Polypropylene Market: Information by Type (Homopolymer, Copolymer), End-User (Medical, Packaging, Consumer Goods, Automotive, Building, and Construction), and Region — Forecast till 2029

Oct 07, 2020   Polypropylene, also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer propylene. It is a linear hydrocarbon resin. The chemical formula of polypropylene is (C3H6)n and is among the cheapest plastics available today. Increasing demand form the end-user industry, such as medical, packaging consumer, and automobile, among others, are likely to create upswings for market growth. The polypropylene...
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Report Description

Polypropylene, also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer propylene. It is a linear hydrocarbon resin.

The chemical formula of polypropylene is (C3H6)n and is among the cheapest plastics available today. Increasing demand form the end-user industry, such as medical, packaging consumer, and automobile, among others, are likely to create upswings for market growth.

The polypropylene market is expected to reach a value of USD 1, 21,293.7 million by the year 2029, with a CARG of 4.07% during the assessment period.

Propylene-Market

Emerging Applications of Polypropylene Plastic in the Medical Industry

Polypropylene has been used in the medical industry for many years for its plethora of applications, such as in devices, drug-delivery systems, non-woven fabrics, and medical-grade packaging. The chemical is a crucial element and most often used in medical implant operations for its unique and attractive properties. In 2018, the PP in the medical devices segment in the U.S. was valued at USD 247.7 million and are expected to grow in the future. The most common application for polypropylene in the medical sector is syringes, accounting for almost 26% of the share. Today, the COVID-19 outbreak has significantly upsurged the demand for polypropylene material.

Due to the nature of the pandemic, various governments across the globe have imposed social distancing norms and promoted the use of face masks in public. The frontline workers, such as doctors, nurses, police officers, and others, require personal protective kits to protect them from getting infected. In the past few months, the market observed a sudden hike in demand for these essentials from countries all over the world. The demand for the non-woven material, used in making masks and PPE kits, has nearly doubled since the virus outbreak.

Figure 1: Share of Top Exporters of Personal Protective Products, 2017–2019

Share-of-Top-Exporters-of-Personal-Protective-Products-2017-2019

As per the statistics, China and Europe are among the top countries exporting PPE equipment in the global market. The growing domestic demand for PPE kits has prompted higher production in the regions, which in turn, is expected to stimulate market growth. The products made from polypropylene are proven effective in contracting the infection and saving doctors from the deadly virus. Increasing demand for the face shields and PPE kits in the world is further expected to uplift the market. The predictions for the second wave of the pandemic in the countries is anticipated to propel the growth of the polypropylene market by 2030.

Rising Raw Material Prices to Hamper the Market Growth

The polypropylene market observes rapid changes in the raw-material prices, which significantly affects the profit margins of the players. The prices of the raw materials used in the polypropylene manufacturing process are cyclical. Prices of the catalysts and other raw-materials experienced a rise in the year 2016 and continued to grow till 2018, before plummeting again at the end of 2018. Due to large-scale economic activities, the price of raw-material rose, but are seeing a fall in 2020 cause of the uncertainties due to the impact of COVID-19 and OPEC's failure to agree with production cuts.

Figure 2: Price of Propane, 2012–2020 (USD/Gallon)

Price-of-Propane-2012-2020

During the periods of decline in the raw-material prices, the companies may suffer decreasing profits as it reduces the selling prices of the products significantly. Additionally, when the raw materials costs are low, the customers take advantage of the fluctuating prices by building inventories, further reducing the profit margins. Similarly, when there are speculations for the prices to decrease, the customers reduce their inventories and orders, which may have an impact on the key player's profits.

Polypropylene Market: Segmentation

Homopolymer Segment to Lead the Market during the Forecast Period

The homopolymer segment is expected to reach a value of USD 87,881.6 by 2029, with a CAGR of 4.23% during the assessment period. Polypropylene homopolymer is considered as the most basic grade of PP resin and contains propylene monomer in a semi-crystalline solid form. It has a high strength-to-weight ratio, high chemical resistivity, and is stiffer and stronger than the copolymer, owing to which, it is considered as a material of choice in many corrosion resistant structures.

Polypropylene has good resistance to high temperatures, which further makes it particularly suitable for high-heat applications, such as hot fill and microwave applications or steam sterilization applications. Polypropylene homopolymer is most widely utilized as a general-purpose grade polymer and is has found its use across many applications, including packaging, textiles, healthcare, pipes, automotive, and electrical applications.

Figure 3: Propylene Homopolymer and Polypropylene Copolymer Comparison Chart Based On Physical and Chemical Properties

Propylene-Homopolymer-and-Polypropylene-Copolymer-Comparison-Chart

Recycling Capability of Propylene to Drive Its Demand in the Packaging Industry

The packaging segment is expected to reach a value of USD 55,558 million by 2029, from USD 35,364.4 million in 2020. Plastic has emerged as the most preferred choice of packaging material across various end-use industries, such as food and beverages, chemicals, pharmaceutical, and electronics. Among which the contribution of polypropylene is substantial, which is notably driven by its low cost, good barrier properties, high strength, excellent durability, and structural integrity. 

