Global Polypropylene demand to reach US$115 bln by 2022

The global market for polypropylene (PP) is expected to grow at a CAGR of 5% to reach US$115 bln until 2022, according to Beroe Inc. The key-driving end-use applications of the PP market are the CPG segment (food/non-food containers, caps-closures, films) and auto components (internal structures, bumpers, dashboard carriers, door panels).
Matured markets such as the U.S. and few European countries have a dominant automotive segment and possess a greater demand for the molding grade of PP. Rise in disposable income, increasing demand from CPG, and the medical industry is likely to drive the growth in emerging markets such as Brazil and Asia.
One of the principal industry drivers for PP is the automobile industry, which has been a major consumer of PP due to its weight properties. Over a third of the plastics utilized in the automotive industry are PP and its alloys. Thus, the demand from the automotive industry is expected to rise globally. However, a major constraint for the PP market is the threat of substitutes. With certain regions concentrating on promoting environment-friendly products in the packaging sector, rPET and PET are attractive options as compared to PP due to their recyclable properties. The market trends in MEA infer that the demand for PP is expected to increase at a steady rate of 4.1 percent until 2022 from the CPG industry. Additionally, the food and beverage industry, followed by the health and hygiene industry, will drive the demand for PP across the African region. Key Findings include: 
*    Demand from the film and packaging industry is a growth driver for the PP market as almost 50% of PP is used in the packaging segment.
*    In the long run, PP supplies are likely to strengthen in the European market after the arrival of new plants by existing manufacturers.
*    The raw material is the major cost driver of PP; hence North America and the Middle East have greater control over its pricing due to their self-sufficiency.
*    The top 10 suppliers contribute to nearly 50% of the overall PP production in the world. TOTAL Petrochemicals has the largest polypropylene plant across the globe with a capacity of 1.224 mln mtpa.
*    Capacity additions of almost 18 mln mtpa in the PP market are expected to be supplemented by 2022, primarily from Asia, the Middle East, and Russia.
*    A hybrid sourcing strategy is being adopted by companies to capitalize on the advantages of both regional and global sourcing strategies, which is ideal for the procurement of PP resins.
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Battenfeld BEX2-130-25V twin screw extrusion line

Battenfeld BEX2-130-25V twin screw extrusion line