The global propylene market Growth Accelerated by Rising Demand from Synthetic Resins

 

Propylene forms an essential starting material for the manufacturing of various synthetic resins and fibers which are extensively used across diverse end-use industries. Propylene is used in the production of polypropylene which finds widespread usage in packaging films, containers, laboratory equipment, consumer products and automobile interiors among others due to attributes such as high chemical resistance, durability and lightweight. With mounting demand for lightweight and durable materials from automotive and construction industries, production of polypropylene is experiencing considerable growth.

The global propylene market is estimated to be valued at US$ 175 Billion in 2023 and is expected to exhibit a CAGR of 5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The demand for propylene is witnessing significant rise mainly attributable to growing application of polypropylene in the automotive sector. Polypropylene is widely used in automotive interior and exterior parts like seats, bumpers, door panels, dashboards due to its excellent impact resistance and durability. With rapid urbanization and increasing disposable incomes, sales of automobiles particularly in emerging economies are rising exponentially. Expanding automotive production will augment the consumption of polypropylene which in turn is expected to boost the demand for propylene over the forecast period. As propylene is majorly used as a feedstock for manufacturing of polypropylene resin, the prospering automotive industry will accelerate the market growth of propylene.

Segment Analysis

The propylene market is dominated by polypropylene segment which accounts for over 85% of the overall demand. Polypropylene is widely used in packaging industry for its high tensile strength and resilience properties. It is a preferred choice for packaging of various food and beverage products. Additionally, growing consumption of polypropylene in automotive industry for interior and exterior parts such as bumpers, dashboards also supports the growth of this segment.

Key Takeaways

The global propylene market is expected to witness high growth in the coming years. Rapid urbanization along with rising disposable incomes in developing countries is driving the packaging and automotive industry which in turn is augmenting the demand for polypropylene made from propylene. The global propylene market is estimated to be valued at US$ 175 Billion in 2023 and is expected to exhibit a CAGR of 5% over the forecast period 2023-2030.

Asia Pacific currently dominates the global propylene market and is expected to maintain its leading position during the forecast period. Presence of major automotive and packaging hubs in countries such as China and India is a key factor behind dominant position of Asia Pacific. Growing automotive manufacturing in Southeast Asian countries is further anticipated to drive the regional demand.

Key players operating in the propylene market are ExxonMobil, Dow, BASF, Sumitomo Chemical, SABIC and INEOS. ExxonMobil is the leading producer with capacity to manufacture over 5 million metric tonnes annually from its cracker units located in Texas and Pennsylvania. Dow and BASF are also prominent suppliers with significant market share and global production footprint.

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