Polypropylene in Primary Forms Market

The global polypropylene market is projected to see steady growth in the consumption of primary forms over the next eight years, with a forecasted CAGR of +3.8% from 2022 to 2030. Market volume is expected to reach 104M tons by the end of 2030, with a corresponding increase in market value to $164.8B. In 2022, China led in both consumption and production of polypropylene, while Saudi Arabia emerged as a major exporter. Despite slight fluctuations in pricing, global import and export volumes have shown overall growth trends over the past decade. The market landscape presents opportunities for growth and competition among key players in the industry.

Market Forecast

Driven by increasing demand for polypropylene in primary forms worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +3.8% for the period from 2022 to 2030, which is projected to bring the market volume to 104M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +6.0% for the period from 2022 to 2030, which is projected to bring the market value to $164.8B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Polypropylene in Primary Forms

In 2022, global polypropylene in primary forms consumption contracted slightly to 77M tons, stabilizing at 2021. Overall, the total consumption indicated a pronounced expansion from 2012 to 2022: its volume increased at an average annual rate of +4.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption decreased by -1.3% against 2019 indices. As a result, consumption reached the peak volume of 78M tons. From 2020 to 2022, the growth of the global consumption remained at a somewhat lower figure.

The global polypropylene in primary forms market revenue declined slightly to $103.7B in 2022, leveling off at the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +3.4% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Global consumption peaked at $105B in 2021, and then dropped slightly in the following year.

Consumption By Country

The country with the largest volume of polypropylene in primary forms consumption was China (16M tons), comprising approx. 20% of total volume. Moreover, polypropylene in primary forms consumption in China exceeded the figures recorded by the second-largest consumer, India (7.7M tons), twofold. The third position in this ranking was taken by the United States (7M tons), with a 9% share.

From 2012 to 2022, the average annual growth rate of volume in China amounted to +5.0%. The remaining consuming countries recorded the following average annual rates of consumption growth: India (+9.9% per year) and the United States (+0.7% per year).

In value terms, China ($22.7B) led the market, alone. The second position in the ranking was held by the United States ($10.1B). It was followed by India.

In China, the polypropylene in primary forms market increased at an average annual rate of +4.0% over the period from 2012-2022. In the other countries, the average annual rates were as follows: the United States (-0.5% per year) and India (+7.6% per year).

In 2022, the highest levels of polypropylene in primary forms per capita consumption was registered in Belgium (159 kg per person), followed by Italy (26 kg per person), Turkey (25 kg per person) and Japan (24 kg per person), while the world average per capita consumption of polypropylene in primary forms was estimated at 9.8 kg per person.

In Belgium, polypropylene in primary forms per capita consumption expanded at an average annual rate of +3.9% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Italy (-1.8% per year) and Turkey (+3.9% per year).

Production

World Production of Polypropylene in Primary Forms

In 2022, global production of polypropylene in primary forms contracted modestly to 77M tons, approximately equating 2021. In general, the total production indicated a noticeable expansion from 2012 to 2022: its volume increased at an average annual rate of +4.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +59.2% against 2012 indices. The most prominent rate of growth was recorded in 2019 when the production volume increased by 15% against the previous year. Over the period under review, global production reached the peak volume at 78M tons in 2021, and then declined modestly in the following year.

In value terms, polypropylene in primary forms production reduced slightly to $94.9B in 2022 estimated in export price. The total output value increased at an average annual rate of +2.9% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2017 when the production volume increased by 18%. Over the period under review, global production reached the peak level at $99.3B in 2019; however, from 2020 to 2022, production remained at a lower figure.

Production By Country

The countries with the highest volumes of production in 2022 were China (14M tons), the United States (7.6M tons) and India (7M tons), together comprising 37% of global production. Saudi Arabia, Japan, Brazil, South Korea, Belgium, Russia, Thailand, Iran, Germany and Egypt lagged somewhat behind, together comprising a further 34%.

From 2012 to 2022, the biggest increases were recorded for Russia (with a CAGR of +11.5%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Polypropylene in Primary Forms

After eight years of growth, purchases abroad of polypropylene in primary forms decreased by -5.5% to 22M tons in 2022. The total import volume increased at an average annual rate of +2.3% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations throughout the analyzed period. The most prominent rate of growth was recorded in 2020 when imports increased by 6.4% against the previous year. Over the period under review, global imports reached the maximum at 23M tons in 2021, and then shrank in the following year.

