Polypropylene Market to Reach $115 Billion by 2022, Says Beroe Inc.

RALEIGH, North Carolina, Sept. 19, 2019 /PRNewswire/ -- The global market for polypropylene (PP) is expected to grow at a CAGR of 5 percent until 2022, according to Beroe Inc, a procurement intelligence firm. The key-driving end-use applications of the PP market are the CPG segment (food/non-food containers, caps-closures, films) and auto components (internal structures, bumpers, dashboard carriers, door panels).

Matured markets such as the U.S. and few European countries have a dominant automotive segment and possess a greater demand for the molding grade of PP. Rise in disposable income, increasing demand from CPG, and the medical industry is likely to drive the growth in emerging markets such as Brazil and Asia.

https://www.beroeinc.com/category-intelligence/polypropylene-market

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

One of the principal industry drivers for PP is the automobile industry, which has been a major consumer of PP due to its weight properties. Over a third of the plastics utilized in the automotive industry are PP and its alloys. Thus, the demand from the automotive industry is expected to rise globally. However, a major constraint for the PP market is the threat of substitutes. With certain regions concentrating on promoting environment-friendly products in the packaging sector, rPET and PET are attractive options as compared to PP due to their recyclable properties.

The market trends in MEA infer that the demand for PP is expected to increase at a steady rate of 4.1 percent until 2022 from the CPG industry. Additionally, the food and beverage industry, followed by the health and hygiene industry, will drive the demand for PP across the African region.

Key Findings:

• Demand from the film and packaging industry is a growth driver for the PP market as almost 50 percent of PP is used in the packaging segment.
• In the long run, PP supplies are likely to strengthen in the European market after the arrival of new plants by existing manufacturers.
• The raw material is the major cost driver of PP; hence North America and the Middle East have greater control over its pricing due to their self-sufficiency.
• The top 10 suppliers contribute to nearly 50 percent of the overall PP production in the world. TOTAL Petrochemicals has the largest polypropylene plant across the globe with a capacity of 1.224 MMT per year.
• Capacity additions of almost 18 MMT per year in the PP market are expected to be supplemented by 2022, primarily from Asia, the Middle East, and Russia.
• A hybrid sourcing strategy is being adopted by companies to capitalize on the advantages of both regional and global sourcing strategies, which is ideal for the procurement of PP resins.

The research methodology adopted for the report included:

• Experts with twenty years of domain experience
• Interaction with buyers
• Inputs from supply chain partners

The demand trend in Europe shows that in the packaging industry, PP caps and closures (eco lids) are increasingly preferred over their metal counterparts for security reasons. Thus, fiber-grade PP holds the third largest share due to medical industries in Europe. Whereas in North America, injection molding, film & sheet applications together hold nearly 60 percent of the PP market.

The report also includes:

Market Analysis:

• Global Market Size: PP
• Global Capacity - Demand Analysis
• Global Demand by Application
• Global Market Outlook
• Global Trade Dynamics
• Global Imports
• Global Exports
• Regional Market Outlook (North America, Europe, Asia, LATAM, and MEA)
• Supply - Demand Trends and Outlook
• Trade Dynamics

Industry Analysis:

• Industry Outlook (North America, Europe, Asia, LATAM, and MEA)
• Drivers and Constraints for the Industry
• Market Events and Innovation
• Porter's Five Forces Analysis

Cost & Pricing Analysis:

• Cost and Price Analysis (North America, Europe, Asia, LATAM, and MEA)
• Cost Structure Analysis
• Cost Drivers for Polypropylene
• Price Forecast

Supplier Analysis:

• Key Global and Regional Suppliers
• Key Supplier's Capability Analysis
• Capacity
• Available Capacity
• Product Portfolio
• Expansions, If Any
• Geographical Footprint
• Supplier Market Share: Global
• Detailed Supplier Profiling of the Top Five Global Suppliers
• SWOT Analysis for the Top Five Global Suppliers

Industry Best Practices

• Sourcing Strategy: Local vs. Global
• Contract Structures
• Engagement Models

About Beroe Inc.:

Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

To learn more about Beroe Inc., please visit: http://www.beroeinc.com

Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com

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SOURCE Beroe Inc.