A new report says the global polypropylene market will hit 62.4 million metric tons by 2020, driven by growth in Asia Pacific, the Middle East and Africa.
According to GBI Research, the market will grow at a healthy compound annual growth rate of 4.5 percent between 2011-2020, compared to 4.9 percent between 2000 and 2011.
Asia Pacific will account for 62.2 percent of the total and China and India are expected to generate more than 12 million metric tons of demand, or 84 percent of the Asia Pacific total. The North America market is expected to recover but the euro zone crisis will restrict future growth in the European market.
The packaging industry is expected to continue to be the leading end-use industry in terms of PP consumption. In 2011 the packaging industry was the greatest PP user, accounting for 30 percent of the market, followed by electrical (13 percent), equipment and facilities (13 percent), household appliances (10 percent), automotive (10 percent) and construction (5 percent).
In terms of feedstocks, the price of propylene, and therefore PP, may come down this year and in 2014 if the market stabilizes in line with the global economic and political settlement, according to the report.
