Renewable Polyethylene Market Trends

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.