The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The global bio-based polypropylene market is expected to reach USD 50.7 million by 2025 at a CAGR of 5.1%, according to a new report by Grand View Research, Inc. Rise in demand for bio-based polypropylene can be attributed to focus on sustainable plastics in the food and beverage industry.
Bio-based polypropylene is anticipated to register higher penetration in the automotive industry due to heightening need to reduce overall weight of automobiles. Multiple political and government initiatives are being undertaken for the reduction of greenhouse gas (GHG) emissions and carbon footprint. In addition, major automobile manufacturers are focused on deploying materials that increase fuel efficiency of automobiles, which is expected to drive market growth over the forecast period.
This industry benefits from the presence of several regulations promoting the use of low-weight materials across applications. In addition, the adoption of international concords including the Kyoto and Montreal protocols will propel the use of bio-based polymers for various applications. However, dwindling raw material availability is expected to pose a major threat to industry growth over the coming years.
Further key findings from the report suggest:
- Films accounted for 18.5% of the market in 2016 in terms of application on account of notable demand from major players in the food and beverage packaging industry
- By application, the injection segment is anticipated to expand at the highest CAGR of 5.7% in terms of revenue. This can be attributed to increased usage in the production of components in automotive, building and construction, and electrical and electronics industries
- Europe is likely to register a revenue-based CAGR of 5.3% during the forecast period. This is majorly due to usage in various application industries supported by regulatory agencies such as the European Commission
- Key players in the market use several patented production techniques and constantly strive for discovery of new products. As a result, R&D investments are high in this industry.