Metallocene Polyethylene (mPE) Market and its key opportunities and challenges

October 28 18:00 2019
Metallocene Polyethylene (mPE) Market and its key opportunities and challenges

Browse 115 market data Tables and 48 Figures spread through 161 Pages and in-depth TOC on “Metallocene Polyethylene (mPE) Market”
Metallocene Polyethylene (mPE) Market by Application (Films, Sheets, Injection Molding, Extrusion Coating), Type (mLLDPE, mHDPE), and Region (APAC, North America, Europe, Middle East, South America)

The Metallocene Polyethylene (mPE) Market was valued at USD 4.81 Billion in 2017 and is projected to reach USD 6.98 Billion by 2023, at a CAGR of 6.9% during the forecast period, as per a report by MarketsandMarkets. 

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Browse 115 market data Tables and 48 Figures spread through 161 Pages and in-depth TOC on “Metallocene Polyethylene (mPE) Market”

How cross-licensing of patent rights between companies is an opportunity?

In the early 90s, the strong Intellectual Property (IP) rights of 3 key players—ExxonMobil, Dow Chemical, and Univation Technologies—acted as a barrier for players entering the mPE market, as only these companies had the technology to produce metallocene. Experts believed that the market for mPE could grow only when more players entered and increased business activity in the market.

Currently, these key players have begun to license their IP rights to other companies for certain considerations, due to which many companies have started producing mPE. The mPE market can expect more growth in the coming years when other players join in and compete in the market. This will also increase the awareness about the uniqueness of mPE products, and market players will compete in terms of quality of mPE products which is critical for the mPE industry.

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Why lack of awareness and availability of cheaper low-quality mPE is a key challenge?

The lack of awareness of mPE among end users is one of the factors challenging the market. The mPE market is highly unorganized, which makes it difficult for market players to cater the growing demand across markets. There are several small plastic processing players in emerging countries, such as India and Japan that manufacture low-cost plastic products to cater to the needs of the local market. These players use low-quality mPE to produce and sell plastic products at a low cost. These low-cost products pose a threat to established players, as many price-sensitive players will prefer purchasing these low-cost products over better-quality premium products. Additionally, customers too tend to compromise with the quality of products when prices are low. This results in a low customer-perceived value for metallocene polyethylene products against conventional polyethylene products, degrading the overall sales volume of metallocene polyethylene in favor of polyethylene across the globe.

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