The propylene market is involved in the manufacturing and production of propylene gas, which finds wide applications in various industries such as construction, automotive, packaging, textiles, and consumer goods among others. Propylene acts as an important raw material in the production of various petrochemical products including polypropylene, propylene oxide, cumene, and acrylonitrile. It possesses characteristics such as corrosion resistance, chemical stability and durability making it suitable for usage in a diverse set of end-use applications.
The global propylene market 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 from 2024 to 2031.
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 key opportunities in the propylene market include growing demand for polypropylene from the packaging industry and increasing consumption of propylene glycol in the production of various chemicals and pharmaceuticals. Asian countries like China, India, and Southeast Asian countries offer huge growth potential for propylene owing to rapid industrialization and infrastructure development activities in the region.
Global expansion of the Propylene Market Demand will be largely influenced by capacity additions across key producing and consuming regions. Major players are focusing on strategic collaborations with regional and local players to establish production facilities and distribution networks across emerging markets.
Market Drivers
The major driver augmenting the growth of propylene market is increasing demand from the petrochemical industry. Propylene serves as a dominant raw material in the production of numerous petrochemicals and polymers. Rapid industrialization along with growing consumption of plastic globally is propelling the consumption of propylene. Furthermore, rising applications of propylene glycol in industries such as food & beverages, healthcare, automotive is also fostering the market growth.
PEST Analysis
Political: Government regulations around production, transportation and trade of propylene can impact the market. Changes in import/export duties and policies could affect costs and availability of propylene in different markets.
Economic: Economic growth, manufacturing activity, investment in infrastructure are key determinants of demand for propylene which is used to make plastics, fibers etc. Recession or slowdown can dampen propylene consumption.
Social: Rising living standards and disposable incomes in developing nations, demand for goods made of plastics is on the rise, positively impacting Propylene Market. Concerns around plastic waste and pollution may also influence its use over time.
Technological: Development of bio-based and recyclable plastics can provide alternatives to petrochemical-based plastics and affect propylene market in long run. However, adoption depends on commercialization and costs involved.
The propylene market in terms of value is concentrated highly in Asia Pacific region led by China, India, Japan, and South Korea. These countries account for over 60% of global propylene capacity. Asia Pacific represents over 50% of worldwide propylene consumption majorly because of large manufacturing sector in the region particularly in China. Significant investments are being made to expand petrochemical facilities and derivative units in Asian countries making it a lucrative market for propylene.
The fastest growing region for propylene market is expected to be Middle East & Africa between 2024-2031. This is because new plants are coming up in GCC countries like Saudi Arabia and UAE to cater to both local demands as well as for exports. National oil companies in the Middle East are investing heavily in petrochemical complexes which once operational will strengthen supply from this region. Developing petrochemical hubs in South Africa, Egypt etc will further boost propylene availability and consumption in Africa over the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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