Ceresana expects demand in the Asia-Pacific region to rise at average growth rates of 4.4 percent per year, while the sales market in Eastern Europe, the Middle East and South America are also predicted to generate above-average growth rates.
However, demand development on the market for HDPE in North America and Western Europe, are highlighted as being notably slower.
"Changes in regional demand will also have an effect on the global production structure of manufacturers. Over the next eight years, new capacities of more than 8 million tonnes will be added in Asia-Pacific", explains Oliver Kutsch, CEO of Ceresana.
The majority of plastic bottles utilize HDPE resins because they are inexpensive, impact & chemical resistant, and provide superior moisture barriers. Due to its chemical resistant properties, the plastic is regularly used in shampoos and conditioners by the cosmetics industry.
Major areas of application
One of the major application areas for HDPE is the blow molding of bottles and other hollow pieces. According to the market researcher, the products of this type accounted for roughly 28 percent of global HDPE market volume in 2011, closely followed by films and injection molded products.
"Strong regional differences can be observed in the segments blow molding and film extrusion in particular; the production of films is the dominating market segment in Asia-Pacific, whereas blow molding and injection molding are the most common processing technologies in North America and Western Europe."
But the most dynamic growth in the upcoming eight years is forecast for the HDPE pipe segment; Ceresana expects demand in this sector to increase by 4.8 percent per year.
China and other emerging countries are expanding their infrastructure which results in pipes and cable conduits made from HDPE becoming more important. Not only do they substitute materials such as concrete or metal but can also compete against other types of plastics such as PVC.