Polypropylene
compounds are widely used in various applications such as automotive, consumer
goods, medical, infrastructure, and packaging sectors owing to their superior
physical and chemical properties including high melting temperature, high
resistivity to chemicals, durability, toughness and dimensional stability
properties. Polypropylene compounds are used by packaging companies for
different packaging products like bottles, containers, films, and ropes.
Packaging made from polypropylene compounds provides advantages such as
transparency, glossy look, crack resistance, chemical resistance, melt
processing ability and most importantly recyclability. With growing concerns
over environment protection and sustainable development, there is rising demand
for recyclable packaging from various end use industries which presents a key
market opportunity for polypropylene compounds.
The global Polypropylene Compounds Market is estimated to be valued at US$ 23.21 Bn in 2023 and is expected to
exhibit a CAGR of 5.8% over the
forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Opportunity:
The opportunity in recyclable packaging is expected to drive the
polypropylene compounds market. Plastic packaging made from polypropylene
compounds can be recycled easily and used again for production of new packaging
products. This helps reduce plastic waste and supports circular economy. With
regulations and initiatives promoting recycling and use of recycled plastic,
packaging producers are increasingly adoption polypropylene compounds to
manufacture recyclable plastic packaging. This growing demand for recyclable
packaging made from polypropylene compounds presents a major market opportunity
over the forecast period.
Porter’s Analysis
Threat of new entrants: The polypropylene compounds market requires large
capital investments for R&D and production facilities. Established players
enjoy economies of scale. These factors make the threat of new entry moderate.
Bargaining power of buyers: There
are numerous buyers in various end-use industries for polypropylene compounds.
This provides buyers moderate bargaining power.
Bargaining power of suppliers: Key
raw materials for polypropylene compounds include polypropylene and additives.
Major suppliers have established presence reducing buyer power.
Threat of new substitutes:
Substitutes include other polymers and materials. However, polypropylene
compounds have established applications difficult to replace reducing threat.
Competitive rivalry: The market has
several global players operating. Intense competition on pricing and quality
characteristics.
SWOT Analysis
Strength: Wide applications in
automotive, packaging, electrical & electronics industries. Superior
properties over other plastics.
Weakness: Vulnerable to fluctuations
in raw material prices. Issues with recyclability.
Opportunity: Rising demand for green
and biodegradable compounds. Growth in Asia Pacific and Middle East &
Africa regions.
Threats: Stringent environmental
regulations. Shift toward substitutes like PET and wood plastics composites.
Key Takeaways
Asia
Pacific accounts for the largest share of the market currently owing to high
production and demand from China, India, Japan and other countries.
Key
players operating in the polypropylene compounds market are Siemens
Healthineers, Nordion Inc., Lantheus Holdings Inc., Guerbet Group, GE
Healthcare, Curium, Bracco Imaging SpA, Bayer AG, Cardinal Health Inc., and NTP
Radioisotopes SOC Ltd. The market is very fragmented with presence of numerous
global and regional players. Rising automotive production and electrical &
electronics demand especially in developing nations will drive future growth.
However, slowdown in electronics and automotive markets along with increasing
environmental regulations can hamper polypropylene compound sales.
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