By the end of 2017, the global market value of polypropylene had reached $75.40 Billion (USD). However, all reports from market analysts point towards a compound annual growth rate of 5.6% by the year 2022, which will take the global market value of polypropylene to nearly the 100-billion-dollar mark at an estimated $99.17 billion.
The Primary Contributors to the Estimated CAGR
In order to properly invest in the growing polypropylene market, it is important to know and understand which are the main contributors behind the estimation. Industries related to injection molding, blow molding, fiber, and raffia, polypropylene sheets and polypropylene films are the core industries which are expected to contribute the most towards the global polypropylene business reaching nearly a billion-dollar market value by the year 2022.
Environmental Awareness Will Play a Crucial Role As Well
Non-woven, printed polypropylene bags are growing in popularity with every passing year for the last few years because of a significant rise in global environmental awareness. The reusability, recyclability, the high heat/cold/chemical/physical resistance, and low manufacturing costs of these bags has now made them a popular option for manufacturers, businesses, and consumers alike, which in turn is expected to contribute towards the estimated 5.6% compound annual growth rate of the future polypropylene market. The combination of convenience and eco-friendliness is expected to bolster the popularity of non-woven propylene products even further in the coming years.
In End Use, Packaging Will Continue to be the Largest Propylene Industry
The complete propylene market for end-users can be divided into five primary industries, which is currently being headed by the packaging industry. The rest of the four markets are the automotive industry, the construction/building industry, electrical/electronics industry, and the healthcare industry.
The Largest Estimated Markets for Propylene
China has been marked as the most probable market for seeing the highest amount of growth in the propylene industry, while the entire Asia-Pacific region is estimated to become the largest propylene market in the world by 2022, with Europe coming in second place. Given that the current biggest names in the industry such as China Petrochemical Corporation, Sumitomo Chemical, and LG Chem all have their origins in the Asia-Pacific, this doesn’t come as much of a surprise.
The Main Obstacles that May Impede the Growth of the Propylene Market
The CAGR of 5.6% is impressive but only after considering the fact that propylene faces a good number of obstacles. Competing polymer industries (PET, PS, etc.) are not going away anytime soon and there is the growing concern of plastic deposits in the ocean as well. While non-woven propylene products might be eco-friendlier than most other alternatives, it is still plastic and, therefore, there are restrictions that may impede the industry from growing more rapidly.
Check the latest financial reports for a more intimate understanding of what to expect in the coming year. Use information gleaned to help you decide whether to invest your money in the growing propylene industry or not.