Polypropylene (PP) Resin Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2022-2027

The Polypropylene (PP) Resin Market size is forecasted to grow at a CAGR of 4.1% during the forecast period (2022-2027) and reach US$80.2 billion by 2027. Polypropylene resins are synthetic resins made of thermoplastic polymers composed of a range of propylene monomers. It belongs to the class of polyolefin resins and it is used in a wide range of industries which include automotive, building & construction, packaging, medical, textile and other industries. In 2020, the outbreak of COVID-19 sharply declined the production of raw materials due to a lack of operations across multiple countries around the world, thus, affecting the polypropylene (PP) resin industry. However, a steady recovery in new development and construction contracts has been witnessed across many countries around the world since 2021. Polypropylene resins are primarily used in the building and construction industry for various applications including films and sheets used for insulation of building wraps, industrial adhesives and tapes, plastic parts included in piping systems and more. For instance, according to recent insights from the World Cement, the global construction industry output increased by 5.7% in 2021. An increase in building & construction activities along with the surging demand from the automotive industry is expected to drive the growth of the polypropylene (PP) resin market size in the upcoming years. On the other hand, fluctuating prices of raw materials may confine the market growth.

Polypropylene (PP) Resin Market Report Coverage

The “Polypropylene (PP) Resin Market Report–Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Polypropylene (PP) Resin Market.

By Type: Homopolymers, Copolymers (Block Copolymers and Random Copolymers).
By Processing Method: Injection Molding, Extrusion, Blow-Molding, Thermoforming, Others.
By Application: Flexible Packaging, Rigid Packaging, Containers, Bags, Concrete Reinforcement, Fibers, Tapes, Disposable Syringes, Automotive Components, Sheets & Film, Others.
By End-Use Industry: Automotive (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), Marine, Building & Construction (Residential Construction, Commercial Construction, Industrial Construction), Packaging, Medical, Textile, Consumer Goods, Electrical & Electronics, Others.
By Geography: North America (USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East and Africa).

Key Takeaways

  • The injection molding segment held a significant share in the polypropylene (PP) resin market in 2021. Its wide range of characteristics and higher efficiency made it stand out in comparison to other types of processing methods in the market.
  • Packaging industry held the largest share in the polypropylene (PP) resin market in 2021, owing to the increasing demand for polypropylene resins composed of thermoplastic polymers and propylene monomers for use in plastic films, sheets, bags, containers and more used for packaging. Its wide range of characteristics, high impact resistance, high durability, better crack resistance, moisture resistance and flexibility makes it ideal for use in the packaging industry.
  • Asia-Pacific dominated the polypropylene (PP) resin market in 2021, owing to the increasing demand for polypropylene resin from the packaging sector in the region. According to a recent study published on Interpack, Asia accounted for the highest world share of packaging sales in 2020, an increase of 7.4% in comparison to 2019, thus, indicating an increase in consumption of packaging in the region.
  • A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Polypropylene (PP) Resin Market Report.

Figure: Asia-Pacific Polypropylene (PP) Resin Market Revenue, 2021-2027 (US$ Billion)

Polypropylene (PP) Resin Market

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Polypropylene (PP) Resin Market Segment Analysis – by Processing Method

The injection molding segment held a significant Polypropylene (PP) Resin Market share in 2021, owing to its increasing demand due to the benefits it offers over other types of processing methods. For instance, the injection molding method aids in faster production along with higher efficiency as compared to other types of processing methods, owing to which it is commonly used in the production of plastics utilized in multiple industries. Moreover, polypropylene plastics obtained through injection molding offers enhanced strength and higher flexibility in comparison to extrusion, thermoforming and other types of processing method. Furthermore, the injection molding method is more cost-effective in comparison to other methods and has low labor cost, high-output production and low scrap rate. Hence, all of these benefits are driving its demand over other types of processing methods, which in turn, is expected to boost the market growth during the forecast period.

Polypropylene (PP) Resin Market Segment Analysis – by End-Use Industry

The packaging industry held the largest Polypropylene (PP) Resin Market share of over 25% in 2021, owing to its increasing demand from the packaging sectors across the world. For instance, according to PMMI (The Association for Packaging and Processing), the North American beverage packaging industry is expected to increase by 4.5% from 2018 to 2028, with the United States leading the beverage packaging sector. Likewise, recent insights from the Packaging Federation of the United Kingdom state that the UK packaging manufacturing industry reached an annual sales of GBP 11 billion (US$15.2 billion) in 2020, owing to the increasing demand for packaging from multiple sectors of the region.

In this way, an increase in demand for packaging is expected to increase the demand for polypropylene resins composed of propylene monomers for the production of plastic films, sheets, bags, containers and more utilized in packaging, owing to properties such as high impact resistance, high durability, moisture resistance and flexibility. This is expected to expand the polypropylene (PP) resin market size during the forecast period.

