The synthetic and bio-based polypropylene market globally is forecast to reach US$148 billion by 2027 growing at a CAGR of 6.8% during 2022-2027. The rising demand for polypropylene for producing various parts through injection molding in various end-use industries is projected to drive the growth of the market in the forecast period. For instance, as per the May 2021 journal by Research Square, plastic spur gear was manufactured with the help of polypropylene through the injection molding process. The spur gear is an important component used in automobiles. Owing to the superior qualities like excellent chemical inertness, high tensile strength, superior fatigue life, and low-density polypropylene is used in various end-use industries. The automotive industry is projected to drive the market’s growth owing to the rapidly expanding automobile sector globally. For instance, as per the data by the China Association of Automobile Manufacturers (CAAM), the Chinese automotive sector is expected to stay on a progressive track in the coming years with the highest demand for new energy vehicles (NEVs). Furthermore, polypropylene-based on bio feedstock such as corn, vegetable oil, biomass, and bio isobutanol will witness significant demand in the target market in the forecast period. However, fluctuation in the price of polypropylene might affect the market’s growth in the forecast period.
COVID-19 Impact
The synthetic and bio-based polypropylene market was moderately affected due to the COVID-19 pandemic. Constraints in international logistics, idling of factories, procurement of raw material, etc., are some of the challenges faced by the market players amid the pandemic, slowing down the market’s growth. However, the demand for polypropylene in the healthcare sector kept the business afloat. For instance, as per November 2020 news by LyondellBasell, the company launched a new polypropylene grade in Europe which was helpful in the production of face masks. Such commercialization of polypropylene not only helped the target market to survive but thrive during the pandemic. Going forward, the synthetic and bio-based polypropylene market is expected to witness massive growth owing to the expansion in multiple end-use industries such as automotive, packaging, construction, etc.
Synthetic and Bio Based Polypropylene Market - By Application
The injection molding application segment dominated the synthetic and bio-based polypropylene market in 2021 and is growing at a CAGR of 7.5% in the forecast period. Polypropylene is extensively used in injection molding applications for manufacturing various products and components in multiple sectors like automotive, construction, packaging, etc. Owing to this, injection molding is a popular choice among manufacturers. For instance, in December 2020, Saudi Basic Industries Corporation (SABIC), a market leader in the chemicals industry, joined hands with Unilever and Greiner Packaging to develop a new packaging container using polypropylene through injection molding. Similarly, in November 2020, LyondellBasell, one of the largest chemical companies, joined hands with REHAU and Eschmann Textures to develop a physically foamed rear lower trim automotive part with the help of polypropylene material through injection molding. Such high implementation of injection molding applications in various industries will drive the synthetic and bio-based polypropylene market’s growth in the forecast period. Textile and films application will drive the market’s growth significantly in the forecast period.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=503675
Report Price: $ 4500 (Single User License)
Synthetic and Bio Based Polypropylene Market - By End Use Industry
The automotive sector dominated the synthetic and bio-based polypropylene market in 2021. Polypropylene is widely used in the production of various automotive parts such as bumpers, gas cans, carpet fibers in car interior flooring, cable insulation, etc. The automotive industry globally is expanding exponentially and this rapid growth will drive the synthetic and bio-based polypropylene market in the forecast period. As per the data by India Brand Equity Foundation, Indian automobile exports were 1419430 units from April 2021 to June 2021 compared with 436500 units from April 2020 to June 2020. Similarly, according to the Global EV Outlook 2021 report by the International Energy Agency, registration in the battery electric vehicle segment increased in the US market as 931000 units registered in 2020 as compared to the 834000 units registered in 2019. Such high growth in the automobile sector globally will increase higher usage of synthetic and bio-based polypropylene in the various automotive parts, which, in turn, will drive the growth of the market in the forecast period. The packaging industry globally will drive the market’s growth significantly in the forecast period owing to the robust uses of polypropylene in various packaging solutions like pouches, gusseted bags, plastic films, etc.
Synthetic and Bio Based Polypropylene Market - By Geography
The Asia-Pacific region held the largest market share in the synthetic and bio-based polypropylene market in 2021 with a market share of up to 32%. The high demand for polypropylene is growing in the manufacturing of various auto components in the regions’ expanding automobile industry. The Chinese automobile sector is the fastest-growing auto industry in the region. As per the statistics by the Chinese online auto information provider Autohome, the passenger vehicles segment is expected to touch 30 million by 2029, compared to 21.44 million units in 2019. Similarly, as per the reports by India Brand Equity Foundation (IBEF), domestic automobiles production between FY16-20 jumped at 2.36% CAGR with 26.36 million vehicles being manufactured in India in FY20. Such high growth in the automotive industry in the region will amplify the usage of polypropylene for the manufacturing of various auto parts. The European region is expected to witness significant demand for polypropylene owing to the booming automotive sector. As per the statistics by the European Automobile Manufacturers Association (ACEA), the hybrid electric vehicles (HEVs) segment made up 11.9% of total car sales in 2020, compared to 5.7% in the previous year. Such a boost in the automotive sector in the European region will increase the demand for polypropylene in the forecast period.
