Analysis of the Downstream Polyethylene Market in South Africa, Forecast to 2024

Analysis of the Downstream Polyethylene Market in South Africa, Forecast to 2024

Recyclability of Polyethylene Leads to a Growing Demand for the Product as an Environmentally Conscious Option in the Plastics Industry

RELEASE DATE
25-Feb-2020
REGION
Africa
Research Code: PA10-01-00-00-00
SKU: CM01760-AF-MR_24184

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Description

The South African polyethylene (PE) market is segmented by analyzing the supply and demand side dynamics. From a supply standpoint, the local PE manufacturing industry is consolidated with only two companies. Suppliers in the country largely export linear low-density polyethylene (L/LDPE) and a smaller percentage of high-density polyethylene (HDPE). They also export PE to other Southern African countries and China.

From a demand standpoint, the converter market is well established and relatively fragmented due to the array of PE grades and applications demanded by end-user industries. PE downstream applications can be segmented as blow molding, rotational molding, injection molding, film, coatings and pipe & sheet applications. The various industries utilizing these downstream applications include consumer goods, medical and pharmaceuticals, packaging, automotive, and construction amongst others.

Based on drivers and restraints and the country’s GDP growth which is expected to expand from 1.4% in 2019 to 1.8% in 2023, the growth rate for the PE market is forecast to increase from 1.4% in 2019 to 2.5% in 2024. The growth rate for the HDPE market is forecast to increase from 1.4% in 2019 to 2.5% in 2023. For the LDPE market, the growth rate should rise from 1.4% in 2019 to 2.5% in 2024.

In terms of material and product development, functionality and performance are the key Mega Trends; these are the two top qualities sought by customers across industries. End-user industries, such as electrical and electronics, automotive and construction are evolving constantly, leading to the requirement for technically and functionally superior performance. Engineering plastics are increasingly feeling the pressure from high-performance polymers in new applications.

The global plastics market is reeling under the weight of regulations concerning health hazards and emissions. With rising public consciousness, South Africa is making strides with greener alternatives. Bio-based alternatives are now gaining ground. For instance, the Council of Science for Scientific and Industrial Research has developed a 100% biodegradable carrier bag made from maize and sugarcane by-products.

The major restraint that can be observed is that the plastics conversion industry is characterized by outdated equipment, which limits the global competitiveness of the country’s plastics sector. The utilization of outdated equipment affects both productivity and product quality. This is a result of low investment in new technology due to lowering of the industry’s profit margins, which in turn reduces the availability of new equipment.

Analyst: Aparajith Balan

Table of Contents

Key Findings

Scope of the Study

Key Questions this Study will Answer

PE Grades by Demand Application

Macro Overview—South Africa

Macro Overview—South Africa (continued)

Key Sectors Affecting the South African PE Market—Retail

Key Sectors Affecting the South African PE Market—Mining

Key Sectors Affecting the South African PE Market—Construction

Key Sectors Affecting the South African PE Market—Agriculture

PE Value Chain

PE Value Chain Explained

Total South African PE Market Size

PE Trade by Volume

PE Production Capacity

PE Competitive Environment

PE Competitive Environment Assessment

Top HDPE Industries by Application

Top L/LDPE Industries by Application

Top HDPE Market Participants by Application

Top L/LDPE Market Participants by Application

PE Split by Application

Blow Molding—Demand Overview

Injection Molding—Demand Overview

Rotational Molding—Demand Overview

Film—Demand Overview

Coating—Demand Overview

Pipe and Sheet—Demand Overview

Customer Segmentation

Blow Molding—Customer Segmentation

Blow Molding—Plastic Converters

Injection Molding—Customer Segmentation

Injection Molding—Plastic Converters

Rotational Molding—Customer Segmentation

Rotational Molding—Plastic Converters

Extrusion Molding—Customer Segmentation

Extrusion Molding—Plastic Converters

Raw Polymer Supply Chain

Raw Polymer Supply Chain Discussion

Product Positioning Across Regions

Market Opportunities

Market Drivers

Drivers Explained

Drivers Explained (continued)

Market Restraints

Restraints Explained

Restraints Explained (continued)

PE Market Forecast Explained

PE Product Market

HDPE Segment Size

HDPE Product Segment

L/LDPE Segment Size

L/LDPE Segment Market

Growth Opportunity 1—Product Development & Tailor Made Applications to Capture New Application Markets and Product Differentiation

Growth Opportunity 2—Increasing PE Demand from South Africa’s Mining Industry

Growth Opportunity 3—Inorganic Growth Strategies for the South African Market

Strategic Imperatives for PE Manufacturers and Converters

The Last Word—3 Big Predictions

Legal Disclaimer

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
The South African polyethylene (PE) market is segmented by analyzing the supply and demand side dynamics. From a supply standpoint, the local PE manufacturing industry is consolidated with only two companies. Suppliers in the country largely export linear low-density polyethylene (L/LDPE) and a smaller percentage of high-density polyethylene (HDPE). They also export PE to other Southern African countries and China. From a demand standpoint, the converter market is well established and relatively fragmented due to the array of PE grades and applications demanded by end-user industries. PE downstream applications can be segmented as blow molding, rotational molding, injection molding, film, coatings and pipe & sheet applications. The various industries utilizing these downstream applications include consumer goods, medical and pharmaceuticals, packaging, automotive, and construction amongst others. Based on drivers and restraints and the country’s GDP growth which is expected to expand from 1.4% in 2019 to 1.8% in 2023, the growth rate for the PE market is forecast to increase from 1.4% in 2019 to 2.5% in 2024. The growth rate for the HDPE market is forecast to increase from 1.4% in 2019 to 2.5% in 2023. For the LDPE market, the growth rate should rise from 1.4% in 2019 to 2.5% in 2024. In terms of material and product development, functionality and performance are the key Mega Trends; these are the two top qualities sought by customers across industries. End-user industries, such as electrical and electronics, automotive and construction are evolving constantly, leading to the requirement for technically and functionally superior performance. Engineering plastics are increasingly feeling the pressure from high-performance polymers in new applications. The global plastics market is reeling under the weight of regulations concerning health hazards and emissions. With rising public consciousness, South Africa is making strides with greener alternatives. Bio-based alternatives are now gaining ground. For instance, the Council of Science for Scientific and Industrial Research has developed a 100% biodegradable carrier bag made from maize and sugarcane by-products. The major restraint that can be observed is that the plastics conversion industry is characterized by outdated equipment, which limits the global competitiveness of the country’s plastics sector. The utilization of outdated equipment affects both productivity and product quality. This is a result of low investment in new technology due to lowering of the industry’s profit margins, which in turn reduces the availability of new equipment. Analyst: Aparajith Balan
More Information
No Index No
Podcast No
Author Aparajith Balan
Industries Chemicals and Materials
WIP Number PA10-01-00-00-00
Is Prebook No
GPS Codes 9100-A2,9595