Growth in automotive & construction in emerging countries to drive global Polypropylene growth

13-Apr-17

Growth in automotive & construction in emerging countries will drive global Polypropylene (PP) Market to US$151 bln by 2022, as per Research and Markets. The global production of Polypropylene was 56.44 MMT in 2016 and is estimated to reach 75.72 MMT by 2022, at a CAGR of 5.02% for the forecasted period. While, on the other hand, in terms of demand the market was US$105.46 bln in 2016 and would reach US$151.38 bln by 2022 growing at a rate of 6.21% compounded annually. APAC leads the market with a share of 44% in 2016 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. 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.