Propylene is a colorless gas widely used in the petrochemical industry to produce various resins and plasticizers. It is derived from petroleum refining and natural gas processing. With its significant properties like flexibility and durability, propylene is majorly utilized to manufacture polypropylene which finds application in packaging films, plastic bags, bottles, automotive parts and textiles among others. Rising demand for convenient and lightweight packaging materials is a key factor contributing to the growth of the polypropylene market. Additionally, propylene is also used to produce propylene oxide which serves as an important raw material for making polyurethane foam.

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.

Growing consumption of packaged food and consumer goods along with recovery of the construction and automotive sectors from the pandemic are driving the market growth.

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. These companies are focusing on expanding their production capacities and geographical reach to cater to the rising demand.

Secondly, Propylene Market Size by rapid urbanization and rising disposable incomes, the demand for packaged food and consumer goods has surged tremendously over the past few years. As polypropylene provides an optimum packaging solution, its consumption is increasing consistently.

Lastly, the propylene industry is witnessing considerable growth accompanied by capacity additions across major markets. For instance, manufacturers in Asia Pacific and North America are developing large grassroot plants as well as brownfield expansions to leverage business opportunities arising from growing polypropylene consumption worldwide.

Market drivers

The recovery of the construction and automotive industries post-Covid is a major factor propelling the propylene market growth. Propylene derivatives such as polypropylene are widely used in manufacturing various construction materials including pipes, fittings, sheets, films and fibers. Similarly, polypropylene accounts for over 30% of the total plastics usage in vehicles due to advantages like rust proof properties, durability and lightweight. Therefore, rebound in construction and automotive production across regions like China, Europe and North America is augmenting the demand for propylene. Additionally, favorable government policies and initiatives towards infrastructure development of public places are also fueling the market.