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

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 Industry), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Polypropylene Market Bar Graph
Study Period:

2016 - 2026

Base Year:

2020

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

CAGR:

>6 %

Polypropylene Market Top Companies

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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).

Type
Homopolymer
Copolymer
Application
Injection Molding
Fiber
Film and Sheet
Other Applications
End-User Industry
Packaging
Automotive
Consumer Products
Electrical and Electronics
Other End-user Industry
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Rest of North America
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

  • 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.
Polypropylene Market Key Trends

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The United States to Dominate the North American Market

  • The United States is the world’s largest economy. The country experienced a growth rate of 2.2% in its GDP in 2019. According to the IMF, the United States recorded negative growth of -4.3% in the economy in 2020 due to the impact of the COVID-19 pandemic, and it is expected to reach a growth rate of 3.1% by 2021.
  • One of the major factors driving the growth of the US polypropylene market is the increasing use of packaging in the food and beverage industry. Food production in the United States is concentrated between multinational giants, such as PepsiCo, Tyson Foods, Nestle, and JBS USA. Packaging materials for food and beverage products are witnessing a growing demand in the country.
  • In the United States, the flexible packaging market is growing at a faster pace, owing to its benefits, such as easy handling, compact packaging, and lightweight. The US packaging industry was valued at USD 183.92 billion in 2019, and it is expected to reach a value of USD 218.36 billion by 2025, at a CAGR of 4.1% from 2020-2025. This positive momentum is expected to drive the growth of the polypropylene market over the forecast period.
  • The US consumer electronics market witnessed a growth of approximately 15% in 2020, compared to 11% in 2019. Additionally, with companies continuously investing in the country’s electronics industry, the market is likely to continue to grow, thereby increasing the consumption of polypropylene in the United States.
  • The healthcare sector in the United States is by far one of the most advanced sectors in the country. The country’s expenditure in healthcare stood at USD 3.65 trillion in 2018, an increase of around 4.4% over the previous year. The average annual growth rate of the healthcare industry is estimated to reach around 5.4% in the United States by 2028, according to the journal the federal department of the United States.
  • According to the SelectUSA, a program by The International Trade Administration (ITA), US Department of Commerce, the medical devices market in the country is the largest medical devices market in the world, valued at USD 156 billion in 2019, and it is estimated to reach USD 208 billion by 2023.
  • Such positive growth from various industries is likely to increase the demand for polypropylene during the forecast period.
Polypropylene Market Growth By Region

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Competitive Landscape

The polypropylene market is partially fragmented in nature, with intense competition among the top players to increase the share in the market. Some of the major players in the market include China Petrochemical Corporation (SINOPEC), LyondellBasell Industries Holdings BV, Total, China National Petroleum Corporation, and SABIC.

Recent Developments

  • In April 2019, a new Borealis polypropylene (PP) compounding plant site at Taylorsville, North Carolina, in North America was successfully started during Q1 2019.
  • In March 2019, ExxonMobil announced its plan to fund the construction of a new polypropylene production unit in Baton Rouge, which may expand production capacity along the Gulf Coast by up to 450,000 kilo metric ton per year.

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 Declining Automotive Industry and Impact of COVID-19 on the Automotive Sector

    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 Import-Export Trends

    6. 4.6 Feedstock Analysis

    7. 4.7 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

    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 Industry

    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

        4. 5.4.2.4 Rest of North America

      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 Exxon Mobil Corporation

      6. 6.4.6 Formosa Plastics Corporation

      7. 6.4.7 INEOS

      8. 6.4.8 LOTTE Chemical CORPORATION

      9. 6.4.9 LyondellBasell Industries Holdings BV

      10. 6.4.10 Mitsubishi Chemical Corporation

      11. 6.4.11 Mitsui Chemicals Inc.

      12. 6.4.12 Reliance Industries Limited

      13. 6.4.13 SABIC

      14. 6.4.14 SIBUR International GmbH

      15. 6.4.15 Sumitomo Chemical Co. Ltd

      16. 6.4.16 Total

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

    1. 7.1 Recycled PP

**Subject to Availability

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Frequently Asked Questions

The Polypropylene Market market is studied from 2016 - 2026.

The Polypropylene Market is growing at a CAGR of >6% over the next 5 years.

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

Asia Pacific holds highest share in 2020.

  • China Petrochemical Corporation
  • LyondellBasell Industries Holdings B.V.
  • China National Petroleum Corporation
  • SABIC
  • Total

Are the major companies operating in Polypropylene Market.

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