Europe's polypropylene market in 2014 was US$15.56 blnand is dominated by Western Europe which is poised to exhibit the fastest growth due to favorable macroeconomic conditions like population growth and financial conditions like increasing FDI investments. The polypropylene revenue is set to grow over the forecast period, with growing demand across the region. With the region seeing an increase in the demand the revenue of the polypropylene market is anticipated to grow, attributed mainly to the huge potential of Europe’s petrochemical industry, we envisage it surpassing its past records in terms of demand growth. This investment across the olefin and polyolefin value chain is crucial when looking at the supply and demand balances of PP.
Europe is forecast to remain in deficit over the next ten years and grow to a deficit of 4.3 mln metric tons by 2025, quadrupling from the 2013 position. This is expected to materialise despite some projects coming on in the near term. The polypropylene market in Europe is anticipated to grow at a CAGR of 6.39% during the forecast period 2015 to 2020. The number of manufacturers across Europe for polypropylene has increased manifold.
These manufacturers are actively investing in scaling up their position in the market and are able to attract profitable deals. Some of the major players are Borealis AG, ExxonMobil Corporation, Ineos, LyondellBasell and Sabic among others. Major firms spent huge amounts of money in the development of new production plants and efficient technologies and at the same time, new firms are coming up with cutting-edge technological innovations, resulting in tremendous increase in the degree of competition. The overall polypropylene market in Europe is characterized by large number of companies but top three companies account for more than 75% market share due to the wide distribution network and brand reputation. Demand for polypropylene is gradually picking up in Europe from the past few years. Due to the significant drop in the crude oil prices people are buying it for inventory and production which will gradually result in some stability in PP pricing. It is a possibility that there will be an upturn, although not a major one from 2016, and there will be an opportunity for the market to stabilize at a slightly higher level than where it is today. The market is poised to exhibit new product launches and strategic acquisitions or partnerships, as major companies explore for new opportunities.