PP Compound Market Outlook - Supply and Demand Analysis 2024-2032

PP Compound Market

PP compound is a material made by mixing polypropylene resin with additives, fillers, and reinforcements to improve its strength, rigidity, impact resistance, and thermal stability. These compounds are tailored for various applications and are widely used in the automotive, consumer goods, electrical and electronics, and packaging industries due to their versatility and cost-effectiveness.

Global Supply/Demand Outlook

The global PP compound market stood at a volume of around 8,324 KT in the year 2023. The market is estimated to grow at a CAGR of 4.0% between 2024 and 2032 to reach a volume of about 11,942.5 KT by 2032. The key factors propelling the PP compound market are increasing automotive production and growing electrical and electronics and consumer electronics sector. The automotive industry is a major consumer of PP compounds and is anticipated to remain the largest market in the forecast period. This growth is driven by rising automotive production and the increasing demand for lightweight, durable materials, prompted by stringent government regulations aimed at enhancing fuel efficiency and reducing greenhouse gas emissions.

The global capacity of PP compound was about 9,615 KT in the year 2023. Asia Pacific holds the major share of PP compound capacities, representing more than 55% of the global production capacity. North America and Europe follow closely behind, together accounting around 35% of the capacity. The plant capacity utilization of PP compound has been increasing continuously post COVID-19. In 2023, the plant utilization increased to 85% from 80% in 2022 due to high demand in Asia Pacific region and rising price level.

Key Market Players

LyondellBasell is the world's leading producer of PP compounds and in 2016, the company had completed the acquisition of A. Schulman, Inc to more than double its compounding business during that time. Currently, LyondellBasell has around 30 compounding facilities across the globe. The company holds approximately 14% of the global PP compound capacity. It is followed by Mitsui Chemicals and Kinga, with each of them holding nearly 12% of the overall market share.

Other major manufacturers of PP compound are Borealis AG, Mitsubishi Corporation, Washington Penn, Sumitomo Chemical, GS Caltex, Exxon Mobil, SABIC, Ravago, and IRPC. Combined, these companies represent around 60% of the global capacity.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for PP compound by end use and region?

• What are the major polymer types of PP compound available by region?

• Which segments and regions are projected to grow at a faster pace and why in the PP compound market?

• What is the nameplate capacity of PP compound by region from 2018 to 2032?

• How does the plant capacity utilisation of PP compound vary by region between 2018 and 2032?

• Who are the major players in the PP compound market by capacity and region?

• What major plant shutdowns and expansions have occurred in the PP compound market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the PP compound market over the next year and quarters?

• How did export and import dynamics of PP compound vary by region in terms of value between 2018 and 2023?

• How did export and import dynamics of PP compound vary by region in terms of volume between 2018 and 2023?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of PP compound?

• What are the environmental considerations and regulatory impacts affecting the PP compound market?

• What technological innovations are having an impact on the production and application of PP compound?

• What are the key trends and innovations in the PP compound market?

• What are the challenges and opportunities faced by PP compound manufacturers?

• What are the potential risks and barriers to entry for new players in the PP compound market?

• What strategic investments and expansions have major players made in the PP compound market?

• How are geopolitical factors and international trade policies affecting the global PP compound market?

• What are the price trends for PP compound, and how are they expected to change?

• How does the supply chain of PP compound operate, and what are its key components?