The Propylene Market is estimated to be valued at Us$ 4.37 Bn in 2023 and is expected to exhibit a CAGR Of 5.0% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Propylene is an organic chemical compound with the chemical formula C3H6. It is an important petrochemical used in the production of everyday plastics, synthetic fibers, and films. The major application of propylene includes production of polypropylene, propylene oxide, cumene and acrylonitrile. Polypropylene is usually the main raw material for a wide range of molded products including containers for foods, medicine bottles, lids and caps for packaging.
Market Dynamics:
The global propylene market is expected to witness high growth owing to increasing demand from petrochemical industry for manufacturing various derivatives such as polypropylene, propylene oxide, and acrylonitrile. According to IHS Markit, global petrochemical demand growth could average 3.4% annually through 2023 as polyethylene, polypropylene, and other plastics continue to displace traditional materials in a wide array of applications. Additionally, increasing automotive and packaging industries worldwide is also expected to support market growth over the forecast period. However, fluctuating crude oil prices are expected to pose a challenge to market growth.
SWOT Analysis
Strength: Propylene market has strong demand from petrochemical downstream industries such as synthetic rubber, acrylonitrile, cumene and plasticizers. Propylene production facilities are being expanded to meet the growing demand. Traditionally North America and Europe were the key suppliers however Asia pacific region is emerging as the fastest growing market.
Weakness: Propylene production depends on crude oil prices which creates supply uncertainty. Stringent safety and environmental regulations adds to production cost. Volatile feedstock price directly impacts propylene price.
Opportunity: Rising demand for polypropylene from construction, automotive and packaging industries especially in developing regions provides significant growth opportunities. Emerging applications in healthcare sector and infrastructure projects boosts the demand.
Threats: Slowdown in global economy dampens demand from end use industries. Trade wars and political instability in key producing regions affects supply. Stringent import/export regulations poses threats. Stiff competition from substitute materials like ABS poses threats.
Key Takeaways
The Global Propylene Market Demand is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from polypropylene production. The polypropylene market accounted for over 60% of the total propylene consumption in 2023. Regional analysis Asia Pacific region dominated the propylene market in 2023 with market share of over 40%, due to presence of major consuming countries like China, India, South Korea and Japan. The demand is projected to grow further driven by rising construction activity and automotive production in the region.
Key players operating in the propylene market are BASF SE, BP Plc., China Petroleum & Chemical Corporation, ExxonMobil Corporation, IRPC Plc., LyondellBasell Industries Holdings B.V. Major players are adopting strategies like capacity expansion, partnerships, and investments in propylene derivative plants to leverage growth opportunities.
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