Bi-oriented Polypropylene Market Size Forecast to Reach US$18.3 billion by 2027

Bi-oriented Polypropylene Market Size Forecast to Reach US$18.3 billion by 2027
Bi-oriented Polypropylene Market
Recyclability and the environmentally friendly trend will drive the bi-oriented polypropylene market in the forecast period

Bi-oriented Polypropylene Market Overview

The bi-oriented polypropylene market size is forecast to reach USD18.3 billion by 2027 after growing at a CAGR of around 4.5% from 2022 to 2027. The bi-oriented polypropylene is made when the polypropylene films are extruded and stretched in both machine direction and transverse. Bi-oriented polypropylene market is forecast to grow fast in the packaging segment which majorly includes food packaging. The bi-oriented films are flexible, offer exceptional clarity, high tensile strength, and toughness. It has various applications such as packaging, laminating films, coatings, tape backing, and others that need strong barriers, achievable by using polyvinylidene chloride as water coatings or dispersing in the matrix polymer. The bi-oriented polypropylene market share is growing owing to its demand in the food industry, cosmetic, and pharmaceutical applications. The increasing application of bi-oriented polypropylene by various end-users due to its strength, excellent moisture, recyclability, and aroma barrier properties will drive the bi-oriented polypropylene market, thereby leading to maximum demand and growth in the forecast period.

COVID-19 Impact

The COVID-19 pandemic has negatively impacted the bi-oriented polypropylene market. Various end-use industries have experienced difficulties due to slow growth, disturbed supply chain, and low productions. The bi-oriented polypropylene is majorly used for packaging applications in the food and beverage industry such as snacks, confectionaries, meat, fruits, and others due to its good shelf life, advanced sealing, and flexibility. The food and beverage industry saw a major decline in the pandemic for the short term. The meat packaging was affected due to lockdown restrictions, disrupted supply chains, and consumer shortages. The hotels, food outlets, cafeterias, and others were closed, thus leading to a decline in the application of bi-oriented polypropylene for packaging. According to the National Restaurant Association, there was a loss of more than $120 billion in sales of the foodservice industry during the initial months of Covid-19. Furthermore, the data from U.S. Census Bureau reports the lowest sales of $28 billion at bars and restaurants since 1983. The disrupted supply chain, logistics halt, and lockdown restrictions created difficulty in the applications of packaging for food and non-food segments. With the short-term halt in production and demand for various end-users, the bi-oriented polypropylene market share saw a decline, thus leading to a negative impact on the sales and growth prospects for the bi-oriented polypropylene industry.

Bi-oriented Polypropylene Market Segment Analysis – By Production Method

By production method, the tenter process segment is expected to have the largest share of more than 30% in 2021 and is expected to dominate the bi-oriented polypropylene market in the coming years. It is the most used BOPP manufacturing process as it provides stable final output compared to other processes and makes high gloss and clear films. The bi-oriented polypropylene films derived from this tenter method are majorly used in packaging applications such as wraps, confectionaries, snacks, and others due to their superior stiffness, transparency, and excellent resistance capabilities. Moreover, the phenolic antioxidant is used in the processing to delay or retard the oxidation in packaging films arising due to environmental conditions. All these procedures provide enhanced bi-oriented polypropylene for packaging, laminating, labeling, and other applications. Furthermore, the tenter process BOPP is preferably used to ensure increased toughness, durability, clarity, and barrier properties for various applications.

Bi-oriented Polypropylene Market Segment Analysis – By Application

By application, the packaging segment is expected to have a growing share of over 45% in 2021 and is expected to boost the bi-oriented polypropylene industry size in the coming years. The demand for bi-oriented polypropylene will increase due to the increasing usage in packaging applications for the food and beverage industry, cosmetic, pharmaceutical, electronics, and others. The flexible medical packaging ensures sterilization of the medicines, PPE kits, and others. The excellent shelf life of BOPP makes it the best option in the healthcare industry. According to the Packaging Industry Association of India (PIAI), the packaging segment is expected to reach USD 205 billion by 2025, owing to increasing application among end-users. The bi-oriented polypropylene packaging films must get enhanced strength, quality, and resistance to secure the food or non-food contents. For boosting surface energy and strength of packaging films, corona treatment is done on both sides for duplexes and sandwich layers in snack food lamination, which is characterized by atomic force microscopy and X-ray photoelectron spectroscopy. The packaging films or pouches are majorly used in the food and beverage segments such as wraps, confectionaries, dairy products, meat, animal nutrition products, and others. It offers maximum shelf life, tear resistance, high strength, and flexibility, thus making it applicable for packaging applications in various end-use industries. The increasing demand for environment-friendly and high protection packaging applicability in various end-use segments will boost the bi-oriented polypropylene market in the forecast period.

Bi-oriented Polypropylene Market Segment Analysis- By End-Use Industry

By end-use industry, the food and beverage segment is expected to have the largest share of more than 40% in 2021 and is expected to grow the bi-oriented polypropylene market share in the forecast period. The bi-oriented polypropylene product offers excellent properties such as heat seal, moisture barrier, high clarity, shelf life, and others. The increasing demand for flexible packaging films in retail products, snacks, packaged foods, organic food, dairy, and others is boosting the usability of bi-oriented polypropylene in the food industry. According to the Ministry Of Food Processing Industries (MOFPI), the food grocery segment is growing at 25% in the food retail market. The bi-oriented polypropylene provides maximum protection, enhanced shelf life, and security of the retail food products, thus a preferable option for different end-users as well. The growth of the food industry is creating a high rise in the demand for plastic packaging. According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the market size of organized packaged food will reach INR 780 million in 2020. Thus, the demand for bi-oriented polypropylene packaging is expected to gain a massive share in the market due to its major application and properties such as durability, aroma barrier, moisture barrier, heat seal, and long shelf life in the food industry, thereby creating a drive and growth in the global bi-oriented polypropylene market.

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Bi-oriented Polypropylene Market Segment Analysis – By Geography

By geographical analysis, the Asia pacific holds the largest share of more than 35% in the Bi-oriented Polypropylene market for the year 2021. The increased application of bi-oriented polypropylene for food, non-food, labels, electronics, automotive, and industrial packaging has led to major growth in this region. The demand for environment-friendly plastic in packaging, electronic manufacturing, pharmaceutical expansion, and others has boosted the bi-oriented polypropylene market share in the APAC region. Food and beverage is the fastest growing industry in China and India due to increasing disposable income, e-commerce growth, and consumer preferences. The bi-oriented polypropylene is majorly used in food packaging, owing to its numerous applications in the bakery, dairy, meat, pet food, retail food items, beverages, and others. According to the National Bureau of Statistics, a total of 5658 beverage and 8131 food registered enterprises are set up in China. The Asia Pacific is forecasted to grow the fastest in the bi-oriented polypropylene market due to the high rise in the food industry, FMCGs strong base, e-commerce, and flexible packaging trends. Furthermore, projects from companies such as Taghleef and Jindal Poly films are making huge investments and developments to extend the portfolio in APAC, thus creating a drive in the global bi-oriented polypropylene industry.

Bi-oriented Polypropylene Market Drivers

Increasing Demand from Flexible Food Packaging

The increasing use of bi-oriented polypropylene for packaging applications in the food and beverage industry will boost the market. The flexible packaging is driving the BOPP market, owing to its numerous applications in different end-users. The flexible films are used in bakery, pharmaceutical, dairy, meat, organic food, and others. The growth of flexible packaging in the food and beverage industry will lead to the high rise in the applicability of bi-oriented polypropylene to ensure flexibility, tear-resistance, moisture barrier, protection, and longer shelf life. According to the Census Bureau’s Country Business Patterns (CBP), a total of 6040 food and beverage plants are there in California, with 2612 in New York and 2487 in Texas. The bi-oriented polypropylene films are thereby used in the food segment to provide seal integrity, flexibility, and excellent protection and boost the growth and demand for food and non-food packaging applications. Thus, the application of flexible packaging for food retail, grocery stores, and others will drive the bi-oriented polypropylene market.

Recyclability and the environmentally friendly trend will drive the bi-oriented polypropylene market in the forecast periodThe market of bi-oriented polypropylene is growing owing to its sustainability, recyclability, environment, and health-friendly and toxic-free product. The shift towards eco-friendly plastic is creating a major drive in the bi-oriented polypropylene market. Various major market players are boosting the production capacities of bi-oriented polypropylene owing to its recyclable and health-friendly trends. For instance, Jindal Poly Films has announced to boost its production units and bi-oriented polypropylene capacity at 45,000 tons per annum. Furthermore, various companies prefer it due to its reusability and low carbon footprint. The Environmental Working Group rates bi-oriented polypropylene as low to moderate hazardous. The Resin Identification Code (IRC) rates polypropylene products at number 5 in terms of recyclable material. Thus, the environmental protection awareness among consumers and manufacturers will drive the bi-oriented polypropylene market and boost its productivity in the future years.

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Bi-oriented Polypropylene Market Challenges

Fluctuations in raw material availability and prices can be a challenge to the bi-oriented polypropylene market.

Fluctuating prices and volatility in raw materials for bi-oriented polypropylene is a major challenge. Raw material shortages and price fluctuations due to pandemics, production halt, and demand-supply gap create a challenge for the industry. The raw material used in producing bi-oriented polypropylene consists of ethylene propylene, adhesives, COPP, anti-static agent, and polypropylene as major raw materials. Polypropylene is a derivative of crude oil. According to the Organization of the Petroleum Exporting Countries (OPEC), the annual average oil price stood at USD 69.4 per barrel in 2021 from USD 41.47 in the previous year. Volatile crude prices, owing to demand-supply dynamics can become a challenge and thereby result in a hike in the raw material prices and availability for the manufacturers. The raw materials accounting for nearly 65% of the total production cost can disturb the industry; thereby leading to shifting of high prices to the commodity buyers due to high-cost pressure and volatility in available raw materials in the market.

Bi-oriented Polypropylene Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies that are adopted by the dominant players in this market. Bi-oriented Polypropylene top 10 companies include:

Decro

Yem Chio

Oben Licht Holding Group

Gettel Group

Stenta Film

Taghleef

Cosmo

Flex Film

Kinlead Packaging

FuRong Technology

Acquisitions/Technology Launches

In February 2020, Jindal Poly Films agreed to an investment of INR 700 crores to expand the company’s functioning and operations in India, and thereby adding a bi-oriented polypropylene film line and getting a better bi-oriented polypropylene market outlook.In October 2019, UFlex Limited introduced a cut-edge packaging option known as ‘Asepto Eye’ in the beverage segment that gives a 3D effect on aseptic packages.

Key Takeaways

The increasing demand for bi-oriented polypropylene for flexible packaging, tape backing, laminating, and others in the food and beverage industry have led to significant growth in the bi-oriented polypropylene market size. It is due to excellent properties such as tear resistance, high strength, moisture barrier, and others.

The Asia Pacific holds the largest share in the bi-oriented polypropylene market due to the rise in food-packaging applications in major countries such as India, China, and Japan. Furthermore, increasing consumption for the retail food, grocery, meat, and dairy will boost the demand for bi-oriented polypropylene food packaging in Asia, owing to its high strength, long shelf life, moisture barrier, and tear resistance properties.

The bi-oriented polypropylene films have dominated the cosmetic, food, pharmaceutical, and other end-users due to various applications of films for packaging, taping, coating, laminating, and others. This will boost the scope for bi-oriented polypropylene market in the coming years.

 

Relevant Reports

Bi-oriented Polypropylene (BOPP) Laminating Film Market – Forecast(2022 – 2027)

https://www.industryarc.com/Research/Bi-oriented-Polypropylene-Market-Research-501452

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