In value terms, polypropylene in primary forms imports dropped to $33.5B in 2022. The total import value increased at an average annual rate of +2.2% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2021 with an increase of 45%. As a result, imports reached the peak of $35.9B, and then shrank in the following year.

Imports By Country

China (2.9M tons) and Turkey (2M tons) represented roughly 23% of total imports in 2022. India (1.1M tons) ranks next in terms of the total imports with a 5.2% share, followed by Italy (4.6%). The following importers - Indonesia (919K tons), Germany (908K tons), Belgium (755K tons), Vietnam (734K tons), Mexico (630K tons), Poland (610K tons), Pakistan (523K tons), Malaysia (461K tons) and Bangladesh (401K tons) - together made up 28% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Malaysia (with a CAGR of +14.8%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, China ($3.6B), Turkey ($2.9B) and Germany ($1.8B) were the countries with the highest levels of imports in 2022, with a combined 25% share of global imports. Italy, India, Mexico, Vietnam, Indonesia, Belgium, Poland, Pakistan, Malaysia and Bangladesh lagged somewhat behind, together comprising a further 33%.

In terms of the main importing countries, Malaysia, with a CAGR of +11.0%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

In 2022, the average polypropylene in primary forms import price amounted to $1,554 per ton, leveling off at the previous year. Overall, the import price saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 when the average import price increased by 42%. Over the period under review, average import prices hit record highs at $1,687 per ton in 2014; however, from 2015 to 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Mexico ($2,086 per ton), while Bangladesh ($1,157 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Mexico (+2.0%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Polypropylene in Primary Forms

In 2022, after ten years of growth, there was significant decline in shipments abroad of polypropylene in primary forms, when their volume decreased by -5.9% to 22M tons. The total export volume increased at an average annual rate of +2.8% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2020 when exports increased by 8%. Over the period under review, the global exports reached the peak figure at 23M tons in 2021, and then declined in the following year.

In value terms, polypropylene in primary forms exports shrank to $31.2B in 2022. The total export value increased at an average annual rate of +2.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2021 when exports increased by 47% against the previous year. As a result, the exports attained the peak of $34.9B, and then contracted in the following year.

Exports By Country

In 2022, Saudi Arabia (4.8M tons), distantly followed by South Korea (2M tons), the United Arab Emirates (1.2M tons), China (1.2M tons), Germany (1M tons) and Belgium (1M tons) were the main exporters of polypropylene in primary forms, together constituting 51% of total exports. The United States (950K tons), Singapore (899K tons), Russia (722K tons), Thailand (551K tons), Malaysia (523K tons), France (454K tons) and Spain (408K tons) took a little share of total exports.

Exports from Saudi Arabia increased at an average annual rate of +2.5% from 2012 to 2022. At the same time, Russia (+31.7%), China (+23.4%), Malaysia (+10.7%), the United Arab Emirates (+9.1%), South Korea (+6.5%), Thailand (+1.7%) and Singapore (+1.1%) displayed positive paces of growth. Moreover, Russia emerged as the fastest-growing exporter exported in the world, with a CAGR of +31.7% from 2012-2022. Spain and Germany experienced a relatively flat trend pattern. By contrast, Belgium (-1.3%), the United States (-1.3%) and France (-1.4%) illustrated a downward trend over the same period. China (+4.5 p.p.), Russia (+3.1 p.p.), South Korea (+2.7 p.p.) and the United Arab Emirates (+2.5 p.p.) significantly strengthened its position in terms of the global exports, while Germany, Belgium and the United States saw its share reduced by -1.9%, -2.2% and -2.2% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Saudi Arabia ($5.8B) remains the largest polypropylene in primary forms supplier worldwide, comprising 19% of global exports. The second position in the ranking was taken by South Korea ($2.5B), with an 8% share of global exports. It was followed by the United States, with a 6.4% share.

In Saudi Arabia, polypropylene in primary forms exports increased at an average annual rate of +1.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: South Korea (+4.4% per year) and the United States (+0.9% per year).

Export Prices By Country

In 2022, the average polypropylene in primary forms export price amounted to $1,446 per ton, shrinking by -5.1% against the previous year. Over the period under review, the export price continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2021 when the average export price increased by 41% against the previous year. The global export price peaked at $1,592 per ton in 2014; however, from 2015 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was the United States ($2,100 per ton), while Malaysia ($1,079 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+2.3%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform