Polypropylene Compound Market Growth Analysis | 2023-2028

Market Insights

“The polypropylene compound market is likely to grow at a CAGR of 4.3% during 2023-2028 to reach USD 16.1 billion in 2028.”

Wish to get a free sample? Register Here

Market Dynamics

Introduction

Polypropylene compounds are materials produced by combining polypropylene resin with various additives, fillers, reinforcements, or modifiers to enhance their properties. These properties make them suitable for use in automotive parts, consumer goods, construction products, electrical components, packaging materials, and various industrial applications.

COVID-19 Impact

The emergence of the pandemic in 2020 left the automotive industry in shambles. The industry stakeholders incurred heavy losses and were forced to resort to extreme measures and reorient their age-old strategies to ensure survival and long-term stability. The industry’s rebound had a mirroring impact on the PP compounds market.

Market Drivers

The market is driven by the rising demand for lightweight and high-performing plastics in the automotive industry. PP compounds are used in a variety of parts in automobiles, including bumper facias, instrument panels, and door trims. The electrical & electronics industry is increasingly incorporating PP compounds into their products, such as washing machines, refrigerators, dishwashers, and tumble dryers, to achieve improved thermal stability and mechanical stiffness.

For the building & construction industry, PP compounds help reduce heat transfer between different areas of a building, enhance energy efficiency, and maintain comfortable indoor temperatures, making them a preferred insulating material.

Manufacturers are focusing on developing PP compounds that incorporate recycled materials and bio-based additives. Major companies, such as LyondellBasell Industries Holdings B.V., Mitsui Chemicals, Inc., and Mitsubishi Chemical Corporation, are focused on the development of recycled PP compounds.

Recent Product Developments

The companies are highly focused on developing sustainable, flame-retardant, and cost-effective PP compounds.

• SABIC has introduced two new short-glass fiber-reinforced polypropylene (PP) compounds, namely G3430X and G3440X grades. They have the potential to replace long glass fiber PP in certain low-temperature applications, such as automotive under-the-hood, exterior, and interior applications, offering a cost-effective alternative.
• Borealis has unveiled a new range of PP compound grades specifically designed for automotive applications. These compounds are a blend of post-consumer recycled (PCR) material and virgin content.

Recent Market JVs and Acquisitions

Major companies are looking to advance the development of their PP compound businesses to enhance their product offerings and capabilities. There have been a few strategic developments that have shaped the competitive dynamics in the market in the last few years. For instance:

• In 2022, MOL Group and SAPPI partnered to create PRIMOLEN NF, an eco-designed PP compound that integrates natural fibers to substitute mineral fillers for automotive interior and semi-structural applications.
• In 2020, Kingfa collaborated with ExxonMobil to develop and achieve advanced PP8285E1. This high-flow, high-impact copolymer resin is ideal for a variety of tough car parts, including instrument panels, door panels, consoles, and bumper fascias.
• In 2019, MOL Group acquired Aurora Kunststoffe GmbH to extend the petrochemical portfolio with higher value-added products. With this acquisition, MOL expanded its range of high-quality polyamide, polypropylene, and other recyclate-based compounds, complementing its existing portfolio.

Segments Analysis

By End-Use Industry Type

“Automotive is expected to remain the largest market over the next five years."

The PP compounds market is segmented into automotive, building & construction, electrical & electronics, and others. Automotive continues to dominate as the leading end-use industry for plastics, particularly PP, due to its mechanical properties and moldability, with usage expected to increase in automotive components over the next five years.

Bumpers, door panels, interior trims, engine components, and fuel tanks are some applications where PP compounds are widely preferred. Mineral-filled and compounded TPO/TPVs is the predominantly used filler types in this industry.

Want to get more details about the segmentations? Register Here

By Filler Type

“Mineral-filled compound to maintain an unwavering share in terms of value and volume during the forecast period.”

The market is segmented into mineral-filled compounds, glass reinforced compounds, additive concentrates, compounded TPO/TPVs, and others. Mineral is a dominant filler with usage in a variety of end-use industries due to its ability to offer a balance of performance, cost-effectiveness, weight reduction, heat resistance, dimensional stability, flame retardancy, and improved surface finish.

Mineral fillers, such as calcium carbonate, talc, and mica, are added to compounds to deliver a low-cost option. Alumina trihydrate (ATH) and magnesium dihydroxide (MDH) are added to offer flame-retardant properties.

By Polymer Type

“Impact copolymer is expected to remain the largest segment during the forecast period.”

The market is segmented into homopolymer, random copolymer, and impact copolymer. Impact copolymer is expected to remain the largest segment during the forecast period. Impact copolymers are engineered with additives and modifiers that improve their ability to withstand impacts and resist cracking or breaking.

Ethylene Propylene Rubber (EPR) and Ethylene Propylene Diene Monomer (EPDM) have been used in PP compounds for a long time as a result, there is an established supply chain and infrastructure in place for their production, distribution, and processing.

Regional Insights

“Asia-Pacific is expected to remain the largest market for PP compounds during the forecast period.”

The market is broken down geographically into areas like North America, Europe, Asia-Pacific, and the Rest of the World (RoW). By region, Asia-Pacific is expected to remain the largest market for PP compounds during the forecast period. China, Japan, and India are major automobile manufacturing hubs that are fueling the demand for PP compounds in the region.

On the other hand, the second-leading position captured by Europe in the market is driven by the changing market landscape. This region is also home to key PP compound producers such as LyondellBasell, Borealis, ExxonMobil, SABIC, and TotalEnergies.

Want to know which region offers the best growth opportunities? Register Here

Key Players

The market is highly populated, with the presence of more than 100 local, regional, and global players. Most of the major players compete on some of the governing factors, including price, product offerings, regional presence, etc. These players have distinct capabilities for manufacturing PP compounds using a multitude of materials. They have been increasing their R&D investments to cope with the high demand arising from various industries. The major players, such as LyondellBasell, Mitsui Chemicals, and Mitsubishi Chemical Corporation, are increasing production capacities of PP compounds to capitalize on the growing market and enhance their competitiveness in the industry.

The following are the key players in the Polypropylene Compound Market (arranged alphabetically):

• Borealis AG
• Exxon Mobil Corporation
• Kingfa SCI. & TECH. CO., LTD.
• LyondellBasell Industries Holdings B.V.
• Mitsubishi Chemical Corporation
• Mitsui Chemicals, Inc.
• Sumitomo Corporation
• Washington Penn

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

• This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s PP compounds market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and Others, please send your inquiry to sales@stratviewresearch.com