Asia-Pacific controlling Ceresana Market
Asia-Pacific is controlling the polypropylene (PP) market, showing no signs of slowing down.
According to Ceresana, Asia-Pacific countries already account for more than half of worldwide PP consumption, followed by Western Europe and North America.
The market research firm expects a dynamic growth of worldwide revenues amounting to more than US$145bn in 2019.
The report said that the average annual growth rate of 4.4% of the last eight years is likely to be surpassed in the future.
Asia-Pacific will increase their shares of the global PP market, says the firm, mainly at the expense of saturated industrialised countries.
The packaging industry will remain the major sales market, given increasing wealth among an ever growing population, they added.
Major PP consumers are producers of flexible and rigid packaging, who account for an aggregated demand of more than 50%.
The most dynamic growth rates under 2019 will be recorded in the transportation industry and the production of rigid packaging.
The analysts forecast continued positive growth for the Chinese economy, leading to a constant propitious environment for the PP industry.
Global PP capacity of about 62 million tonnes is likely to extend by more than 23.5 million tonnes by 2019. ,ore than 57% of these new capacities will be built in the Asia-Pacific region.
The food packaging and consumer goods sector will be able to benefit from this development, which will stimulate demand for PP used to produce films and sheets.
Many emerging and developing countries will benefit from an increasing demand in all application areas and changes in regional demand will also have an effect on the production structure of manufacturers.
Ceresana said the major application area will remain the flexible and rigid and packaging sector, albeit with significant regional and country specific differences.