Bio-Based Polypropylene Market Size, Share & Industry Analysis, By Application (Building & Construction, Automotive, Consumer Goods, Packaging, and Others) and Regional Forecast, 2024-2032

The global bio-based polypropylene market size was USD 183.5 million in 2023 and is projected to grow from USD 255.8 million in 2024 to USD 3,824.1 million by 2032 at a CAGR of 39.9% during the forecast period (2024-2032). Europe dominated the bio-based polypropylene market with a market share of 51.5% in 2023.

Bio-based polypropylene (PP) is a polymer compound derived from plants and has balanced properties as standard polypropylene. This polymer is manufactured from materials such as corn, vegetable oils, and sugarcane. This polymer is a sustainable alternative to traditional synthetic polypropylene that is used with other material such as fiberglass for several applications. These applications include injection molding, and films for packaging, textiles. According to European Bioplastics, commercialization of bio-based PP started in 2019, therefore the market is still at its nascent stage, and it is expected to be quadrupled by 2025. The growing product demand for bio-based PP is due to bioplastic industry growth. Moreover, this product is used in automotive and consumer goods industries for applications such as frames, duct and tubing, wiring, body of vehicles. The aforementioned factors all together are propelling the bio-based polypropylene market growth.

However, The COVID-19 outbreak has resulted in global lockdown, led to impermanent stop in manufacturing actions and export & imports. The industries that are affected by the pandemic are automotive, construction, and consumer goods.

Bio-Based Polypropylene Market Trends

High Demand for Bio-Based PP from Automotive Industry to Provide Growth Opportunities

The growing demand for bio-PP from automotive industry is positively affecting the market growth. This product is used for automotive applications such as car bumpers, lateral siding, rocker panels, body panels, dashboards, door pockets, panels, consoles, battery covers, heating ventilation air conditioning, air ducts, and pressure vessels. The growing importance of recycling in the automotive industry is driving the bio-based PP demand, thus resulting in the market growth. Bio-PP can provide high recycling as compared to traditional polypropylene which is resulting in high consumption of this material. Additionally, commercial production bio-PP for widespread applications of polypropylene in automotive industry is expected to have a strong market growth potential.

Bio-Based Polypropylene Market Growth Factors

Increasing Demand for Bio-Based Polypropylene from Packaging Industry Shall Aid in the Growth of the Market

Bio-based PP is majorly utilized in packaging industry for products such as packaged food, packaged beverages, and sealed food. Films made from this polymer are used for covering of products during transportation. The use of this material offers excellent flexibility, and sturdiness, and protects the products from external factors. Hence, the increasing demand from packaging industry acts as a key driving factor for the bio-PP market. The growing awareness regarding usage of biomass and industrial residue for plastic production as an act towards protection of the environment, is in turn leading to high consumption of this product. Mitsui Chemicals used new production method for commercialization of bio-PP that involves fermentation of various biomass, mainly non-edible plants, to produce isopropanol (IPA). Moreover, fluctuating prices of traditional plastic raw material such as crude oil is also a driving factor for the adoption of bio-based substitutes.

Growing Building & Construction Industry to Boost the Demand for Bio-Based Polypropylene

The growth of bio-based polypropylene applications in the buildings & construction industry is driven by several key factors. Firstly, heightened environmental awareness and regulations promoting sustainable construction practices have propelled the demand for eco-friendly materials. Bio-based polypropylene, derived from renewable sources such as biomass or agricultural waste, offers a greener alternative to traditional plastics, aligning with these sustainability objectives. Additionally, advancements in manufacturing technologies have improved the performance and cost-effectiveness of bio-based polypropylene, making it increasingly competitive in construction applications.

Furthermore, collaborations between researchers, manufacturers, and policymakers have accelerated innovation and the commercialization of bio-based polypropylene, further driving its adoption in the construction sector. As the industry continues to prioritize sustainability and seek innovative solutions, the product is positioned to experience continued growth as a versatile and environmentally responsible material choice for various construction applications. This mainly includes insulation materials, piping systems, roofing membranes, flooring, and even structural components.

RESTRAINING FACTORS

Availability of the Alike Materials May Hinder the Market Growth

Bio-based polypropylene market is at the nascent stage, but similar functioning materials already present in the market may hinder the market growth. These materials include bio-based PET, bio-based PHA, and bio-based PE. Aforementioned, materials are easily available at lower costs, which acts as a restraining factor for market growth. Moreover, slower development of technology for bio-polypropylene as compared to other non-biodegradable bio plastics, is further hindering the market and restraining its growth in the process.

