Global HDPE Containers Market - 2023-2030

Global HDPE Containers Market - 2023-2030

Global HDPE Containers Market reached US$ 55.8 billion in 2022 and is expected to reach US$ 67.5 billion by 2030, growing with a CAGR of 2.4% during the forecast period 2023-2030.

The global HDPE containers market is expected to generate major demand over the upcoming years, mainly on account of new expansion in the pharmaceutical and chemical industries. The chemical industry is undergoing a new wave of expansion in wake of the pandemic and the ongoing production capacity augmentation is likely to provide new growth opportunities for the global market.

Although the European chemical industry has witnessed significant challenges due to the protracted Russia-Ukraine war and hence, demand is likely to remain lower, chemical manufacturers in Asia-Pacific are ramping up production in anticipation of stronger-than-expected recovery in most major sectors of fast growing emerging markets such as China and India. Over the forecast period, emerging Asia-Pacific economies are expected to account for a lion share of HDPE container demand across industrial sectors.

The phasing out of fluorinated HDPE containers is likely to become a major trend over the forecast period. With emerging research from a range of authoritative sources indicating that fluorinated food grade HDPE containers leach PFAS, otherwise known as ‘forever chemicals’, into food, container manufacturers are developing alternative and safe HDPE material and phasing out existing fluorinated HDPE products. Despite the ongoing phase out, fluorinated HDPE containers are likely to remain in use across various industries over this decade.

Dynamics

Expansion of the Global Cosmetics Industry

Although the COVID-19 pandemic led to a major crisis for the global cosmetic industry, the post-pandemic period ushered in a major change in market dynamics. The industry witnessed a digital transformation, with online retail platforms witnessing sales growth of 80-100% over traditional offline retail channels. Another major impact factor was the rise in skincare and healthcare products due to increased consumer health consciousness over the course of the pandemic.

A major trend emerging in the post-pandemic period is the rising popularity of personalization, with consumers more likely to purchase a cosmetic product if the company offers personalized recommendations. The trend has become highly advantageous for new age health and beauty cosmetic startups, who can offer personalizations via targeted digital marketing strategies.

All in all, the recovery and growth of the global cosmetic industry over the post pandemic period will represent major growth opportunities for the global HDPE containers market. Given the wide range of customization options available to the average consumer, a rise in demand for various capacity of HDPE containers over the upcoming years.

Rising Popularity of Online Food Delivery Platforms

The upsurge in the popularity of online food delivery platforms has continued in the post-pandemic period. A recent consumer survey indicated that nearly 55% of diners preferred to take out and online food delivery due to the convenience offered over dine-in. The online food delivery platforms have maintained their upward growth trajectory throughout the toughest phases of the pandemic, when dine-in restaurants closed for business due to health and safety precautions.

The post-pandemic period has ushered in a new era of growth for online food delivery platform, with the industry undergoing a wave of consolidations. For instance, in U.S. market, Postmates, a major online food aggregator was acquired by its competitor UberEats and JustEat Takeaway.com was acquired by Grubhub. The respective acquisitions have helped platforms to consolidate their market share and expanding their services to new geographical locations.

The increasing usage of cloud kitchen services have allowed online delivery platforms to reduce capital investment costs and improve margins, whilst offering attractive prices for consumers. HDPE containers have become the indispensible backbone of the online food delivery industry. HDPE containers are durable, food contact safe and resistant to most chemicals. Furthermore, they do not leach into prepared hot food products. The increasing popularity of online food delivery platforms, which has become more evident in the post-pandemic period, will continue to generate major growth opportunities for the global HDPE containers market

Concerns About Rising Plastic Pollution

With plastic being the material of choice for nearly all major packaging applications, plastic pollution has witnessed a tremendous rise. The United Nations Environmental Program (UNEP) estimates that nearly 75 to 200 Million Tons of plastic waste is currently found in the oceans, with another estimate suggesting that 12 Million Tons of plastic ends up in the ocean every year. Given the dependence of various sectors on HDPE container packaging, rising levels of plastic pollution represent a major challenge to market growth.

Although modern HDPE containers are designed to fully recyclable, many challenges persist in implementing a circular economy based on 100% recycling. Low quality of recycling process, regulatory constraints, bureaucratic red tape and high costs of recycling are some of the key factors preventing the recycling HDPE containers. In the absence of viable recycling policies and rising pollution levels, industries are likely to shift towards sustainable alternatives, such as paper and paperboard.

Segment Analysis

The global HDPE containers market is segmented based on type, capacity, end-user and region.

