Polypropylene (PP) is one of the fastest growing polymers in the world. A recent market research report expects PP consumption to reach 51 million tons by the end of this decade (2010) - thus consolidating its position as the largest polyolefin, and will remain the top ranking polyolefin until 2010. The growth can be tied to the increasing applications in food packaging and auto component markets besides the existing wider application range. Injection moulding will continue to be the largest as well as the fastest growing end use segment with a compounded annual rate of 6.4%. Extrusion end-use industry represents the second largest application for PP. These two sectors will contribute to more than 90-95% of PP's processing sectors.
End-markets for commodity plastics have grown in size and have become globally oriented, and producers need to adapt. Developments in technology have provided major players the opportunity to move into niche markets, which were until recently the domain of smaller players. However, economies of scale will continue to be a major and a critical factor for determining success, along with the ability to develop products that meet specific customer requirements.

Asia Pacific region represents the largest market for PP, with an estimated consumption of 16.8 million metric tons in 2007, followed by Europe and the United States. Collectively the three regions are estimated to account for more than 75% of the global consumption of PP. Asia-Pacific region is also projected to be the fastest growing market, followed by South America. China continues to be the most significant importer of polypropylene and drives the market for PP along with India.

PP industry is witnessing emergence of new PP companies, and the change of ownership of the existing players. Most of the new players are private owned companies headquartered in the Middle East, particularly in Saudi Arabia. Global capacity utilization rate is expected to be as high as 80-85%. Europe and the US are demonstrating impressive capacity utilizations, as a large numbers of PP plants owned by the major players are recording 100% capacity utilization rates. . Increasing numbers of industry players are expanding their production capacities to meet the augmenting demand for PP resin. The market is characterized by the presence of privately owned specialized manufacturers as well as chemical powerhouses. Key players in the marketplace include Basell Polyolefins, Borealis A/S, Innovene, Dow Chemical Company, Equistar Chemicals, Exxon Mobil Chemical Co., Reliance Industries Ltd., Saudi Basic Industries Corporation (SABIC), Sunoco Chemicals etc.

The demand for propylene feedstock is outstripping gasoline requirement. The supply of propylene monomer is becoming tighter with increasing time. It is likely to be a constraint. Nevertheless; plans are underway to start of dedicated production of propylene for PP in future.