PP homopolymer is majorly used in the plastic manufacturing industry to produce various household, electrical, automotive, packaging, medical, and other products that incorporate plastic. This polymer provides high strength to weight ratio and better chemical resistance. The packaging industry is the largest consumer of the PP homopolymer as it has high strength and excellent chemical resistance which makes it an ideal choice of packaging material.
The global PP homopolymer market is projected to surpass US$ 72.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 5.5% during the forecast period (2020 to 2027).
Rising demand for PP homopolymer from the automotive industry as it offers advantages such as weight reduction, cost reduction, and improve the overall fuel efficiency is expected to augment the market growth. PP homopolymer is widely used in the manufacturing of interior and exterior components of automobiles that reduce the overall weight of the vehicle. According to the Coherent Market Insights analysis, it is estimated that a 10% reduction in vehicle weight reduces fuel usage by 5% to 10%.
Increasing use of PP homopolymer from the electrical industry for manufacturing various electronic products is expected to foster the market growth of the PP homopolymer. The growth of the PP homopolymer market is also attributed to the growth of the electrical industry due to the growing demand for various high-end electronic products. Its high electrical resistance property makes it ideal for electronic devices. Hence, the growing demand for PP homopolymer from the electronic industry is expected to augment the market growth over the forecast period.
Regionally, Asia-pacific dominated the global PP homopolymer market in 2019, reporting 49% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global PP Homopolymer Market, Revenue Share (%), By Region, 2019
Stringent government policies for the manufacturing of the PP homopolymer due to rising environmental concerns is expected to hamper the market growth.
High production cost due to fluctuating prices of raw material is expected to restrict market growth. This is attributed to the volatile price and production of crude oil due to various economic factors.
PP Homopolymer Market Report Coverage
|Base Year:||2019||Market Size in 2019:||US$ 50.0 Bn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||5.5%||2027 Value Projection:||US$ 72.0 Bn|
|Geographies covered (27):||
LyondellBasell Industries Holdings B.V., Reliance Industries Limited, Braskem SA, INEOS Group Ltd., ExxonMobil Corporation, 6. Borealis AG, Total S.A., Sasol Limited, IRPC Public Company Limited., National Petrochemical Industrial Company, The Polyolefin Company (Singapore) Pte Ltd., and L.C.Y. Chemical Corporation
|Restraints & Challenges:||
Increasing use of PP homopolymer in the injection mold technology which is used for the production of various household products is expected to provide potential growth opportunities to the market. Injection mold technology is widely used in the manufacturing of personal care, appliances, and other various home care products. Therefore, increasing use of PP homopolymer in the injection mold technology is expected to augment the market growth.
An increasing application of PP homopolymer in the flexible packaging will favor the market growth of the PP homopolymer over the forecast period. Flexible packaging is gaining huge demand from the food and beverage packaging industry where it is used to package the food product. Also, the growing e-commerce industry is boosting demand for packaged products which is further expected to foster the market growth of the PP homopolymer over the forecast timeframe.
Figure 2. Global PP Homopolymer Market – Opportunity Analysis
Rising demand for PP homopolymer from the textile industry where it is used to manufacture various appeals is expected to stimulate market growth. The growing trend of health wellness is creating demand for sportswear for both men and women. This is expected to fuel market growth. In addition to this, it is also used in the manufacturing of cold weather undergarments and military wear which is again augmenting the market growth of the PP homopolymer.
Improving lifestyle of the consumers due to growing disposable income is increasing their purchasing power which is creating demand for various consumer goods is expected to augment the market growth of PP homopolymer. Growing demand for luxury carpets coupled with the other home interior products is further expected to augment the market growth of the PP homopolymer over the forecast period.
Various environmental concerns, associated with the production of PP Homopolymer, have forced the government to promote biodegradable especially in packaging segments. The government and associations of developing countries of Asia such as Indonesia in March 2009 has raised traffic rates for imports from non-ASAN countries (excluding China, Korea, and Japan) of polypropylene compound (PP homopolymer).
Figure 3. Global PP Homopolymer Market, Revenue Share (%), By End Use, in 2019
On the basis of end use, packaging dominated the global PP homopolymer market in 2019 with around 43% of market share in terms of revenue, followed by automotive and textile, respectively.
Global PP Homopolymer Market - Impact of Coronavirus (Covid-19) Pandemic
Due to an unprecedented decline in the sales of automotive and electronics products due to COVID-19, the plastics industry has been one of the hardest hit industry worldwide. Owing to decrease in demand globally, the prices trend of PP homopolymer products has been showing a declining trend from past few months across the globe owing to sudden holds put on the buying of these products amidst the coronavirus (Covid-19) Pandemic. This scenarios is expected to hinder the CAGR of the market till the early months of 2021.
Key players are operating in the global PP homopolymer market are LyondellBasell Industries Holdings B.V., Reliance Industries Limited, Braskem SA, INEOS Group Ltd., ExxonMobil Corporation, 6. Borealis AG, Total S.A., Sasol Limited, IRPC Public Company Limited., National Petrochemical Industrial Company, The Polyolefin Company (Singapore) Pte Ltd., and L.C.Y. Chemical Corporation
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