From COVID-19 to sustainable development, two ExxonMobil experts – François Chambon, Global Strategic Marketing Manager for Polyethylene, and Étienne Lernu, Senior Technologist – look at what the future holds for the flexible packaging market.
Right now, the packaging industry is growing because of two big trends: the world's population is growing and the middle class is expanding. Compared to today's 7.5 billion, it's predicted that by 2040, the world's population will hit 9.2 billion. Meanwhile, the global middle class is expected to grow by 66% – from 3 billion to more than 5 billion in the next ten years, with people living longer, healthier and better lives.
Improvements in living standards will lead to greater access to cars, technology and electronics. This is particularly true in China, where per capita GDP is estimated to triple and exceed $40,000 by 2040, which will be similar to the purchasing power in the European OECD (Organisation for Economic Co-operation and Development) in 2030.
Prospects for growth in demand for chemical products
These megatrends will likely lead to a nearly 45% increase in global demand for chemical products over the next decade alone, or approximately 4% per year. This increase exceeds forecasts for energy and GDP growth over the same period. The impact on the plastics industry is expected to include:
- Consumer demand for plastics, fertilisers and other chemicals will grow as incomes rise.
- Olefins and aromatic hydrocarbons are the basic building blocks for plastics and other consumer goods.
- Manufacturers view plastics as lightweight and durable materials that can improve product performance, from packaging to automotive parts and medical devices.
Almost all of this growth is expected to occur in the developing world, two-thirds of which will be in the Asia-Pacific region. By 2040, India and China are expected to have a middle class population of over one billion people, which will drive demand for packaging and, in particular, polyethylene (PE).
Source: https://packagingeurope.com/
