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The Europe polypropylene market size was valued at USD 16.76 billion in 2019 and is projected to reach USD 17.65 billion by 2027, exhibiting a CAGR of 2.1% during the forecast period.
Polypropylene (PP) is a thermoplastic polymer, produced by chain-growth polymerization of propylene. It belongs to the group of polyolefins and is used for manufacturing sheets & films, fibers, automotive parts and components, and consumer goods. Polypropylene being a lightweight material with properties such as heat resistance and chemical resistance is extensively used for the packaging of food & beverage products. Additional properties of PP such as tensile strength, moldability, and impact resistance, make it a preferred material by various industries, including medical, electrical & electronics, and agriculture.
Uncertain Occurrence of COVID-19 Pandemic Will Decline Demand for Polypropylene
In the wake of COVID-19, the supply of propylene will get affected as the demand for oil products such as gasoline and polymers will decline. The crude oil prices fell significantly, entering the negative territory, due to the collapse of demand and the lack of storage capacity for excess supply. Additionally, a decrease in the production activities in various industries and the increasing restrictions due to lockdown in the European countries has reduced the operating rates. This has further affected the pricing of these products in Europe and has thereby negatively affected the growth of the market. However, increased demand for processed food amidst the pandemic will boost the consumption of PP from the packaging industry.
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Increasing Construction, Electrical, and Automotive Industries to Provide Growth Opportunities for the Market
Polypropylene is the most frequently used plastic in the automotive, and construction industries owing to its properties such as rigidity, resistance to cracking and stress, and lightweight. PP also finds its application in the insulation cladding for cables, switchboards, capacitors, and battery separators due to its insulation towards electricity. With the improvement in the spending capacity of the consumer, and urbanization in developing countries, the demand for both electronic and construction products is projected to rise considerably. As PP can act as an alternative to various materials at fraction of the costs, its incorporation from the electronics and construction industries is anticipated to surge during the forecast period. In addition, as the effect of the COVID pandemic decreases in the coming years, the production of automobiles is expected to increase, resulting in larger demand for PP from the industry, thereby providing high growth rates to the companies operating in the polypropylene market.
Rising Food Security Concerns to Drive the Consumption of PP for Packaging Application
The increasing global population has resulted in high demand for food products. The changing and busy lifestyle has increased consumption of processed foods having longer shelf-life, which is directing manufacturers to use effective packaging to minimize the possibility of food becoming stale. PP has a property to act as a moisture barrier, which prevents the packaged food & beverage products from deteriorating from internal, as well as external factors. It also protects the products from UV rays and temperature fluctuations.
Moreover, packaged food products are required to have information regarding contents, cooking time, and expiration date. The high tensile strength and elongation properties of the chemical make it easier to print the information. The above factors have resulted in a rise in the demand from the food & beverage industry. This would further contribute to the European polypropylene market growth in the forthcoming years.
Fluctuations in Prices of Crude Oil May Hamper Growth
Petroleum crude oil is the feedstock required to produce PP; therefore, the production of polypropylene is subject to the cost and supply of crude oil. The varying supply of crude oil due to volatile political scenarios in the Middle East has resulted in fluctuations in the cost structure of the products. Additionally, substitute products such as polystyrene and polyethylene terephthalate, which have properties similar to PP, are acting as threats to this market growth.
Homopolymer Segment to hold the Dominant Share in the Europe Market
Based on type, the European market for polypropylene is segmented into homopolymer and copolymer. The homopolymer segment accounted for the dominant European polypropylene industry share owing to its properties including high heat deflection temperature, flexibility, and impact resistance. The rising demand for homopolymers to manufacture products such as crates, food pouches, caps, films, and sheets is increasing the consumption of PP.
Copolymer displays good optical and flexible properties and is involved in the production of products related to the medical and pharmaceutical industries. Additionally, automotive components such as dashboards and bumper are preferred to be made using copolymer propylene. These factors are expected to boost the growth of this segment during the forecast period.
Resin Segment to Register Faster Growth Backed by its Possession of Beneficial Properties
Based on form, the market is segmented into resin and powder. The resin segment dominates the market owing to the properties it imparts such as scratch resistance, stiffness, chemical resistance, wide range, and excellent strength to weight ratio. Hence, this form of polypropylene has high demand from industries including packaging, healthcare, building & construction, and the automotive industry.
