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Indian Polypropylene Market - Forecast(2023 - 2028)
Indian Polypropylene Market Overview
The Indian Polypropylene Market size
is forecasted to reach US$14.8 billion by 2027, after growing at a CAGR of 9.7%
during the forecast period 2022-2027. Polypropylene (PP) polymer is a monomer
of propylene which is also referred to as polypropene and the chemical formula is (C3H6)n. Polyolefins are
considered among the most common and preferred commodity polymers, whereas
polypropylene and polyethylene
are most commonly used. PP owns quite similar properties as that of
polyethylene, however, it possesses greater resistance toward heat than polyethylene.
It is mainly referred to as commodity plastic as it is mainly used in the
manufacturing of packaging products such as bottles and bags. Polypropylene is
known as a thermoplastic
polymer that softens upon heating and can be remolded. The major
advantages associated with the use of polypropylene are flexibility, toughness,
large thermal expansion, resistance to organic solvent and weak oxidizing agent
and high resistance to fatigue.
Many industries
across the globe have faced several challenges due to the COVID-19 pandemic.
The industries such as packaging, automotive, textile and consumer goods including
many others have experienced pitfalls. The production and demand in these
industries have declined due to an interrupted supply chain and the cessation of
transportation. With the pause in industrial production and distribution, the demand
and consumption of polypropylene have been hampered to an extent in several
industries in India. Moreover, a decrease in the demand for electrical and
electronics has also hampered the Indian polypropylene market size during the pandemic.
Report Coverage
The report: “Indian Polypropylene Market Report – Forecast (2022-2027)” by IndustryARC,
covers an in-depth analysis of the following segments in the Indian polypropylene industry.
Key Takeaways
- The remarkable growth in the packaging
industry is driving the growth of Indian polypropylene market.
- Polypropylene plays an
important role in several industries such as building and construction, medical,
electrical and electronics and consumer goods which are expected to provide
significant growth opportunities to increase Indian polypropylene market size in coming years.
- Increase in automotive
production in India is expected to provide substantial growth opportunities for
the industry players in near future in Indian polypropylene industry.
Figure: Indian Polypropylene Market Revenue Share, By Type, 2021 (%)
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Indian Polypropylene Market Segment Analysis – By Type
The Homopolymer polypropylene segment held the largest Indian Polypropylene Market share in 2021, with a share of over 62%. Homopolymer polypropylene is a widely-used general-purpose grade of polypropylene. It comprises of propylene monomer in a semi-crystalline solid form. As compared to copolymer, homopolymer owns high strength-to-weight ratio and strength. It holds beneficial properties such as impact resistance, chemical resistance, processability and corrosion resistance. It is widely utilized in applications such as automotive, packaging, healthcare, textile and electrical and electronics. Thus, the beneficial properties associated with the use of copolymer polypropylene is boosting the market growth.
Indian Polypropylene Market Segment Analysis – By End-Use Industry
The packaging segment is expected to grow at
the fastest CAGR of 10.2% during the forecast period in the Indian Polypropylene Market. Polypropylene
is one of the most widely used materials for packaging applications owing to its
low cost, superior barrier properties, high strength and better surface finish. It is also the preferred material for
food packaging applications owing to its excellent optical clarity in
combination with its low vapor-moisture transmission. It is utilized in several
packaging applications such as stationery folders, storage boxes, bottles and
crates. Thin-walled polypropylene containers are majorly used in food items
packaging. It is also used in several packaging applications such as packaging
of consumer products and plastic parts for numerous industries such as
automotive, special devices and textile. It can be used in both rigid and
flexible packaging. Thus, the increase in demand from the packaging industry is
boosting the market growth of the polypropylene market.
Indian Polypropylene Market Drivers
Surge in production of automotive
Polypropylene is widely used in automotive applications owing to its
low cost and superior mechanical properties. The automotive industry accounts for a substantial share of Indian polypropylene market share. It is utilized to produce a wide range of
automotive parts such as battery trays and cases, fender liners, bumpers, door
trims, interior trim and instrumental panels. These are majorly used in owing
to its beneficial properties such as stiffness, processability, superior
weatherability and high chemical resistance. There are different types of polypropylenes
which is used in automotive applications such as homopolymer, impact copolymer
and expanded polypropylene. According to Indian Brand Equity Foundation (IBEF),
the government of India is expecting that the automobile sector would attract
US$8-10 billion in local and foreign investment by 2023. Thus, growth in the automotive sector is further propelling the demand for polypropylene in the Indian
market.
Increase in adoption in the packaging industry
Polypropylene is
extensively used in packaging applications for both rigid and flexible
packaging. It is mainly applicable to the packaging of major sectors such as food
and confectioneries, tobacco and clothing. In rigid packaging, it is utilized
to manufacture caps and closures, pallets, bottles, crates and jars. It is
utilized for the packaging of food products, cleaning products, bleaches and
first-aid products. The properties such as fatigue resistance, high chemical
resistance and durability make it a suitable material for packaging. It is
majorly utilized as a packaging material as it is waterproof and resistant to
moisture. It is resistant to wear, tear and fatigue which makes it suitable for
applications that require a high level of physical stress. PP is used for a wide
range of industries for packaging such as food and beverages, personal care and
cosmetics, household and medical and healthcare. According to the Packaging
Industry Association of India, packaging is one of the high-growth
industries in India which is growing at around 22-25% per annum. India is
becoming a suitable hub for the packaging industry. Thus, growth in the packaging
industry is boosting the demand for polypropylene and it also accounts for a significant share of Indian polypropylene market share.
Indian Polypropylene Market Challenges
Availability of substitute material
Polypropylene is widely used in a range of applications such as food
packaging, automotive, personal care and cosmetics, agriculture, consumer goods
and medical including many others owing to its low cost and superior properties.
However, there is a range of sustainable alternative materials available for PP
materials such as paper and bioplastics. Along with this, a new version of
flexible PLA is expected to replace PP in food packaging applications. Also,
other plastics such as polyethylene, polystyrene, polyethylene terephthalate
and polyvinyl chloride. Thus, the availability of substitute materials may
hamper market growth.
Indian Polypropylene Industry Outlook
The top 10 companies in the Indian polypropylene market are:
- Reliance Industries Limited (RIL)
- HMEL (HPCL-Mittal Energy Ltd)
- Indian Oil Corporation Limited
(IOCL)
- Haldia Petrochemicals Limited (HPL)
- Mangalore Refinery and Petrochemicals Ltd. (MRPL)
- ONGC Petro additions Ltd. (OPaL)
- Brahmaputra Cracker and Polymer Limited (BCPL)
- Kingfa Science & Technology (India) Limited
- Milliken Chemical
- Exxon Mobil Corporation
Recent Developments
- In June 2020, Indian Oil Corporation announced the selection of LyondellBasell’s Spheripol technology for its new facility in Haryana, India with a polypropylene production capacity of 450 KTA.
- In August 2019, Haldia Petrochemicals Ltd (HPL) invested Rs. 8,000 crores in a naphtha cracker unit and polypropylene facility in Odisha.
- In February 2019, HPCL-Mittal Energy Ltd. selected LyondellBasell’s Spheripol polypropylene process technology for its new 500 KT polypropylene plant in Bhatinda, India. This process offers low operating and capital costs, superior operability and wide product capability.
Relevant Reports
Polypropylene Foams Market -
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