Expanded Polystyrene Market Size, EPS Market Research and Industry Forecast Report, 2020-2027 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Expanded Polystyrene Market


The global expanded polystyrene market size was estimated at USD 9.33 billion in 2019 and is anticipated to register a revenue-based CAGR of 4.8% during the forecast period. Rapid rise of the packaging industry in emerging markets including Brazil, China, and India, as a result of increasing manufacturing output on a domestic level is expected to drive the growth. Expanded polystyrene (EPS) is a low-density polymer arranged in individual cells, capable of providing excellent moisture resistance, good chemical barrier protection along with light weight characteristics. The addition of graphite results in improving the insulating properties of finished products imparting paving the way for use in construction industry

Rising importance of insulation property in the building sector of developed economies including China and India is expected to promote the usage of high-quality polymers. Furthermore, increasing spending toward enhancing the durability of commercial complexes and residential buildings during extreme external environmental factors is expected to over the next eight years.

Growing demand for cold chain packaging solutions in the pharmaceutical sector as a tool for improving product safety and keeping the freshness of packaged food fresh during transportation is expected to remain a key driving factor. Furthermore, development of the frozen food industry of major economies including U.S. and Japan is projected to expand the scope of EPS in packaging sector in near future.

Over the past few years, population growth and urbanization in emerging markets including Brazil, India, and China have resulted in national governments for increasing the spending on improving to the manufacturing sector of packaging, construction and automotive industries.

Rising popularity of lightweight polymer foam in automotive ancillaries manufacturing as a result of ensuring the comfort to drivers is expected to fuel the demand for advanced materials. The recovery of automotive manufacturing sector in U.S., Japan, Germany, and India as a result of increased sales volumes of four wheelers is expected to drive the market for expanded polystyrene in the forthcoming years.

Product Insights of Expanded Polystyrene Market

White EPS accounted for 58.49% market share in terms of volume in 2019. The product segment is expected to witness significant rise in demand form packaging sector on account of exhibiting excellent properties including water resistance and superior mechanical durability.

Grey EPS is projected to expand at a CAGR of 4.4% from 2020 to 2027. These products are expected to witness growth on account of providing excellent insulation properties. However, the high price of grey products as compared to other polymers including silicone and polyurethane is expected to have an adverse impact.
With increase in investment across companies to develop and redesign EPS products, regions such as EU, developed Polysolve to recycle expanded polystyrene, where biodegradable solvents are used for extracting polystyrene and polycarbonate from a mixture of waste, resulting in recycled polymer that has high purity and performance compared to the original material.

Application Insights of Expanded Polystyrene Market

Packaging dominated the EPS market, with a 39.00% volume share in 2019. Rising government spending on the development of FMCG and electronic equipment manufacturing sectors in emerging markets including China and India is expected to have a positive impact on the growth in the forthcoming years.

The automotive industry is projected to expand at a volume-based CAGR of 4.6% from 2020 to 2027. Extensive requirements for EPS for ensuring vehicles to be lightweight, inline safe for passengers, as well as reducing weight and making fuel efficient is expected to have a substantial impact over the forecast period.

The construction industry is projected to account for 22.51% of volume share by the end of 2027. The growth of the construction industry in China and India as a result of the inclusion of infrastructure development in 13th five-year plans is projected to play a significant role in driving the usage of polystyrene products in these regions, over the forecast period.

Regional Insights of Expanded Polystyrene Market

North America accounted for 9.90% volume share in 2019. The high adoption rate of polystyrene in construction applications including residential, loose roadways, and sports stadiums is expected to drive the demand for expanded polystyrene over the forecast period.

Asia Pacific is projected to witness revenue growth at a CAGR of 5.2% from 2020 to 2027. The positive outlook for packaging and construction sectors in the major markets including China and India owing to regulatory support along with government policies that promote investments on a domestic level is expected to fuel the regional growth.
Central and South America is projected to account for 2.86% of global volume share by the end of 2027. The firm foothold of automotive manufacturing units such as Brail on account of renewing existing government policies to create tax benefits for Brazilian manufacturers is expected to expand the expanded polystyrene market size over the forecast period.

Middle East and Africa is projected to witness a volume-based CAGR of 4.5% from 2020 to 2027. The introduction of government policies and shift from transport to mobility in Gulf region as well as exports of electronic equipment is expected to expand the existing market for Styrofoam over the forecast period.

Market Share Insights of Expanded Polystyrene Market

The market is highly fragmented in nature on account of a vast number of companies engaged in the manufacturing of polystyrene. With latest R&D activities, companies have excelled in designing the variety of EPS products with exceptional properties and are also catering to various demands of consumers. However, regional players seem to attain a larger section of opportunity then multi-national players on account of supplying the product forms at low prices.

Key market players include BASF SE; SABIC, DOW Inc.; NOVA Chemicals Corporation; Total; Versalis S.P.A.; Unipol Holland BV; Ravago; Alpek S.A.B. De Cv; Styrochem; Sundolitt Ltd; Synthos; Sunpor Kunststoff GMBH; KANEKA CORPORATION; and ACH Foam Technologies, Inc.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Expanded Polystyrene Market Research Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global expanded polystyrene market report on the basis of product, application, and region:

Product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
White
  
Grey

Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Construction
  
Packaging
  
Automotive
  
Others