Propylene Market is Anticipated to Witness High Growth Owing to Rapidly Growing Petrochemical Industry
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Propylene Market |
The
propylene market has become an integral building block for the global
petrochemical industry. Propylene is a key raw material used in the production
of diverse industrial and consumer goods such as polypropylene, propylene
oxide, acrylonitrile, cumene and isopropanol. Some key properties of propylene
that make it ideal for several industrial applications include corrosion
resistance, flexibility and durability. Propylene is majorly utilized to
manufacture plastic materials and fibers. It finds extensive usage in
industries such as automotive, construction, packaging and textiles. Growing
demand from these end-use industries along with replacement of conventional
materials with propylene-based compounds is fueling the market growth.
The Global
Propylene Market Demand 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 major
players are focusing on capacity expansion plans and long-term supply
agreements to gain substantial share of the global propylene market.
The propylene market provides numerous opportunities for manufacturers due to
increasing usage of propylene composites in automotive parts, medical devices,
pipes, films and sheets. Growing construction activity along with rapid
urbanization in emerging nations is generating new avenues for propylene
producers.
The global players are actively expanding their production capacities in Asia
Pacific and Middle East regions owing to burgeoning demand from the regional
petrochemical sector and availability of raw materials. China represents the
largest consumer of propylene and hence attracts significant investments by
international manufacturers.
Market Drivers
Rapid expansion of petroleum refineries provide abundant opportunities for
cost-effective propylene production. This acts as a primary growth driver.
Growing polypropylene demand from automotive, packaging and construction
industries stimulates the propylene market growth. Replacement of conventional
materials with propylene-based composites across diverse applications fosters
the market revenues.
Market Restrain
Fluctuating crude oil prices create supply chain uncertainties for petrochemical
manufacturers. Implementation of stringent environmental regulations regarding
VOC emissions during propylene production and processing poses challenges to
industry players. Increased R&D investments towards developed propylene
alternative materials may hinder the market demand to some extent over the
forecast period.
Segment Analysis
Within the propylene market, polypropylene is dominating sub segment.
Polypropylene accounts for over 60% of total propylene consumption globally. It
finds widespread application in construction materials such as pipes, fittings,
textiles, packaging films, molded plastics, automotive components and many
other industrial applications due to its outstanding cold temperature
performance, chemical resistance and ability to be spin-molded. Flexible
packaging consisting of PP films and thermoformed trays continue to be the
fastest growing application areas for polypropylene.
Global Analysis
The Asia Pacific region dominates the global propylene market and accounts for
over 50% of total consumption. China is the single largest consumer as well as
producer of propylene globally. Availability of raw materials, labor and
growing construction sector drives the polypropylene demand. Europe and North
America are other major markets. However, the Asia Pacific region is also
witnessing the fastest growth rate during the forecast period supported by
increasing construction, automotive and packaging applications particularly in
China and India. Countries like China, India, Indonesia are witnessing higher
infrastructural development which spurs the demand for polypropylene
significantly.
For more insights, Read- https://www.rapidwebwire.com/propylene-market-growth-demand-and-overview/
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