by Propylene, also known as propene, is a colorless gas which is primarily used to manufacture polypropylene, propylene oxide, acrylonitrile and various other chemicals and plasticizers which are used in a wide range of applications. Polypropylene made from propylene is a thermoplastic polymer which provides properties like durability, lightweight and flexibility. It is extensively used in food packaging, consumer product packaging, textiles and automotive parts owing to its high melting point and chemical resistance.
The global propylene oxide market is estimated to be valued at US$ 140 Billion in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023-2028, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand for polypropylene from the packaging industry is one of the major trends propelling the growth of the global propylene market. Polypropylene is widely preferred for packaging applications due to its excellent properties like durability, flexibility and transparency. It is lightweight and provides an effective barrier against moisture, which makes it suitable for food packaging. Also, polypropylene causes minimal environmental impact at the end of the product’s life cycle as it is recyclable. All these advantages have increased polypropylene’s use in various packaging applications like bottles, containers, packaging film etc. It is expected that the packaging industry will continue to drive the demand for propylene in the coming years.
SWOT Analysis
Strength: Propylene is widely used in the production of polypropylene which has numerous applications in different industries. The rising demand of polypropylene is driving the growth of propylene market.
Weakness: Strict environment regulations over emissions can hamper the growth of propylene market. Sudden fluctuation in the prices of raw materials used for the production of propylene can negatively impact the market.
Opportunity: Increasing application of polypropylene in the automotive industry for manufacturing batteries, car seats, bumpers etc offers growth opportunities to propylene market. Rising consumption of polypropylene for packaging food and other consumer products acts as an opportunity.
Threats: Availability of substitutes like polyethylene poses a threat to the propylene market. Development of alternate processes that can reduce the use of propylene during the production of polypropylene can threaten the market.
Key Takeaways
The global propylene market is expected to witness high growth. The global propylene market is estimated to be valued at US$ 140 Billion in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023-2028.
Asia Pacific accounts for the largest share in the propylene market owing to high demand from China, Japan and India. China dominates the market with maximum production facilities established in the country. Rising automobile and construction industry has been driving the consumption of propylene in the region over the years.
Key players operating in the propylene market are LyondellBasell, ExxonMobil, SABIC, Total, Sinopec, BP, and Dow. LyondellBasell is the world’s largest producer of propylene and also represents the single largest polyolefin facility in the world. ExxonMobil is another prominent player in the market with well-established production sites across regions.
