Rapidly increasing disposable income level in countries such as China, India and Brazil has enhanced market penetration for baby diapers, adult incontinence products which have had a mirror impact on PP nonwoven fabric demand in these regions.
These fabrics are now being aggressively adopted for durable applications such as geotextiles, construction, automotive, home furnishing, etc. which has increased their penetration level in such markets. However, volatile raw material supply is expected to be a key challenge for industry participants, in terms of maintaining profitability
Polypropylene being a petrochemical derivative, witnesses significant fluctuation in its price owing to the supply-demand imbalance. Over the last few years, there has been rising concern over the depleting petroleum reserves which have led to a shortage of chemicals, affecting their market price
In terms of production, emerging markets of Latin America, Middle East and Africa hold maximum potential. These regions are expected to cater to the growing demand for PP nonwoven fabrics by 2025.
Some of the major expansions planned in these regions are projected to come from Russia which holds the advantage of having abundant natural resources. However, Asia Pacific is also expected to expand its capacity on account of favorable government policies in India and China to increase the flow of FDI.NEW BALANCE
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