Polypropylene Market

Growing use in Packaging and Automotive Industry to boost market growth

Polypropylene provides resistance against chemicals and extreme temperatures moreover they are stiffer and stronger in comparison of copolymer which makes it more suitable for packaging. Packaging industry is leading segment and accounted more than 45% of the share of total polypropylene (PP) demand in 2021. Automotive industries are accountable to produce more than 30% of revenue for this market.

The market for polypropylene was dominated by the packaging sector, and it is anticipated that this trend would continue during the projected period. The most popular plastic for packaging is polypropylene. It is mostly utilised in applications for food packaging that come into direct contact with food or drinks. As well as, Polypropylene is used to make a variety of items, including automobile components, fashion garments, profiles, and healthcare equipment.

Increasing demand for these components in a variety of end-use sectors, the introduction of new technologies, and customer preferences for lightweight electronic devices are all offering profitable prospects to drive market expansion.

The automotive sector is the second largest end use industry of polypropylene. The main driving factor for polypropylene in the automotive industry is the increasing demand for electric and hybrid electric vehicles , polypropylene can be used as an insulating material for material for high voltage carrying cables as well as in the interior of the vehicles.

 Additionally, there is a massive growth in the number of working-class people, if we look at a few years ago the no. Of working women was quite low as compared to today which led to increase in growth of packaged food usage, as it is less time-consuming. Also most of working-class individuals like to travel through their own vehicles to reduce time used to reach their workplace. As per the statics in the year 2019 the employment rate was 35.3% which is now at 46.3%.

In conclusion, the increase in employment played a significant role in the enhancement of the Polypropylene market CAGR across the globe in recent years.

However, there are many more sectors like- agriculture, construction, electronic, and others that are increasingly using polypropylene, thus driving the growth of the polypropylene market revenue.

The Global Polypropylene Market Industry is poised for substantial growth, with projections indicating a market value of 235.94 USD Billion in 2024 and an anticipated increase to 541.32 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 7.84% from 2025 to 2035, reflecting the material's expanding applications across various sectors. The increasing demand for lightweight, durable, and recyclable materials positions polypropylene favorably in the global market landscape. As industries continue to innovate and adapt, the Global Polypropylene Market is likely to evolve, presenting new opportunities for stakeholders.

The automotive sector is a pivotal driver for the Global Polypropylene Market Industry, as manufacturers seek lightweight materials to improve fuel efficiency and reduce emissions. Polypropylene is increasingly utilized in interior and exterior components, such as bumpers, dashboards, and door panels, due to its favorable strength-to-weight ratio and cost-effectiveness. As the automotive industry evolves towards electric vehicles, the demand for polypropylene is anticipated to rise, given its role in producing lightweight components. This shift could potentially bolster the market, contributing to an estimated growth rate of 7.84% CAGR from 2025 to 2035, thereby enhancing the overall valuation of the Global Polypropylene Market.

The Global Polypropylene Market Industry experiences a robust demand surge, particularly within the packaging sector. Polypropylene's lightweight and versatile nature makes it an ideal choice for various packaging applications, including food and beverage, consumer goods, and pharmaceuticals. As sustainability becomes increasingly prioritized, manufacturers are gravitating towards polypropylene due to its recyclability and lower environmental impact compared to other plastics. This trend is projected to contribute significantly to the market's growth, with the industry expected to reach a valuation of 235.94 USD Billion in 2024. The ongoing innovations in packaging technologies further enhance polypropylene's appeal, indicating a promising trajectory for the Global Polypropylene Market.

The Global Polypropylene Market Industry is witnessing an expansion in healthcare applications, driven by the material's biocompatibility and sterilization capabilities. Polypropylene is commonly used in medical devices, surgical instruments, and packaging for pharmaceuticals, where safety and reliability are paramount. As the healthcare sector continues to evolve, the demand for high-quality, sterile materials is likely to increase, further propelling the market. The ongoing advancements in medical technology and the rising focus on patient safety suggest that polypropylene will play a crucial role in the future of healthcare applications, thereby enhancing its market presence.

The construction sector is increasingly adopting polypropylene due to its durability, chemical resistance, and lightweight properties. Applications include insulation, piping, and geotextiles, where polypropylene's performance characteristics contribute to enhanced building efficiency and longevity. As urbanization accelerates globally, the demand for sustainable and efficient construction materials is on the rise. This trend is expected to drive the Global Polypropylene Market Industry forward, as stakeholders seek materials that meet both performance and environmental standards. The anticipated growth in construction activities worldwide suggests a favorable outlook for polypropylene, reinforcing its position within the market.

