Polypropylene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Polypropylene Market is segmented by Type (Homopolymer and Copolymer), Application (Injection Molding, Fiber, Film, and Sheet, and Other Applications), End-User Industry (Packaging, Automotive, Consumer Products, Electrical and Electronics, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). For each segment, the market sizing and forecasts have been done on the basis of volume (million tons).

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Market Snapshot

Polypropylene Market Summary
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 5.2 %
Polypropylene Market Major Players

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Market Overview

The polypropylene market size was estimated at over 80 million tons in 2021, and the market is projected to register a CAGR of 5.2 % during the forecast period (2022-2027).

A slight decline in the demand for polypropylene has been observed due to COVID-19. A drastic slowdown was witnessed in the construction and automotive sector where polypropylene is in high demand. With the resumption of operations in majorend-user industries, it significantly recovered in 2022..

  • 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 (extrusion coating, blow molding). By end-user industry, the market is segmented into packaging, automotive, consumer products, electrical and electronics, and other end-user industries (textiles, construction). The report also covers the market size and forecasts for the polypropylene market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million tons).

Type
Homopolymer
Copolymer
Application
Injection Molding
Fiber
Film and Sheet
Other Applications (Extrusion Coating, Blow moulding)
End-User Industry
Packaging
Automotive
Consumer Products
Electrical and Electronics
Other End-user industries (Textiles, Construction)
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Russia
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand for Injection Molding to Dominate the Application Segment

  • 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 to produce plastics which are used extensively in electrical and electronic applications. These plastics are widely used in the manufacturing of electrical and electronic devices.
  • Polypropylene injection molding is used in the manufacturing of electric devices such as sensors, meters and industrial test equipment. The global production by the electronics and IT industries excepted to rise 11% year on year in 2021 to reach USD 3,360.2 billion. Thus growth in the electronic segment is likely to fuel the market demand for injection molded polypropylene plastics.
  • Also, 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.
  • 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.
Polypropylene Market, Volume share (%), by Application, Global, 2021

Asia-Pacific to Register the Fastest Growth

  • Asia-Pacific polypropylene market is growing at a fast pace driven by countries like China and India.
  • China is the world's largest consumer of polypropylene, driven majorly by the rising packaging industry. According to the National Statistics of Bureau of China, the courier sector handled approximately 83.36 billion parcels in 2020, an increase of 31.2% from 2019. Furthermore, the express delivery industry is expected to handle over 100 billion parcels in 2021, with operating revenue exceeding CNY 1 trillion (around USD 154.6 billion USD). With the growth in industrial and FMCG products, packaging demand has been increasing in the country.
  • Additionally, China witnessed rapid growth in the fast-moving consumer goods (FMCG) sector. The growth of the FMCG market was majorly driven by the increased spending on premium home care and personal care products by middle-class consumers. Furthermore, the personal care segment of the FMCG sector grew at a rate of 6.6% and the home care segment by 8.3% in the first quarter of 2021, compared to the third quarter the previous year.
  • In India, according to the Packaging Industry Association of India (PIAI), the sector is growing at 22% to 25% per annum. The Indian packaging industry made a mark with its exports and imports, driving technology and innovation growth in the country and adding value to the various manufacturing sectors. The packaging industry is enacting the role of catalyst in promoting the huge growth of the polypropylene market in India. Furthermore, the country has been exhibiting a significant demand for packed foods for the past few years, which is expected to continue during the forecast period, thus boosting the demand for the market studied.
  • Such growth in various industries is expected to drive the market for polypropylene in the Asia-Pacific region during the forecast period.
Polypropylene Market - Growth Rate by Region, 2022-2027

Competitive Landscape

The global polypropylene market is fragmented in nature. The top five companies hold around 35% of the global market share in terms of production capacities in 2021. Some of the major players in the market include China Petroleum & Chemical Corporation (SINOPEC), LyondellBasell Industries Holdings BV, Borealis AG, Braskem, and Reliance Industries Limited.

Major Players

  1. LyondellBasell Industries Holdings B.V.

  2. Borealis AG

  3. Braskem

  4. Reliance Industries Limited

  5. China Petroleum & Chemical Corporation (SINOPEC)

Polypropylene Market Concentration

Recent Developments

  • In May, 2021, Mitsui Chemicals Inc. announced to produce renewable plastics from 100% bio-based hydrocarbons through a collaboration with Neste and Toyota Tsusho. The introduction of Neste-produced bio-based hydrocarbons as feedstock at the crackers will allow Mitsui Chemicals to produce renewable ethylene, propylene, C4 fraction, and benzene, among other chemicals, and process them into basic chemicals such as phenol, or plastics such as polyethylene and polypropylene, without altering the high quality of these derivatives. Their quality is at par with conventional products.
  • In April, 2021, Mitsubishi Chemical Corporation planned to acquire all stakes in the overseas polypropylene (PP) compound-producing subsidiaries of its joint venture, Japan Polypropylene, by the beginning of July 2021. This move aimed to reinforce its PP compound business. Moreover, the company will acquire 55% and 50% shares in Japan Polypropylene’s subsidiaries in Beijing (China) and Thailand, respectively. Japan Polypropylene has a PP compound production capacity of 219,000 tons per annum overseas and 1 million tons per annum in Japan.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Usage of Plastics to Reduce Vehicle Weight and Enhance Fuel Economy

      2. 4.1.2 Growing Demand for Flexible Packaging

    2. 4.2 Restraints

      1. 4.2.1 Availability of Substitute Products

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Price Trends

    6. 4.6 Import-Export Trends

    7. 4.7 Feedstock Analysis

    8. 4.8 Technological Snapshot

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Homopolymer

      2. 5.1.2 Copolymer

    2. 5.2 Application

      1. 5.2.1 Injection Molding

      2. 5.2.2 Fiber

      3. 5.2.3 Film and Sheet

      4. 5.2.4 Other Applications (Extrusion Coating, Blow moulding)

    3. 5.3 End-User Industry

      1. 5.3.1 Packaging

      2. 5.3.2 Automotive

      3. 5.3.3 Consumer Products

      4. 5.3.4 Electrical and Electronics

      5. 5.3.5 Other End-user industries (Textiles, Construction)

    4. 5.4 Geography

      1. 5.4.1 Asia-Pacific

        1. 5.4.1.1 China

        2. 5.4.1.2 India

        3. 5.4.1.3 Japan

        4. 5.4.1.4 South Korea

        5. 5.4.1.5 ASEAN Countries

        6. 5.4.1.6 Rest of Asia-Pacific

      2. 5.4.2 North America

        1. 5.4.2.1 United States

        2. 5.4.2.2 Canada

        3. 5.4.2.3 Mexico

      3. 5.4.3 Europe

        1. 5.4.3.1 Germany

        2. 5.4.3.2 United Kingdom

        3. 5.4.3.3 Italy

        4. 5.4.3.4 France

        5. 5.4.3.5 Russia

        6. 5.4.3.6 Rest of Europe

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 Saudi Arabia

        2. 5.4.5.2 South Africa

        3. 5.4.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share(%) Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Borealis AG

      2. 6.4.2 Braskem

      3. 6.4.3 China National Petroleum Corporation

      4. 6.4.4 China Petrochemical Corporation (SINOPEC)

      5. 6.4.5 Daelim Co. Ltd

      6. 6.4.6 Exxon Mobil Corporation

      7. 6.4.7 Formosa Plastics Corporation

      8. 6.4.8 INEOS

      9. 6.4.9 LG Chem

      10. 6.4.10 LOTTE Chemical CORPORATION

      11. 6.4.11 LyondellBasell Industries Holdings BV

      12. 6.4.12 Mitsubishi Chemical Corporation

      13. 6.4.13 Mitsui Chemicals Inc. (Prime Polymer Co. Ltd)

      14. 6.4.14 Reliance Industries Limited

      15. 6.4.15 SABIC

      16. 6.4.16 SIBUR International GmbH

      17. 6.4.17 Sumitomo Chemical Co. Ltd

      18. 6.4.18 Total Energies

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Recycled Polypropylene

**Subject to Availability
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Frequently Asked Questions

The Polypropylene Market market is studied from 2017 - 2027.

The Polypropylene Market is growing at a CAGR of 5.2% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

LyondellBasell Industries Holdings B.V., Borealis AG, Braskem, Reliance Industries Limited, China Petroleum & Chemical Corporation (SINOPEC) are the major companies operating in Polypropylene Market.

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