Polypropylene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Polypropylene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The polypropylene market size was estimated at over 80 million tons in 2021, and the market is projected to register a CAGR of 5.2 % during the forecast period (2022-2027).

A slight decline in the demand for polypropylene has been observed due to COVID-19. A drastic slowdown was witnessed in the construction and automotive sector where polypropylene is in high demand. With the resumption of operations in majorend-user industries, it significantly recovered in 2022..

Key Highlights

• Over the short term, major factors driving the market studied are increasing usage of plastics to reduce vehicle weight and enhance fuel economy, growing demand for flexible packaging. The increase in the aging population, growing demand for convenient packaging, growth of the e-commerce business, the growing online food delivery market, and the packaging of products in different sizes and quantities are some of the market conditions that have boosted the growth of flexible packaging industry globally.
• Recycled PP is likely to act as an opportunity in the future.
• Amid the global COVID-19 pandemic, polypropylene was also used to produce personal protective equipment such as face shields, masks, and headcovers, among others, thereby positively impacting the demand for polypropylene.
• Asia-Pacific dominated the market across the world, with the largest consumption from countries such as China and India.

Key Market TrendsIncreasing Demand for Injection Molding to Dominate the Application Segment

• Polypropylene is majorly used for injection molding and is mostly available for this application in the form of pellets. Polypropylene is easy to mold, and it flows very well because of its low melt viscosity.
• Injection molding technology is used to produce plastics which are used extensively in electrical and electronic applications. These plastics are widely used in the manufacturing of electrical and electronic devices.
• Polypropylene injection molding is used in the manufacturing of electric devices such as sensors, meters and industrial test equipment. The global production by the electronics and IT industries excepted to rise 11% year on year in 2021 to reach USD 3,360.2 billion. Thus growth in the electronic segment is likely to fuel the market demand for injection molded polypropylene plastics.
• Also, injection molding technology is used in the production of high-precision engineering components and various disposable consumer products that are utilized in housing appliances, consumer electronics, medical devices (such as valves and syringes), power tools, automotive dashboards, car bumpers, open containers, fittings, toothbrushes, and toys, among various other products.
• The high growth of the packaging and chemical processing industries across the world is expected to offer a favorable market scenario for injection molding. Owing to the geographical advantage of distribution to the rapidly growing Asia-Pacific region, the consumption of injection-molded pallets may increase drastically.

Asia-Pacific to Register the Fastest Growth

• Asia-Pacific polypropylene market is growing at a fast pace driven by countries like China and India.
• China is the world's largest consumer of polypropylene, driven majorly by the rising packaging industry. According to the National Statistics of Bureau of China, the courier sector handled approximately 83.36 billion parcels in 2020, an increase of 31.2% from 2019. Furthermore, the express delivery industry is expected to handle over 100 billion parcels in 2021, with operating revenue exceeding CNY 1 trillion (around USD 154.6 billion USD). With the growth in industrial and FMCG products, packaging demand has been increasing in the country.
• Additionally, China witnessed rapid growth in the fast-moving consumer goods (FMCG) sector. The growth of the FMCG market was majorly driven by the increased spending on premium home care and personal care products by middle-class consumers. Furthermore, the personal care segment of the FMCG sector grew at a rate of 6.6% and the home care segment by 8.3% in the first quarter of 2021, compared to the third quarter the previous year.
• In India, according to the Packaging Industry Association of India (PIAI), the sector is growing at 22% to 25% per annum. The Indian packaging industry made a mark with its exports and imports, driving technology and innovation growth in the country and adding value to the various manufacturing sectors. The packaging industry is enacting the role of catalyst in promoting the huge growth of the polypropylene market in India. Furthermore, the country has been exhibiting a significant demand for packed foods for the past few years, which is expected to continue during the forecast period, thus boosting the demand for the market studied.
• Such growth in various industries is expected to drive the market for polypropylene in the Asia-Pacific region during the forecast period.

Competitive Landscape

The global polypropylene market is fragmented in nature. The top five companies hold around 35% of the global market share in terms of production capacities in 2021. Some of the major players in the market include China Petroleum & Chemical Corporation (SINOPEC), LyondellBasell Industries Holdings BV, Borealis AG, Braskem, and Reliance Industries Limited.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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