The global market for polypropylene is anticipated to reach a valuation of approximately USD 108.57 billion by the year 2028, reflecting a steady compound annual growth rate (CAGR) of 5.2% throughout the forecast period. This projection, highlighted in the report titled “Polypropylene Market, 2021-2028” by Fortune Business Insights™, indicates significant growth from its valuation of USD 75.12 billion in 2020 to an estimated USD 76.00 billion in 2021.
In response to the escalating challenge of plastic pollution worldwide, the chemical industry, supported by governmental and international initiatives, is actively pursuing advanced recycling technologies. Notably, INEOS received the ISCC Plus award in April 2021 for its successful large-scale trials of next-generation recycling processes, capable of producing polypropylene (PP), high-density polyethylene (HDPE), propylene, and ethylene. Concurrently, the US Polypropylene Recycling Coalition allocated USD 1 million to three facilities in April 2021 to bolster PP recovery efforts in the United States. These developments underscore the growing emphasis and financial backing for circular economy initiatives within the plastics industry, which are poised to drive market growth.
A significant driver of market expansion is the increasing integration of polypropylene in electric vehicles (EVs), aimed at enhancing their energy efficiency. With global electric car sales reaching 2.1 million in 2019, according to the International Energy Agency (IEA), the imperative to reduce vehicle weight has become paramount. Polypropylene, distinguished by its low density and thermoplastic properties, is an ideal material for achieving this objective. Consequently, numerous EV manufacturers are incorporating PP-based materials into their products. For instance, the Skoda Scala features a center console, glove box, and instrument panel made from a 10% low-talc PP supplied by Borealis. Similarly, Renault's B4D engine employs a PP compound for the air intake manifold, weighing 15% less than traditional polyamide-based alternatives. This trend of integrating PP-based materials into EVs is driving innovation in the plastics industry and fueling market growth.
Regionally, the Asia Pacific market is poised for robust growth,
Primarily driven by the burgeoning packaging industry. The rapid urbanization in countries like India and China has fueled demand for packaged foods, beverages, and consumer goods, contributing to the region's dominance in the polypropylene market. Meanwhile, North America is expected to make significant strides, particularly in electronics manufacturing, albeit at a slightly lower CAGR compared to the Asia Pacific region. In Europe, the principal driver of the PP market is the substantial production and consumption of automobiles.
Information source:
https://www.fortunebusinessinsights.com/industry-reports/polypropylene-pp-market-101583
