Global Polypropylene market estimated to cross US$138.36 bln by 2020

15-Dec-15

Demand in the global polypropylene market was US$95.90 bln in 2014 and is estimated to reach US$138.36 bln by 2020 growing at a rate of 6.3% compounded annually, as per Research and Markets. The global production of Polypropylene was 53.18 MMT in 2014 and is estimated to reach 70.81 MMT by 2020, at a CAGR of 4.89% for the forecasted period. APAC leads the market with a share of 43% in 2014 followed by Europe. However, Middle East and Africa is expected to be the fasted growing market for the forecasted period in terms of demand. Growth in automotive and construction sectors in emerging countries like India, China, and Indonesia is expected to drive the growth in the APAC region. On the other hand, North America was the region where the demand had a decline in the previous years but is recovering slowly. Polypropylene is used in industries such as automobile, electrical & electronics, packaging, construction, and medical industries. Packaging leading the market with a market share of more than 50% in 2014 followed by automotive industry with a market share of 15.47% in the same year. Equipments and facilities industry would also be one of the fast growing market during the forecasted period. Factors like demand in packaging industry, in light weighting vehicles is expected to drive the market during the forecasted period. On the other hand, factors like volatility in raw material prices, environmental issues would limit the growth of the market. Polypropylene manufacturers are shifting their focus from synthetic to bio-based polypropylene as a result of increase in demand for the latter. Global Polypropylene market is a fragmented market with top 5 players contributing 31% of the market share in 2014. However, with the industry witnessing acquisitions, the market is moving towards a consolidated one.