According to a new report published by Allied Market Research, titled, “Polypropylene & High-impact Polystyrene Market," The polypropylene & high-impact polystyrene market was valued at $49.6 billion in 2021, and is estimated to reach $81.1 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.
Injection molding is a mass production process, in which similar plastic components are produced in large quantity. Both, thermoplastic and thermosetting plastics can be used in the injection molding process. The injection-molded polypropylene & high-impact polystyrene is largely used in packaging applications to manufacture packaging parts and components to increase the aesthetic value and consumer friendliness of the packaging products.
The global polypropylene & high-impact polystyrene market for injection molding is primarily driven by a wide range of applications of the materials in numerous end-user industries and low waste production during the manufacturing process. Furthermore, the expansion of the polypropylene and high-impact polystyrene market for injection molding is aided by cheap labor costs and bulk manufacturing advantages. However, the market's growth is hampered by high initial tooling costs and restrictions on completed product design because injection molding is limited to a single design. Automation in the injection molding process is becoming more common as a result of technological advancements, which is projected to open up new prospects for market growth in the future.
According to material, the polypropylene segment is projected to hold a 90.0% market share in the market in 2021. Polypropylene holds the largest market share in the polypropylene and high-impact polystyrene market for injection molding as, polypropylene is also used for making automotive components and, because of the very large market of automotive sector polypropylene will witness an increase in market demand.
By application, the automotive segment is projected to contribute a 24.9% market share in the market in 2021. Automotive sector has been the primary market for polypropylene and high-impact polystyrene as vehicle weight reduction has become the most challenging requirement faced by automotive manufacturers and suppliers. Original Equipment Manufacturing (OEM) use polypropylene to produce vehicles that are lightweight, energy efficient, and sustainable.
Region-wise, Asia-Pacific is projected to hold a significant share in the global polypropylene & high-impact polystyrene market for injection molding. APAC is the second-largest importer of polypropylene along with having massive demand for its products. Polypropylene’s characteristics make it ideal for tough, robust products ranging from protective car bumpers to life-saving medical tools to cold-weather gear for soldiers.
The major companies profiled in this report include, LyondellBasell, SABIC, Exxon Mobil Corporation, INEOS, KISCO LTD., Innova, Resilient Plastics Pvt. Ltd., King Plastic Corporation, China Petroleum & Chemical Corporation (Sinopec Limited), and LG Chem.
These players have adopted strategies such as product launch and business expansion to sustain the competition and to strengthen their foothold in the market.
Key Findings of Study
- Region-wise, Asia-Pacific is projected to grow at the highest CAGR of nearly 5.7%, in terms of revenue, during the forecast period.
- By application, the automotive segment accounted for the largest market share in 2021.
- By material, the polypropylene segment garnered the highest share in 2021.
Impact of COVID-19 on Global Polypropylene & High-impact Polystyrene Market for Injection Molding
- The outbreak of COVID-19 led to partial or complete shutdown of production facilities that do not come under essential goods, owing to prolonged lockdown in major countries, including the U.S., China, Japan, India, and Germany. It led to either closure or suspension of production activities in most of the industrial units across the globe.
- The COVID-19 pandemic stagnated production activities in various areas, such as consumer goods & electronics, household, packaging, horticulture & agriculture, construction, automotive, and textile making. Supply chain disruptions of raw materials to these industries led to decline in the demand for polypropylene & high-impact polystyrene.
- In addition, the price of crude oil fell significantly due to decrease in demand for oil in various industries, subdued production activities in various industries, and increase in restrictions due to lockdown globally, which further reduced operating rates.
- However, the demand for plastic products from the healthcare and food packaging industries is on the rise again due to the rise in preference for single use healthcare products and packaged food & beverages.