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Polypropylene Market Size, Share & COVID-19 Impact Analysis, By Type (Homopolymer, Copolymer), By End User (Packaging, Automotive, Infrastructure & Construction, Consumer Goods/Lifestyle, Healthcare & Pharmaceuticals, Electrical & Electronics, Agriculture, Others), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI101583

 

KEY MARKET INSIGHTS

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The global polypropylene market size was USD 75.12 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with polypropylene witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 1.1% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 76.00 billion in 2021 to USD 108.57 billion in 2028 at a CAGR of 5.2% during the 2021-2028 period. The sudden decline in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.


The growing demand for efficient plastic packaging products is driving the demand for polypropylene globally. PP has a wide range of properties, such as superior working temperature, tensile strength, high chemical resistance, and low moisture absorption, which enable its adoption in various applications. In the current global scenario, PP is majorly used in injection molding applications as it is easily melted and molded in any shape and size without disturbing the original quality. The rising demand for lightweight plastics from automotive, consumer goods, and electronics industries is boosting the growth of the PP market. Technologies such as spheripol, unipol PP, novolen, innovene PP, sherizone, and borstar PP support companies to produce high-quality PP according to end-user demands.


Declining Demand from Automotive and Building & Construction Industries to Hamper Growth


The supply of PP has been affected due to the COVID-19 pandemic. It has resulted in decreasing demand from industries such as automotive and building & construction. Additionally, the prices of crude oil fell significantly due to the collapse of demand. Subdued production activities in various industries and the increasing restrictions due to lockdown globally have further reduced operating rates. However, the demand for plastic products from the healthcare and food packaging industries is showcasing a surge due to the rising preference of single-use healthcare products and packaged food and beverages.


LATEST TRENDS


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Surging Demand from Automotive Industry is a Prominent Trend


Polypropylene is the most frequently used plastic in the manufacturing of automobiles. According to the Plastic Trade Association, in 2020, amongst the different types of plastics used in the manufacturing of automobiles, PP accounted for a leading share of 32%. Owing to its properties such as resistance to impact, heat, and moisture, it finds application in bumpers, gas cans, and seat panels. Additionally, it is an economical alternative to expensive plastics with similar durability and strength. The above-mentioned reasons are responsible for the increasing demand for the product from the automotive industry.


DRIVING FACTORS


Rising Demand for Polypropylene from Various End-Use Industries to Fuel Growth


The pp market is growing rapidly owing to the rising demand from the packaging industry. This high demand is associated with the increasing consumption of packaged food and beverages. PP has a moisture barrier property that increases its ability to provide effective packaging solutions for the food & beverage industry. It also helps in reducing the possibility of food deterioration and quality loss. Besides, the material is used for the manufacturing of the interior and exterior parts of automobiles including safety subsystems, doors, and seat assemblies. This is because it enables easy processability, effective sealing, and provides stiffness.


Polypropene is also used for the manufacturing of toys, fashion apparel, sports equipment, and others as it is easily moldable and provides high durability and flexibility. Owing to these properties, the market is set to show a high potential in the agricultural segment in the coming years. The increasing demand for agricultural tools such as drippers, microtubes, and nozzles will propel growth.


PP possesses high rigidity property that has increased its use in industrial applications, mainly for the packaging of electrical spares and parts. Additionally, it enhances the transparency and appearance of the packaging material for clear visibility of products. The diversified and efficient properties of PP are expected to increase its demand across various end-use industries.


RESTRAINING FACTORS


Fluctuating Crude Oil Prices and Availability of Substitutes to Hinder Polypropylene Market Growth


Polypropylene is obtained by the polymerization of propylene gas, which is derived from petroleum crude oil. The supply and price of crude oil have been oscillating due to volatile political scenarios in the Middle East, as well as in the other oil-producing countries. The inconsistencies in the pricing of crude oil affect the cost structure of the final product, which can have a negative effect on the growth of the market. Furthermore, the availability of substitutes such as polyethylene and polyethylene terephthalate, which offer properties similar to PP, is acting as a threat to the PP market growth.


