POLYPROPYLENE COMPOUNDS MARKET ANALYSIS

The global polypropylene compounds market size was valued at US$ 21.57 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.6 % from 2023 to 2030. The global polypropylene compounds market is anticipated to witness a significant growth in the coming years. This market is driven by the growing demand for plastics in the automotive, textile, construction and electrical & electronics industries. Rising use of PP compounds as an alternative to engineering plastics and metals in the automotive industry is anticipated to propel market growth over the forecast period. Moreover, increasing use of these products for fabricating piping systems due to their high strength, rigidity and purity will drive market growth.

Global Polypropylene Compounds Market: Regional Insights

Based on geography, the global polypropylene compounds market is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa.

Regionally, Asia Pacific region is expected to dominate the global polypropylene compounds market. The region has a large automobile industry and growing consumer electronics and appliances production, which is driving the demand for PP. In addition, the growing interest in lightweight materials that can improve fuel efficiency and reduce emissions is also fuelling demand for PP. The booming manufacturing sector in China is another factor contributing to the regional PP compounds market growth.

Europe is second largest region for polypropylene compounds market owing to the high demand for lightweight electric and hybrid vehicles coupled with the strong presence of key automotive manufacturers such as BMW AG, AUDI AG, Mercedes-Benz AG, Aston Martin, Volkswagen,Jaguar Land Rover Limited,  FCA Italy S.p.A.,  Automobili Lamborghini S.p.A.,Ferrari S.p.A.,Volvo Car Corporation,  and Porsche Austria GmbH & Co.

Figure 1. Global Polypropylene Compounds Market by Region, 2022

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Global Polypropylene Compounds Market Drivers:

Growing demand for lightweight and high-performance plastics from automotive sector to fuel market growth

The demand for PP is expanding in the automotive sector as well, thanks to stringent government regulations that promote fuel efficiency and environmental sustainability. PP compounds are used in the production of lightweight vehicle components, which has significantly reduced the overall weight of cars while improving their gas mileage and mitigating emissions. This has increased the demand for PP, which in turn is driving the growth of the global PP compound market.

Increasing demand from construction sector to propel market growth

The demand for PP is also growing in the construction industry, where it is being utilized to fabricate components such as pipes and ducting. The market for PP is expected to grow in the coming years, especially in developing countries due to a surge in industrialization and an increase in demand for durable and affordable materials.

Global Polypropylene Compounds Market Opportunities:

Growing application in personal hygiene products is expected to present significant growth opportunities. The material is widely utilized to manufacture sanitary products such as clothing and diapers. Moreover, strong growth textile and apparel industry coupled with the increasing disposable income of consumers are also contributing to the market growth over the forecast period.

As the onset of economic recovery is encouraging businesses to resume their investment plans, this is likely to offer potential market opportunities over the forecast period. For instance, in June 2022, Repsol invests €4.5 M to expand its fiberglass-reinforced PP compounds manufacturing capacity. This new line, intended to manufacture fiberglass-reinforced polypropylene (PP) compounds, will allow for almost a 30% increase in the production of these highly specialized, high-value-added materials, which are in high demand in technical sectors.

Global Polypropylene Compounds Market Trends:

Rising demand for strong and lightweight materials is a recent trend

The rising demand for strong and lightweight materials across various sectors such as building, packaging, and automotive is a growing trend. Moreover, the market is further expected to be driven by the rising environmental concerns among consumers and consistent focus on reducing carbon footprints through energy efficiency and low emissions.

Expanding production capacities to meet rising demand from the end-use industries

Major players are increasing their production capacities to meet rising demand from the end use industries. For instance, in February 2021, Sumitomo Chemical has decided to establish Sumika Polymer Compounds Poland Sp.z.o.o. (SPCP), a new production base in Poland, to further enhance its polypropylene (PP) compound business. SPCP will start commercial production in the spring of 2022.

Global Polypropylene Compounds Market Restraints:

Volatile prices of crude oil and its derivatives to hinder market growth

Consequently, the market is influenced by volatile prices of crude oil and its derivatives. Volatility in the price of raw materials is likely to restrict this market’s favorable growth. The primary raw material utilized for the manufacture of PP is propylene which is derived from petroleum and carbon compounds.

