Polypropylene Market Intelligence

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  • PRO access to New Beroe LiVE*
  • Unlimited updates on the Report*
  • Supplier Watchlist for 3 suppliers*
  • Supplier Shortlisting Tool*

With this purchase you will be subscribed for a 12-month PRO membership to the upcoming all new Beroe LiVE (launching in Q3, 2020)

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*These features will be unlocked on the new Beroe LiVE when it launches (Q3, 2020)

COVID 19 impact on Polypropylene market

  • Polymer prices expected to decrease due to balanced-to-long supply in the market. The demand is expected to be soft due to COVID-19
  • Global PP prices are collapsing in line with collapse in crude oil market .
  • PP production in China is estimated to be in the range of 1.7-1.8 Million MT/Month (down by >20% M-o-M), while demand is estimated to reduce by >500 KMT/Month.

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Are you looking for answers on Polypropylene category?

Are you looking for answers on Polypropylene category?

  • What are the key trends in Polypropylene category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Polypropylene industry?
  • How is Polypropylene industry performing?

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Report Coverage

  • Global Capacity–Demand Analysis
  • Global Trade Dynamics
  • Regional Market Snapshot-North America, Europe, Asia
  • Cost Structure Analysis

Production Size

Production Size Europe

12.6 MMT

Production Size Latin America (LATAM)

3.5 MMT

Table of contents

  1. Polypropylene Executive Summary
  2. Category Updates
  3. Global Market Outlook
  4. Supply Market Outlook
  5. Demand Market Outlook
  6. Industry Best Practice
  1. Polypropylene Market Analysis
  2. Global Market Size-PP
  3. Global Capacity-Demand Analysis
  4. Global Demand by Application
  5. Global Market Outlook
  6. Global Trade Dynamics
  7. Global Imports
  8. Global Exports
  9. Regional Market Outlook [North America, Europe, Asia, LATAM, MEA]
  10. Supply-Demand Trends and Outlook
  11. Trade dynamics
  1. Polypropylene Industry Analysis
  2. Industry Outlook [North America, Europe, Asia, LATAM, MEA]
  3. Drivers and Constraints for the industry
  4. Market Events and Innovation
  5. Porters Five Forces Analysis
  1. Polypropylene Supplier Analysis
  2. Key global and regional suppliers
  3. Key supplier's capability analysis
  4. Capacity
  5. Available Capacity
  6. Product Portfolio
  7. Expansions, if any
  8. Geographical Footprint
  9. Supplier Market Share: Global
  10. Detailed supplier profiling of the top global suppliers
  11. SWOT Analysis for the top five global suppliers
  1. Polypropylene Cost and Pricing Analysis
  2. Cost & Price Analysis [North America, Europe, Asia, LATAM, MEA]
  3. Cost Structure Analysis
  4. Cost Drivers for Polypropylene
  5. Price Forecast
  1. Polypropylene Industry Best Practices
  2. Sourcing Strategy - Local vs. Global
  3. Contract Structures
  4. Engagement Models

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Global Market Outlook on Polypropylene

  • The global market is estimated to grow at a CAGR of 4.4 percent during 2018–2023
  • Rise in disposable income and increasing demand from the CPG, and automobile industry are likely to drive the growth in the emerging markets such as Brazil and Asia
  • Demand from "Highly Mature Market" ,such as North America and Europe, is likely to slow down in the coming years.

price-trends-polypropylene-market

Demand Market Outlook

  • The global PP market has surplus capacity from MEA, NA and demand is expected to increase sharply from the Asian countries
  • China is moving towards the stage of self-sufficiency, while supply deficit will increase across LATAM and Europe

Industry Best Practice

Engagement models

  • Direct buying and consortium buying are the two relevant engagement models in the industry
  • Direct buying is mostly preferred by the CPG industry (large volume, >5,000 MT/year) and consortium buying is preferred amongst small capacity (<500 MT/year) buyers

Contract structures

Fixed Contract 

  • Length of contract: 6 months-1 year
  • Volumes in contract: >1000 MT/year

Multi Year Contract 

  • Length of contract: 2-3 years (to establish long term relationship in a highly matured market)
  • Volume in contract: >5000 MT/year

