Polyethylene film market boosted by materials innovation

Market data released by Applied Market Information (AMI), based in Bristol, has shown the European polyethylene film industry has continued to grow over the last decade, despite a shift in production locations due to the 2008 financial crisis.

Polyethylene film extruders used over 7.4million tonnes of polymer last year, with volume demand continuing to grow despite trends to use more linear and metallocene materials for the production of thinner films.

AMI estimates that over 80 per cent of all European film products are based on polyethylene grades. The continued growth of polyethylene is driven by the development of ever more sophisticated resins, including linear varieties, a wide range of copolymers, and improved grades of conventional HDPE and MDPE resins.

Linear grades of polyethylene, including metallocenes, now account for most feedstocks used by film extruders, as the greater availability and lower cost of C4 linear grades has replaced the use of conventional LDPE.

AMI estimates the split of demand amongst film extruders as 44 per cent for LL grades, 43 per cent for conventional LDPE and 13 per cent for HDPE/MDPE.

The research demonstrates a shift in production, with a steady expansion of demand in Germany in 2016 surpassing consumption levels prior to the 2008 financial crash. Germany is the leading country for polyethylene film extrusion in Europe.

However, the malaise current in the Italian economy has caused a downturn in Italian film trading. Italy was previously the largest market for polyethylene film production, but it remains 24 per cent smaller than it was in 2007.