Polyethylene Procurement Intelligence

Polyethylene procurement is rising due to its usage in industries such as packaging, construction, and consumer goods. The polyethylene (PE) market is anticipated to grow at a CAGR of 4.1% from 2024 to 2030. 

According to I.C.I.S’ 2024 report, the global demand for PE increased by 140% from 1992 to 2023. This was an increase of 2.8 million tons on average each year for the same period. The demand for the commodity is mainly driven by its consumption in the packaging of food, beverages, and consumer goods. This is due to its properties, such as durability, easy customization, and moisture resistance. The G20 countries accounted for 78% of global PE demand in 2023. Changing consumer preferences is boosting the demand for on-the-go and secure food packaging globally.

Order your copy of the Polyethylene category procurement intelligence report 2024-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis 

Polyethylene Procurement Intelligence Report Scope

The Polyethylene category is expected to have pricing growth outlook of 6% - 7% increase (Annually), with below pricing models. 

  • Volume-based pricing, competition-based pricing

Supplier Selection Scope of Report

  • Cost and pricing, Past engagements, Productivity, Geographical presence

Supplier selection criteria of Report

  • Type and quality of the product, end-use served, packaging option available, production capacity, delivery option, geographical presence, years in services, regulatory compliance, operational and functional capabilities, and others.

Polyethylene Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

  • Market Intelligence along with emerging technology and regulatory landscape
  • Market estimates and forecasts from 2022 to 2030
  • Growth opportunities, trends, and driver analysis
  • Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
  • Porter’s 5 forces
  • Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
  • Engagement and operating models, KPI, and SLA elements
  • LCC/BCC analysis and negotiation strategies
  • Peer benchmarking and product analysis
  • Market report in PDF, Excel, and PPT and online dashboard versions 

Polyethylene Procurement Cost and Supplier Intelligence

Raw material (ethylene), labor, machinery, rent and facilities, and packaging & transportation are some of the key cost components incurred in the production of PE. Other costs are technology, utilities, repair and maintenance, testing and inspection, marketing, and legal costs. Polyethylene is manufactured from ethylene (which comes from petroleum). Thus, changes in ethylene prices impact the production costs and thus the final prices of the product. Raw materials and labor account for a major part of the overall cost structure. The prices of HDPE in North America witnessed fluctuations in the fourth quarter of 2023. 

The prices initially surged in October 2023 due to rising feedstock i.e. ethylene prices along with strong demand from packaging, automotive, and construction industries. The prices decreased by the end of Q4 2023 to around USD 1,217/MT for HDPE blow molding grade due to decreasing naphtha and crude oil demand in the global industry. Similarly, in Asian markets there were mixed trends as demand in the Indian and Chinese markets also initially declined in the last quarter of 2023. However, the prices elevated in December 2023 due to a recovery in demand in these markets. The prices of HDPE (blow molding grade) settled around USD 944/MT at the end of Q4 2023.

List of Key Suppliers

  • LyondellBasell Industries Holdings B.V.
  • Braskem
  • FKuR
  • Exxon Mobil Corporation
  • SABIC
  • INEOS
  • Formosa Plastics Corporation
  • China Petrochemical Corporation
  • Repsol
  • Ducor Petrochemicals
  • Chevron Phillips Chemical Company LLC
  • Westlake Corporation.

Add-on Services provided by Grand View Research Pipeline:

Should Cost Analysis

  • Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

  • Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

  • Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

  • A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

Browse through Grand View Research’s collection of procurement intelligence studies:

Our services include (not limited to):

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.