Technological advancements in polypropylene production processes are significantly influencing the Global Polypropylene Market Industry. Innovations such as metallocene catalysis and advanced polymerization techniques enhance the quality and performance of polypropylene, leading to the development of specialized grades for various applications. These advancements not only improve production efficiency but also reduce costs, making polypropylene more competitive against alternative materials. As manufacturers adopt these technologies, the market is likely to witness increased output and diversification of product offerings. This trend aligns with the projected growth trajectory of the Global Polypropylene Market, which is expected to reach 541.32 USD Billion by 2035.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. Further, the Asia Pacific is expected to be one of the fastest-growing markets ly over the forecast period. This is attributed to the ascending demand for polypropylene from key industries including automotive, electrical & electronics, building & construction, medical, and packaging in emerging economies such as China and India, as studied in the market report.

Figure 3: POLYPROPYLENE MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Polypropylene market accounts for the second-largest market share in the year 2021. due to the increased use of electric vehicles in the area. The European Environment Agency (EEA) reports that in 2020, the adoption of electric cars and vans in Europe rose dramatically. Nearly 1,325,000 electric vehicles were registered in this region in 2019, an increase from 550,000 the year before. New car registrations rose from 3.5% to 11% in just one year. Registrations for electric vans increased as well, from 1.4% in 2019 to 2.2% in 2020.

Further, the Germany Polypropylene market held the largest market share, and the UK Polypropylene market was the fastest growing market in the European region

The North America polypropylene market stood at USD billion in 2020. North America is expected to grow at a high rate of CAGR from 2022 to 2030. China, Japan and India are key countries contributing to the market growth in the region owing to the increasing application of PP in food and beverages, packaging, and automobile industries in these countries.  Moreover, China polypropylene market held the largest market share, and the India polypropylene market was the fastest growing market in the Asia-Pacific region

For instance, in India polypropylene market Homopolymer polypropylene segment held the largest Indian Polypropylene Market share in 2021, with a share of over 62%. Homopolymer polypropylene is a widely-used general-purpose grade of polypropylene, Singapore is ranked at 2nd position, Japan at 3rd, India at 10th, South Korea at 14th, and china’s PP capacity is scheduled to increase by further 12%on a year-on-year basis to around 39m tons per year following a 13% increase in2021. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Polypropylene market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Polypropylene industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the polypropylene industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, the polypropylene industry has provided materials with some of the most significant benefits. The polypropylene markets major player such as SABIC (Saudi Arab), LG Chem (South Korea), BASF SE(Germany), and many others.

India's top oil and gas corporation, Bharat Petroleum Corporation Ltd (BPCL), announced on Wednesday that a polypropylene unit project at its Kochi refinery in Kerala has been approved for implementation in 2023. In order to fulfill the nation's growing need for petrochemicals, the business announced that its board of directors had approved an investment of ₹5,044 crore to establish a polypropylene production facility at its refinery in Kochi.

The Comprehensive Economic Partnership Agreement (CEPA), a proposed free-trade agreement (FTA) between Oman and India, may encounter difficulties in 2024 as a result of requests for customs duty exemptions on petrochemical products like polypropylene and polyethylene. Opponents of the tariff concessions are certain domestic players who point to Oman's substantial subsidies on raw materials used in petrochemical production.

According to an official, the demand for customs tax concessions on petrochemical items, mostly used in the plastics industry, such polypropylene and polyethylene, could be a sticking point in the early stages of negotiations for the planned free-trade agreement (FTA) between India and Oman. The Comprehensive Economic Partnership Agreement (CEPA) negotiations are currently in their final stages.

SABIC (Saudi Arab) is a Saudi manufacturing firm for chemicals. Saudi Aramco is the owner of 70% of SABIC's shares. Petrochemicals, chemicals, industrial polymers, fertilisers, and metals are among its active applications. According to its Tadawul listing, it is the second-largest public business in the Middle East and Saudi Arabia. SABIC was ranked fourth ly among chemical firms by Fortune  500. SABIC ranked as the 281st-largest corporation in the world by the year's conclusion.

In April 2021, SABIC, a  leader in the chemical industry, announced that Beiersdorf will innovate the packaging of its world-leading ‘NIVEA Naturally Good’ range of face creams using SABIC’s certified renewable polymers. SABIC’s bio-based polypropylene (PP) resin, part of its TRUCIRCLE™ portfolio, will be used for producing the jars of Beiersdorf’s NIVEA Naturally Good day and night face creams. The new product is playing into Beiersdorf’s ambitious Sustainable Packaging Targets 2025 to reduce fossil-based, virgin plastic for its cosmetic packaging products by 50 percent.

A worldwide chemical corporation with offices in London, the UK and Houston, Texas, LyondellBasell Industries N.V. was founded in the Netherlands. In terms of polyethylene and polypropylene technologies, the firm is the largest licensee. Additionally, it makes oxyfuels, polyolefins, ethylene, and propylene. In December 2020, Lyondell Basell introduced Beon3D, a cutting-edge PP product line that will offer a distinctive design and enable the production of intricate, high-quality 3D-printed objects in a single step. This product was created by fusing additive manufacturing and polymer technologies.

The transportation, industrial, building & construction, and consumer goods sectors will all benefit from this product line.