The North American market is anticipated to contribute to the growth of the polypropylene market in the years to come. The market of North America is primarily driven by the presence of a well-established food packaging industry, such as PepsiCo, Inc., Archer Daniels Midland Company, Tyson Foods, Cargill incorporation, and Kraft Heinz Company. These companies significantly contribute to the growth of the packaging industry in the regional market.
As the region is moving towards sustainability, it has become important for manufacturers across end-use markets to deliver products that can be reuse and recycle. This trend in the market has further created the demand for polymers in the packaging and consumer goods industry that can fulfill these criteria, and as polypropylene is cost-effective and can be recycled again. Several manufacturers are now focusing on producing their packaging by using these polymers.
Additionally, the regional market is home to one of the largest healthcare industry. That significantly contributes to the consumption of polypropylene. In the healthcare industry, owing to high chemical and bacterial resistance properties, polypropylene are used for the manufacturing of disposable syringes, medical vials, diagnostic devices, Petri dishes, intravenous bottles, specimen bottles, food trays, pans, and pill container. The regional health care industry is driven by the U.S. that claims the biggest health industry, consisting of 784,626 companies.
Got questions about your regional growth of
Just drop us a line or call on +1 646 480 7505
Automobile Industry Segment Holds a Prominent Share in the Polypropylene Market
The automotive industry segment holds a prominent share in the polypropylene market and is anticipated to witness significant growth in its CAGR during the forecast period. This growth of the polypropylene across the automotive segment can be attributed to the lightweight trend that is reshaping the automotive industry. The industry is witnessing a seismic shift towards plastic parts, which is driven by the ever-increasing need for light-weighting and processing ease. This running trend in the market has compelled the manufacturers engaged in business to develop these parts using thermoplastic composites, thermosets, or fiber-reinforced plastics that once were manufactured with metals.
Figure: Global Electric Vehicle Sales, 2013–2018
Thus, it can be foreseen that as the demand for lightweight automobiles across the globe will rise, it will also fuel the growth of polypropylene across the automotive sector.
Pre and Post COVID-19 Scenario
The polypropylene market was witnessing significant growth in the pre-COVI-19 scenario. As industrialization and urbanization were rising up with a significant pace, the demand for polypropylene across the economies was also gaining traction. Additionally, the moving trend towards the circular economy, especially across the western market, has further shifted the individual inclination towards the green polymers. This evolving consumer needs across the market has further created a lucrative growth opportunity for the players engaged in the business. However, the increase in the geopolitical tensions, such as the trade war and Brexit, have resulted in the disruption in supply chains for various raw materials in several economies. Thus, resulting in the volatile raw material prices for crude and thermoplastics, which are considered as the default raw material and end products of the polypropylene.
When the pandemic started in China last year, it sends its shock waves to countries across the globe. And as the number of cases across the globe was on the rise, it caused the governments across the world to take drastic action in the form of lockdowns and implementing strict social distancing measures in order to stop the impending catastrophe. These actions had a dramatic impact on the economy, as the industrialist across the globe were forced to halt their production, leading to supply chain disruptions and impairing of various industries. Thus, plummeting the global markets.
Like all the other commodity markets, the polypropylene market has been significantly impacted by the virus. As the measure taken to control the spread of virus impact has impacted the consumer demand. A large number of manufactures engaged in the polypropylene business have reduced the operating rates of their steam crackers and other propylene production units, as demand fell.
Additionally, the collapse of the OPEC agreement has further fuelled the stage for the oil price war, further affecting the whole oil and gas industry and resulting in the volatile raw material prices of polypropylene. This weakening price of oil has further anticipated hampering the capital investment plans of the leaders in the oil and gas industry that were extensively focusing on the expansion of their portfolio in the polypropylene market. For instance, Bharat Petroleum Corp Ltd (BPCL) has delayed the start-up of its propylene derivative petrochemical products (PDPP) complex in Kochi due to the pandemic.
Figure: Key Factors Affecting the Growth of the Polypropylene Market during the Pandemic Crisis
In contrast, as the lockdown measures are lifting up, some economies have started ramping up the production of polypropylene, owing to the rise in the demand for the products across the healthcare and textile sector. And as the crisis has changed the consumer sentiment in the market, making individuals worldwide pay more attention to their safety while going outdoors. Thus, creating a need for this personal protective equipment in the market.
Polypropylene Market: Segmentation
Central and South America and the Caribbean
The Middle East
" Crucial Insights The Report Provides:"
* Known and Unknown Adjacencies Influencing the Growth of Market
* Explorable Revenue Sources
* Customer Behaviour Analysis
* Target Partners
* Customized Geographical Data Based on Customers as well as Competitors
* Analysis of Market Size and CAGR between the Forecast PeriodsView Full Report Buy This Report Now