The polypropylene industry size will increase to USD 173.49 billion by 2027 from valued USD 114.77 billion in 2019, it is growing at a CAGR of 5.3% between 2020 and 2027.
The polypropylene industry growth is driven by the growing construction industry, increasing demand for consumer durables, and growing automotive industry across the globe.
Polypropylene is manufactured from propylene-polymer material. It is primarily used in the manufacture of films, textiles, and shaping materials. It is made from a mixture of propylene molecules. It is used for a range of custom packaging requirements as well as plastic components in industries such as packaging, automotive, and others. Polypropylene has a fairly slick surface, making it a possible substitute for polymers like acetal in low-friction uses like gears or as a furniture contact point. At room temperature, it has a good resilience to organic solvents such as lipids, but it is prone to oxidation at a higher temperature.
Regional Snapshot:
Asia Pacific is expected to dominate the industry during the forecast period. The growth in the region is attributable to the increasing uses of polypropylene in various end-use industries such as automotive, construction, agriculture and others. In this region, the industry is growing at a fast pace, particularly in the countries like India and China owing to the growth in these industries. By 2025, domestic production is expected to hit around 35 million vehicles.
According to the OICA, Chinese automakers produced cars 26,082,220 units in 2021, up 3% from the previous year. In addition, the growing construction industry coupled with rising government initiatives is expected to drive industry growth in the region. The Pradhan Mantri Awas Yojna plan has sanctioned 122.69 lakh homes, grounded 103.01 lakh homes, and finished 62.21 lakh homes as of 22 August 2022. (PMAY-Urban). Thus, the rise in construction activities along with government support is expected to flourish the industry expansion in the region.
Europe held the largest industry share in 2022 and is expected to continue the same pattern over the forecast period. The regional growth is owing to the rapid adoption of electric vehicles along with increasing government initiatives. According to the EEA, europe were recorded nearly 1,325,000 electronic vehicles in 2019, up from 550,000 the year before. In just one-year, new car purchases increased from 3.5% to 11%. Electric vehicle registrations also increased, from 1.4% in 2019 to 2.2% in 2020. Moreover, through its dedication to decarbonization in the EU Green Deal8 and the subsequent Next Generation EU and Recovery Plan, the European Union has accelerated the adoption of electric transportation as part of its pandemic response. The EU Sustainable and Smart Mobility Strategy and Action Plan reinforced these plans for the transportation sector in December 2020 with ambitious ZEV execution goals. Thus, the facts support the industry growth in the region.
| Report Coverage | Details |
| Market Size in 2022 | USD 134 Billion |
| Projected Forecast Value in 2027 | USD 173.49 Billion |
| Growth Rate | 5.3% from 2020 to 2027 |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2020 to 2027 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Report Highlights:
Industry Dynamics:
Drivers:
Growing demand for thermoplastics materials
The polypropylene industry has expanded as a result of the increasing demand for thermoplastic materials. Thermoplastic materials can be recovered and remolded without losing their physical characteristics due to their special molecular characteristics. Thermoplastic materials are therefore much more beneficial for a variety of uses, such as clothing, packaging, food, and beverages. They are additionally employed in demanding fields like the aircraft, defense, and medicinal sectors. For instance, the output of plastic resins, which form the basis for all plastic goods, increased by 0.9% in the United States in 2020 as opposed to 1.2% in 2019, reports the American Chemistry Council. Thus, the growing demand for thermoplastic materials will positively influence industry growth.
Restraint:
Volatility in the price of raw materials
Volatility in the price of raw materials as polypropylene is the by-product of crude oil, acting as a major restraint for the growth of the industry during the forecast period. For instance, according to the US Energy Information Administration, the price of Brent crude oil was USD 105 per barrel in 2022, while the price of WTI crude oil increased by 44% which was USD 98 per barrel.
Opportunities:
Growing automotive industry
The increasing demands in automotive industry is expected to hit strong industry growth during the forecast period. Polypropylene polymers are used in automotive components such as vehicle bumpers, tire covers, and others.
Challenges:
The increasing trends in plastics recycling
The plastic material that is produced on an extensive basis the most frequently worldwide is polypropylene. Polypropylene, however, is not recyclable and is bad for the environment as well. Polypropylene plastic recycling is a novel development that restrains the material's growth. Recycling the polyethylene that is already on hand lowers output. Through collaborative efforts, polypropylene is currently developing into a highly reusable material. The demand for recycled polypropylene is being driven by companies like Procter & Gamble and Unilever for packing uses. Additionally, many businesses are adopting this trend to improve their brand image by pledging to reduce waste and protect the ecosystem. Thus, the polypropylene industry will experience a slower growth rate during the forecast period as a result of the rising tendency of plastic recycling.
Recent Developments:
Major Key Players:
Market Segmentation:
By Process
By Type
By Application
By End-use
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