SEGMENTATION


By Type Analysis


Copolymer Segment to Generate Highest Revenue Backed by High Usage in Pharmaceutical Industry


The market is segmented into homopolymer and copolymer, based on type. Copolymer is among the most versatile thermoplastic polymer, having applications in packaging, injection molding, thermoforming, blow molding, and others. High impact resistance, optimum thermal resistance, good optical, and flexibility properties would further enhance the use of copolymer in food containers, auto-components, and vessels.


Copolymer has various applications, which include the production of injection molds and medicine bottles in the pharmaceutical industry. It is also used in the production of different types of automobile parts such as dashboards and bumpers. In addition, this type of PP is used in electrical and electronics, infrastructure & construction, and consumer goods/lifestyle industries, thereby fueling the growth of this segment positively. All these factors are expected to further drive market revenue during the forecast period.


By End-User Analysis


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Packaging Segment to Exhibit  Significant CAGR from 2021 to 2028


Based on end-use industry, the market is segmented into packaging, automotive, infrastructure & construction, consumer goods/lifestyle, healthcare & pharmaceuticals, electrical & electronics, agriculture, and others. Packaging is the major application area for polypropylene owing to its properties such as high-temperature resistance, moisture barrier, flexibility, and lightweight nature, making it an ideal material for food packaging. It is also cost-efficient for the packaging of other products such as surgical equipment, drugs, auto components, and cosmetics. Additionally, the optical clarity, transparency, and electrical non-conductivity properties of PP will increase its use in the packaging of electrical & electronic products.


The demand for PP from the healthcare & pharmaceutical industries for surgical equipment and other medical products has increased due to its non-corrosive nature and chemical resistance that further would enhance the shelf life of drugs.


Similarly, the automotive segment is expected to surge the sales of the material in the forecast period due to the increased production of automobiles. The easy availability of PP and its properties such as resistance to staining, high durability, and flexibility will support the manufacturing of lightweight vehicles, thereby reducing the vehicle’s cost & making it energy-efficient. These factors will drive market growth in the automotive industry.


REGIONAL INSIGHTS


Asia Pacific Polypropylene Market Size, 2020 (USD Billion)

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The market size in Asia Pacific stood at USD 39.95 billion in 2020. Asia Pacific is expected to exhibit high growth in this market due to the increasing demand from the packaging and automotive manufacturing industries. China, Japan, and India are key countries contributing to the market growth in the region owing to the increasing application of PP in food & beverages, packaging, and automobile industries in these countries. Key market players in the market are trying to expand their presence in the region owing to the huge opportunities from the growing automotive and construction industries.


North America is anticipated to hold a substantial portion of the global market during the forecast period. The growth in the medical and electrical & electronics manufacturing industries is a key market driver in the region. However, the market in this region is set to showcase a relatively lower CAGR, as compared to Asia Pacific.


The increasing demand for the packaging of food & beverages and the manufacturing of automobiles would contribute to the growth of polypropylene consumption in Europe. The key manufacturing companies, processors, and compounders in the region are continually involved in the development of products for automobile manufacturers. Additionally, the use of products in the electrical & electronics, and healthcare & pharmaceuticals industries are some of the other key factors driving the PP market growth in Europe.  


South America and the Middle East & Africa would exhibit significant growth in the market due to increasing infrastructure & construction activities, as well as changing lifestyle preferences of consumers. In addition to this, the easy availability of raw materials will boost the production of PP in the Middle East & Africa.


KEY INDUSTRY PLAYERS


Leading Players to Focus on Enhancing Product Portfolios to Strengthen  Position


The major producers in the market have established a diversified geographical presence and strong product offerings. Among the major producers, LyondellBasell is leading because of its technological development and wide range of product offerings. The company is also using strategies such as acquisitions to increase its global presence. Moreover, ExxonMobil Chemical and SABIC have a strong regional presence and have adopted strategies such as expansion & joint ventures to increase the polypropylene market share.


