Polypropylene Compound Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for polypropylene compounds is expected to grow at a CAGR of more than 7.2% globally during the forecast period. Polypropylene compounds are thermoplastic resins that are formed by combining one or more base polyolefins with various materials, such as impact modifiers, fillers, and reinforcements, pigments, and additives. The growing demand from consumer electronics products has been driving the market growth.

Key Highlights

• However, the fluctuation in raw material and the outbreak of coronavirus across the globe are likely to hinder the growth of the studied market.
• The research and development of eco-friendly polypropylene compounds are likely to provide opportunities for the polypropylene compound market over the next five years.
• Automotive Industry is the most dominating end-user segment for the market studied.
• Asia Pacific region dominated across the world with increasing consumption from countries like China and India.

Key Market Trends

Automotive Industry to Dominate the Market

• The automotive industry stands to be the dominating segment owing to continuously increasing demand for polypropylene resin as a replacement for metal and electronics plastics in automotive manufacturing.
• Rising demand for lightweight products with high strength in the automotive industry is projected to accelerate target market growth to decrease the weight of the vehicle and boost fuel efficiency.
• The low density of PP compounds increases the automotive fuel economy and reduces the overall cost of raw materials. High polypropylene versatility has led to creative designs being developed which enhances passenger safety and comfort. It is these aspects that drive demand for PP compounds.
• The automotive industry has been experiencing a decline in production in countries such as the United States, China, and Germany since 2018, as a result of which consumption of polypropylene compound is expected to decline. However, the automotive industry is expected to witness a recovery in production from 2021.
• All the aforementioned factors are expected to drive the polypropylene compound market during the forecast period.

Asia-Pacific Region to Dominate the Market

• Due to robust demand from the automotive industry and consumer electronics, particularly in emerging countries such as India and China, the Asia Pacific market is expected to be the largest and fastest-growing market over the forecast period.
• The flexible packaging industry in the Asia-Pacific is rising at a faster pace due to its advantages, such as simple handling, portable packaging, and lightweight.
• Easy availability of raw material, well-developed infrastructural facilities, and skilled & cheap labor force have attracted major international automotive manufacturers to invest in the Asia-Pacific region. Hence, all these factors are expected to drive the market for polypropylene compounds in the Asia-Pacific region.
• The region's electronics market is also rising at a steady pace. Additionally, with companies actively investing in the electronics industry in the region, the demand is likely to continue to expand, thus growing polypropylene use in the Asia-Pacific region.
• Market demand for electric cars and policies under Clean Energy Ministerial (CEM), such as the initiative on electric vehicles and increasing enthusiasm for electric vehicles, are expected to push polypropylene compound consumption in near future.
• Hence, all such market trends are expected to drive the demand for polypropylene compound market in the region during the forecast period.

Competitive Landscape

The global polypropylene compound market is fragmented in nature owing to the presence of numerous players in the market with no significant market share. Some of the major companies are LyondellBasell Industries Holdings B.V., Repsol, SABIC, Sumitomo Chemical Co., Ltd., and Exxon Mobil Corporation amongst others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support