PP homopolymer Market To Surpass US$ 72.0 Billion By 2027- CMI

PP homopolymer is a polymer that has high strength and better resistance to chemicals. It is widely used in the manufacturing of various products that incorporate plastic. Some of the major end-user of PP homopolymer are automotive, electrical, packaging, and medical. In the automotive industry, it is used to manufacture components of the vehicle that reduce the overall weight of the vehicle and enhance fuel efficiency.

The global PP homopolymer market was estimated to be valued more than US$ 50.0 billion in terms of revenue in 2019 and is predicted to grow at a CAGR of 5.5% during the forecast period (2020 to 2027).

Drivers

Growing demand for PP Homopolymer from packaging industry for producing packaging material is expected to drive the market growth. It is a semi-rigid polymer that has tensile strength and provides superior chemical and electrical resistance at higher temperatures which makes it an ideal material for packaging. It is majorly used in food packaging products and rigid packaging which is gaining demand on the account of growth of the retail industry. Thus growing demand for PP homopolymer from the packaging industry is expected to accelerate the market growth.

Market Opportunities

Product innovation by the manufacturer to develop a novel PP homopolymer in order to meet the growing need around the globe is expected to open new avenues to the market. For instance, in Feburary 2018, LyondellBasell announced the launch of a new grade of homopolymer which it claims provides better impact resistance for packaging End Uses. The new Moplen HE745T is a high-flow, nucleated polypropylene (PP) homopolymer grade which provides a stiffness and impact performance balance that offer the production of thinner-walled products such as storage containers and media boxes.

Market Restraints

Various automobile OEM manufacturers are switching towards PP copolymer and aluminum for producing specific components of the vehicle in order to reduce the weight of the automobile is expected to hinder the market growth. PP copolymer offers better durability and toughness than PP homopolymer.

Key Takeaways

On the basis of processing technology, injection moulding dominated the global PP homopolymer market in 2019 with around 41% of market share in terms of revenue, followed by film and other extrusion respectively.

Market Trends

Growing demand for PP homopolymer from the building and construction industry is expected to foster the market growth. It is used for insulating building wraps and other insulation End Uses. It has excellent mechanical and physical properties such as high tensile strength, resistance to high temperature, and chemical which makes it suitable engineering material. Thus, the growing demand for PP homopolymer from the building and construction sector is expected to augment the market growth.

Growing demand for beverages such as water, energy drinks, and soft drinks is expected to be a major trend in the market. PP homopolymer is used in the manufacturing of the water bottles and bottles for other beverages. Growing demand for PP homopolymer from the medical industry for use in various medical End Uses such as non-woven fabrics, medical device packaging, and drug delivery system is expected to accelerate the market growth. Moreover, it is also used to produce diagnostic lab ware and packaging for nutritional supplements containers.

Regulations

North America

Due various environmental concerns, associated with the production of PP Homopolymer. The government has introduced many acts to prevent hazardous effects caused by plastic wastes such as the Canadian Environmental Protection Act, 1999. In addition, the government has established a new substance program for chemicals and polymers under this government ensures that no new substance is introduced in the market before undergoing ecological and human health assessments.

Global PP Homopolymer Market - Impact of Coronavirus (Covid-19) Pandemic

As per CMI analysis, the rapid decline in demand from end-use industries coupled with declining feedstock prices resulted in the change in the price trend of PP homopolymer across the globe, which in turn has hindered the growth PP homopolymer market during first quarters of 2020. However, the demand for PP homopolymer from medical & healthcare industry is expected to stabilize the growth of the market for short term period till 2021.

Competitive Section

Key players are operating in the global PP homopolymer market are Lyondell Basell 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

Market Taxonomy

By Process Technology