 "Rising demand for lightweight vehicles and packaging to boost polypropylene market")
Rising demand for lightweight vehicles and food and beverages packaging is expected to fuel the market for polypropylene in the coming years, according to a new Transparency Market Research (TMR) report, which estimates the global polypropylene market to reach $ 133.3 billion by 2023 from $ 81.6 billion in 2014. The report expects the market to expand at a 5.7 percent CAGR between 2015 and 2023.
Of the various end users, packaging dominated the market in 2014, representing a share of over 45 percent, and is also the most swiftly developing end-user segment for polypropylene. This is due to the fact that polypropylene has significant uses in both rigid and flexible packaging because of its resistance to high temperatures and strong chemicals.
The automotive end-use segment trailed the packaging segment and took the second biggest share in the market the same year. “Polypropylene presents the right amount of mechanical strength and flexibility and provides a high-quality surface finish in vehicles. Polypropylene is also lightweight – around 15-20 percent lighter when compared to other plastics. This lowers the total weight of vehicles and as a result reduces fuel consumption and resultant carbon dioxide emissions. Hence, the growing demand for lightweight motor vehicles in developing and developed economies is accelerating the global market for polypropylene,” said the TMR report.
According to the report, Asia Pacific constituted a share of more than 50 percent in the global market for polypropylene in 2014 and is predicted to rise even more by 2023. The demand for polypropylene is predicted to rise in India, China, Brazil, and the Association of Southeast Asian Nations (ASEAN), owing to rising demand for food containers within these countries. Additionally, the increasing number of supermarkets within these countries is further raising the demand for polypropylene in the packaging industry.
On the other hand, Latin America is predicted to increase at an above-average rate owing to rising polypropylene demand from the automotive, construction, and packaging industries. Europe is a stagnant market for polypropylene, however, the rising automotive industry in this region is expected to fuel the polypropylene market in the forecast horizon.
However, report warns that the rising concern regarding the hazardous effects of plastics on the environment and the unpredictable prices of raw materials could inhibit the growth of the market for polypropylene in the coming years. To overcome this obstacle, manufacturers of polypropylene are focusing on bio-based polypropylene, which will bring in new opportunities by the end of 2023, added the Transparency Market Research report.
Of the various end users, packaging dominated the market in 2014, representing a share of over 45 percent, and is also the most swiftly developing end-user segment for polypropylene. This is due to the fact that polypropylene has significant uses in both rigid and flexible packaging because of its resistance to high temperatures and strong chemicals.
The automotive end-use segment trailed the packaging segment and took the second biggest share in the market the same year. “Polypropylene presents the right amount of mechanical strength and flexibility and provides a high-quality surface finish in vehicles. Polypropylene is also lightweight – around 15-20 percent lighter when compared to other plastics. This lowers the total weight of vehicles and as a result reduces fuel consumption and resultant carbon dioxide emissions. Hence, the growing demand for lightweight motor vehicles in developing and developed economies is accelerating the global market for polypropylene,” said the TMR report.
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On the other hand, Latin America is predicted to increase at an above-average rate owing to rising polypropylene demand from the automotive, construction, and packaging industries. Europe is a stagnant market for polypropylene, however, the rising automotive industry in this region is expected to fuel the polypropylene market in the forecast horizon.
However, report warns that the rising concern regarding the hazardous effects of plastics on the environment and the unpredictable prices of raw materials could inhibit the growth of the market for polypropylene in the coming years. To overcome this obstacle, manufacturers of polypropylene are focusing on bio-based polypropylene, which will bring in new opportunities by the end of 2023, added the Transparency Market Research report.