The global polypropylene compounds market is estimated to be valued at US$ 21.57 billion in 2022 and is expected to exhibit a CAGR of 7.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Polypropylene compounds are lightweight thermoplastic polymers that are used in a wide range of applications across various end-use industries due to their versatility and durability. They provide improved impact resistance, durability and corrosion resistance which make them an ideal material for use in automotive components. The growing automotive industry globally is driving the demand for lightweight materials to improve fuel efficiency which is boosting the polypropylene compounds market.
Market key trends:
One of the key trends in the polypropylene compounds market is the growing demand for bio-based and recycled polypropylene compounds. Rising environmental concerns and stringent regulations regarding use of conventional plastics is propelling manufactures to develop more sustainable alternatives. Major players have started offering products made from recycled polypropylene which reduces the carbon footprint and reliance on virgin petroleum feedstock. Additionally, continuous Innovation and new product development catering to requirements of different end-use industries will further aid the market growth over the forecast period.
Threat of new entrants: The threat of new entrants in the polypropylene compounds market is moderate as it requires large capital investments and technology to be competitive in this market.
Bargaining power of buyers: The bargaining power of buyers is high in this market due to the presence of many established players providing alternatives. Buyers can easily switch between suppliers based on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate since there are many raw material suppliers for polypropylene compounds but suppliers of specialized additives have some bargaining power.
Threat of new substitutes: The threat of substitutes is low as polypropylene compounds have good properties like durability, chemical resistance and versatility making alternatives limited.
Competitive rivalry: The polypropylene compounds market has high competitive rivalry due to presence of major international players.
Global Polypropylene Compounds Market Size is expected to witness high growth, exhibiting CAGR of 7.6% over the forecast period, due to increasing usage in various applications like automotive, appliances, electronics and construction industries. The automotive sector held largest share in 2021 owing to use of polypropylene compounds in automotive parts requiring durability, lightweight and resilience.
Regionally, Asia Pacific dominated the polypropylene compounds market in 2021 with a share of over 35%, led by countries like China, India and Japan. This is attributed to growing automotive and construction industries in the region. Europe and North America are also significant markets owing to established end-use industries.
Key players operating in the polypropylene compounds market are Mitsui Chemicals, Inc., Exxon Mobil Corporation, Japan Polypropylene Corporation, SABIC, Sumitomo Chemical Co., Ltd., and Washington Penn Plasic Co., Ltd. Leading players are focusing on new product development and capacity expansions to gain higher market share.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it