Propylene is a colorless gas which is commonly used to produce polypropylene used in packaging materials, automobile components, laboratory equipment, and textiles among others. It is a by-product obtained during the production of ethylene through steam cracking process and finds widespread applications in diverse industries including construction, chemicals, automotive, and consumer goods. The rising construction activities across both developing and developed economies is fueling the demand for propylene derivatives like polypropylene used in piping, roofing, and insulation materials.
The Global Propylene Market Demand is estimated to be valued at US$ 5.04 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030.
Key Takeaways
Key players: Key players operating in the propylene market are Abbott Laboratories, Groupe Danone, Nestlé S.A., Kraft Heinz, Company Hero Group, Amara Organics, Baby Gourmet Foods Inc., Bellamy's Australia, Green Monkey, Healthy Sprouts Foods, HiPP, Initiative Foods, Little Duck Organics, North Castle Partners, Olli Organic, One Earth Farms, Tastybaby, and Vitagermine, among others.
Growing demand: The burgeoning construction sector and increasing automobile production across emerging economies are expected to drive the demand for propylene over the forecast period. Rapid urbanization and growing construction of residential and commercial infrastructure will augment the consumption of propylene-based products.
Technological advancement: Leading players in the propylene market are investing heavily in R&D activities to develop green production technologies for propylene which helps in reducing carbon footprint and costs. Introduction of new cracking technologies is expected to boost the supply of propylene.
Market Trends
Inclination towards bio-based propylene: With growing emphasis on sustainability, major players are investing in advanced technologies to produce bio-based propylene from agricultural waste, forest residue, and non-edible plants oils which helps in reducing dependence on fossil fuels.
Rising polymer grade propylene capacity: To cater to the escalating demand from polymer industry, key manufacturers are expanding and establishing new production facilities of polymer grade propylene across Asia Pacific and North America. Global polymer grade propylene capacity is projected to increase substantially.
Market Opportunities
Growth in polymer applications: Significant growth in polymer applications especially polypropylene in packaging, consumer goods, automotive, pipe systems offers considerable untapped opportunities for propylene producers over the forecast period.
Recovery in construction sector: Recovery of construction activities post Covid in major economies will further drive volume off-take of propylene-derived products. This offers lucrative opportunities for propylene market players over medium term.
Impact of COVID-19 on Propylene Market Growth
The COVID-19 pandemic has significantly impacted the growth of the propylene market. During the initial onset of the pandemic in early 2020, the lockdowns and supply chain disruptions led to a decline in the demand for end use applications like packaging and automotive. With factories shut and people confined to homes, the consumption of packaged goods and vehicles reduced drastically. This led to a fall in the demand for propylene from these sectors. Furthermore, the mobility restrictions challenged the transportation of raw materials as well as the delivery of finished goods. This hampered production levels across manufacturing facilities.
However, as lockdowns eased in late 2020, the recovery was witnessed in the packaging and healthcare sectors. With the increased focus on hygiene and safety, the demand for packaged foods and medical supplies surged. This fueled the consumption of propylene for packaging films and containers. Furthermore, the healthcare sector also utilized polypropylene for making PPE kits, masks, and other medical disposables in huge volumes. Despite some recovery towards the end of 2020 and in 2021, the demand is yet to reach the pre-pandemic levels as the automotive sector is still recovering. Meanwhile, government stimulus packages are supporting infrastructure development, which is positively impacting the construction industry utilizing propylene. Ongoing vaccination drives and easing of travel restrictions are expected to further aid the economic recovery over 2022-2023. Overall, the propylene market has shown resilience during the crisis and is projected to witness steady growth in the coming years.
Geographical Regions with Highest Propylene Market Concentration
In terms of value, the Asia Pacific region accounted for the largest share of the global propylene market in 2024. Countries like China, India, Japan, and South Korea have emerged as major producers and consumers due to their large manufacturing bases and rapidly growing construction and automotive industries. China, being the world's biggest chemicals manufacturer, dominates propylene consumption in the region. Other Asian countries are also enhancing investments in petrochemicals infrastructure to capitalize on the region's rising demand.
Fastest Growing Region for Propylene Market
The Middle East region is poised to be the fastest growing market for propylene during the forecast period from 2024 to 2030. This can be attributed to the region's abundance of natural gas reserves and focus of GCC nations on expanding petrochemical facilities. Countries like Saudi Arabia, UAE, Kuwait, and Qatar are implementing strategic projects focusing on developing petrochemical value chains derived from natural gas. Such investments are offering a competitive cost advantage and facilitating regional supply security by reducing import dependence. As such, the Middle East is well-positioned to be the leading global supplier of propylene in the coming years.
For more insights, Read- https://www.marketwebjournal.com/propylene-market-trends-size-and-share-analysis/
