Polypropylene Market

Market Overview

The global polypropylene market size was worth USD 122.5 billion in 2021. It is expected to reach USD 158.2 billion by 2030, growing at a CAGR of 3.38% during the forecast period (2022–2030). 

Market Dynamics

The Exponential Growth of the Polypropylene Market

Polypropylene (PP), also known as polypropene, is a thermoplastic polymer produced via chain-growth polymerization from the monomer propylene. It is a linear hydrocarbon resin—and is among the cheapest plastics available today. It is a versatile polymer with applications in every modern industry.

The global market is expected to grow exponentially due to the advent of plastics in several end-use industries. The emergence of COVID-19 has brought an unprecedented impact on polypropylene. The global market witnessed a negative demand shock exhibiting a slight decline in 2020 than the average growth during 2017–19.

The market demand has risen due to the necessity of effective plastic packaging products, especially in the healthcare and food packaging industries. The upsurge in demand for lightweight plastics from consumer goods, electronic industries, and automotive industries is amplifying the growth of the market. The wide range of properties of polypropylene, such as tensile strength, good chemical and heat resistance, and durability, enables its use in many ways.

The rise in the availability of substitutes such as polyethylene (PE) and polyethylene terephthalate (PET) offer competition to the growth of polypropylene. The fluctuating prices of crude oil give rise to raw material prices, which affects the profit margins.

Surging Demand from Food and Beverage Packaging Industries

The increase in demand for plastic products from food and beverage packaging industries due to the increasing preference for single-use packaged food and beverages spurs the market demand. Polypropylene is best suited for packaging due to its properties, which retain the quality of the product. Polypropylene helps in reducing the probability of food deterioration and loss of quality.

The Wide Applications of Polypropylene in the Medical Industry

Polypropylene has various applications in the medical industry, such as in devices, drug-delivery systems, non-woven fabrics, and medical-grade packaging. It is a crucial element used in medical implant operations due to its unique properties. In 2018, PP in the medical devices segment in the U.S. was valued at USD 247.7 million—and is expected to grow further. The most common application for polypropylene is syringes, accounting for almost 26% of the share.

The Prominence of the Automotive Industry

The automotive industry is also one of the largest end-use industries of polypropylene. Polypropylene is the most frequently used plastic in automobiles. According to the Plastic Trade Association in 2020, polypropylene accounted for a leading share of 32% among other plastics used in manufacturing automobiles as it provides easy processability, effective sealing, and stiffness.

Substitutes Hinder Market Growth

Polypropylene is obtained by the polymerization of propylene gas, which is derived from crude oil. The fluctuating prices of crude oil, which is an essential raw material, affect the overall profit margins. It can harm the growth of the market.

There are several plastic materials, such as polyethylene and polyethylene terephthalate, which compete against polypropylene. These substitutes, especially polyethylene, have properties similar to that of polypropylene. Their availability in the market is also gradually increasing, posing a threat to the growth of the polypropylene market.

Regional Analysis

APAC Expected to Exhibit High Growth and Market Demand

The Asia-Pacific market accounts for the highest share in the global market. The region is expected to show massive growth in the packaging and automobile industry because of the constant increase in population. China, India, and Japan are the key countries contributing to the market growth in this region. There is an increased demand for PP from packaging, automotive, electrical and electronics, building and construction, and medical industries. According to the European Bioplastics Association, Asia holds more than 50% of the total global production capacity of the raw material for green packaging, which is further expected to rise during the forecast period.

Segmental Analysis

Homopolymer: The Fastest Growing Segment

The homopolymer segment is expected to reach USD 87,881.6 by 2029, with a CAGR of 4.23% during the assessment period. Polypropylene homopolymer is considered the most basic grade of polypropylene resin and contains a propylene monomer in a semi-crystalline solid form.

Homopolymer is the fastest and the largest growing segment of the polypropylene market. It has wide applications in various end-use industries such as building and construction, packaging, electrical and electronics, medical and automotive.

Copolymer polypropylene is softer but has a high impact strength and is more durable than homopolymer propylene. It is increasingly used in the medical industry for the production of injection molds and medicine bottles. The various uses of PP are expected to drive the market during the forecast period.

Packaging Segment Leads the Polypropylene Market

The polypropylene market is segmented into packaging, automotive, infrastructure and construction, healthcare and pharmaceuticals, consumer goods, electrical and electronics, etc. The packaging industry makes the most use of polypropylene due to its ideal properties and effective cost.

The demand for polypropylene has risen in the medical industry due to its use in surgical equipment and other medical devices. It is resistant to chemicals and durable, making it a viable option to increase the shelf life of drugs.

The automotive industry is a primary segment in driving the global market in the forecast period as the demand for automobiles is ever-rising. The properties of polypropylene are ideal for manufacturing lightweight vehicles, making them more efficient in terms of cost and usage.

Impact of covid-19

The impact of COVID-19 on the global polypropylene market and other businesses was unprecedented and staggering. The markets initially witnessed losses as well. Due to the sudden increase in the need for PPE kits and facemasks for the frontline workers, including doctors, nurses, police, the military, there was a sudden surge in demand for these essentials globally. The demand for non-woven material used in manufacturing masks and protective kits has doubled since the virus outbreak.

China and Europe are the top regions exporting PPE equipment all over the world. The rise in domestic demand has spurred higher production, which is expected to stimulate market growth further. The continuous demand for PPE kits and masks is expected to uplift the market.

Recent Developments

• October 2021- SABIC announces the world’s first bio-based, certified renewable high-performance amorphous polymer to support customer sustainability goals. They launched a new portfolio of bio-based ULTEM resins that offer sustainability benefits.
• October 2021- LyondellBasell manufactures polypropylene and polyethylene commercially with measurable and certified C14 renewable content from renewable feedstock. Renewable feedstock is produced by bio-based waste and residues, which offers a lower carbon footprint.