Bio Based Polypropylene Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2022 - 2027

Report Code: CMR 93489 Report Format: PDF + Excel

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

Figure: Europe Bio Based Polypropylene Market Revenue, 2021-2027 (US$ Million)

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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

For more Chemicals and Materials Market reports, please click here

1. Bio Based Polypropylene Market- Market Overview
    1.1 Definitions and Scope
2. Bio Based Polypropylene Market - Executive Summary
    2.1 Key Trends by Raw Material
    2.2 Key Trends by Application
    2.3 Key Trends by End Use Industry
    2.4 Key Trends by Geography
3. Bio Based Polypropylene Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Bio Based Polypropylene Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Bio Based Polypropylene Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Bio Based Polypropylene Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Bio Based Polypropylene Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Bio Based Polypropylene Market – By Raw Material (Market Size -$Million/Billion)
    8.1 Corn
    8.2 Sugarcane
    8.3 Vegetable Oil
    8.4 Others
9. Bio Based Polypropylene Market – By Application (Market Size -$Million/Billion)
    9.1 Injection Molding
    9.2 Films
    9.3 Textiles
    9.4 Others
10. Bio Based Polypropylene Market – By End Use Industry (Market Size -$Million/Billion)
    10.1 Automotive
        10.1.1 Bumpers
        10.1.2 Trim
        10.1.3 Seats
        10.1.4 Door Panels
        10.1.5 Others
    10.2 Building & Construction
    10.3 Packaging
        10.3.1 Flexible Packaging
        10.3.2 Rigid Packaging
    10.4 Consumer Goods
    10.5 Others
11. Bio Based Polypropylene Market - By Geography (Market Size -$Million/Billion)
    11.1 North America
        11.1.1 USA
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 UK
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Netherlands
        11.2.6 Spain
        11.2.7 Russia
        11.2.8 Belgium
        11.2.9 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 India
        11.3.4 South Korea
        11.3.5 Australia and New Zeeland
        11.3.6 Indonesia
        11.3.7 Taiwan
        11.3.8 Malaysia
        11.3.9 Rest of APAC
    11.4 South America
        11.4.1 Brazil
        11.4.2 Argentina
        11.4.3 Colombia
        11.4.4 Chile
        11.4.5 Rest of South America
    11.5 Rest of the World
        11.5.1 Middle East
            11.5.1.1 Saudi Arabia
            11.5.1.2 UAE
            11.5.1.3 Israel
            11.5.1.4 Rest of the Middle East
        11.5.2 Africa
            11.5.2.1 South Africa
            11.5.2.2 Nigeria
            11.5.2.3 Rest of Africa
12. Bio Based Polypropylene Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Bio Based Polypropylene Market – Industry/Segment Competition Analysis Premium
    13.1 Company Benchmarking Matrix – Major Companies
    13.2 Market Share at Global Level - Major companies
    13.3 Market Share by Key Region - Major companies
    13.4 Market Share by Key Country - Major companies
    13.5 Market Share by Key Application - Major companies
    13.6 Market Share by Key Product Type/Product category - Major companies
14. Bio Based Polypropylene Market – Key Company List by Country Premium Premium
15. Bio Based Polypropylene Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10 and more
"*Financials would be provided on a best effort basis for private companies"

LIST OF TABLES

LIST OF FIGURES

1.US Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
2.Canada Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
3.Mexico Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
4.Brazil Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
5.Argentina Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
6.Peru Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
7.Colombia Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
8.Chile Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
9.Rest of South America Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
10.UK Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
11.Germany Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
12.France Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
13.Italy Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
14.Spain Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
15.Rest of Europe Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
16.China Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
17.India Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
18.Japan Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
19.South Korea Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
20.South Africa Bio Based Polypropylene Market Revenue, 2019-2024 ($M)
21.North America Bio Based Polypropylene By Application
22.South America Bio Based Polypropylene By Application
23.Europe Bio Based Polypropylene By Application
24.APAC Bio Based Polypropylene By Application
25.MENA Bio Based Polypropylene By Application
26.Braskem, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.SABIC, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Biobent Polymers, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Neste, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.FKuR Kunststoff GmbH, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Novamont SpA, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Sinopec Group, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.PTT Chemical Public Company Limited, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Bioenergies, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Trellis Earth Products, Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.DowDuPont, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.LyondellBasell Industries Holdings B.V., Sales /Revenue, 2015-2018 ($Mn/$Bn)
38.Mitsubishi Chemical Holdings Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
39.Exxon Mobil, Sales /Revenue, 2015-2018 ($Mn/$Bn)
40.Reliance Industries Limited, Sales /Revenue, 2015-2018 ($Mn/$Bn)