PROPYLENE MARKET ANALYSIS

Propylene Market Size and Trends

The propylene market is estimated to be valued at USD 4.66 Bn in 2024 and is expected to reach USD 7.05 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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The demand for propylene is expected to grow steadily during the forecast period. It is primarily driven by the growth of the petrochemical industry and increasing demand from the polypropylene sector. Propylene is a basic petrochemical used to produce polypropylene, which is used widely in the packaging, consumer products, and automotive industries. As the spending power increases globally, the growth in the automotive and packaging industries will positively influence the propylene market. Also, the increasing penetration of polypropylene in emerging applications such as medical devices, construction, and agriculture will support the demand for propylene during the forecast years.

Growing demand from polyethylene production

The primary driver for growth in the propylene market is the increasing demand from polyethylene production. Polyethylene finds wide ranging uses from the packaging industry to construction materials. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) are the major polyethylene resins which use propylene as the raw material. With the rising global consumption of plastic, the production of polyethylene is witnessing significant expansion especially in emerging economies. Polyethylene resins are increasingly replacing traditional materials in various end-use industries due to their advantages such as durability, flexibility, and lightweight properties. The food packaging market has exhibited formidable growth fueled by changing lifestyle, demand for convenient packaging, and ready-to-eat foods. Other applications such as non-food packaging, plastic bags, films, and containers have proliferated with growth in the e-commerce and personal care sectors. The consumer products industry too utilizes polyethylene compounds for durable goods, toys, and stationery items. Building and construction is another important segment driving the polyethylene demand globally. LDPE and LLDPE resins provide excellent insulation and waterproofing properties making them ideal for usage as vapor barriers, roofing sheets, and pipes. Their corrosion resistance and strength make them suitable substitutes for traditional materials in infrastructure projects. Expanding global construction industry in sync with rapid urbanization is a major factor augmenting the volumes of polyethylene consumed.

Rise of polypropylene based derivatives

A major driver accelerating propylene consumption is the rise of polypropylene-based downstream products. Polypropylene (PP) is synthesized from propylene and finds extensive applications across industries. The global polypropylene capacity has been significantly enhanced over the years to cater to the growing needs of various. PP possesses characteristics such as durability, heat resistance, corrosion protection, and flexibility which makes it appropriate for diverse applications. The automotive industry has emerged as a prominent consumer of polypropylene compounds. Different interior and exterior automotive parts such as seat belts, airbags, bumpers, instrument panels, side panels, and spoilers incorporate PP for its properties like lightweight, thermal stability, and durability. Appliance manufacturers also depend on PP for water supply pipes, dispenser components, home care product containers, and wire and cables coating.