The Food & Beverage Sector is Expected to Account for a Significant Share of the Global Market

Longstanding global consumer trends are being disrupted in the post-pandemic period. Consumers are prioritizing health and nutritional content over convenience when opting for processed food and beverage products. Therefore, in response to changing consumer perceptions, F&B brands are reorienting their product portfolios to include new healthy food products.

The expansion of product lines is likely to induce greater demand for HDPE containers in various form factors. With a significant share of the global demand coming from emerging markets, F&B brands are more likely to focus on low margin, mass market products. It will lead to greater demand for small capacity HDPE containers over the medium term.

Geographical Penetration

Post Pandemic Industrial Resurgence to Drive Market Growth in Asia-Pacific

Asia-Pacific is expected to have the largest market share over the forecast period. Asia-Pacific’s status as a densely populated high growth region is the key factor in driving the demand for HDPE containers across various sectors. Food and beverage, industrial and chemicals are likely to be the key sectors for demand growth in Asia-Pacific over the medium term.

The food and beverage sector, in particular, is poised for major growth over the forecast period as key market players latch onto demand recovery in highly competitive high volume, low margin F&B products. Growing foreign direct investment (FDI) by major multinational F&B corporations for production capacity augmentation will be a major factor in driving the demand for HDPE containers over the short term.

The launch of new personal care and cosmetic products will also provide a leg up for HDPE container demand in the region. Although retail sales for most major brands have been slow to recover from the effects of the pandemic, homegrown brands have witnessed a faster rebound due to more economical pricing and being more attuned to local demands. With multinational brands also choosing direct-to-consumer (D2C) channels, such as online retailers, HDPE container demand is likely to improve over the medium and long term.

COVID-19 Impact Analysis

The COVID-19 pandemic wreaked havoc and created a string of challenges for the global HDPE containers market. The disruption of global supply chains, affected the production, distribution and marketing of HDPE containers. Many manufacturers had to idle production capacity as lockdowns and movements restrictions enforced during the pandemic led to scale down of manufacturing operations.

Global demand dynamics also witnessed radical changes over the course of the pandemic. For instance, industrial demand for HDPE containers declined considerably, but demand witnessed a major increase in the food and beverage, healthcare and pharmaceutical sectors, particularly as the growing intensity of caseloads translated to a greater demand for sanitizers and other essential medical consumables.

The post-pandemic period has ushered in profound changes to the global market, with supply and demand both being increasingly determined by emerging regions such as Asia-Pacific. The Russia-Ukraine conflict which began in the immediate aftermath of the post-pandemic period, will likely further alter the landscape of the global market.

Russia-Ukraine War Impact Analysis

The continued war between Ukraine and Russia has had major implications on the demand dynamics of the global HDPE containers market over the medium term. Due to the strict economic sanctions imposed on Russia for the war, global energy markets have become extremely volatile, leading to major energy price spikes across Europe. High energy prices reduced the competitiveness of European HDPE container manufacturers, thus further shifting global manufacturing towards Asia-Pacific.

Given the generalized volatility in global energy prices since the commencement of the war, it is safe to assume that a small permanent increase in HDPE container prices could be inevitable over the medium and long term. It could ultimately lead to increased prices for end-users, thus forcing the adoption of alternatives for low margin mass market HDPE containers.

By Type
• Bottles
• Jars
• Cups & Bowls
• Drums
• Cans
• Others

By Capacity
• Upto 200 ml
• 200-500 ml
• 500-1000 ml
• 1000 ml & Above

By End-User
• Food & Beverage
• Pharmaceuticals
• Personal Care & Cosmetics
• Chemicals & Petrochemicals
• Industrial
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In June 2023, TotalEnergies, U.S.-based multinational energy company, launched the HDPE 20HD07 tethered bottle cap container in compliance with the European Union (EU)’s 2019/904 plastic reduction directive.
• In August 2023, Exxon Mobil Corporation launched a new grade of high density polyethylene (HDPE) for container applications and is designed for increasing recyclability.
• In March, 2023, researchers at University of Notre Dame in France found that fluorinated food grade HDPE containers could leach PFAS chemicals into food, potentially raising concerns about the safety of food-grade HDPE containers.

Competitive Landscape

The major global players in the market include Veritiv Corporation, Berry Global Inc., Thermofisher Scientific Inc., O. Berk Company, Kaufman Container, CL Smith, Parker Plastics, Pretium Packaging, Vivek Polymer, Graham Blowpack Pvt. Ltd.

Why Purchase the Report?
• To visualize the global HDPE containers market segmentation based on type, capacity, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of HDPE containers market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global HDPE containers market report would provide approximately 57 tables, 62 figures and 195 Pages.

Target Audience 2023
• Furnace Manufacturers
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies