China's polypropylene industry is ushering in a new wave of capacity expansion. In the past five years, the average annual growth rate has reached 11.7%, and as of May 2024, the capacity has soared to 40 million tons/year, achieving a significant increase of 77.2% from 2018. With the continued expansion of polypropylene production capacity, exports are expected to continue to expand.
In addition to Northeast Asia is a hot land for production capacity and consumption, in recent years, with the fifth industrial transfer, Southeast Asia and South Asia have attracted more and more attention, and the future of its polypropylene demand potential is huge. In addition, the demand for polypropylene in Africa and South America has gradually increased in recent years.
Between 2019 and 2023, the global polypropylene industry experienced significant expansion, with new capacity of 23.65 million tons/year. By 2023, the global total production capacity of polypropylene reached 107.89 million tons/year, an increase of 7.17 million tons, or 7.1%, compared with the previous year. In the same year, production also achieved a significant increase, reaching 88.73 million tons, an increase of 4.56 million tons, or 5.4%. In terms of consumption, global polypropylene consumption reached 86.6 million tons, an increase of 3.58 million tons, an increase of 4.3%, a growth rate of 1.9 percentage points higher than in 2022.
It is expected that by 2030, the global PP production capacity will increase significantly to 136.38 million tons/year. Northeast Asia will continue to lead the way, with capacity expected to reach 72.88 million tons per year, accounting for more than half of the global total. It is followed by the Middle East, North America and Southeast Asia, with an estimated capacity of 12.26 million tons/year, 10.53 million tons/year and 10.32 million tons/year, respectively. Global PP consumption is expected to reach 107.11 million tons in 2030, of which Northeast Asia will consume 49.74 million tons, South Asia and Africa are expected to consume 14 million tons and 8.5 million tons, respectively.