North America Linear Low-Density Polyethylene Market

The North America linear low-density polyethylene market size was valued at USD 14.5 billion in 2019. The market is primarily driven by ascending demand for the product from various end-use industries including building and construction, electrical and electronics, and automotive. Food and beverage packaging end-use segment accounted for more than 40% share of the overall market in 2019.

North America is one of the prominent suppliers of polyethylene owing to the abundant availability of raw materials to manufacture ethylene and other derivatives. Linear Low-Density Polyethylene (LLDPE) is significantly consumed in applications such as liners, covers, packaging films, and other products. Consumption in these application is anticipated to witness significant rise owing to the properties of LLDPE, such as strength, durability, easy to handle, and inexpensive.

Ethylene and crude oil are among the key raw materials used to manufacture plastics. Ethylene and co-monomers such as butane, hexane, and octene are the main raw materials utilized in the production of LLDPE. Fluctuating raw material costs associated with plastics are expected to pose hindrances in terms of profitability. Major companies, such as BASF and Exxon Mobil, are actively investing in R&D to improve their production processes by adopting strategic initiatives in an attempt to reduce costs and improve efficiency.

Ethylene prices have been witnessing high fluctuations since the past few years, while its demand was affected by downstream polyethylene outages. Ethylene has witnessed a significant demand in North America with increased consumption in automobile and packaging applications. Moreover, production cost is also relatively lower owing to high availability of low carbon feedstock in the region. Canada and Mexico are anticipated to witness an exponential rise in manufacturing activities, which is driven by economic growth, favorable credit landscape, and increased spending capacities in. Plastics and the related raw materials, which are consumed in the manufacturing of tangible goods, are likely to gain traction in terms of demand in the coming years, thereby positively affecting plastics industry, including LLDPE industry.