LONDON--(BUSINESS WIRE)--SpendEdge, a global procurement market intelligence firm, has announced the release of its Global Propane Market - Procurement Intelligence Report.
The spend growth of the propane market is expected to touch a value of over USD 20 billion through 2023. According to observations, this growth will be attributed to the increasing demand for propane in the chemicals sector to produce ethylene and propylene. Currently, these chemicals are facing exponential demand across industries such as agriculture, consumer electronics, and F&B. However, factors like the rapid popularity of electric vehicles across some of the key economies will adversely affect the demand in the propane market. Such a dynamic demand growth of this market will have a pronounced impact on the propane price trends.
APAC will claim a significant share in the propane market owing to the exponential demand for LPG from the transportation and utility sector. Meanwhile, the increasing demand for propane from the manufacturers of ethylene in the US to meet the growing demand of PE and PET from the automobile sector will positively impact the spend growth in the propane market in North America.
Rising procurement expenditure is severely eschewing buyer’s ROI. Various spend accelerators will further add to this expenditure. Download a free sample report of this propane market procurement intelligence report to get instant access to the strategies to contain such an inflating expenditure.
Some Insights into the Propane Price Trends
- Propane price trends denote extreme volatility during the forecast period owing to the fluctuations in the crude oil production as propane is a by-product of crude oil.
- Volatilities in crude oil prices will increase the logistics costs incurred by suppliers, which will be ultimately compensated by buyers in the form of excess procurement spend.
How Insights into Propane Supplier Selection Criteria Can Help Buyers to Tackle Procurement Price Rise?
“Propane spend analysis insights offered in this procurement intelligence report will aid buyers to identify areas where they need to optimize their procurement spend. This will foster cost-savings in the long run in the propane market,” says SpendEdge procurement expert Sumit Yadav.
While strategic supplier partnership is crucial to optimize procurement spend, a lack of real-time insights into the current supply market scenario results in sub-optimal partnerships. Get complimentary access to our procurement platform to gain immediate access to supplier selection strategies.
Transportation and shipping costs will account for nearly 15% of the total cost of propane, the majority of which will be compensated by buyers. To minimize such an inflating expenditure, buyers are advised to engage with locally available suppliers. With an upward spiraling fuel price, engagement with local suppliers will mean shorter distance to transport goods, thereby reducing volumes of fuel to be used for transportation. Buyers must factor in the dependence level of suppliers on subcontractors for raw materials. Lesser dependence will help buyers to procure the product at cost-effective rates while assuring them on-time delivery of products.
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