Global Polypropylene Compounds Market - 2023-2030

Global Polypropylene Compounds Market - 2023-2030

Global Polypropylene Compounds Market reached US$ 23.7 billion in 2022 and is expected to reach US$ 43.5 billion by 2030, growing with a CAGR of 8.0% during the forecast period 2023-2030.

Thermoplastic resins known as polypropylene compounds are created by mixing one or more base polyolefins with various materials like pigments, additives, fillers and reinforcements. The consumer electronics industry's increasing demand has been fueling the market's expansion.

The global coronavirus outbreak and raw material fluctuations, however, are probably going to impede the growth of the market under study. Over the next five years, the market for polypropylene compounds is probably going to experience significant growth opportunities from research and development of environmentally friendly polypropylene compounds.

As of 2021, the automotive industry had the highest penetration rate and during the forecast period, the segmental share is expected to reach up to 39.3%. PP compounds are inexpensive and have excellent moldability and mechanical qualities therefore are in demand for the manufacturing of auto parts such as door trims, bumper facias and instrument panels. With several major automakers and automobile parts producers, U.S. is among the largest automotive markets in the world. The region's need for polypropylene is fueled by its use in automobile manufacturing to improve fuel efficiency.

Dynamics

Rising Demand from the Consumer Electronic Sector

Components for consumer electronics like tablets, laptops and cell phones need to be solid but lightweight. Because of their high impact resistance and lightweight nature, polypropylene compounds are widely used in the production of electronic device casings, covers and structural parts. Compounds made of polypropylene can be customized to satisfy particular design specifications. Thus the flexibility of these compounds has made it easy for the producers of electronic devices to design complex and aesthetically beautiful products without sacrificing functionality.

The consumer electronics industry stands out for its fast technological progress and dynamic consumer patterns. The need for materials like polypropylene compounds that can satisfy these changing needs is growing as electronic devices get smaller, lighter and more feature-rich. Furthermore, the increasing popularity of smart home appliances, such as voice-activated assistants and thermostats, is driving up demand for polypropylene compounds used in the production of casings and other parts.

Rising Product Launch for Automotive Application

The market for polypropylene compounds is significantly influenced by the automotive sector's demand for materials that are lightweight, affordable and environmentally friendly. The use of polypropylene compounds in various vehicle components is anticipated to increase as the automotive industry changes to meet shifting consumer preferences and regulatory standards. Thus to support the growing demand of these compounds companies are heavily investing in boosting PP production and product launch leading to drive the market growth.

For instance, In Wuxi, Jiangsu Province, China, Sumitomo Chemical established the Zhuhai Sumika Polymer Compounds Co., Ltd. Wuxi branch as a new polypropylene (PP) compound production facility to expand its automotive materials business. In addition to the production facility that is already operational in Changdu City, the Wuxi Plant is scheduled to start up in early 2021.

Furthermore, On August 31, 2022, the Leading global player in the chemical industry SABIC introduced two new short-glass fiber-reinforced polypropylene (PP) compounds, SABIC PP compound G3430X and SABIC PP compound G3440X grades, providing improved processing and performance for demanding automotive interior, exterior and under-hood applications.

Fluctuation in Raw Material Cost Source

Uncertainty in the market is brought by frequent and unpredictable price fluctuations for the raw materials used in PP compounds, such as reinforcements, additives, fillers and polypropylene resin. Pricing and profit margins may suffer as a result of manufacturers' and suppliers' inability to predict and control their production costs.

Natural disasters, imbalances in supply and demand, changes in the world economy and geopolitical events can all affect the price of raw materials. The unpredictability may cause unexpectedly large price increases, which would raise the cost of producing PP compounds leading to hampering the product’s market growth.

Segment Analysis

The global polypropylene compounds market is segmented based on product, application, end-user and region.

Mineral-filled PP Compounds Improved Mechanical Properties with Low-density

Mineral filled PP compounds in polypropylene compounds are a growing market based on product and are expected to cover more than 27.9% market share in 2022. Mineral-filled polypropylene (PP) compounds are a type of thermoplastic material that is improved in terms of properties and performance by mixing mineral fillers with polypropylene resin. The compounds are widely used in various industries due to their improved mechanical, thermal and electrical properties.

