Polypropylene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)


Posted April 25, 2021 by Statzyreports

The Global Polypropylene Market size was estimated at over 80 million tons in 2020 and the market is projected to register a CAGR of over 6% during the forecast period (2021-2026).
 
The Global Polypropylene Market size was estimated at over 80 million tons in 2020 and the market is projected to register a CAGR of over 6% during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. According to a recent study global automotive production has witnessed a decline of approximately 23% in Q3 of 2020 compared to Q3 of 2019. At the same time, global consumer electronics revenue witnessed a growth of over 17% in 2020, when compared to 2019. Additionally, the demand for packaging products has increased in medical and food packaging applications, thus enhancing the demand for polypropylene in the pandemic scenario.

- 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 packaging of products in different sizes and quantities are some of the market conditions that have boosted the growth of the flexible packaging industry globally.
- Recycled PP is likely to act as an opportunity in the future.
- Amid the global COVID-19 pandemic, polyproylene was also used to produce perosnal protective equipment such as face shields, masks and head covers amongst others, thereby positvely impacting the demand of polypropylene.
- Asia-Pacific dominated the market across the globe with the largest consumption from countries such as China and India.

Key Market Trends

Increasing Demand for Injection Molding

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- 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 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.

- Healthcare is becoming one of the largest sectors in Asia-Pacific, due to its strengthening coverage, services, and increasing expenditure by public and private players. The governments’ expenditure on the healthcare sector in the region has been increasing since the past few years. The medical devices industry in India has the potential to grow at 28% per annum to reach USD 50 billion by 2025, which is likely to boost the injection molding technology sector.

- Recent developments in the injection molding technique, such as multiple-component injection and microinjection, coupled with advanced injection molding machines, resulting in better and efficient end products, thus, driving the use of this technique in the production process of various polypropylene products.
- Products manufactured by injection molding technology can be of complex shapes while having an excellent surface finish and good dimensional accuracy.

- Injection molding is used to produce wide range of automoitve components such as bumpers, hoods, fenders, taillight, mirror casing, and various others. it offers various advnatages such as mass production, high precision, and surface finish. The growing demand of electric vehicles in countries like China, India, United States, and European countries is likely ot drive the demand durng the forecast period.

- Injection molding is relatively a capital-intensive process. However, the advantage that this technology offers, is its high production rate. Therefore, injection molding is found to be highly beneficial in the bulk production of pallets. Injection molding processes are used in wire spools, packaging, bottle caps, pocket combs, etc.
- The high growth of the packaging, and chemical processing industries across the world are 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.

The United States to Dominate the North America Market

- The United States is the world’s largest economy. The country experienced a growth rate of 2.2% in its GDP in 2019. According to the IMF, the United States recorded a negative growth of -4.3% in the economy in 2020, due to the impact of the COVID-19 pandemic, and is expected to reach a growth rate of 3.1% by 2021.
- One of the major factors driving the growth of the United States polypropylene market is the increasing use of packaging in the food and beverage industry. Food production in the United States is concentrated between multinational giants, such as PepsiCo, Tyson Foods, Nestle, and JBS USA. Packaging materials for food and beverage products are witnessing a growing demand in the country.

- In the United States, the flexible packaging market is growing at a faster pace, owing to its benefits, such as easy handling, compact packaging, and lightweight. The US packaging industry was valued at USD 183.92 billion in 2019, and it is expected to reach a value of USD 218.36 billion by 2025, at a CAGR of 4.1% from 2020-2025. This positive momentum is expected to drive the growth of the polypropylene market over the forecast period.
- The United States consumer electronics market has witnessed a growth of approximately 15% in 2020, compared to 11% in 2019. Additionally, with companies continuously investing in the country’s electronics industry, the market is likely to continue to grow, thereby, increasing the consumption of polypropylene in the United States.

- The healthcare sector in the United States is by far one of the most advanced sectors in the country. The country’s expenditure in healthcare stood at USD 3.65 trillion in 2018, an increase of around 4.4% over the previous year. The average annual growth rate of the healthcare industry is estimated to reach around 5.4% in the United States by 2028, according to the journal, the federal department of the United States.
- According to the SelectUSA, a program by The International Trade Administration (ITA), US Department of Commerce, the medical devices market in the country is the largest medical devices market in the world, valued at USD 156 billion in 2019 and estimated to reach USD 208 billion by 2023.
- Such positive growth from various industries is likely to increase the demand for polypropylene during the forecast period.

Competitive Landscape

The global polypropylene market is partially fragmented in nature, with intense competition among the top players to increase the share in the market. Some of the major players in the market include China Petrochemical Corporation (SINOPEC), LyondellBasell Industries Holdings B.V., Total, China National Petroleum Corporation, and SABIC.

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Tags covid19 impact , polypropylene market , polypropylene market forecast , polypropylene market growth , polypropylene market share , polypropylene market size , polypropylene market trends
Last Updated April 25, 2021