Polypropylene Market Size (2023-2028)

The Global Polypropylene Market was US$ 71.23 billion in 2022 and is predicted to reach a valuation of US$ 99.10 billion in 2028, with a CAGR of 5.3% between 2023 and 2028.

Market Overview:

The main aspect of the market's expansion is the growing call for polypropylene in emerging markets. The growing awareness of the use of plastic and the substitution of a sustainable packaging solution is likely to hamper the expansion of polypropylene for years to come. However, manufacturers are focused on developing competent bio-based polypropylene, which is foreseen to provide immense market opportunities.

Polypropylene is a thermoplastic material employed in the manufacture of fibres or moulded materials. It offers good mechanical and chemical resistance, as well as translucent characteristics. Excellent stiffness, flexibility, and lightness properties are the main trends and factors driving the market with confidence. Due to these factors, they are employed in various applications such as agriculture, automotive, construction, packaging, electrical and electronics, etc.

It is estimated that the escalating application of polypropylenes in fibres, raffia, films, and sheets, together with the escalating trend of the application of polypropylene (PP) in the automotive sector to manufacture light vehicles for greater fuel efficiency, will be the main factors of the market during the foreseen period. Due to its excellent chemical and mechanical properties, it is widely employed in the manufacture of automotive components, packaging, and labeling, medical devices and construction, and various laboratory equipment, among others.

Market Drivers:

The escalating call from end-use businesses like packaging, automotive, building and construction, healthcare, electricity, and electronics is the major expansion driver of the global polypropylene market. Polypropylene is an inexpensive material with excellent mechanical properties and excellent formability. For this reason, more than half of the plastic employed in the automotive sector is polypropylene. It is employed in different parts such as bumpers, instrument panels, and door trims. The properties of polypropylene, such as its low density, lightweight, high thermal resistance, durability and high clarity, make it a suitable material for packaging. Polypropylene is also employed in building and construction and in electricity and electronics for the insulation of building envelopes and the insulation of electronic products. China's Ministry of Industry and Information Technology predicts that the country's electric car sales will double in the coming years. All these factors act as critical expansion engines for polypropylene.

Market Restraints:

Limiting factors in the market are identified as environmental concerns and rising raw material costs. There are several plastics other than polypropylene, such as polystyrene (PS), polyethylene terephthalate (PET), polyurethane (PUR), polyvinyl chloride (PVC), and polyethylene (PE). These plastics compete strongly with polypropylene. Among these plastics, polyethylene is the most widely employed and the most produced. Polyethylene can be transformed into soft and flexible products, as well as hard and resistant products. Polyethylene can be molded into all kinds of shapes, from the simplest to the most complex. All of these properties make polyethylene a reliable substitute for polypropylene. Furthermore, the availability of other similar polymers poses intense competition to polypropylene.

Market Opportunities:

Due to the growing concern about climate change in recent times, the worldwide automotive industry is focusing on developing materials to improve fuel efficiency in cars. More than a quarter of all combined greenhouse gas (GHG) emissions are associated with road transport vehicles. Escalated awareness of greenhouse gas emissions and concerns about energy security has made reducing the weight of cars a major trend around the world. At the same time, the significant expansion in electric vehicles opens up new opportunities for polypropylene. The rise of electric vehicles is associated with growing government regulations on the reduction of greenhouse gases emitted by conventional vehicles, the provided high fuel efficiency and quiet operation. The use of polypropylene makes it possible to lighten the vehicle. Lightness is important for electric cars because it improves the autonomy of these vehicles. Polypropylene is one of the plastics most employed in electric vehicles.

Market Challenges:

Market-related constraints mainly relate to the environmental concerns of polypropylene, in particular with regard to the disposal of plastic waste. Plastics are among the most common materials produced in the world on a large scale. However, plastics are not biodegradable and seriously affect the environment. This affects the expansion of the plastics industry. The new trend in plastics recycling is helping to recycle the expansion of plastics and, in turn, the expansion of the polypropylene market. Available plastic/polypropylene recycling limits or decreases plastic/polypropylene manufacturing. Plastic recycling refers to the process of collecting plastic waste or waste and reprocessing it into useful products. Previously, polypropylene was rarely recycled. Now, it is becoming a highly recyclable item through organized efforts to create secondary markets. Brands such as Unilever and Procter & Gamble are driving calls for post-consumer recycled polypropylene for packaging applications. Additionally, many companies are embracing this trend to improve their brand image by committing to environmental protection and zero waste. All of these factors are affecting the expansion of the polypropylene market.

POLYPROPYLENE MARKET REPORT COVERAGE:

Market Segmentation:

Polypropylene Market - By Type:

• Homopolymer
• Copolymer

Homopolymer polypropylene is mainly employed in a variety of applications as it offers great strength.

Polypropylene Market - By Application:

• Injection Molding
• Fiber & Raffia
• Film & Sheet
• Blow Molding

Polypropylene is one of the lowest-density plastics. Due to its properties such as chemical resistance, low density, exceptional balance of properties, and versatility, polypropylene is employed in a wide range of applications, including fibres and raffia.

Polypropylene Market - By End-use:

• Packaging
• Automotive
• Building &Construction
• Medical

The packaging industry has dominated the polypropylene market and the trend is predicted to remain the same over the foreseen period. Polypropylene is the most widely employed plastic for packaging.

Market Regional Analysis:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

APAC has dominated the worldwide polypropylene market, both in terms of volume and value. The APAC market is also predicted to record the strongest expansion in terms of volume between 2021 and 2026. Escalatingcall for polypropylene from the packaging, automotive, construction, energy, medical and electronics industries in countries such as China and India market expansion in APAC. Asia-Pacific dominated the market and accounted for 47.43% of world turnover in 2020. The growing call for polypropylene from the automotive and packaging industry, especially in countries such as India, China, and Japan, is predicted to stimulate the market in the region.

The presence of market leaders such as Formosa Plastics Group, China Petrochemical Corporation, LG Chem, and Sumitomo Chemical in the region is also predicted to increase the call for polypropylene in the region in the coming years. North America captured a 15.56% revenue share in 2020. One of the main factors driving the market in the region is the escalating use of packaging in the food and beverage industry in countries such as the United States, Canada, and Mexico. Additionally, the growing number of R&D centers and escalating consumer call for lightweight automotive components and electronic products are driving call in the region.

Impact of COVID-19 on the Polypropylene Market

The onset of the Coronavirus pandemic is predicted to hamper the overall expansion of the worldwide polypropylene market, particularly in 2020. Other commodity powerhouses, including India, which are supposed to adopt various Industrial sectors outside of health remain sluggish. As the call for personal protective equipment, ventilators, medical syringes, and other medical supplies increases at an exponential rate, the call for propylene is growing dramatically. While the healthcare sector is predicted to remain the most important end-use industry amid the COVID-19 pandemic, companies in the industry should ideally focus on capitalizing on these opportunities.

Market Key Players:

1. LG Chem (South Korea)
2. Eastman Chemical Company (US)
3. BASF SE (Germany)
4. LyondellBasell Industries Holdings B.V. (Netherlands)
5. Exxon Mobil Corporation (US)
6. SABIC (Saudi Arabia)
7. DuPont (US)
8. INEOS (Switzerland)
9. Formosa Plastics Corporation (Taiwan)
10. China Petrochemical Corporation (China)