Global Market Size –Polypropylene

  • The global PP market is expected to reach $103 billion by 2023
  •  Key driving end-use industries are CPG segment (food/non-food containers, caps-closures, films etc.) and auto components (internal structures, bumpers, dashboard carriers, door panels)
  • Market size in Asia is expected to witness a high growth rate of around 5-6 percent (CAGR), while mature markets, such as the U.S. and Europe, are expected to witness a growth of about 3–4 and 2–3 percent CAGR during 2018–2023

Global Capacity-Demand Analysis

  • Improving feedstock propylene supply in the Chinese market (using cheaply available propane/coal as a feedstock) along with capacity additions will result in lower polypropylene prices and intensify the global competition

Market Outlook 

  • No capacity additions in the US, Europe, and LATAM have kept pressure over domestic supply availability
  • Europe and LATAM are expected to operate at the maximum rate of 90– 95 percent in the forecasted period
  • The global demand is expected to witness a growth of around 5.0 percent until 2022, driven by Asia
  • Asia represents almost 58 percent of the global consumption of polypropylene with China being the major consumer

Engagement Outlook

  • Buyers from the U.S. and Europe should try to lock the contracts at the start of the year to minimize supply risk
  • Buyers should engage in the spot pricing mechanism for a maximum period of one year in Asia, owing to the highly volatile upstream market and to revise their pricing formula and level of discounts
  • Production of propylene via on-purpose technology would result in capacity expansions across China, which would reduce its dependency over the Middle East and other Asian countries

Global Demand by Application

  • The application of PP in caps and closure (5–7 percent CAGR) has been on rise and is expected to drive the market in North America and Europe

Downstream Demand Outlook

 

  • Matured markets, such as the US and few European countries (Germany, UK, France, Italy, and Spain), with a robust automotive segment, have a greater demand for the injection molding grade of PP
  • Demand from the beverage industry and the pharmaceutical sector is expected to dominate the demand for caps and closures, and it is expected to account for more than 70 percent of the total demand
  • Key regions that will drive the global caps and closures growth will be Asia (especially, China), due to rapid industrialization and improvement in living standards
  • Economic uncertainties in the UK will result in lower growth of co-polymer grade, due to unavailability of the product in the region.

Global Trade Dynamics

  • North America: Net exporter for more than 10 years. However, exports are decreasing, due to greater domestic demand and fierce competition from Middle East and Asian imports
  • Europe: Net importer with a trade deficit of ~1 MMT/year, due to zero capacity additions, and is expected to remain in the short term
  • Asia: Net importer with a trade deficit of ~1 MMT/year. Surplus capacity additions in China and other countries are likely to turn them in to a self-sufficient region
  • LATAM: Net importer for more than 10 years. Brazil and Colombia are the only supply abundant markets. MEA: Leading exporter with a trade surplus of around ~3 MMT/year

Polypropylene Market Frequently Asked Questions

  1. What is the projected growth rate of the global polypropylene market?
  2. As per Beroe’s analysis report, the global polypropylene market is estimated to grow at a CAGR rate of 4.4 percent by 2023. The rise in disposable income and increasing demand from the CPG, and the automobile industry are likely to drive the growth of emerging markets such as Brazil and Asia.

 

  1. Will the polypropylene demand change for the better in the coming years?
  2. The demand for polypropylene is anticipated to slow down in the coming years especially from the highly mature markets like North America and Europe. As the global polypropylene market has surplus capacity from MEA, and NA, the demand is expected to sharply increase from the Asian countries. On a country-level, China is moving to a stage of self-sufficiency, while the supply deficit will increase across Latin America and Europe.

 

  1. Is COVID-19 impacting the polypropylene price forecast for 2020?
  2. Given the current situation of COVID-19, the polymer prices are expected to decrease due to balanced-to-long supply in the market and experts believe that the demand will remain soft due to COVID-19. The corona outbreak is also collapsing the crude oil market which is further reducing the global polypropylene market price. Despite the pitfalls, the net polypropylene market share is estimated to be in the range of 1.7 – 1.8 Million MT/Month, while demand is estimated to reduce by >500 KMT/Month.

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