The demand for the powder form of PP is at the nascent stage. It is mainly used in applications including additive manufacturing, masterbatches, and in the manufacturing of composite materials. The increasing development and adoption of the powder form of PP for varied applications will drive this market during the forecast period.
Packaging Segment to Occupy Major Share Stoked by Need for Effective Solutions
On the basis of end-use industry, the market is segmented into packaging, automotive, infrastructure & construction, consumer goods/lifestyle, healthcare & pharmaceuticals, electrical & electronics, agriculture, textile & fiber, and others. The packaging segment holds the major share in the market owing to the need for effective packaging solutions for products related to food & beverage, medical, and consumers. Due to its non-corrosive nature and resistance towards chemicals, it is preferred by the pharmaceutical industry to increase the shelf life of drugs. These factors are set to propel the demand from the packaging industry.
The automotive sector uses polypropylene to make automotive parts and components due to its high tensile, strength flexibility, and moldability. It also helps in reducing the weight of the vehicle thereby, increasing fuel economy. The regulations in Europe to minimize carbon emissions from vehicles have boosted the demand for the chemical from the automotive industry. The automotive parts made up of PP are mainly manufactured using the injection molding method.
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Homopolymer to Hold Larger Share in Major End-Use Industries of the Europe Market
Based on the end-use industry by type, the European market is segmented into packaging by type, automotive by type, infrastructure & construction by type, consumer goods/lifestyle by type, healthcare & pharmaceuticals by type, electrical & electronics by type, agriculture by type, textile & fiber by type, and others by type. Homopolymer, owing to its properties such as tensile strength, high heat deflection temperature, flexibility, and impact resistance has high demand from several industries.
Copolymer displays good flexibility owing to which it has high consumption in the textile & fiber industry and is used for manufacturing products such as carpets, mats, sanitary napkins, rugs, sportswear, and apparel.
The Europe PP market size stood at USD 16.76 billion in 2019. On the basis of region, the market is segmented into Germany, France, the U.K., Italy, Spain, Poland, Belgium, Netherlands, Norway, Sweden, and the rest of Europe. Germany accounted for the major share of the market owing to the rising demand from industries such as automotive, infrastructure & construction, and packaging. France showcased high demand for PP from the healthcare & pharmaceutical industry for the manufacturing of medical equipment, devices, and drug delivery systems. The increasing demand for PP from the automotive industry in Italy is further surging this market growth.
Homopolymer to be Largely Consumed Type of PP in the Europe Market
Based on a country by type, the market for European polypropylene is segmented into Germany by type, France by type, the U.K. by type, Italy by type, Spain by type, Poland by type, Belgium by type, the Netherlands by type, Norway by type, Sweden by type, and rest of Europe by type. Germany majorly consumes a homopolymer for food packaging applications. France and Spain have a high demand for homopolymers from medical and automotive applications. In the growing countries, both homopolymer and copolymer types of polypropylene have high demand from industries including food & beverage, building & construction, consumer goods, and others.
Product Innovation and Effective Distribution Channels are Essential Aspects of Growth of Market
Product offerings & innovation are important aspects for the companies to cater to the growing demand for polypropylene products. The companies are focusing on technology development and adopting strategies such as expansions, joint ventures, and acquisitions to increase their presence in Europe.
An Infographic Representation of Europe Polypropylene Market
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The polypropylene market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, disposable types, and distribution channels. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
Value (USD Billion) and Volume (Million ton)
By Type, By Form, By End-Use Industry, By Country, End-Use Industry by Type, Country by Type
By End-Use Industry
According to the market research report published by Fortune Business Insights, The Europe PP market size was valued USD 16.76 billion in 2019 and is projected to reach USD 17.65 billion by 2027.
In 2018, the market value stood at USD 16.76 billion.
Growing at a CAGR of 2.1%, the market will exhibit steady growth in the forecast period (2020-2027).
The packaging is expected to be the leading segment in this market during the forecast period.
The rising food security concern is the key factor driving the market.
LyondellBasell Industries N.V., ExxonMobil Chemical, and INEOS are few of the leading players in the market.
Germany dominated the market in terms of share in 2019.
COVID-19 has escalated the demand for food packaging for storage for an extended period, which is expected to drive the adoption of PP.
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