Strict rules and regulation to limit market growth

For instance, in October 2019, Malaysia banned the import of plastic scraps and cracking on factories processing the waste. The increasing implementation of rules & regulations in the South Asian countries is expected to pose a restraint to the polypropylene compound market, which may slow down the growth of the market during the forecast period.           

Figure 2. Global Polypropylene Compounds Market by Product, 2022

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Global Polypropylene Compounds Market Segmentation:

The global polypropylene compounds market report is segmented into product, end use, and region

Based on product, the market is segmented into Mineral Filled PP Compounds, Compounded TPO, Compounded TPV, Glass Reinforced, and Others. Out of which, glass reinforced is expected to dominate the global market over the forecast period. Glass reinforcements are also often used to improve the chemical resistance of PP. This type of compound is referred to as a fiber reinforced PP (FRPC) and are used for a variety of applications, including the manufacture of automobiles and consumer electronics products.

Compounded TPO segment is also expected to witness significant growth in the near future and this is owing to their exceptional stiffness and strength, chemical resistance, high-temperature stability, and contact clarity properties, which make them ideal for a variety of applications.

Based on end use, the market is segmented into automotive, building & construction, electrical & electronics, textiles, and others. Out of which, automotive is expected to dominate the global market over the forecast period. In the automotive industry, PP compounds have become a replacement for metal parts due to their low weight and exceptional mechanical properties. They offer up to 50% potential weight savings and can help reduce fuel consumption and emissions. In addition, these compounds are durable and easy to recycle, so they are a cost-effective solution for car manufacturers.

Building & construction segment is also expected to witness significant growth in the near future and this is owing to their energy efficiency and weather resistance property. Moreover, they also offer green roofing options. They are widely used in siding, sheets, barrier, piping, wiring etc.

Global Polypropylene Compounds Market: Key Developments

In February 2021, Sumitomo Chemical Co., Ltd. announced the establishment of Sumika Polymer Compounds Poland Sp.z.o.o. (SPCP), a new production facility in Poland to enhance the polypropylene (PP) compound business. This facility is expected to commence in the spring of 2022.

In May 2018, SABIC introduced NPE 2018, a new product to their existing portfolio of PP compounds that delivers a soft feel in combination with superior scratch resistance. It is used in automotive interior applications, including interior trims, seats, console side claddings, glove boxes, door panels, and other similar interior components.

In March 2019, Exxon Mobil Corporation announced the construction of its new polypropylene plant in Baton Rouge, Louisiana, the U.S. The construction facility is expected to commence during 2021, with a production capacity of 450,000 kilotons per annum.

In August 2020, Japan Polypropylene Corporation began a joint venture of polypropylene (PP) compound producer Mytex Polymer Thailand with Rayong-based refiner IRPC Public Company Limited. The company owns 50 participation certificates (PC) of Mytex Polymer Thailand, and IRPC owns the rest. This joint venture enables both the companies to enhance their competitiveness in the Southeast Asian auto market.

In May 2019, decided to expand its production facilities at Grand Siam Composites Co., Ltd. in Thailand to meet the rising demand for polypropylene compounds across the globe. This capacity expansion was in line with the stringent environmental regulations have driven the demand for polypropylene compounds across automotive industry for the production of bumpers, instrument panels, and others.

In March 2020, Mitsui Chemicals, Inc. and Primer Polymer Co., Ltd. launched operations for the first European production site for polypropylene compounds joint venture at Mitsui Prime Advanced Composites Europe B.V. (ACE). This production site enables Mitsui Chemicals, Inc. to provide lightweight solutions to automotive industry and original equipment manufacturers (OEM) present across Europe.

Global Polypropylene Compounds Market: Key Companies Insights

The global polypropylene compounds market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global polypropylene compounds market are Mitsui Chemicals, Inc., Exxon Mobil Corporation, Japan Polypropylene Corporation, SABIC, Sumitomo Chemical Co., Ltd., and Washington Penn

*Definition: The versatile thermoplastic polymer known as polypropylene is a common component in the manufacture of numerous consumer products and industrial components. Its high-tensile strength, rigidity, and heat resistance make it a popular choice for manufacturers seeking to save costs and time while producing goods.