Mineral-filled PP compounds have improved mechanical properties but still have a low density. The makes it possible for components to be lighter and more fuel-efficient, which is particularly advantageous in applications related to cars and transportation. The most common uses for mineral filled PP compounds are in consoles, panels, knee bolsters and other interior components of cars and home appliances. Furthermore, because compounded TPVs are more resistant to temperature and oil, their use in under-the-hood automotive applications has increased significantly. Minerals are also added to the polypropylene compounds to increase rigidity and heat distortion.

Geographical Penetration

Asia-Pacific’s Dominant Consumer Electronics and Automotive Sectors

Due to strong demand from the consumer electronics and automotive sectors, especially in developing nations like China and India, Asia-Pacific market is anticipated to grow at the fastest rate covering more than 49.1% in the forecast period.

Major international automakers have made investments in the region due to the region's easy access to raw materials, advanced infrastructure and inexpensive, skilled labor force. Therefore, it is anticipated that each of these factors will propel the polypropylene compound market in the Asia-Pacific area.

The electronics market in the area is likewise expanding steadily. Furthermore, since businesses in the area are actively investing in the electronics sector, demand is probably going to keep rising and the region's use of polypropylene will grow.

COVID-19 Impact Analysis

During the pandemic, consumer spending dropped and economic uncertainties made a wide range of products—including those containing PP compounds—less popular. The demand for products from industries like consumer goods, construction and automotive declined, which had an impact on the demand for PP compounds.

Price volatility in the raw materials market, particularly for propylene, a crucial component of polypropylene compounds, was brought on by the pandemic. Price fluctuations for raw materials affected the PP compounds' cost structure.

Consumer preferences and behavior were impacted by the pandemic. For example, there was a rise in demand for medical supplies and personal protective equipment (PPE), both of which contain PP compounds. But demand declined in other sectors, such as construction and the automotive sector.

Russia-Ukraine War Impact Analysis

Propylene is a crucial component of polypropylene (PP) compounds and price volatility for raw materials is caused by geopolitical instability. Price fluctuations for raw materials have an impact on the industry's profitability and cost structure.

Trade restrictions, sanctions or interruptions in the flow of goods are all possible outcomes of geopolitical tensions. The import and export of PP compounds and related goods have been hampered by these disruptions.

Economic uncertainty brought on by geopolitical conflicts can undermine consumer and company confidence. Uncertainty in the economy could result in a decline in the demand for many different products, including ones that contain PP compounds.

By Product
• Mineral-filled PP Compounds
• Glass Fiber Reinforced
• Compounded TPO
• Compounded TPV
• Talc Filled
• Others

By Application
• Fiber
• Film & sheet
• Raffia
• Others

By End-User
• Automotive
• Building & Construction
• Electrical & Electronics
• Textile
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On August 31, 2022, the Leading global player in the chemical industry SABIC introduced two new short-glass fiber-reinforced polypropylene (PP) compounds, SABIC PP compound G3430X and SABIC PP compound G3440X grades, providing improved processing and performance for demanding automotive interior, exterior and under-hood applications.
• On June 27, 2022, Repsol's compounding plant, Polidux, in Monzón, Huesca, opened a new production line. The new line will enable nearly a 30% increase in the production of fiberglass-reinforced polypropylene (PP) compounds, which are highly specialized and high-value materials in high demand in technical sectors.
• By November 2023, With over 80 years of experience, MOL Group, a pioneer in the European petrochemical sector, is introducing its range of polypropylene compounds enhanced with recycled polymer matrices. By providing eco-friendly solutions without sacrificing quality, this product group hopes to benefit the industry.

Competitive Landscape

The major global players in the market include Borealis AG, Mitsui Chemical, Inc., IRPC Public Company Limited, Exxon Mobil Corporation, Avient Corporation, Japan Polypropylene Corporation, SABIC, Trinseo S.A., Sumitomo Chemical Co., Ltd. and Washington Penn.

Why Purchase the Report?
• To visualize the global polypropylene compounds market segmentation based on product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of polypropylene compounds market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global polypropylene compounds market report would provide approximately 61 tables, 63 figures and 212 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies