Growth of the packaging industry, particularly in Brazil is expected to augment the demand for polyethylene which is forecasted to reach 352.37 billion by 2019.
Transparency Market Researcher's report "Molded Plastics Market - Global Forecast, Market Share, Size, Growth and Industry Analysis, 2013 - 2019," demand for molded plastics was the highest from packaging in 2012.
The firm valued the market at $255.00 billion in 2012 in terms of revenue, and expects it to grow at a CAGR of 4.8% over the next five years.
Polyethylene is majorly used for packaging of various goods including cosmetics and was the largest product segment in this market, accounting for over 25% of the share in 2012 and is expected to be the fastest growing segment by 2019.
According to market analysts, it is the demand for molded plastics in the developing economies of Latin America that is expected to augment the demand for polyethylene followed by China and India over this period.
Increase in cosmetic plastic consumption
Whilst the market researcher reports an increasing consumption of plastics in sectors such as cosmetics, it also notes that there are environmental concerns associated with the manufacture and wastage of plastics and fluctuating prices of crude oil that are expected to hamper the demand for plastics over the next few years.
Following on from Brazil on a geographic basis, growth has been seen throughout the Asia Pacific region, but the strongest surge has been seen in China, where an increasing middle class spending power has translated into women upgrading their routines with more sophisticated products.
Although the growth has slowed in China over the past year or so, market analysts believe that the foundations for further growth in the next five years are still in place.
The same applies to the fast-growing markets of India, where a more pronounced slow down has been experienced over the past year, but where future growth in demand for cosmetics packaging is still expected to be strong.