Propylene market in Southeast Asia estimated to reach US$ 9.4 bln by 2020

16-Jun-16

Increasing demand from propylene derivative products will drive the Southeast Asia propylene market to reach US$9.4 bln by 2020, as per IndustryARC, at a CAGR of 19.6% by 2020. The high growth in the market is owing to the increasing demand of derivative products of propylene.
Propylene is used as the major feedstock for polypropylene and around 80% of the propylene produced in Southeast Asia is used for the production of polypropylene which is a thermoplastic polymer used in a wide variety of applications including packaging and labeling, textiles, stationery, plastic parts and various types of reusable containers.

Thailand is the largest propylene producer in the region, which accounts for 40.4% of the total propylene production capacity in Southeast Asia. Apart from Thailand, Singapore and Malaysia also have large propylene production capacity. Major companies in these countries are planning to increase their existing production capacity to cater the growing demand. Indonesia and Vietnam will add 1.1 million tons propylene capacity by the end of 2020. The propylene consumption in Singapore will experience a growth till 2020, due to the growing demand for plastics in the country. Raw material being used for plastic manufacturing is derived from propylene. Recognizing the importance of achieving sustainable growth, Singapore has already started to draw blueprints for Jurang Island, Version 2.0.