April 12, 2024
Propylene Market

Propylene Market is Estimated to Witness High Growth Owing to Rising Demand from Petrochemicals Industry

Propylene or propene is a colorless, flammable gas that is produced as a co-product in natural gas processing, petroleum refining and produced by steam cracking of petroleum derived feedstock like naphtha, natural gas liquids or crude oil for petrochemical applications. It serves as an important raw material or intermediate for producing various derivatives like polypropylene, propylene oxide, acrylonitrile, cumene and isooctane. Some of the common uses of propylene include production of plastic resins & fibers, film & sheet, rubber & automobile parts, and chemical intermediate in petrochemical industry. Key advantages of propylene includes excellent chemical and weathering resistance, high electrical resistance, toughness and clarity/translucence. Due to significant industrial applications and rising demand from petrochemical industry, the propylene market is estimated to witness substantial growth over the coming years.

The Global Propylene Market Demand 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 2030.

Key Takeaways

Key players: 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.

Key opportunities: Some key opportunities include rising demand for propylene derivatives from automotive and packaging industry, growing adoption of polypropylene in various end-use industries owing to its low cost and excellent properties, and increasing investment for expansion of petrochemical facilities will further drive the overall demand for propylene.

Global expansion: Leading companies are expanding their production facilities globally especially in Asia Pacific and Middle East & Africa region owing to availability of raw materials and rapid industrialization. Key players are also focusing on recycling waste propylene to lower production cost and ensure sustainable supply.

Market drivers: The major market driver is rising demand for propylene from petrochemical industry where it is used as raw material for producing various commodities like plastic resins & fibers, chemicals and fuels. Other factors driving the market include, increasing automobile production and favorable government policies supporting petrochemical sector in various countries.

PEST Analysis
Political: Propylene is used in a wide range of applications like plastics, fibers, synthetic rubber and elastomers. Any new government regulations around environmental concerns or safety issues with these end use industries could impact demand.
Economic: A slowing global economy or recession could decrease demand for consumer and industrial goods made with propylene, impacting sales volumes and revenue for producers.
Social: Growing environmental awareness around plastic waste pollution has led to restrictions on single-use plastics in some regions. This trend poses challenges but could also create opportunities for more sustainable materials.
Technological: Advances in chemical recycling of plastics waste could reduce reliance on virgin propylene feedstocks over time. Development of novel processes for on-purpose propylene production from alternative renewable sources also represents a potential long-term opportunity.

Geographical concentration: In terms of value, the propylene market is currently concentrated in Asia Pacific and North America regions due to large existing manufacturing capacities and ongoing capacity expansions in China, India, the United States and Canada. China alone accounts for over 30% of global ethylene capacity.

Fastest growing region: The Middle East and Africa region is expected to witness the fastest growth in the propylene market during the forecast period due to growing petrochemical industries and investments in propylene derivatives industries such as polypropylene in Saudi Arabia and the UAE. Rapid infrastructure and construction activities are also contributing to rising propylene demand.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it