Propylene-Petrochemicals Market Report 2026

The propylene-petrochemicals market size has grown steadily in recent years. It will grow from $138.36 billion in 2025 to $144.48 billion in 2026 at a compound annual growth rate (CAGR) of 4.4%. The growth in the historic period can be attributed to growth in petrochemical production capacity, expansion of plastic manufacturing, rising demand for consumer goods, availability of refinery feedstocks, development of polymer processing technologies.

The propylene-petrochemicals market size is expected to see strong growth in the next few years. It will grow to $180.02 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to growth in electric vehicle manufacturing, increasing demand for lightweight materials, expansion of packaging and textile industries, rising investment in petrochemical infrastructure, innovation in propylene based polymers. Major trends in the forecast period include rising demand for polypropylene production, increasing use in automotive lightweight components, growing consumption in packaging applications, expansion of propylene derivatives in industrial uses, higher focus on efficient polymer processing.

The propylene market is expected to be supported by growth in the automobile industry during the forecast period. Polypropylene, a polymer derived from the propylene monomer, is widely used in the automobile sector. Large-scale vehicle production is increasing the demand for polypropylene components used in battery cases and trays, bumpers, interior trim, instrument panels, fender liners, door trims, and other parts. For instance, in January 2024, according to the European Automobile Manufacturers Association, a Belgium-based automobile industry association, the EU car market expanded by 13.9% in 2023 compared with 2022, reaching total annual sales of 10.5 million vehicles. Thus, rising use of plastics in automobiles is expected to boost the demand for propylene-petrochemicals during the forecast period.

Major companies operating in the propylene-petrochemicals market are focusing on developing advanced, cost-efficient production technologies and expanding sustainable feedstock options to reduce dependence on fossil-based inputs. For instance, in August 2025, Sumitomo Chemical, a Japan-based chemical company, began operating a new pilot plant at its Chiba Works to scale up its proprietary technology for producing propylene directly from ethanol. Supported by Japan’s NEDO Green Innovation Fund, the process is designed to help the petrochemical industry shift from fossil-derived feedstocks to renewable alternatives. Unlike conventional methods, Sumitomo’s approach converts ethanol to propylene in a single step, lowering production costs and generating hydrogen as a valuable by-product. With the capability to utilize bioethanol or waste-derived ethanol, the company plans to collect industrial data, promote polypropylene produced through this route, and move toward commercialization and licensing by the early 2030s.

In April 2024, INEOS Group Limited, a UK-based chemical manufacturing company, acquired TotalEnergies' 50% stake in Naphtachimie, Gexaro, and Appryl for an undisclosed amount. This acquisition enables INEOS to strengthen its petrochemical presence in Southern Europe by gaining full control of strategically significant assets that enhance production capacity, operational efficiency, and supply-chain capabilities. TotalEnergies is a France-based energy company that provides petrochemical products including propylene-petrochemicals such as Appryl.

Major companies operating in the propylene-petrochemicals market are China Petroleum & Chemical Corporation (Sinopec), China Petroleum & Chemical Corporation, Exxon Mobil Corporation, China National Petroleum Corporation, Shell plc, TotalEnergies SE, Valero Energy Corporation, Eni S.p.A., Indian Oil Corporation Limited, Reliance Industries Limited, BASF SE, Repsol, S.A., Idemitsu Kosan Co., Ltd., Enterprise Products Partners L.P., The Dow Chemical Company, Saudi Basic Industries Corporation, LyondellBasell Industries Holdings B.V., Shanghai SECCO Petrochemical Company Limited, Sumitomo Chemical Co., Ltd., Asahi Kasei Corporation, INEOS Group Limited, Chevron Phillips Chemical Company LLC, Formosa Plastics Corporation, Dangote Industries Limited, Manali Petrochemical Limited, Haldia Petrochemicals Limited.

Asia-Pacific was the largest region in the propylene-petrochemical market in 2025. Middle East was the second-largest region in the global propylene-petrochemicals market. The regions covered in the propylene-petrochemicals market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the propylene-petrochemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The propylene petrochemical market consists of the sales of propylene petrochemicals used in the production of acrylics, rubbing alcohol, epoxy glue, and carpets. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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