Global polypropylene market expected to reach US$170 bln in 2022

The global polypropylene market is expected to reach US$170 bln in 2022, as per a report by Reportbuyer. Growth of key end-use industries such as packaging and automotive in Asia Pacific is expected to drive the global polypropylene market the forecast period. In addition, increasing construction spending particularly in emerging markets of China, India and Indonesia is also expected to have a positive influence on the market growth. Volatile propylene prices on account of constantly fluctuating crude oil prices are expected to remain a key challenge for market participants. Stringent environmental regulations regarding production and disposal of polypropylene is also expected to degrade the market growth over the forecast period. In order to overcome these issues, major participants have shifted their focus towards development of sustainable polypropylene. Injection molding emerged as the leading application segment and accounted for 46.1% of total market volume in 2014. Shift towards replacement of steel automotive industry in order to improve fuel efficiency of automobiles is expected to remain a key driving factor for this segment over the forecast period. Films are expected to witness the highest growth rate of 5.7% from 2015 to 2022. Growing demand for BOPP films for myriad of applications is expected to drive this segment over the forecast period. Further key findings from the study suggest: Global polypropylene market demand was 58.45 million tons in 2014 and is expected to reach 87.35 million tons by 2022, growing at a CAGR of 5.2% from 2015 to 2022. Asia Pacific continued its dominance in the global PP market accounted for 44.8% of total consumption in 2014. Asia Pacific is also expected to witness the highest growth of 5.8% from 2015 to 2022. Growth of automotive and construction industries in India, China and Indonesia is expected to drive the regional growth over the forecast period. Bio-based polypropylene demand is more dominant in emerged markets of North America and Europe. These markets are characterized by stringent regulations and aware consumers regarding the environmental hazards caused due petrochemical based polypropylene. Polypropylene industry is characterized by low white space, high price sensitivity and numerous producers. The market is dominated by top multinational corporations which have presence across the value chain. Key industry participants are investing heavily in R&D initiatives and engaging in mergers & acquisitions with an aim to improve their product portfolio and increase production capacity. Some major industry participants include Braskem, Chevron Phillips Chemical Company, Japan Polypropylene Corporation, Reliance Industries Limited, BASF, Sinopec, Borealis AG, ExxonMobil, DuPont, LyondellBasell Industries, SABIC, Bayer Material Science, Fulton Pacific, INEOS, Total S.A, Washington Penn Plastic Company Inc., PetroChina Company Limited and Qatar Petrochemical Company.