Polypropylene (PP) Resin Market Segment Analysis – by Geography

The Asia Pacific held a dominant Polypropylene (PP) Resin Market share of around 32% in the year 2021. The consumption of polypropylene resin is particularly high in this region due to its increasing demand from the packaging sector. For instance, according to a recent study published on Interpack, the consumption of food packaging in China is expected to increase up to 447,066 million in 2023. Likewise, it also states that the Chinese packaging companies such as 3D, SIP and WLCSP achieved a revenue of around US$5.88 billion with end packaging in 2020, owing to the increasing demand and consumption of packaging in the country

According to the Packaging Industry Association of India, the Indian packaging industry was valued at around US$50.5 billion in 2019 and is expected to increase up to US$204.81 billion by the end of 2025. It further states that packaging is considered to be one of the industries with high growth in India and is rising at 22%-25% per year. Thus, the surging growth of the packaging sector in the region is expected to increase the demand for polypropylene resins composed of propylene monomers for the production of plastic films, sheets, bags, containers and more used in packaging. This is expected to accelerate the market growth during the forecast period.

Polypropylene (PP) Resin Market – Drivers

An increase in construction activities 

Polypropylene resins belong to the class of polyolefin resins and are composed of propylene monomers that are primarily used in the building and construction industry for various applications including films and sheets used for insulation of building wraps, industrial adhesives and tapes, plastic parts included in piping systems and more. For instance, according to Volvo CE, the construction sector saw an increase in construction activities across multiple regions since the fourth quarter of 2020. South America saw an increase of 12%, Asia by 39%, Europe by 20% and China by 28% in 2020. Furthermore, YIT Corporation commenced the construction of numerous residential apartment building projects in Finland, the CEE countries and Russia in December 2021, with total investments of around EUR 200 million (US$236.5 million). The projects are scheduled to be completed by the end of 2023. Hence, an increase in global construction activities is expected to increase the demand for polypropylene resin for use in the above-mentioned applications of residential or commercial buildings. This is anticipated to drive the growth of the market in the upcoming years.

Surging demand from the automotive industry 

Polypropylene resins are primarily used in the automotive industry for various interior and exterior applications which include dashboards, bumpers, passenger compartment trims, door trims battery casings, instrumental panels and more. Its properties such as high impact resistance, high durability, flexibility and higher strength along with good resistance to heat and chemicals make them ideal for use in such automotive applications. According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe and 5180 units in other regions worldwide. Likewise, in August 2021, Ford commenced the development of its automobile plant in Germany. The new facility will be responsible for the assembly of a new electric vehicle and aims at increasing electric vehicle production in the country. Hence, an increase in production from the automotive industry is expected to increase the demand for polypropylene resins composed of thermoplastic polymers and propylene monomers, owing to their above-mentioned properties. This is expected to accelerate the growth of the market in the upcoming years.

Polypropylene (PP) Resin Market – Challenges

Fluctuating prices of raw materials may confine the market growth

Some of the raw materials for polypropylene resins are obtained from crude oil and natural gas. In 2020, the international benchmark for petroleum prices across the world also known as Brent crude prices decreased to US$9.12 per barrel, which was the lowest record since December 10, 1998. Likewise, in April 2020, India’s Crude Oil Basket (COB) reached US$19.90 per barrel, which was the lowest record since February 2002. During the first 11 months of the year 2020-21, the average annual price of India’s COB was around US$42.72 per barrel, which decreased by 30% more than the average COB price in 2019-20. Furthermore, as per revised estimates for 2020-21, the COB has increased by around 35% from its initial budget estimate. In this way, the uncertainty regarding the price of crude oil also increases the price of raw materials required for the production of polypropylene resins. Thus, such instability and fluctuating prices of raw materials may confine the growth of the polypropylene (PP) resin industry.

Polypropylene (PP) Resin Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Polypropylene (PP) Resin Market. The top companies in Polypropylene (PP) Resin Market are:

  1. LyondellBasell Industries Holdings B.V.
  2. Exxon Mobil Corporation
  3. SABIC
  4. DuPont
  5. INEOS
  6. Formosa Plastics Corporation
  7. China Petrochemical Corporation
  8. LG Chem
  9. ·Reliance Industries Limited
  10. Braskem

Recent Developments

  • In April 2021, SOCAR Polymer launched its two new grades of copolymer polypropylene resins ideal for use in rigid and thin-wall packaging. The main motive of this launch was to enhance the company’s product portfolio.
  • In July 2020, Braskem partnered with Titan Robotics, a manufacturer of 3D printers in order to launch a new polypropylene resin. The product has been optimized with the aim of producing large-format production parts, specifically for use in multiple applications such as automotive, packaging and more.
  • In October 2019, Borealis launched its new polypropylene resin BorPure. The main motive of the launch was to expand the company’s product portfolio of polyolefin resins that offered enhanced sustainability and productivity.

Relevant Reports

Resins Market – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: CMR 1053

Polypropylene Catalyst Market – Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: CMR 1323

Europe Polypropylene Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: CMR 0158

For more Chemicals and Materials Market reports, please click here

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