July 13, 2024

The Rising Demand For Polypropylene Resin Is Anticipated To Open Up The New Avenue For Propylene Market

The Propylene Market is estimated to be valued at Us$ 4.37 Bn in 2023 and is expected to exhibit a CAGR Of 5.0% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Propylene is widely used in the production of polypropylene, which finds applications in various end-use industries such as automotive, construction, packaging, electronics, consumer goods, textiles, etc. Polypropylene provides benefits such as high tensile strength, durability, resistance to stress cracking, and chemical resistance which make it suitable for use in daily-use plastic items and automotive components.

Market Dynamics:

The increasing demand for polypropylene from the packaging industry is expected to drive the growth of the propylene market over the forecast period. Polypropylene providesproperties such as shatter resistance, transparency, flexibility, and corrosion resistance which make it ideal for food packaging. Moreover, propylene derivatives such as propylene oxide and propylene glycol also finds a wide range of applications which is further expected to fuel the demand.However,Fluctuations in crude oil and natural gas prices which are raw materials for propylene production can hamper the market growth over the forecast period.

Segment Analysis

The propylene market is primarily segmented into derivatives and non-derivatives. Among these, the derivatives segment dominated the market in 2023 and accounted for around 70% share of the overall propylene market. This is because propylene derivatives such as polypropylene, propylene oxide, acrylonitrile, and cumene find extensive applications across various end-use industries such as packaging, automotive, furniture, and construction.

PEST Analysis

Political: The propylene market is influenced by supportive government regulations and policies promoting the petrochemical industry in regions like Asia Pacific and Middle East.

Economic: Favorable economic growth along with rising disposable income has increased the demand for end-use industries like packaging and automotive, thereby driving the propylene market globally.

Social: Changing lifestyles and consumer preference for lightweight, durable materials in packaging and construction industries boost the consumption of propylene.

Technological: Manufacturers are focusing on developing innovative production technologies like steam cracking to reduce costs and enhance process efficiencies in propylene production.

Key Takeaways

The global propylene market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period 2023 to 2030, due to increasing demand from packaging and automotive industries. The market size is estimated to reach US$ 7.14 Bn by 2030 from US$ 4.37 Bn in 2023.

On regional front, the Asia Pacific propylene market is expected to remain the fastest growing as well as the largest market during the forecast period. This is attributed to the rapidly expanding end-use industries and favorable policies promoting petrochemical industry in the region. China contributes to over one-third of the global demand for propylene.

Key players operating in the propylene market are BASF SE, BP Plc., China Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc., LyondellBasell Industries Holdings B.V., Reliance Industries Ltd., Saudi Basic Industries Corporation (SABIC), The Dow Chemical Company. These players are focused on capacity expansions and long-term supply agreements to better serve the growing demand for propylene.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it