by Propylene finds extensive applications in automotive, construction, and textile industries owing to its exceptional properties such as flexibility, durability, and chemical resistance. Growing infrastructure development activities worldwide are propelling the adoption of propylene in various building materials and household items. Coupled with increasing automotive production, the rising demand for lightweight plastics is considerably driving the global propylene market.
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 2024 to 2031.
Propylene is a versatile petrochemical used in the production of polypropylene, propylene oxide, cumene, acrylonitrile, butyraldehyde, and various other chemical intermediates. Its widespread use in manufacturing a variety of thermoplastic resins and fibers as well as industrial chemicals and solvents is catalyzing Propylene Market Growth. Moreover, propylene is being increasingly favored as a replacement for traditional materials like steel and wood across industries due to its lighter weight and corrosion resistance properties.
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 global propylene market is witnessing significant demand owing to extensive usage of propylene-based materials in automotive, packaging, construction, and medical sectors. Strong growth in the Asia Pacific region mainly driven by China and India is expected to further augment market revenue.
Major players are expanding their production facilities globally especially in developing Asian and Middle Eastern countries to leverage growth opportunities. Sustainable production through circular economy practices and recycling of plastic waste is emerging as a key trend in the industry to reduce environmental footprint.
Market Key Trends
One of the major trends gaining traction in the Propylene Market is increasing adoption of circular economy practices and recycling initiatives to achieve sustainability targets. Leading manufacturers are focusing on developing advanced recycling technologies to reduce carbon footprint and dependence on virgin feedstock. For instance, Dow Chemical’s facility in Texas can process 25,000 metric tons of plastic waste annually to produce epoxy and propylene. Similarly, major players like ExxonMobil, SABIC, and LyondellBasell are collaborating with recycling partners on developing mechanical and chemical recycling techniques. The overarching goal of these efforts is to establish carbon-neutral propylene production through circular approaches over the long run.
Porter’s Analysis
Threat of new entrants: The propylene market requires large capital investments for production facilities which pose barrier for new entrants. Additionally, established players possess economies of scale which make it difficult for new players to compete on pricing.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives. However, switching costs associated with supply contracts provide some bargaining power to suppliers.
Bargaining power of suppliers: Major suppliers have significant bargaining power due to their integrated operations and control over raw material sources. Supply reliability and quality standards also provide bargaining power.
Threat of new substitutes: Substitutes like butadiene pose minimal threat as they do not provide similar properties and applications as propylene.
Competitive rivalry: The market is consolidated with top players occupying major share. Intense competition on pricing and new product development exists.
Geographical Regions with Highest Market Value
North America accounts for the largest share in terms of value owing to sizable demand from end-use industries and presence of leading propylene producers. Asia Pacific is another major regional market led by China due to growing manufacturing sector and infrastructure development activities.
Fastest Growing Geographical Region
Asia Pacific region is poised to witness highest growth during the forecast period led by growing propylene consumption in China, India and ASEAN countries. Rapid industrialization and infrastructure investments are driving the demand from construction and packaging sectors.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
