Global Polypropylene Terpolymer (Ter PP) Market

Overview

Global Polypropylene Terpolymer (Ter PP) Market reached US$ 631.3 million in 2023 and is expected to reach US$ 954.4 million by 2031, growing with a CAGR of 5.3% during the forecast period 2024-2031.

China's significant population and expanding middle class, which includes the building, automotive and packaging sectors, present a sizable market for polypropylene terpolymer products. Companies can capitalize on market opportunities and effectively meet the growing demand by establishing production lines in China.

For instance, in March 2023, a 500,000-tpy polypropylene (PP) reactor line has been started by PetroChina GuangDong PetroChemical firm. In order to fulfil the growing demand for premium PP resins in the Chinese market, the facility will produce impact copolymer, random copolymer and homopolymer PP resins.

With a total licensed capacity of 1.850 Million Tons per year, this was the second UNIPOL PP technology reactor line licensed by PetroChina Guangxi and the sixth by PetroChina Group from Grace. Homopolymer, ethylene random copolymer, impact copolymer, butene random copolymer and terpolymer polypropylene resins can all be produced using this UNIPOL PP technology line in China. Therefore, China contributes to the growth of the regional product market with significant regional market share.

Dynamics

Market Response and Innovative Product Development Drive Breakthrough

Companies can launch high-value polypropylene terpolymer products with improved features and functionalities using creative product development initiatives. The specialty materials, which serve certain industries and uses, including metallocene polyethylene and terpolymer polypropylene, generate new revenue streams and increase the size of the industry overall.

For instance, in March 2023, to optimize its product structure, Yangzi Petrochemical monitored the market in February. It then hit the "fast forward" button for the production of new polyolefin special materials, producing terpolymer polypropylene, thermoforming polypropylene, metallocene polyethylene and EVA photovoltaic film materials in that order. Amounting to 70.56% of the total monthly output, specific materials for new goods were in addition to several high-value products that are in short supply on the market. The was 0.36 percentage points more than the best level in accomplishing the new breakthrough.

Product Innovation and Capacity Expansion

New grades, formulations and functions of polypropylene terpolymer are developed as a result of product innovation, broadening the range of sectors in which it can be used. For instance, formulation advancements can provide polypropylene terpolymer with improved qualities such as increased heat resistance, flexibility and impact resistance, making it appropriate for usage in consumer goods, automotive components and packaging, among other applications.

For instance, in August 2020, the world's largest manufacturer of biopolymers and polyolefins, Braskem announced the introduction of its new INSPIRE polypropylene (PP) grade, which is intended to replace polyethylene terephthalate (PET) in consumer packaging applications like ready-made meals at supermarkets and fast-casual restaurants where greater temperature resistance is required.

Higher Demand for PP Co-Polymer

Producers which sell PP Co-Polymer in addition to other polypropylene products may expand their product portfolio. Compared to homopolymer PP, PP co-polymer offers distinct properties such as greater flexibility, impact resistance and transparency, making it suitable for a wider range of applications. Manufacturers can increase revenue streams by catering to a broader range of consumer wants and entering unexplored areas by diversifying their product offerings.

For instance, in August 2020, the impact market (block) copolymer in India is expected to increase following nearly two years of comparatively poor performance, helped by a comeback in the automotive industry. As a result of falling sales of two- and four-wheelers, OEM (original equipment manufacturers) sales also sharply declined, leading to a reduction in the growth of the auto component sector. The Automotive Component Manufacturers Association of India (ACMA) reported an 11.7% decrease in the automobile component industry's turnover for fiscal year 2019-2020 compared with the previous year.

Limited Recycling Infrastructure

Low rates of recycling polypropylene terpolymer are caused by inadequate recycling infrastructure. A large amount of discarded polypropylene terpolymer goods are not recycled into new materials but instead wind up in landfills or incinerators due to a lack of infrastructure for collection, sorting and processing. Low recycling rates impede market expansion by limiting the supply of recycled polypropylene terpolymer feedstock available for manufacture.

Segment Analysis

The global Polypropylene Terpolymer market is segmented based on application, end-user and region.

Market Expansion and Industry Trends Fueling Segmental Growth

Automotive manufacturing in emerging markets such as China, India and Brazil are rapidly increasing, owing to increased disposable incomes, urbanization and infrastructure development. PP Co-Polymer manufacturers may capitalize on this trend by meeting the growing demand for lightweight materials in these areas.