Polypropylene is a greener solution as compared to other plastic in the segment, such as PVC, because of its low emission rate and lightweight compared to other materials. Furthermore, the plastic made from polypropylene is used in various other applications, such as consumer goods, and can be further recycled and used as recycled food packaging.  

Consumer Goods Segment to Hold Considerable Market Share during the Assessment Period

Across the consumer goods segment, polypropylene is utilized in a host of applications, including housewares, translucent parts, furniture, appliances, luggage, and toys. Although the versatile nature of the polypropylene polymer played a significant role in its use across the durable consumer segment. However, the recycling capabilities of this polymer are anticipated to drive the segment growth in the near future.

As the temperature across the globe is rising, energy demand is increasing, and the pollution level is on the rise. A large number of governmental and environmental organizations across the world are focusing on bringing down these levels by adopting various methods in their manufacturing and dumping processes. And since recycling is one of the best ways to counter these aforementioned issues altogether. The manufacturers in the consumer goods are using materials such as polypropylene that can be recycled again for various applications like the packaging. According to the Environmental Protection Agency (EPA), the recycling of plastic containers and packaging municipal solid waste has increased by 83.4% from 2000 to 2017.

Figure 4: Total Plastic Containers and Packaging Municipal Solid Waste (MSW) by Weight

Total-Plastic-Containers-and-Packaging-Municipal-Solid-Waste-by-Weight

This drift across the market has further gained the traction of a large number of players in the market that are focusing on developing technologies that can enable them to produce cost-effective raw material, along with reducing the emission rate while manufacturing it. For instance, In March 2019, PureCycle Technologies partnered with Milliken & Co and Nestle S.A. with the goal of opening its first plant to chemically recycle polypropylene (PP), producing a product with 'virgin-like' quality.

Regional Overview

Propylene-Market-Regional-Overview

Asia-Pacific to Spearhead the Polypropylene Market during the Forecast Period

Asia-pacific spearheads the polypropylene market during the forecast period as the region is moving towards becoming the next hub for the packaging market, which is primarily driven by the ever-growing population, rapid industrialization, and the existence of a large number of players operating in the market. 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.

The countrywide markets are led by economies such as India, China, and Japan that are witnessing rapid economic growth in the last few years, further resulting in the increase in demand for packaging material across the region. As per the Federation of Indian Chambers of Commerce & Industry, in 2016, India consumes about 12.8 million metric tonnes (MMT) of plastics annually, against global consumption of 285 MMT per year, which is further anticipated to grow with a CAGR of 10%

Key Players

  • Westlake Chemical Corporation
  • SABIC
  • Reliance Industries Limited (RIL)
  • LyondellBasell Industries Holdings B.V.
  • LG Chem
  • INEOS Group Holdings S.A.
  • Haldia Petrochemicals Limited
  • Formosa Plastics Corporation, U.S.A
  • Braskem SA
  • China Petrochemical Corporation
  • Eastman Chemical Company
  • Exxon Mobil Corporation

Polypropylene Market: Segmentation

By Type

  • Homo-Polymer
  • Copolymer

 By End-User

  • Medical
  • Packaging
  • Consumer Goods
  • Automotive
  • Building
  • Construction

By Region

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • Germany 
  • France
  • Italy
  • The U.K.
  • The Rest of Europe

Asia-Pacific

  • China 
  • India
  • Japan
  • South Korea
  • Australia
  • The Rest of APAC

Central and South America and the Caribbean 

  • Brazil
  • Argentina
  • Colombia
  • The Rest of Central and South America and the Caribbean 

The Middle East

  • Saudi Arabia
  • The UAE
  • Qatar
  • Oman
  • Turkey
  • The Rest of the Middle East

Africa 

  • Nigeria
  • South Africa
  • The Rest of Africa

Frequently Asked Questions (FAQs)

The polypropylene market is expected to reach a value of USD 1, 21,293.7 million by the year 2029, with a CARG of 4.07% during the assessment period.
Rising raw material prices, rapid industrialization, increase in demand for packaging material are the key factors expected to drive Polypropylene Market during the forecast period.
Asia Pacific is expected to hold the highest market share in Polypropylene Market.
Westlake Chemical Corporation, SABIC, Reliance Industries Limited, LG Chem, INEOS Group Holdings S.A., Haldia Petrochemicals Limited, Formosa Plastics Corporation, U.S.A, Braskem SA are the top players in Polypropylene Market.
In 2029 Global Polypropylene Market was valued at USD 1, 21,293.7 million.
Homopolymer Segment is expected to be the leading segment in Polypropylene Market during the forecast period.
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