A leading market research organization- AMI from UK, in a research project on global oriented PP film (BOPP) market states that Asia, led by China, is the largest market for BOPP films. Out of the expected demand of about 4.2 million tons in 2005, demand from China constituted an estimated more than 1 million tons. Asia possibly accounts for 40% of the global demand, which is expected to reach a level of 50% in the next few years. Europe and North America each account for about 700 KT of demand.

In the Asian region, China is driving the market. Chinese processors have been increasing capacity, with almost 80% of the new capacity being added over the last 2 years. Besides, the Chinese are setting up more economical, larger size plants, with capacities of over 15-20 KT/year. However, as demand lingers behind capacity addition, many Chinese processors have low capacity utilization. This will continue until the new capacity addition is absorbed. Most of the Chinese capacity is used to fulfill the domestic demand, but over the years China is likely to emerge as a strong exporter of oriented PP films.
The key hurdles facing the market are:
* Overcapacity
* Competition from BOPET
* Commoditization of OPP films
* Regional shift of demand
* Aggressive role of Chinese processors in the coming few years
* Lower growth opportunities compared to nineties

Besides China; India, South America and Russia are likely to show higher growth rates. Growth rates in North America and Europe will hover around 4-5 %. AMI estimates the growth for next 5 years at about 7.5% level. This will taper off to about 5% in the following 5 years. AMI expects the demand to reach a level of 6.5 million tons by 2013.