by Polypropylene compounds are widely used in the packaging industry as they provide strength, durability and barrier protection at reasonable costs. As a result, polypropylene compounds find applications in food packaging, pharmaceutical packaging and consumer goods packaging. Some common polypropylene compound products include films, sheets and injection molded parts that are used to package food items, medicines, consumables and various household items. Polypropylene offers an excellent moisture and gas barrier along with resistance to heat, chemicals and corrosion. It can be easily sealed, printed, laminated and thermoformed as per packaging requirements. The non-toxic and recyclable nature of polypropylene further adds to its sustainability credentials. With rapid growth of e-commerce and rising demand for longer shelf-life and packaged goods, the packaging industry has witnessed considerable expansion, thereby driving higher consumption of polypropylene compounds.
The global Polypropylene Compounds Market is estimated to be valued at US$ 23.21 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the polypropylene compounds market is the growing demand for biobased and biodegradable variants. With rising environmental concerns, packaging manufacturers are focusing on utilizing bio-based feedstock such as plant-based oils and polymers derived from renewable sources to produce biodegradable polypropylene compounds. These sustainable polypropylene variants provide similar protective properties as conventional polypropylene but are compostable at the end of product life. They can help reduce plastic waste and lower carbon footprint of the packaging industry. Another notable trend is the increasing adoption of polypropylene compounds in automotive interior parts owing to attributes like durability, lightweight and resistance to abrasion. Automakers are utilizing polypropylene for applications like dashboards, door panels, seat covers etc. to manufacture lighter vehicles with best-in-class aesthetics and functionality.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as manufacturing Polypropylene compounds requires relatively high capital expenditure and supply agreements with suppliers make it difficult for new players to enter.
Bargaining power of buyers: The bargaining power of buyers is high as the Polypropylene compounds market is fragmented with presence of multiple vendors providing customized solutions to buyers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as they have established supply agreements with compounders and OEMs limiting negotiation power of suppliers.
Threat of new substitutes: The threat of substitutes is moderate as Polypropylene has applications in diverse industries however materials like polyethylene possess threat of substitution.
Competitive rivalry: The competitive rivalry is high owing to presence of numerous global and regional players offering price variations and product differentiations.
Key Takeaways
The Global Polypropylene Compounds Market Analysis is expected to witness high growth. Asia Pacific region is currently dominating the market and is expected to continue its dominance during the forecast period. China being the largest producer and consumer of Polypropylene globally contributes to the Asia Pacific market growth.
Regional analysis comprises Asia Pacific is expected to hold largest market share during the forecast period owing to increasing demand from industries such as automotive, consumer goods, and appliances manufacturing. China and India are major consumers and witnessing fastest growth rate in the region.
Key players operating in the Polypropylene Compounds market are Siemens Healthineers, Nordion Inc., Lantheus Holdings Inc., Guerbet Group, GE Healthcare, Curium, Bracco Imaging SpA, Bayer AG, Cardinal Health Inc., and NTP Radioisotopes SOC Ltd. Siemens Healthineers, GE Healthcare and Bayer AG are dominant players in the global market place high emphasis on new product development and geographical expansions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