Bio-Based Polypropylene Market Segmentation Analysis

By Application Analysis

Packaging segment to Hold the Major Share in the Market During the Forecast Period

On the basis of application, the market is segmented into building & construction, automotive, consumer goods, packaging, and others. Packaging segment dominated the market due to high demand from various sectors such as food & beverages, automotive, and consumer goods. This material also has applications in building & construction industry for roof panels, bathroom fixers, coatings, and insulation. The demand for this product can be associated with growth in the building & construction industry in the developing regions.

Consumer goods segment is expected to have fastest growth during the forecast period due to rapid use of this product in household applications such as table & chairs, table cloth, coverings, utensils, and bottles. Neste and IKEA have collaborated to provide biodegradable furniture made from waste and residue oils. These raw materials are delivered by Neste to IKEA. Others segment is also anticipated to have growth due to accumulative demand for bio-PP in the medical applications. Mitsui Chemicals have developed a bio-based PP that can be used for a wide range of applications from automotive parts to medical care products.

REGIONAL INSIGHTS

Europe dominated the bio-based polypropylene market in terms of value and reached a valuation of USD 94.5 million in 2023. The growing demand for bio-PP in automotive industry is leading to market growth. Germany is a leading producer and consumer of automobiles, and growth of automotive industry in this country is anticipated to surge the demand for bio-based PP. Auto products made from this material will be used in panels, interior & exterior designing, and bumpers.

North America is estimated to have a significant bio-based polypropylene market share in the global market, which can be associated with the growing technological advancement, and disposable income in the region. The increasing demand for bio-based PP from the building & construction industry for renovation and new construction activities to is leading to the market growth.

Asia Pacific is expected to have substantial market growth during the forecast period. The growing demand for this material from several industries such as automotive, and building & construction is anticipated to drive the market. The economic development within countries such as China, India, and Japan is leading to a significant demand for bio-PP based products in household and institutional applications and is expected to drive the market during the forecast period. Moreover, growing population in the region has also led to increasing demand for individual automobile thus resulting in high demand for this material.

Rest of the world is expected to have gradual growth during the forecast period. Brazil is anticipated to show growth due to rapid urbanization along with growing disposable income. Growth in the consumer goods industry is in turn leading to great demand for bio-PP. Moreover, growing technological advancement in the automotive industry along with growing economy and population within the region, is further surging the market.

List of Key Companies in Bio-Based Polypropylene Market

Joint Ventures and Capacity Expansion are the Key Strategic Initiatives Implemented by the Companies

Key players operating in the industry are Mitsui Chemicals, Inc., LyondellBasell Industries Holdings B.V., and Neste Oyj. Companies are adopting strategies such as distribution enhancement, new product development, and collaboration to gain competitive edge in the global market. For example, Neste produces wide range of renewable products that enable customers to reduce climate emissions. The company is a major producer of renewable diesel refined from waste and residues. The company has collaborated with many major plastic producing companies such as IKEA, Borealis, Braskem, and Henkel. Neste provides refined waste & residues to these companies to help them to produce environment friendly products.

LIST OF KEY COMPANIES PROFILED

• Mitsui Chemicals, Inc. (Japan)


• LyondellBasell Industries Holdings B.V. (The Netherlands)


• NaturePlast (France)


• Neste Oyj (Finland)


• Borealis AG. (Austria)


• Braskem (U.S.)

KEY INDUSTRY DEVELOPMENTS

• March 2023: Borealis started production of polypropylene based on Neste-produced renewable feedstock at the production facilities in Kallo and Beringen, Belgium. Borealis has replaced fossil fuel-based feedstock in large-scale commercial production of PP.


• June 2019: LyondellBasell, a producer of plastics, and Neste, the producer of renewable diesel from waste and residues, announced the parallel production of bio-PP and bio-based low-density polyethylene at a commercial scale. The joint project used Neste's renewable hydrocarbons derived from sustainable bio-based raw materials, such as waste and residue oils.

REPORT COVERAGE

The market research report provides a detailed industry analysis and focuses on crucial aspects such as leading companies, and applications. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation