Synthetic and Bio-based Polypropylene Market

Market Overview

The global synthetic and bio-based polypropylene market was valued at USD 101.38 billion in 2021 and is expected to reach USD 190.44 billion in 2030 expanding at a compound annual growth rate (CAGR) of 8.2% from 2022 to 2030.

Karl Rehn, a German scientist, and an Italian chemist called Montecatini created polypropylene, also known as polypropene, in 1954. Due to the virtue of being very adaptable, the thermoplastic polymer finds employment in a broad variety of applications, including textiles, labeling and packaging, plastics, stationary, and laboratory equipment. Because of its advantageous qualities, polypropylene is used in a variety of applications that are used on a daily basis, such as plastics Due to its high melting point than other lightweight plastics, it may be used in containers for food and beverages that need to be resistant to high temperatures without breaking down.

Isotactic, syndiotactic, and atactic are the three ways that polypropylene may be produced throughout the manufacturing process. The most common type of polypropylene that is made and sold on the market is isotactic. These polymers are able to take on a variety of hues when dyed. These can also be tailored to your specifications. These are some of the primary reasons why it is utilized in the production of the fibers that are used in the manufacture of carpets.

In addition to its usage in the production of plastics, carpets, reusable items, and paper, polypropylene is also utilized in the production of medical equipment. Toys and components for automobiles are both made from polypropylene, which is a material used extensively in the plastics industry. Because of the chemical and physical qualities that they possess, these polymers are utilized in the production of upholstered furniture, area rugs, and all varieties of carpets. These polymers find their way into goods that may be reused, such as jars, containers, and the like. It is anticipated that the paper sector will generate a large amount of demand for polypropylene for uses such as stationary and other writing binders.

Petrochemicals serve as the basis for the production of synthetic polymers, which can then be derived via bulk/slurry, hydrocarbon slurry, or gas phase processes. The production of polypropylene involves carrying out these three procedures. There is a good chance that stringent directives and restrictions concerning the use of plastics would slow down the expansion of the polypropylene industry. At this time, environmentally friendly components are utilized in the production of polypropylene. Corn, biomass, vegetable oil, and biodiesel are some examples of the raw materials that are utilized in the production of bio-based polypropylene. There would be an increase in demand for synthetic and bio-based polypropylene because of the possible functional features and characteristics of both types of polypropylenes.

Market Dynamics

Market Drivers

• The Packaging Industry's Growing Need for Bio-Based Polypropylene Will Help the Market Expand

The packaging sector makes extensive use of bio-based polypropylene, particularly for items such as packaged food, packaged drinks, and food that has been sealed. Products that are being transported are typically covered with films that are created from this type of polymer. Using this material not only provides the items with superior flexibility and sturdiness, but it also shields them from the effects of external variables. As a result, the expanding demand from the packaging sector functions as a primary component that serves as a driver for the bio-PP market. The rising understanding that the utilization of biomass and industrial leftovers in the manufacturing of plastic is an act that may be taken to protect the environment, which in turn is leading to an increase in the consumption of this product, For the purpose of the commercialization of bio-PP, Mitsui Chemicals utilized a newly developed technique of manufacturing. This process comprises the fermentation of a variety of biomass, mostly plants that are not edible, in order to make isopropanol (IPA). In addition, the fluctuating prices of traditional plastic raw materials like crude oil are another reason that is encouraging the development of bio-based replacements.

• An Increase in Government Programmes to Increase Consumer Awareness

The global market for bio-based polypropylene (PP) would expand as a result of the growing number of government efforts aimed at raising the level of consumer awareness. The market is being driven forward by the rising demand for the bio-based polypropylene (PP) market from end-users. This is a direct result of the increased efforts being made by the government to educate the public about the bio-based polypropylene (PP) industry.

• To Reduce Carbon Emissions, There Are Strict Laws and Regulations

Because of stringent laws and regulations for the ever-increasing emphasis placed on cutting carbon emissions from autos in a number of different locations. The demand in the market for bio-based polypropylene (PP), which is used in a range of sectors like injections, films, and textiles, amongst others, has increased.

Market Restraints

• The Availability of Similar Materials May Hinder Market Expansion

The synthetic and bio-based polypropylene market is in its infancy; nevertheless, there are materials on the market that perform functions comparable to those of bio-based polypropylene, which may impede market expansion. Bio-based PET, bio-based PHA, and bio-based PE are the types of materials that fall under this category. The fact that materials may be obtained conveniently at more affordable prices is a factor that inhibits the expansion of the industry. In addition, the slower development of technology for bio-polypropylene in comparison to the development of technology for other non-biodegradable bioplastics is an additional factor that is hurting the market and constraining its growth in the process. Increase in Size of the Market.

Market Opportunity

• Technological Progress and Substantial Investment

Rapid technological advancements in lucrative manufacturing techniques, as well as high investments for R&D activities in order to supply innovative products, will be factors that will generate new opportunities for businesses that are currently active in the target market.

Another aspect that is projected to provide revenue support for the advancement of the bio-based polypropylene market is the growing number of agreements and collaboration activities for business expansion. Additionally, an increase in strategic alliances and the creation of new markets would both operate as market drivers, therefore improving beneficial prospects for the industry's growth rate.

Regional Analysis

Based on region the market is divided into North America, Europe, Asia Pacific, Latin America and the Middle East.

The synthetic and bio-based polypropylene market in Europe is expected to reach a value of 34.4 million US dollars by the year 2020. Europe now has a value leadership position in this market. The expansion of the market may be attributed to the rapidly expanding demand for bio-PP in the automobile industry. Germany is both a significant manufacturer and consumer of vehicles, and it is projected that the expansion of the automotive sector in this nation would contribute to an increase in the demand for bio-based polypropylene. The automotive components fabricated from this material will find applications in bumpers, inside and external design, and paneling.

It is believed that North America has a sizeable portion of the bio-based polypropylene market share in the international market. This is something that can be connected to the increasing rate of technological progress as well as disposable income in the area. The expansion of the market may be attributed to the growing demand for bio-based polypropylene from the building and construction sector, which is driving activities like rehabilitation and new construction.

During the time period under consideration, Asia Pacific is anticipated to have significant market expansion. It is projected that the rising demand for this material from a variety of industries, such as the automotive industry and the building and construction industry, will drive market growth. The economic growth that is taking place in countries like China, India, and Japan is creating a significant demand for bio- PP-based products in household and institutional applications. This demand is expected to drive the market during the forecast period because it is the primary factor that is currently driving the demand. In addition, the expanding population in the region has resulted in an increase in the demand for private automobiles, which in turn has resulted in high demand for this material.

During the time period under consideration, we anticipate that the rest of the globe will have moderate growth. It is projected that Brazil would demonstrate development as a result of the country's rapidly expanding urban population as well as it's rising per capita income. The expansion of the consumer products industry is one of the primary drivers behind the rising demand for bio-PP. The market is driven even further by the expansion of both the economy and the people in the area, in addition to the expanding technical advancements in the automobile sector.

Segmental Analysis

The synthetic and bio-based polypropylene market is segmented into Application and Region.

On the Basis of Applications

Based on Application the market is divided into Injection, Textile, Film, and Others. During the time covered by this estimate, it is anticipated that the worldwide market for bio-based polypropylene for injection molding would retain a preeminent share of the market. The product's demand is pushed higher by an increase in demand for injection molded components in a variety of end-use sectors, including the automotive, aerospace, electrical, and electronics markets. Because of this, the global market for bio-based polypropylene used for injection is expanding at a rapid rate.

Recent Developments

In March 2020, Borealis began producing polypropylene in its Belgian production sites in Kallo and Beringen using renewable feedstock generated by Neste. In the large-scale commercial manufacturing of PP, feedstock derived from fossil fuels has been substituted by Borealis.

The commercial simultaneous manufacturing of bio-based low-density polyethylene and bio-based polypropylene was announced by Neste, a manufacturer of renewable fuel from waste and leftovers, and LyondellBasell, a maker of plastics, in June 2019. In the collaborative initiative, Neste's renewable hydrocarbons from sustainable bio-based raw sources, such as waste, and residual oils, were employed.