Polyethylene (PE) Film Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Polyethylene (PE) Film Category Overview

The polyethylene (PE) film category is anticipated to grow at a CAGR of 4% from 2024 to 2030. The demand for the category is driven by its application in various industries such as packaging, agriculture, and construction. The growth is also fueled by its cost-effectiveness, durability, and versatility. The increasing global awareness about sustainability and environmental issues is having a positive impact on category expansion. Additionally, the demand for bio-PET film is being propelled by various factors, including the growing preference for bioplastics, supportive government regulations, and the expanding utilization of bio-PET film across packaging, printing, electrical & electronics, pharmaceutical, and cosmetic industries.

Most of the suppliers are focusing on manufacturing sustainable packaging to meet growing demand. For instance, in November 2023, Smurfit Kappa developed a recyclable PE film in the U.S. that can substitute nylon used in bag-in-box products. The product is named “Lx Polyethylene”. Similarly, the “Bio-based PE film” by Avery Dennison Corporation is manufactured from sugarcane ethanol. The PE/PA films of BASF are fully recyclable and can be customized to include structures with high barriers and provide ideal product protection.

Technological advancements such as the use of nanotechnology in the polyethylene film manufacturing process are rising rapidly in the field of stretch films. Nanotechnology enables the fabrication of nanostructured films, which boast remarkable thinness and strength compared to conventional stretch films. By using this technology, suppliers can improve the film’s strength, stretchability, and other characteristics. The adoption of nano stretch film benefits packaging companies in cost-saving, improving load stability, and sustainability. For instance, TG Group of Companies is one such firm that creates nano stretch film consisting of 33 layers to 67 layers.

The trend in the packaging industry is shifting towards flexible packaging, with companies like Amcor plc, TG Group of companies, Berry Global Inc., and others prioritizing the provision of flexible packaging solutions. Flexible packaging films have become the preferred choice over traditional packaging materials, thanks to their numerous environmental and energy benefits, versatility, lightweight nature, cost-effectiveness, and improved shelf life supported by their barrier properties.

The polyethylene (PE) film category is fragmented in nature. Due to the diversity of the products within the plastic film industry, the competitive rivalry is high. Factors such as recycling technologies, waste stream composition, and regional infrastructure significantly influence the quality and uniformity of recycled plastic material, contributing to the intricacies within the recycled plastic industry. The high-density polyethylene industry is highly fragmented on a global scale, with numerous regional and local producers primarily serving local enterprises. However, the fragmentation is anticipated to diminish as technologies and policies advance.

Biodegradable sheets pose a moderate threat of substitute to the category. Commercially compostable films such as Eco Film is a certified film designed to substitute traditional non-biodegradable films such as linear low-density polyethylene (LLDPE), low-density and high-density films. Eco film can reduce plastic pollution, and instead of piling up in landfills, this film can be turned into soil rather than environmental pollutants. Technological advancements in substitute materials can increase competitiveness over time.

Raw material (resins, polymer, and ethylene), labor, machinery, rent and facilities, and packaging & transportation are some of the key cost components incurred in manufacturing PE film. Other costs are technology, utilities, repair and maintenance, testing and inspection, marketing, and legal charges. Raw materials, labor, and machinery account for a major part of the overall cost. The prices of polyethylene film are dependent on factors such as film type, thickness, color, and the number of additives added. At the end of Q4 2023, the price of LLDPE film Butene-based grade FOB (Texas, U.S.) was around USD 1,103/MT in the North American region. Due to rising ethylene prices, and strong demand from the automotive, construction, and packaging sectors, the prices saw a rise at the start of the quarter, in October 2023. In December 2023, the prices of ethylene FOB U.S. Gulf were around USD 421/MT. As a result, PE film prices increased at the end of 2023.

Countries such as China and India are preferred countries for sourcing the category. China is one of the top producers of PE globally followed by the U.S. and Western Europe. China is also a prominent consumer of PE film for agricultural use. Companies operating in the food packaging and construction sectors fully outsource their polyethylene film manufacturing. It is cost-effective to outsource manufacturing services for the category products, as it reduces expenses and provides end-user companies with specialized expertise and a variety of films suitable to their end-use. It also allows clients access to advanced technology.

Polyethylene (PE) Film Procurement Intelligence Report Scope