POLYPROPYLENE COMPOUNDS MARKET ANALYSIS

Market Challenges And Opportunities

Global Polypropylene Compounds Market Drivers:

Growing demand for lightweight and high-performance plastics from automotive sector to fuel market growth

The demand for PP is expanding in the automotive sector as well, thanks to stringent government regulations that promote fuel efficiency and environmental sustainability. PP compounds are used in the production of lightweight vehicle components, which has significantly reduced the overall weight of cars while improving their gas mileage and mitigating emissions. This has increased the demand for PP, which in turn is driving the growth of the global PP compound market.

Increasing demand from construction sector to propel market growth

The demand for PP is also growing in the construction industry, where it is being utilized to fabricate components such as pipes and ducting. The market for PP is expected to grow in the coming years, especially in developing countries due to a surge in industrialization and an increase in demand for durable and affordable materials.

Global Polypropylene Compounds Market Opportunities:

Growing application in personal hygiene products is expected to present significant growth opportunities. The material is widely utilized to manufacture sanitary products such as clothing and diapers. Moreover, strong growth textile and apparel industry coupled with the increasing disposable income of consumers are also contributing to the market growth over the forecast period.

As the onset of economic recovery is encouraging businesses to resume their investment plans, this is likely to offer potential market opportunities over the forecast period. For instance, in June 2022, Repsol invests €4.5 M to expand its fiberglass-reinforced PP compounds manufacturing capacity. This new line, intended to manufacture fiberglass-reinforced polypropylene (PP) compounds, will allow for almost a 30% increase in the production of these highly specialized, high-value-added materials, which are in high demand in technical sectors.

Global Polypropylene Compounds Market Restraints:

Volatile prices of crude oil and its derivatives to hinder market growth

Consequently, the market is influenced by volatile prices of crude oil and its derivatives. Volatility in the price of raw materials is likely to restrict this market’s favorable growth. The primary raw material utilized for the manufacture of PP is propylene which is derived from petroleum and carbon compounds.

Strict rules and regulation to limit market growth

For instance, in October 2019, Malaysia banned the import of plastic scraps and cracking on factories processing the waste. The increasing implementation of rules & regulations in the South Asian countries is expected to pose a restraint to the polypropylene compound market, which may slow down the growth of the market during the forecast period.