Polypropylene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The polypropylene market size was estimated at over 80 million ton in 2020, and the market is projected to register a CAGR of over 6% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. According to a recent study, global automotive production witnessed a decline of approximately 23% in Q3 of 2020 compared to Q3 of 2019. At the same time, global consumer electronics revenue witnessed a growth of over 17% in 2020, when compared to 2019. Additionally, the demand for packaging products has increased in medical and food packaging applications, thus enhancing the demand for polypropylene in the pandemic scenario.

• Over the short term, major factors driving the market studied are increasing usage of plastics to reduce vehicle weight and enhance fuel economy, growing demand for flexible packaging. The increase in the aging population, growing demand for convenient packaging, growth of the e-commerce business, the growing online food delivery market, and the packaging of products in different sizes and quantities are some of the market conditions that have boosted the growth of flexible packaging industry globally.
• Recycled PP is likely to act as an opportunity in the future.
• Amid the global COVID-19 pandemic, polypropylene was also used to produce personal protective equipment such as face shields, masks, and headcovers, among others, thereby positively impacting the demand for polypropylene.
• Asia-Pacific dominated the market across the world, with the largest consumption from countries such as China and India.

Scope of the Report

Polypropylene is a thermoplastic polymer produced from the chain-growth polymerization of propylene monomer. The market is segmented on the basis of type, application, end-user industry, and geography. By type, the market is segmented into homopolymer and copolymer. By application, the market is segmented into injection molding, fiber, film and sheet, other applications. By end-user industry, the market is segmented into packaging, automotive, consumer products, electrical and electronics, and other end-user industries. The report also covers the market size and forecasts for the polypropylene market in 17 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

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Key Market Trends

Increasing Demand for Injection Molding

• Polypropylene is majorly used for injection molding and is mostly available for this application in the form of pellets. Polypropylene is easy to mold, and it flows very well because of its low melt viscosity.
• Injection molding technology is used in the production of high-precision engineering components and various disposable consumer products that are utilized in housing appliances, consumer electronics, medical devices (such as valves and syringes), power tools, automotive dashboards, car bumpers, open containers, fittings, toothbrushes, and toys, among various other products.
• Healthcare is becoming one of the largest sectors in Asia-Pacific due to its strengthening coverage, services, and increasing expenditure by public and private players. The governments’ expenditure on the healthcare sector in the region has been increasing over the past few years. The medical devices industry in India has the potential to grow at 28% per annum to reach USD 50 billion by 2025, which is likely to boost the injection molding technology sector.
• Recent developments in the injection molding technique, such as multiple-component injection and microinjection, coupled with advanced injection molding machines, are resulting in better and efficient end products, thus, driving the use of this technique in the production process of various polypropylene products.
• Products manufactured by injection molding technology can be of complex shapes while having an excellent surface finish and good dimensional accuracy.
• Injection molding is used to produce a wide range of automotive components such as bumpers, hoods, fenders, taillight, mirror casing, and various others. It offers various advantages such as mass production, high precision, and surface finish. The growing demand for electric vehicles in countries like China, India, the United States, and European countries is likely to drive the demand during the forecast period.
• Injection molding is a relatively capital-intensive process. However, the advantage that this technology offers is its high production rate. Therefore, injection molding is found to be highly beneficial in the bulk production of pallets. Injection molding processes are used in wire spools, packaging, bottle caps, pocket combs, etc.
• The high growth of the packaging and chemical processing industries across the world is expected to offer a favorable market scenario for injection molding. Owing to the geographical advantage of distribution to the rapidly growing Asia-Pacific region, the consumption of injection-molded pallets may increase drastically.

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