Health care, food packaging to augment global demand for polypropylene random copolymer

The global polypropylene random copolymer market was valued at US$5.9 bln in 2014 and is anticipated to reach US$9.2 bln by 2023, expanding at a CAGR of 5.2% between 2015 and 2023, as per Transparency Market Research. Polypropylene random copolymer is a thermoplastic polymer, which can be readily formed by catalytic polymerization of propylene using ethylene as a co-monomer at random concentrations to improve thermal and mechanical properties of polypropylene. Excellent surface hardness, transparency, high impact and chemical resistance, low melting temperature, and high heat resistance are the vital properties of polypropylene random copolymer. Hence, polypropylene random copolymers are more preferable than other polyolefins in numerous applications. Asia Pacific was the largest market for polyprolylene random copolymer in 2014. Demand for polypropylene random copolymer was high in Asia Pacific in 2014, especially for food containers, due to changing lifestyles as consumers are increasingly shifting toward ready-to-eat and packaged food. Additionally, demand for packaging of consumer products in smaller quantities has increased due to rising number of nuclear families and high disposable income of the people. This is expected to boost the polypropylene random copolymer market in the near future. Europe was the second-largest market for polypropylene random copolymer in terms of volume in 2014. High demand for polypropylene random copolymer in the construction industry is expected to be a major driver of the market in the region during the forecast period. The key advantage of polypropylene random copolymers over traditional metal pipes is minimal transfer of heat. Polypropylene random polymer is extensively used in disposable syringes and labware. Hence, the proliferating health care industry in North America is expected to drive demand for polypropylene random polymer. Significant demand in the food packaging industry in Brazil is estimated to augment the market in Latin America in the next few years. The Middle East & Africa accounted for a small share of the global polypropylene random copolymer market in 2014. The polypropylene random copolymer market is fragmented; the top five companies accounted for nearly 30% of the overall market in 2014. Key companies in the market include Borealis AG, Sasol, Reliance Industries Limited, Exxon Mobil Corporation, Formosa Plastics Corporation, and LyondellBasell Industries N.V. Many companies are focusing on shifting their production capacities to Asia Pacific and the Middle East due to abundant availability of raw materials and cheap labor in these regions. Several manufacturers are focusing on adding new features to their current products in order to gain competitive advantage and sustain in the market. In 2012, Repsol launched phthalate-free polypropylene random copolymer for injection and blow molding applications. In October 2013, INEOS Olefins & Polymers Europe launched a new range of polypropylene random copolymer for transparent thin wall containers. Hence, the degree of competition is likely to remain high in the next eight years.