GlobalExpanded Polystyrene Market: Rising demand for EPS geofoam for insulation applications driving the market growth.

Published Date: 11/05/2021

The global expanded polystyrene market size was valued 8822.12 Kilotons in 2020 and is expected to reach 11724.74 Kilotons by 2027 at a compound annual growth rate (CAGR) of 4.1% from 2020 to 2027. Increasing demand for sustainable and lightweight solutions that provide extreme durability, coupled with improved thermal insulation, is projected to boost the growth of the market over the forecast period. Rising demand for acoustic and thermal insulation in the building and construction industry in developing economies, including China and India, is expected to increase the demand for high-quality polymers. Furthermore, rising demand among consumers for durable commercial and residential buildings, which can easily withstand extreme changes in the external environment, is expected to propel the market growth over the forecast period.

In recent years, green buildings have been gaining more popularity over conventional ones. Advantages including improved air quality, reduction in operating expenditure, reduction in the overall load on metal frames, and efficient use of energy and water when compared to conventional buildings are driving the demand for green buildings. The growth in the demand for green buildings is being propelled by the increasing influence of social factors, such as creating a sense of environmental responsibility in the community, improving physical health awareness, and growing trend of sustainable business practices.

Expanded Polystyrene (EPS) is used in the construction industry to reduce energy consumption and greenhouse gas emissions. Excellent insulation offered by EPS is significantly boosting its demand in green buildings. With the rising demand for green buildings, the market for EPS is expected to witness substantial growth over the forecast period.

The white EPS product segment led the market and accounted for more than 57.0% share of the global revenue in 2019. This is attributed to the growing demand in packaging applications, such as food packaging including drink cups, food trays, and clamshell containers, consumer goods packaging, and electronics products packaging.

The construction application segment led the market and held a revenue share of more than 45.0% in 2019. The demand for expanded polystyrene in construction applications is expected to witness significant growth over the forecast period owing to various beneficial characteristics of EPS, including excellent thermal insulation, lightness, chemical inertness, and bacterial and pest resistance.

The COVID-19 outbreak across the globe has severely impacted the market growth in the construction sector. Stoppage or slowdown of construction projects, restriction on movements, production halts, and labor shortages to contain the COVID-19 outbreak have led to a decline in the growth of the construction industry, which, in turn, is anticipated to hamper the demand for expanded polystyrene in construction applications.

The Expanded Polystyrene Market is segmented on the basis of product, application and region. On the basis of product market is segmented as White, Grey. On the basis of application market is segmented Construction, Packaging, Automotive, Others.

Asia Pacific led the market and accounted for more than 54.0% share of the global revenue in 2019. This is attributed to ascending demand for the product from key applications, including automotive, packaging, and construction, in emerging economies such as China and India.The construction industry in Asia Pacific is the fastest-growing market across all regions. Rising urbanization, rising disposable income, and government initiatives such as the “housing for all” project in India, are boosting the growth of the construction industry in this region.

Europe is the second-largest consumer of expanded polystyrene owing to high demand from the automotive, packaging, and construction sectors. EPS finds application in several industries due to its versatile benefits, lightweight, easy molding, and desired shape formation. In recent years, the demand for expanded polystyrene from green building design applications in the European market has witnessed a significant increase owing to its excellent environmental advantages that can provide improved indoor environmental quality, maximized energy efficiency, and enhanced durability.

Central and South America region is expected to witness substantial growth over the forecast period owing to the region’s economic growth in the past few years. The recovering residential building and construction sector in Central and South America is expected to fuel the demand for EPS in the construction sector. Significant new investments in housing and public works by the government and green building construction initiatives are expected to boost infrastructural growth in Colombia, thereby propelling the demand for EPS over the forecast period.

Key companies are: BASF SE; KANEKA CORPORATION; Total; NOVA Chemicals Corporate; Ravago; SABIC.