PP has been growing well by substituting other
polymers and traditional materials so far. In fact, the nineties
have shown almost an average growth of about 8.5% globally.
After having an excellent year in 1999, during
which a developed economy like the USA showed growth of almost 12%,
as well as two fast developing countries like China and India also
exhibited healthy growth, the year 2000 has not been very bullish
for PP. While the estimates vary depending upon the sources, no
experts have estimated average growth of more than six%.
Two large economies of the world like North America and W. Europe
were practically stagnant or had just barely one-two% growth rates.
The lower growth of North America could partially be explained by
the fact that the previous year had unusually higher growth. Economic
slow down also could be responsible for the result in the year 2000.
Asia and Latin American regions have contributed well to the overall
growth of PP in the year 2000. Asia, is becoming an important factor
in the growth of PP. Asian countries like China, India and possibly
Korea and Taiwan are major growth centres.
The growth of PP in India seems to have lost steam.
It is estimated that PP had grown in India by barely 12% in 2000.
There is, however, a considerable scope in obtaining higher volumes
by substitution of other materials. Phillip Townsend Associates,
in the recent study has projected a lower average growth rate of
6% for the next five years compared to seven % that it predicted
last year. On the other hand, other experts like Maack Business
Services predict the average growth of about five%. The global economy,
however, will be the key factor that will decide whether PP will
grow at five-six% as forecasted by the leading consultants.
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