Synthetic and Bio Based Polypropylene Market Drivers
Expanding packaging industry will drive the market’s growth
The expanding packaging industry will drive the growth of the synthetic and bio-based polypropylene market in the forecast period. Polypropylene has always been a key raw material in the packaging industry and the growing interest for bio-based polypropylene based on bio feedstocks like biomass, bio isobutanol, corn, vegetable oil, etc. are amplifying the polypropylene portfolio in packaging applications. Polypropylene is used in various types of packaging solutions that include pouches, films, gusseted bags, flat bags, strapping tape, etc. As per the 2019 Flexible Packaging Market Assessment report by The Association for Packaging and Processing Technologies (PMMI), the global flexible packaging market is projected to reach $291.6 billion at a CAGR of 3.9% through 2023. Flexible packaging involves pouches, sachets, shrink films, gusseted bags, etc, and this growth in flexible packaging will increase the usage of polypropylene, and this, in turn, will drive the synthetic and bio-based polypropylene market’s growth in the forecast period.
Booming automotive industry will drive the market’s growth
The booming automotive industry globally is expected to be a key driving factor in the market’s growth during the forecast period. Polypropylene is widely associated with the manufacturing of various automotive components like bumper facias, interior trims, cable insulation, carpet fibers, among others and the booming automotive industry globally will drive the market’s growth in the forecast period. For instance, as per the data by India Brand Equity Foundation (IBEF), India’s automobile export touched 4.77 million units in FY20, increasing at a CAGR of 6.94% during FY16-FY20. Similarly, as per the 2020 data by the European Automobile Manufacturers Association (ACEA), electrically-chargeable vehicles accounted for 10.5% of total car sales, compared to 3% in 2019. This high growth in the global automotive industry will drive the growth of the synthetic and bio-based polypropylene market in the forecast period.
Direct Purchase link @ https://www.industryarc.com/purchasereport.php?id=503675
Synthetic and Bio Based Polypropylene Market Challenges
Fluctuation in the price of polypropylene might hamper the market’s growth
The fluctuation in polypropylene price might slow down the growth of the synthetic and bio-based polypropylene market in the forecast period. Polypropylene is derived from petroleum and the price of petroleum has gone down amid the pandemic, affecting the price of polypropylene. Lack of commercial movement owing to logistics and cross-border restrictions resulted in a historic drop in the petroleum price. Moreover, the oil war price between Russia and Saudi Arabia further affected the petroleum price. As per data by ourworldindata.org, the price of crude oil in 2017 stood at US$ 54.19 per barrel which surged to US$ 64.21 per barrel in 2019. Later, in 2020, the oil price again dropped to US$ 41.84 per barrel. Such lowered demand for crude oil fluctuated petroleum price, ultimately fluctuating the price of polypropylene, and this, in turn, might hinder the growth of the synthetic and bio-based polypropylene market’s growth in the forecast period.
Synthetic and Bio Based Polypropylene Market Industry Outlook
Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the synthetic and bio based polypropylene market. Major players in the synthetic and bio based polypropylene market are:
Sabic
LyondellBasell
ExxonMobil
Japan Polypropylene Corporation
Sinopec
Borealis AG
Washington Penn
Chevron Phillips
Neste
Others
Recent Developments
In March 2020, Borealis started production of renewable polypropylene from Neste’s renewable feedstock at its facility in Belgium. Such collaboration will contribute to the growth of the synthetic and bio-based polypropylene market in the forecast period.
Key Takeaways:
The injection molding application segment dominated the synthetic and bio-based polypropylene market. For instance, as per the April 2019 journal by SAGE Publishing, polypropylene was used as the raw material for automotive applications through injection molding.
The automotive industry will drive the market’s growth in the forecast period. For instance, as per the July 2021 statistics by the European Automobile Manufacturers' Association (ACEA), commercial vehicle registrations touched 185,573 units, surging 12.4% year-on-year.
The Asia-Pacific region will witness the highest demand for synthetic and bio-based polypropylene owing to the extensive growth in the automotive industry. As per the 2020 data by Autohome, the Chinese consumers are inclining towards higher spending on cars and car-related loans.
Relevant Reports
Global Polypropylene Fibers Market
https://www.industryarc.com/Research/Global-Polypropylene-Fibers-Market-Research-502936
For more Chemicals and Materials related reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.
Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
Address:Madhapur
City: Hyderabad
Country: India
Website: https://www.industryarc.com/
