The polypropylene market is anticipated to experience a robust growth trajectory with a projected 4.5% Compound Annual Growth Rate (CAGR) between 2022 and 2030, driven by increasing demand from various end-use industries and a surge in building and construction activities. This upward trend is expected to propel global polypropylene sales to reach an impressive valuation of USD 117,513.8 million by the year 2030, according to forecasts by Future Market Insights (FMI). The market’s sustained momentum is indicative of the material’s versatile applications and its integral role in meeting the escalating demands of diverse sectors.
Polypropylene demand decline has been more pervasive vis-à-vis its other plastic variants in automotive and this will continue till resumption of manufacturing operations. However, high sales of spun-bound and meltblown polypropylene grades in the production of PPE and masks can offset some of the losses, opines FMI’s new study.
Key Takeaways of Global Polypropylene Market Study
- Polypropylene, being 20%-25% lighter than conventional plastic variants will witness robust demand in lightweight automotive category in the long run
- With crude oil prices moving well below the US$ 30 per barrel, low purchase costs of feedstock such as propylene will offer lifelines to polypropylene manufacturers
- Innovations in polypropylene packaging solutions continue to offer material savings to manufacturers up to 60%
- Superior Fluid Catalytic Cracking (FCC) additives for optimizing feedstock yields of propylene are set to expand profit pools of refineries thus having a positive impact on overall growth of polypropylene market
Factors Driving the Sales of Polypropylene
Polypropylene (PP) is a versatile and widely used thermoplastic polymer with a range of applications across various industries. Its growing popularity and increasing demand can be attributed to several key factors:
1. Versatility and Wide Application Range
Polypropylene’s versatility makes it suitable for numerous applications. It is used in packaging, automotive parts, textiles, consumer goods, and medical devices. The material’s flexibility, resistance to chemical corrosion, and low cost of production contribute to its widespread use. Its adaptability to different processing techniques, such as injection molding, blow molding, and extrusion, also enhances its appeal across various sectors.
2. Cost-Effectiveness
One of polypropylene’s most attractive features is its cost-effectiveness. Compared to other polymers, polypropylene is relatively inexpensive to produce. This affordability translates into lower production costs for manufacturers and competitive pricing for end-users, driving higher adoption rates.
3. Increasing Demand in Packaging
The packaging industry is a significant driver of polypropylene sales. The material’s excellent barrier properties, durability, and lightweight nature make it ideal for packaging applications, especially in the food and beverage sector. As global consumption patterns increase, the demand for polypropylene-based packaging solutions rises, boosting overall sales.
4. Growth in the Automotive Industry
Polypropylene is extensively used in the automotive industry for manufacturing interior and exterior components such as dashboards, bumpers, and trims. The material’s strength-to-weight ratio, resistance to impact, and ease of molding make it a preferred choice for automakers looking to enhance vehicle performance and fuel efficiency. The expansion of the automotive industry, particularly in emerging markets, is fueling the growth of polypropylene sales.
“The production of polypropylene requires a substantial amount of capital investment. Re-use and recyclability will not only reduce overall investment cost but also substantially reduce carbon emissions” says an FMI analyst.
Competitive Landscape of Polypropylene Market
Borealis, one of the key players has been continuously extending support to all its partners in the polypropylene value chain to make the shift to polypropylene solutions that are viable in sustainable packaging.
Both Sabic and BASF have engineered newer processes to recycle polypropylene from a low-value, low-quality plastic to a pre-consumer plastic that can be effectively used in a number of food packaging applications. BASF has also collaborated with Jaguar to convert plastic waste into high-end automotive parts.
SCG has come out with a technology called as SMX that minimizes the utilization of plastic and paves way for applications in film packaging and chemical drums with more impact resistance and perforation.
BASF SE; SABIC; Exxon Mobil Corporation; Eastman Chemical Company; Lotte Chemical; LG Chem; Petro China Company Limited; INEOS; Rongsheng Petrochemical Co., Ltd.; Borealis AG; Formosa Plastics Corporation; Advanced Petrochemical Company; Japan Polypropylene Corporation; Braskem; Westlake Chemical Corporation; LyondellBasell Industries N.V.; Reliance Industries Limited; China Petrochemical Corporation (Sinopec Ltd)
Lucrative Market Conditions in China and India Make East Asia a Regional Goliath
East Asia’s prominence in the polypropylene market is likely to continue unabated owing to its fast growing automotive and construction sectors.
Another key factor driving growth of polypropylene market in East Asia is the focus of manufacturers on customization of product portfolio as per specific applications. In East Asia, polypropylene is being prominently used in BOPP film, injection moldings, and Raffia/Thermoforming.
With viral epicenters having shifted to countries such as India, demand for polypropylene grades is robust in packaging and medical applications. Production appetite for bottle caps and closures in medical, hygiene and pharmaceutical applications has led to significant improvements in the demand outlook for East Asia
Building and Construction Drive Polypropylene Sales—Read the Full Report for In-Depth Insights!
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. Join us as we commemorate 10 years of delivering trusted market insights. Reflecting on a decade of achievements, we continue to lead with integrity, innovation, and expertise.
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