LIST OF KEY COMPANIES PROFILED:



  • LyondellBasell Industries N.V. (Netherlands)

  • ExxonMobil Chemical (U.S.)

  • China National Petroleum Corporation (China)

  • INEOS (UK)

  • China Petroleum & Chemical Corporation (China)

  • SABIC (Saudi Arabia)

  • Ducor Petrochemicals (Netherlands)

  • Reliance Industries Limited (India)

  • Formosa Plastic Group (Taiwan)

  • Total S.A. (France)

  • Braskem (Brazil)

  • BASF SE (Germany)

  • Repsol (Spain)

  • Borouge (UAE)

  • Borealis AG (Austria)

  • MOL Group (Hungary)

  • Beaulieu International Group (Belgium)

  • Other Key Players


KEY INDUSTRY DEVELOPMENTS:



  • December 2020: LyondellBasell launched Beon3D, an innovative PP product range that will provide unique design and allow the production of high-quality, complex 3D printed objects within one step. This product was produced by combining polymer technologies and additive manufacturing. This product range will serve transportation, industrial, building & construction, and consumer goods markets.



  • November 2020: NESTE signed an agreement with Borealis to supply renewable propane, which will be used to produce polypropylene. This agreement has helped both companies to expand their businesses.


REPORT COVERAGE


An Infographic Representation of Polypropylene (PP) Market

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The global polypropylene market research report provides detailed qualitative and quantitative insights and analysis of market size & growth rate for all the segments in the market. It also provides an elaborative analysis of market dynamics and the competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the market, the regulatory scenario in crucial countries, and key polypropylene market trends. 


REPORT SCOPE & SEGMENTATION














































 ATTRIBUTE



  DETAILS



Study Period



2017-2028



Base Year



2020



Forecast Period



2021-2028



Historical Period



2017-2019



Unit



Value (USD Billion) Volume (Million ton)



Segmentation



By Type, By End-User, and By Geography



By Type




  • Homopolymer

  • Copolymer



By End-User




  • Packaging

  • Automotive

  • Infrastructure & Construction

  • Consumer Goods/Lifestyle

  • Healthcare & Pharmaceuticals

  • Electrical & Electronics

  • Agriculture

  • Others



By Geography




  • North America (By Type, By End-User)

    • The U.S.

    • Canada



  • Europe (By Type, By End-User)

    • Germany

    • France

    • The UK

    • Italy

    • Spain

    • Poland

    • Belgium

    • Netherlands

    • Norway

    • Sweden

    • Rest of Europe



  • Asia Pacific (By Type, By End-User)

    • China

    • Japan

    • India

    • South Korea

    • Southeast Asia

    • Rest of Asia Pacific



  • Latin America (By Type, By End-User)

    • Brazil

    • Argentina

    • Rest of Latin America



  • The Middle East & Africa (By Type, By End-User)

    • Saudi Arabia

    • UAE

    • Egypt

    • Rest of the Middle East & Africa





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 75.12 billion in 2020 and is projected to reach USD 108.57 billion by 2028.

In 2020, the market value stood at USD 75.12 billion.

Registering a CAGR of 5.2%, the market will exhibit steady growth in the forecast period (2021-2028).

The packaging segment is expected to remain the leading segment during the forecast period.

The increasing demand from packaging and automotive industries is the major factor driving market growth.

Asia Pacific is expected to hold the highest share in the market.

LyondellBasell and China National Petroleum Corporation are the leading players in the market.

The growing demand for lightweight and efficient plastic products, as well as the surging automotive, packaging, and healthcare & pharmaceutical industries are the factors driving the adoption.

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Polypropylene (PP) Market Size, Share and Global Industry Trend Forecast till 2026
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