty product production in developing nations is expected to be a major driver over the forecast period. The increasing usage across packaging applications such as carry bags, plastic films, and bottles will further, propel the bio-based polyethylene (PE) market.
  • Increase in e-commerce Activities- The high expenditure on digital technologies and increase in e-commerce sales of cosmetics and personal care items will drive demand for sustainable packaging choices, resulting in market value growth. In 2021 global e-commerce sales were USD 5.2 trillion and are expected to grow at a rate of 56% in subsequent years, reaching USD 8.1 trillion by the end of 2026. The shifting consumer lifestyle and the increasing awareness towards sustainable packaging around the world are projected to bolster the growth of the renewable polyethylene market.

Challenges

  • Cost Competitiveness- The cost competitiveness of renewable polyethylene in relation to conventional polymers is one of the primary obstacles. For certain firms, renewable polyethylene may not be as appealing as traditional plastics due to the higher production costs associated with it. But when economies of scale are attained and technology progresses, it is anticipated that the cost difference will close.
  • Limited availability of feedstock for renewable polyethylene production.
  • The production facilities and distribution networks for renewable polyethylene are not as widespread or developed as those for conventional plastics, restricting the renewable polyethylene market growth.


Renewable Polyethylene Segmentation

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:

          Product Type

  • High-Density Polyethylene (HDPE)
  •  Low-Density Polyethylene (LDPE)
  •  Linear Low-Density Polyethylene

          Application

  • Agriculture
  •  Food & Beverages
  •  Cosmetics & Personal Care
  • Pharmaceutical
  •  Textile

          Raw Materials

  • Sugar Cane
  • Sugar Beet

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Renewable Polyethylene Industry - Regional Synopsis

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.

Research Nester
Renewable Polyethylene Market Size
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Companies Dominating the Renewable Polyethylene Market

top-features-companies
    •  Braskem
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Saudi Basic Industries Corporation (SABIC)
    • LyondellBasell Industries Holdings B.V.
    • AVERY DENNISON CORPORATION
    • Plantic Technologies Limited
    • The Dow Chemical Company
    • TotalEnergies Corbion 
    • Sealed Air Corporation 
    • Respack Manufacturing Sdn. Bhd. 
    • FKuR Kunststoff GmbH

In-the-news

In The News

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


  • Report ID: 5543
  • Published Date: Jan 17, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing awareness related to environmental stability, rise in e-commerce activities, and increasing utilization of bio-based polyethylene products are some of the major market growth factors.

The market size of renewable polyethylene is anticipated to attain a CAGR of 18% over the forecast period, i.e., 2024-2036.

The major players in the market are Saudi Basic Industries Corporation (SABIC), LyondellBasell Industries Holdings B.V., AVERY DENNISON CORPORATION, Plantic Technologies Limited, The Dow Chemical Company, TotalEnergies Corbion, Sealed Air Corporation, Respack Manufacturing Sdn. Bhd., FKuR Kunststoff GmbH, Sojitz Corporationm, and others.

The HDPE segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Renewable Polyethylene Market Report Scope
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