According to Stats, global automotive production will reach around 77.7 million vehicles in 2020, with Asia-Pacific accounting for the highest proportion, indicating a huge market opportunity for PP Co-Polymer in this region. As a result, the automotive segment is critical to driving the growth of the global PP Co-Polymer market, which is aided by industry trends such as the rising use of interior components, a shift towards electric vehicles and increased vehicle production in emerging regions. Therefore, burgeoning demand from automotive end-user segment captures the significant shares in the total global segmental shares.

Geographical Penetration

Government-Led Initiatives Propel Growth of PP Co-Polymer Market in APAC

Government in the developing countries started taking initiatives to enhance the domestic manufacturing and exports to open up the new market prospects for PP Co-Polymer manufacturers in APAC. Increased regional and other local production capacity and competitiveness allow manufacturers to cater the demand for both domestic and international markets, resulting in global market growth for PP Co-Polymer.

Governments in APAC nations are implementing measures and other related policies to increase the domestic manufacturing and attract foreign investment. China's Made in China 2025 project and India's Make in India strategy intends to improve the country's manufacturing capacity, resulting in increased demand for innovative materials such as PP Co-Polymers. Therefore, Asia-Pacific is leading the global Polypropylene Terpolymer market with majority of the global market shares.

COVID-19 Impact Analysis

Price instability was caused by changes in supply and demand, which affected the Polypropylene Terpolymer market among other markets. Market volatility was caused on by uncertainties over the scope and duration of the epidemic, which had an impact on industry participants' profit margins and pricing policies.

The pandemic-induced economic downturn reduced demand for PP Co-Polymer across a wide range of end-use sectors. Lockdowns and other closures of production units and complete shutdown of supplying units and lower consumer spending all contributed to decreased demand in the automotive, construction and consumer products manufacturing sectors.

Russia-Ukraine War Impact Analysis

As the war started, U.S. imposed severe economic penalties, including a ban on Russian oil imports. Crude oil prices immediately exceeded US$ 100 per barrel, indicating an increase in resin cost. PE suppliers hiked per-pound costs by 4 cents in March, with another 6-cent increase planned for Q2 2022. Likewise, PP suppliers have adopted a per-pound increase ranging from 8 to 10 cents, with another 4-cent rise possible in Q2 2022.

The war-related pallet production standstill in Ukraine has left those who rely on the finished product in the lurch. Limited pallet availability raises costs in the face of increasing demand, particularly as upstream resin stockpiles increase. Supply chain disruptions continue to clog shipping channels, resulting in massive surpluses of plastics being stored on pallets for export. Increased pallet costs exacerbate already exorbitant shipping expenses and resin manufacturers are feeling the strain.

By Application

• Fiber
• Film & Sheet
• Others

By End-User

• Packaging
• Automotive
• Medical
• Consumer Goods
• Building & Construction
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In March 2023, a 500,000-tpy polypropylene (PP) reactor line has been started by PetroChina GuangDong PetroChemical firm. In order to fulfil the growing demand for premium PP resins in the Chinese market, the facility will produce impact copolymer, random copolymer and homopolymer PP resins.
• In August 2020, the world's largest manufacturer of biopolymers and polyolefins, Braskem announced the introduction of its new INSPIRE polypropylene (PP) grade, which is intended to replace polyethylene terephthalate (PET) in consumer packaging applications like ready-made meals at supermarkets and fast-casual restaurants where greater temperature resistance is required.
• In 2018, Saudi SABIC has introduced a new impact PP copolymer grade that represents a possible alternative to existing ABS materials used in home appliances, high-end cosmetics, furniture and other household consumer goods markets.

Competitive Landscape

The major global players in the market include LyondellBasell Industries, SABIC, TotalEnergies, INEOS Group, Mitsui Chemicals, Inc., Formosa Plastics Corporation, Dow Inc., Borealis AG, PolyOne Corporation and Hanwha Chemical Corporation.

Why Purchase the Report?

• To visualize the global Polypropylene Terpolymer market segmentation based on application, end-user and region, as well as understands key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of Polypropylene Terpolymer market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Application mapping available as excel consisting of key products of all the major players.

The global Polypropylene Terpolymer market report would provide approximately 53 tables, 44 figures and 175 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies