Propylene is a key petrochemical used as a feedstock in the production of various chemicals and plastics. It serves as a fundamental building block for various products ranging from packaging films and consumer goods to industrial fibers and transportation. Propylene derivatives such as polypropylene, propylene oxide and polyolefins are used extensively across industries like packaging, construction, automotive, textiles and others.
The global propylene market is estimated to be valued at US$ 150 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Polypropylene finds wide utilization across industries owing to its excellent chemical and heat resistance, moisture barrier properties and versatility. Growing usage of polypropylene in packaging, automotive, construction and consumer goods has been translating to rising demand for propylene as a feedstock. Further, improving global economic conditions are continuing to fuel consumption of polypropylene based finished goods, driving requirement for propylene.
Strength: Propylene is used to produce key petrochemical derivatives like polypropylene, propylene oxide and acrylonitrile which find application in various end use industries like packaging, construction and automotive. Several new petrochemical plants are being set up globally to cater to the increasing demand. Moreover, surge in construction and infrastructure activities in emerging economies is fueling the consumption of propylene derivatives in various applications.
Weakness: Volatility in crude oil prices and geopolitical issues impact the costs of propylene production. Some regions face regulatory constraints regarding environment protection which hinders expansions. Dependence on fossil fuel-based feedstock raises sustainability concerns.
Opportunity: Booming plastics industry worldwide driven by rising consumption of packaged food and beverages as well as growth in automotive sales create lucrative opportunities. Increased government investments in construction projects especially in Asia Pacific and Middle East countries will stimulate polypropylene demand.
Threats: Stringent environmental norms pertaining to emissions and recyclability may negatively impact market revenues. Development of bio-based and recycled alternatives pose a threat along with trade wars affecting petrochemical exports. Gain in market share of substitute polymers may also threaten propylene market growth to some extent.
The global propylene market is expected to witness high growth on account of burgeoning demand from the packaging, construction and automotive industries.
The Asia Pacific region currently dominates the market and the trend is likely to continue owing to massive infrastructure-led development initiatives underway in India, China and other Southeast Asian countries. China is anticipated to maintain its leading position as the biggest producer and consumer of propylene in the region.
Key players operating in the propylene market are LyondellBasell Industries Holdings B.V., Exxon Mobil Corporation, SABIC, INEOS GROUP HOLDINGS SA, ORLEN Group, Sasol Limited, Repsol SA, INEOS, Reliance Industries Limited, Formosa Plastics Corporation.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it