Bio Based Polypropylene Market - Forecast(2024 - 2030)

Bio Based Polypropylene Market Overview

Bio based polypropylene market size is forecast to reach US$140.1 million by 2027 after growing at a CAGR of 10.5% during the forecast period 2022-2027. Bio-based propylene does not occur in nature, but it can be produced from various biogenic sources by chemical transformation. Raw materials are obtained from renewable feedstock such as sugarcane, corn, beet, vegetable oil, and other biomass to produce bio naphtha which is used to produce bio based polypropylene. Bio-based polymers including polypropylene can also be obtained from bio-based ethylene obtained by converting ethanol, polyethylene terephthalate, and all other thermoplastic polymers. Bio polypropylene has properties comparable to mineral oil-based polypropylene. It is used in applications such as injection molding, textiles, films used for packaging, etc. The rising concerns over the usage of conventional plastics acts as a driver for the bio based polypropylene market.

COVID-19 Impact

The Covid-19 pandemic has fundamentally changed the way we live. Its effects have been felt across every industry. The packaging for the food and beverage industry has also not been spared. Before the pandemic consumers preferred brands with reusable food packaging as it helped them decrease their carbon footprint. This trend was overturned due to Covid-19 as the pandemic drove demand for single-use packaging that was easy to dispose of, this was because consumers had become afraid that the packaging may be contaminated with the virus and could infect them. Due to lockdowns and social distancing policy, many workers were absent. The UK Poultry Industry, along with the British Poultry Council (BPC) reported a 10% decrease in throughput because of a shortage of workers across farming and processing.  The food and beverage industries were indirectly impacted by the pandemic on account of packaging shortages. There were aluminum shortages from the closing of recycling operations and flavoring agent shortages affected some beverage companies. This has also impacted the bio based polypropylene market in 2020.

Report Coverage

The report: “Bio Based Polypropylene Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the bio based polypropylene industry.

By Raw Material: Corn, Sugarcane, Vegetable Oil, and Others

By Application: Injection Molding, Films, Textiles, and Others

By End-Use Industry:  Automotive (Bumpers, Trim, Seats, Door Panels, and Others), Building & Construction, Packaging (Flexible Packaging and Rigid Packaging), Consumer Goods and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Europe dominates the bio based polypropylene market, owing to the widespread adoption of bioplastic in the region. The European Commission is committed to the goal of ensuring that all plastic packaging is recyclable by 2030.
• Bio based polypropylene is a thermoplastic polymer commonly used in the packaging industry for bags, films, cups, bottles, canisters, etc.
• Bio based polypropylene is used as a substitute for synthetic polypropylene due to increasing environmental concerns regarding the excessive usage of plastics
• The major opportunity for this market is high research spending to develop biodegradable products and to lower the cost
  

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Bio Based Polypropylene Market Segment Analysis – By Application

The injection molding segment held the largest share of more than 30% in the bio based polypropylene market in 2021. Injection molding is used to manufacture parts for construction, automotive, packaging, industrial, and electrical applications. Increasing usage of light-weighted materials in the automobile industry boosts the demand in injection molded applications. It is estimated that a 10% reduction in curb weight can result in a 6%-8% reduction in fuel consumption. To increase cost-effectiveness, efficiency, safety, and performance, and for global automotive manufacturers to compete, there is an urgent need to develop advanced materials and manufacturing technologies that reduce vehicle weight. Bio based polymers can help OEMs create the next generation of lightweight vehicles aligning with new regulatory standards on safety, emissions, and performance. For instance, General Motors uses wood-based bio polypropylene for the seatbacks of the Cadillac DeVille and flax-based bio polypropylene made for trim and shelving in the Chevrolet Impala. Polypropylene is featured in an array of injection molding applications including the packaging of consumer products and food. Therefore, the injection molding segment is set to dominate the bio based polypropylene market during the forecast period.

Bio Based Polypropylene Market Segment Analysis – By Application

The packaging segment held the largest share in the bio based polypropylene market of up to 40% in 2021. The food & beverage industry must guarantee food safety and seek sustainable solutions to increase shelf life and decrease waste. This has become particularly relevant now due to the pandemic where consumers have become extremely conscious about the packaging. According to the Food Packaging & Consumer Behavior Report, which was prepared in 2020 after a survey of 1,128 US consumers, the U.S. consumers surveyed stated that food packaging is very important to their food product purchasing decisions. When asked to rate the importance of food packaging on their purchasing decisions, 34% of respondents responded with a 10/10 and 69% of respondents chose an importance rating of 7 or above. Bio based polypropylene can be used for all kinds of film packaging, bags for frozen and chilled products, trays, bottles, tubes, and canisters. This had led to companies becoming environmentally conscious and replacing their traditional packaging with bio-based packaging. For instance, in September 2021, Germany-based packaging company, PACCOR, announced it will begin manufacturing fully biobased polypropylene products for consumer goods brand Orkla, a leading supplier of branded customer goods to the grocery, specialized retail, pharmacy, and bakery sectors in the Nordic region. Apart from packaging food and beverage products, bio based polypropylene can also be used for packaging other products such as cosmetics, chemicals, detergents, and cleaning agents. Therefore, the packaging segment is expected to dominate the bio based polypropylene market during the forecast period. 

Bio Based Polypropylene Market Segment Analysis – By Geography

Europe held the largest share in the bio based polypropylene market in 2021 up to 33%, owing to the widespread adoption of bioplastics in the region. The growing concerns about the environmental impact of plastics and the interest to shift towards renewable materials have increased the interest in bioplastics even more. The region is very environmentally conscious and has implemented the Single-Use Plastics Directive, European Green Deal 2020 & the Circular Economy Action Plan with the aim to completely reduce the use of traditional plastics. According to the European Bioplastics, the association representing the interests of the bioplastics industry along the entire value chain in Europe, the total bioplastics production is forecasted to reach approximately 2.43 million tons in 2024. The European Union’s Packaging and Packaging Waste Directive acknowledges that bio-based and recycled materials are equally viable solutions to make packaging more sustainable and member states are encouraged to promote the use of bio-based recyclable packaging and bio-based compostable packaging. The growth of bioplastics in the region also influences the growth of the bio based polypropylene industry. Thus, this region is set to dominate the bio based polypropylene market.

Bio Based Polypropylene Market Drivers

Rising Concerns Over the Usage of Conventional Plastic

Plastic has become an integral part of life. It is found in almost every industry namely packaging, automotive, building & construction, electronics, chemical, aerospace, etc. Plastic does not decompose and remains as such leading to serious environmental concerns and problems with waste. According to the International Union for Conservation of Nature (IUCN), at least 14 million tons of plastic end up in the ocean every year, and plastic makes up 80% of all marine debris found from surface waters to deep-sea sediments. Plastic pollution has become one of the most challenging environmental issues, as the rapidly increasing production of plastic products overwhelms the capability to deal with them. There is an urgent need to reduce the use of plastics and mover towards sustainable bioplastics such as bio based polypropylene. Governments all over the world have been promoting bioplastics packaging and framing policies for its adoption. For instance, the French government launched the Pacte National sur les emballages plastiques (The French National Pact on Plastic Packaging) in February 2019. The rising concerns over the usage of conventional plastic boosts the adoption of bioplastics and thus acts as a driver for the bio based polypropylene market. 

Increasing Demand for Green Packaging

Green Packaging, also known as sustainable packaging, is eco-friendly packaging that uses renewable or bio-based materials to reduce the harmful impacts of traditional packaging on the environment. According to the US Environmental Protection Agency, packaging contributes to 77.9 tons of municipal solid waste per year, almost 30% of the total amount of waste. And packaging represents 65% of all household trash. Owing to the ongoing trend of using sustainable products and reducing carbon footprint, consumers have become aware of what they buy. According to a recent survey of consumers from the US & UK by GlobalWebIndex, 42% of consumers said packaging made from recycled or sustainable materials was crucial in their everyday purchase habits and 57% of consumers reported that they are willing to pay more for environmentally friendly packaging. The care for the environment is the primary driver behind opting for green packaging. Thus, the increasing demand for green packaging is set to drive the bio based polypropylene industry. 

Bio Based Polypropylene Market Challenges

Availability of Substitutes

Polyethylene and polypropylene, both are thermoplastic polymers and have similar properties, and are used in similar applications. Their bio-based counterparts also share similar characteristics. Bio-based polyethylene is called a drop-in solution as it has the same chemical structure as mineral oil-based polyethylene which enables mineral oil-based polyethylene to be replaced one-to-one with bio-polyethylene, both in terms of applications and disposal. Products made of bio-polyethylene are 100% recyclable. Bio-polyethylene is ecologically more advantageous if it remains in the recycling system and the carbon from the sugar cane remains bound in the polyethylene. As such, bio-polyethylene is considered a product with a negative carbon footprint. Due to its status as a drop-in solution, bio-based polyethylene is inexpensive compared to bio based polypropylene. Such concerns regarding bio based polypropylene can prove to be a challenge.

Bio Based Polypropylene Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the market. Bio Based Polypropylene top 10 companies include:

1. Neste
2. Bioenergies
3. Braskem
4. SABIC     
5. FKuR Kunststoff GmbH
6. LyondellBasell Industries Holdings B.V.
7. Mitsubishi Chemical Holdings Corporation
8. Borealis
9. Trellis Earth Products, Inc.
10. Biobent Polymers 

Recent Developments

• In May 2021, Global skin-care manufacturer Beiersdorf announced that it is innovating the packaging of its world-leading Nivea Naturally Good range of day and night face creams with the use of biobased polypropylene from SABIC.
• In October 2020, Borealis collaborated with Borouge and Itochu to enable the uptake of renewable polypropylene in the Japanese market. Itochu set a target to commercially launch Japan’s first food containers and packaging materials made of renewable polypropylene by the end of the year.

Relevant Reports

Bioplastics Market- Forecast (2021-2026)
Report Code: CMR 80476

Biopolymers Market- Forecast (2022-2027)
Report Code: CMR 0117

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