The global bi-axially oriented polypropylene market is likely to witness high degree of completion in the coming years, observes Transparency market Research. The report also states that the market is high fragmented, as leading seven players could not even account of one-fifth share in the global market in 2015. Despite this, players such as Taghleef Industries, Vibac Group, Oben Group, Cosmos Films, Jindal Poly Films, and Vitopel are somewhat ahead from the general noting in the global bi-axially oriented polypropylene market. The competition in the market is expected to increase as new players are entering in the market massively. This will reduce the cost of the end product and might reduce profit margins of the players. This scenario might force the players to invest in mergers and acquisitions to maintain their position in the market.
According to Transparency Market Research, the global bi-axially oriented polypropylene (BOPP) market is expected to progress at steady growth rate of 5.8% throughout the forecast period between 2016 and 2024. Growing at this rate, the bi-axially oriented polypropylene market is expected to attain a valuation of US$ 20.9 bn by 2024. In 2015, the market valuation was US$12.7 bn.
In terms of application, the food industry has produced high requirement for bi-axially oriented polypropylene. During the predicted tenure, this segment is likely to lead the global market due to the growing demand frozen food, snacks, cakes, confectioneries, and instant consumables. Demand for BOPP is the tapes segment is also expected to increase in the forthcoming years. Based on regional analysis, Asia Pacific is projected to lead the global bi-axially oriented polypropylene market. This growth is attributed to high demand for BOPP used packaged and labels in the food industry.
Growing Demand for Flexible Packaging to Drive BOPP Market
Application of bi-axially oriented polypropylene is largely seen in various industries including food, tapes, tobacco, consumer goods, and medical. BOPP is highly used in food and tapes industry due to its high significance in manufacturing various products. Especially in the food industry is helps in preserving the freshness of food products and extends its shelf life. Moreover, low cost and recyclability of bi-axially oriented polypropylene has provided a fillip to the market. Moreover, growing demand for in flexible packaging is further expected to boost demand in this market. Rising urban population and increasing disposable income are some of the other factors fueling demand in the bi-axially oriented polypropylene market.
Fluctuating Prices of Raw Material to Deter Market Performance
Despite the growing need for bi-axially oriented polypropylene in multiple industries, there are few factors deterring the growth in this market. Fluctuating prices of raw material is the key factor that could deter market’s growth. Moreover, BOPP market has reached to a saturation point in developed regions this will also affect the market’s growth at a high rate.