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0 Rising demand from end-use industries combined with significant growth in building and construction sector, is anticipated to drive the sales of polypropylene.
Global polypropylene outlook by sales outlook increased 3.4% in the first half of 2021. Rising demand from end-use industries and significant growth in the building and construction sector are anticipated to drive polypropylene sales. This rise has resulted in a 50 BPS point increase in the 2022 estimated growth outlook compared to actual growth. However, the market’s estimated growth projection is to witness an uptick of 20 BPS points in the first half of 2022 compared to the earlier predictions.
Owing to changes in market trends and demography, Future Market Insight has revisited a study for market growth outlook on a half-yearly basis. The analysis has been updated to comprehend better the industry’s growth prospects in light of current market trends and the drivers influencing the market growth.
Polypropylene is utilized in a variety of applications, including fibre and raffia. They are used as flexible fibres in carpets, carpet backing, and tapes. The growing need for moulding plastics in practically every end-use industry is boosting the demand for polypropylene.
Polypropylene is used more frequently in packaging, cars, building and construction, healthcare, and electronics. The automotive industry is polypropylene’s second-largest end-use industry. The automotive industry’s primary driving driver for polypropylene is the increasing demand for electric and hybrid electric vehicles (EV/HEV).
Polypropylene demand will rise in the following years since there is an increasing need for the material in the packaging industry. However, due to plastic usage restrictions, demand prospects for polypropylene are to be impacted.
2015-2021 Polypropylene Market Outlook Compared to 2022-2030 Forecast
Polypropylene sales increased at a 2.3% CAGR, between 2015 and 2021, with countries such as the U.S., China, India, South Korea, Japan and Germany accounting for a substantial portion of the global market. Sales prospects in 2020 and 2021 were dampened due to the outbreak of the COVID-19 pandemic, which reduced the demand for polypropylene from its applications areas such as fibres and filaments, spun bond non-woven, melt-blown non-woven, injection moulding, and blow moulding. The pandemic crisis has impacted the overall growth of the polypropylene market during the past few years.
With advancements in technology and increased efforts by research centers, the technology roadmap will change and lead to new cost-effective methods for the mass production of polymer composites. The increasing demand for plastic in various end-use industries is expected to bolster the demand for polypropylene in the coming years. As a result, the polypropylene market is projected to grow by value at a 4.5% CAGR from 2022 to 2030.
What are the Factors Driving the Sales of Polypropylene?
Growing demand from end-use industries such as packaging, automotive, building & construction, healthcare, and electrical & electronics is a prominent factor in driving the growth of the polypropylene market. Polypropylene is a low-cost material with excellent mechanical properties and moldability; owing to this factor, more than half of the plastic used in the automotive sector is polypropylene. Polypropylene is used in various automotive parts, such as bumpers, instrumental panels, and door trims.
The properties of polypropylene, such as low density, lightweight, high heat resistance, durability, and high clarity, make it a suitable packaging material. Polypropylene is also used in building & construction and electrical & electronics for insulating building wraps and insulation of electronics goods. The Ministry of Industry and Information Technology of China forecasts the country’s electric car sales to double in the coming years. These factors will be responsible for boosting the growth of the global polypropylene market.
Country-wise Insights
Why is the Demand for Polypropylene Rising in the U.S.?
In 2022, the market was expected to grow by 3.5% year-on-year, reaching a valuation of US$ 9,359.9 Mn by the end of 2022 in the United States of America. High investments in research and development to bring in advanced market technologies are augmenting the country’s polypropylene sales. Key manufacturers of plastics in the country had bolstered the consumption of polypropylene.
The USA ranks high in the annual global production of automobiles. Moreover, leading companies like Exxon Mobil Corporation, Eastman Chemical Company, LyondellBasell Industries N.V. and Westlake Chemical Corporation are expected to bolster the growth of these products in the country.
Category-wise Insights
Why are Sales of Homo-Polymers witnessing considerable growth?
Homo-polymer sales are expected to grow at a significant value of 3.6% CAGR from 2022 to 2030. Propylene homo-polymer is the most widely used general-purpose type with a high strength-to-weight ratio and is stiffer and more robust than copolymers. These properties, combined with good chemical resistance and weldability, make it a material of choice in many corrosion-resistant structures. It is widely used in packaging, textiles, healthcare, pipes, automotive, and electrical applications. Owing to these factors, sales of H.P. polypropylenes are projected to increase over the forecast period.
Why are Sales of Polypropylene for Application in Cast and Water Quenched Films Gaining Traction?
Amongst the various applications, the cast and water quenched films application segment is projected to remain the critical segment and create an absolute dollar opportunity of more than US$ 1,999.3 Mn from 2022 to 2030 and account for an 8.5% share in the global polypropylene market.
Water-quenched films offer higher & robust throughputs, high clarity, high gloss, soft touch and excellent mechanical properties. They can be used for various applications such as multi-layer plastic packing film for food, agricultural and sideline products, medical treatment, pesticides, the chemical industry, and in daily use articles. This will continue providing tailwinds to polypropylene sales over the assessment period.
Competitive Landscape
Leading players operating in the polypropylene market focus on incorporating Corporate Social Responsibility (CSR) norms. Apart from this, players are focusing on strategic acquisitions, mergers, and innovative product launches to serve more end users in the domestic market to gain a competitive edge. For instance: On September 29, 2017, INEOS Upstream Limited acquired natural gas assets in the North Sea by acquiring the entire oil and gas business of DONG Energy A/S (the “DONG Acquisition”).
In January 2019, Borealis AG implemented an 80-kiloton capacity increase in the polypropylene (P.P.) plant in Kallo that will benefit from the feedstock supply from the new PDH.
In January 2019, Borealis AG inaugurated its polypropylene (P.P.) compounding plant in North Carolina, USA, strengthening its commitment to the North American automotive industry.
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