by The propylene market has been witnessing steady growth over the past few years owing to its wide applications in various end-use industries. Propylene is primarily used for production of polypropylene (PP), which finds extensive application in construction materials, automotive parts, packaging materials and others. It provides properties like lightweight, durability and resistance to heat, moisture and chemicals. Growing infrastructural development activities across both developed and developing countries has substantially boosted the demand for construction materials like pipes, insulation films, fiberglass and others made using polypropylene.
The Global Propylene Market 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 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.
The growing demand from construction and automotive industries has been driving the growth of the Global Propylene Market Demand. Construction activities are growing globally with increasing investments in commercial and residential construction in developing nations. This is positively impacting the consumption of propylene-based products.
Geographically, the Asia Pacific region dominates the global propylene market and the trend is expected to continue during the forecast period. This is owing to rapid industrialization and infrastructural developments occurring in densely populated countries of China and India. Moreover, favorable government policies and expanding construction sector in Asia Pacific is also pushing the uptake of propylene.
Market Key Trends
One of the important trends being witnessed is replacement of conventional materials with polypropylene (PP). PP offers advantages such as lightweight, durability and resistance to chemical & heat. Hence, it is increasingly replacing materials like wood, metals and conventional plastics in various applications. For example, PP is dominating the plumbing pipe market over conventional materials. Similarly, automakers are also employing PP in under-the-hood applications instead of metals to reduce vehicle weight. This increasing replacement of conventional materials by propylene-based PP globally is propelling the market growth.
Porter’s Analysis
Threat of new entrants: Propylene market is capital intensive industry which requires huge capital investments to develop plants and equipments. Barriers to entry is high.
Bargaining power of buyers: Since propylene is used as raw material by various downstream industries, buyers have moderate bargaining power to negotiate better prices based on higher demand.
Bargaining power of suppliers: The suppliers of propylene are limited to major oil and petrochemical companies. They have significant control over prices due to less number of suppliers in the market.
Threat of new substitutes: There exists limited alternatives for propylene therefore threat from substitutes is low.
Competitive rivalry: Propylene market is highly competitive with presence of key global players. Players compete on basis of pricing strategies and product differentiation.
Geographical Regions
Asia Pacific region dominates the global propylene market in terms of value. Countries including China, India, South Korea and Japan are major consumers due to presence of large refineries and petrochemical industries.
Middle East & Africa region is expected to witness fastest growth during forecast period. Countries such as Saudi Arabia, UAE and Kuwait are investing heavily in expanding petrochemical capacities which will boost propylene demand from the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
