The market for bio-based polypropylene is expected to register a CAGR of more than 10% globally during the forecast period. Rising environmental concerns regarding the usage of conventional plastics and the increasing replacement of fossil-based feedstock with renewable materials have been driving the market growth. On the flip side, the high cost of producing bio-based polypropylene compared to conventional plastics has been hindering the growth of the market.
- The injection molding segment dominated the market and is expected to grow during the forecast period.
- Europe dominated the market across the world, with the largest consumption coming from countries, such as Germany, France, and the United Kingdom.
Key Market Trends
Growing Demand from Injection Molding Application Segment
- Bio-based polypropylene, owing to its high melting point, good fatigue properties, heat, and chemical resistivity, along with it being environmentally friendly, is used in various injection molding applications in industries, such as packaging, automotive, electronics, and medical, among others.
- The demand for bio-based polypropylene in packaging applications, such as for wrapping organic food, as well as for premium and branded products with particular requirements, has been rising steadily. Moreover, governments all across the world have been promoting bioplastics packaging, in the context of various policies for innovation, resource-efficiency, and climate change.
- Furthermore, according to injection mold specialist, SFA Packaging from Middelharnis, at present, the majority of the foods come in an injection mold packaging made of polypropylene. Owing to environmental concerns, the increasing number of consumers, along with the government and manufacturers, have been preferring eco-friendly packaging options.
- This has prompted companies, such as Borealis, along with Neste, to start bio-based polypropylene production, while other companies, such as Mitsui Chemicals Group, introduced bio-polypropylene project at G20 Ministerial Meeting in Karuizawa in 2019.
- All such factors are expected to drive the market for bio-based polypropylene in injection molding application through the years to come.
Europe Region to Dominate the Market
- Europe holds a strong position as a major hub for the bio-based polypropylene industry and further ranks high in the field of research and development in the particular industry.
- Government regulations in most European countries regarding the usage of bio-degradable plastics, including bio-based polypropylene, have been stringent, with the government pushing the usage of such environmentally friendly products continuously.
- Moreover, the usage of bio-based polypropylene can be majorly found in the packaging industry. Europe is one of the leading consumers in the packaging industry and has been developing the various packaging segment. Additionally, the popularity of the e-commerce segment and the growing retail market have given a huge opportunity to the bio-based polypropylene market to grow in the region through the years.
- Overall, such factors are expected to drive the market for bio-based polypropylene in Europe through the years to come.
The global bio-based polypropylene market is partially consolidated in nature, with the major players dominating a significant portion of the market. Some of the major companies operating in the market are Borealis AG, Braskem, Mitsui Chemicals Inc., Novamont SpA, and LyondellBasell Industries Holdings BV, among others.
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