[Online Quarterly Update] India High-Density Polyethylene (HDPE) market demand stood at 2.57 Million Tonnes in FY2021 and is forecast to reach 4.43 Million Tonnes by FY2030, growing at a healthy CAGR of 6.25% until FY2030.
High-Density Polyethylene (HDPE) demand in India is projected to grow at a healthy CAGR of 7.25% during the forecast period. HDPE demand is anticipated to increase due to the continuous surge in demand for high-density polyethylene pipes in agriculture for supplying water, and other agricultural activities like drainage and irrigation, owing to their remarkable corrosion resistance. Launch of Pradhan Mantri Krishi Sinchai Yojana (PMKSY) by the Government of India aimed at the development of irrigation sources in agricultural fields to escalate the demand for HDPE-derived pipes in the forecast period.
Moreover, increasing demand for HDPE-derived buckets, containers, wires & cables insulation is also expected will drive the India HDPE market during the forecast period. The use of HDPE in blow molding for plastic production is also gaining popularity and preference in automotive, packaging, sports, and other industries.
The blow molding segment holds the largest market share in FY2020 and is projected to dominate the market of all the grades in successive years. This is strongly attributed to the increasing popularity of blow-molded HDPE bottles in dairy, medical applications, water, and other packaging sectors. Blow-molded HDPE offers desirable properties such as tensile strength and temperature resistance for these applications. The blow molding segment held around 20% share market in FY2020. Other major applications of blow molding HDPE include chemical tanks, pharmaceutical bottles and lubricant packaging, etc. Meanwhile, demand for HDPE film grades in India has been negatively affected due to the ban on the use of plastic bags.
India’s HDPE demand and production remained strongly affected in Q4FY20 due to the sudden outbreak of COVID-19. Indefinite halt in production activities and demand downturn due to nationwide lockdown imposed to contain the spread of coronavirus has hard hit the overall HDPE demand. However, with ease in lockdown restrictions and gradual recovery in demand patterns, domestic HDPE players are optimistic and have started scaling up their operating efficiencies from 45 percent in March to 80 percent in May. Moreover, a significant rise in demand for HDPE bags could be observed as the central government turned to HDPE bags to combat the shortage of gunny bags to procure and distribute wheat stocks for addressing food security issues amid lockdown.
With the stronger expansion of the country’s agriculture sector and the Indian government’s strenuous efforts to enhance the water transportation facilities in the agricultural sector by encouraging farmers to make use of water conservation technologies, a strong boost in demand for HDPE pipes is expected. Moreover, domestic refiners actively planning to expand their petrochemicals and chemicals footprint will drive the growth of the HDPE market in the years to come.
Years Considered for this Report:
Historical Years: FY2015 – FY2020
Base Year: FY2021
Estimated Year: FY2022
Forecast Period: FY2023– FY2030
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Objective of the Study:
• The primary objective of the study was to evaluate and forecast High Density Polyethylene (HDPE) capacity, production, demand, inventory, and demand-supply gap in India.
• To categorize High Density Polyethylene (HDPE) demand based on end use, grade, region, and sales channel.
• To study trade dynamics and company share in India High Density Polyethylene (HDPE) market.
• To identify major customers of High Density Polyethylene (HDPE) in India.
• To evaluate and forecast High Density Polyethylene (HDPE) pricing by grade in India High Density Polyethylene (HDPE) market.
• To identify and profile major companies operating in India High Density Polyethylene (HDPE) market.
• To identify major news, deals, and expansion plans in India High Density Polyethylene (HDPE) market.