|Fastest Growing Market:||Asia-Pacific|
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The Global Polystyrene Foam Market is projected to register a CAGR of over 5% during the forecast period (2022-2027).
The market was negatively impacted by COVID-19 in 2020. Due to the COVID-19 outbreak in the first half of 2020, the construction industry was significantly affected. This, in turn, has unfavorably impacted the consumption of polystyrene foam. The market is projected to grow steadily, owing to increased building and construction activities in 2021.
- Over the short term, development of green construction, coupled with growing demand for polystyrene foam in the protective packaging applications in developed as well as emerging economies worldwide, are some of the driving factors augmenting growth of the market studied.
- However, volatility in raw material prices is a key factor anticipated to restrain growth of the target industry over the forecast period. Further, strict government regulation pertaining to use of polystyrene foam such as the ban on single-use foam products may hinder growth of the studied market.
- Nevertheless, emerging applications for polystyrene foam Emerging Applications in marine floatation and floating decks is likely to create lucrative growth opportunity for the global market soon.
- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period. This growth is attributed to rise in the consumption of polystyrene foam from infrastructure, construction, and packaging sectors in the counties of this region including China, Japan, and India.
Scope of the Report
Polystyrene foam is, commonly referred to as styrofoam and it is widely used as single-use consumer goods. Polystyrene foam is primarily composed of mor than 95% of air and around 5% plastic. It is widely used in range of end-use applications, owing to its superior properties including good damping properties, good thermal insulation, and light weight property. Some of the key applications of polystyrene foam includes lightweight protective packaging, home and appliance insulation, automobile parts, foodservice and food packaging, surfboards, roadway and roadbank stabilization systems among others. The polystyrene foam market is segmented by type, application, and geography. By type, the market is segmented into expandable polystyrene foam and extruded polystyrene foam. By application, the market is segmented into building and construction, packaging, and other applications. The report also covers the market size and forecasts for the polystyrene foam market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on value (USD Million).
|Expandable Polystyrene Foam|
|Extruded Polystyrene Foam|
|Building and Construction|
Key Market Trends
Rising Demand for Polystyrene Foam in Various Building and Construction Applications
- Building and construction application segment dominated the polystyrene foam market in 2021, accounting for significant of the market share.
- The growth is attributed to growing consumption of polystyrene foam in thermal insulation applications, from residential and commercial construction, due to its durability, lightweight property, ease of installation, versatility, and water resistance capability.
- Expanded polystyrene foam (EPS) is widely used in the building and construction industry, due to its chemical inertness, insulation properties, and bacterial and pest resistance properties. It also provides numerous environmental benefits, including recycled content, reduced energy consumption, improved indoor air quality, and localized distribution owing to which it is used in green building constructions.
- EPS foam find range of applications as insulated panel systems for walls, facades, floors, and roofs in buildings. Further it is used in the construction of pontoons and marinas as flotation material and as a lightweight fill in road construction, which is thereby likely to contribute to the growth of the studied market.
- Additionally, extruded polystyrene foam (XPS) offers unique properties of low water absorption and good compressive strength, due to which it is used as thermal insulation material in construction of foundations, basements, walls, roofs, floors, pipelines, and roads.
- Augmenting building and construction activities, and rising adoption polystyrene foam across the globe are among key factors driving growth of the target industry. For instance,
- As per the data published by US Census Bureau in 2021, the total value of residential housing during April 2020-2021 was USD 217,30 million over USD 178,362 million for FY 2019-2020, up by 21.8%. This trend is anticipated to continue and will boost growth of the target industry soon.
- As per Ministry of Land, Infrastructure, Transport and Tourism, (MLIT), the value of orders received for construction works in Japan was valued at JPY 15.1trillion in 2021 compared to JPY 14.88 trillion in 2020, thereby fuelling demand for polystyrene foam market.
- According to European Commission, in comparison to 2020, annual average construction production increased by 5.2% across the euro region and 4.8% in the EU in 2021. Furthermore, in December 2021 the UK monthly construction output increased by 2% as compared to the previous month. Thus, with the increasing building and construction activities, the demand for polystyrene foam will also significantly increase.
- Therefore, considering the aforementioned factors, the demand for polystyrene foam is expected to rise in the building and construction application segment significantly in near future.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the worldwide market in 2021, with the significant market share in terms of revenue, and is projected to maintain its dominance during the forecast period of 2022-2027.
- Growing demand for polystyrene foam into packaging, building and construction, automotive, electronics appliances applications across the Asian countries are primary factor driving growth of the target industry in Asia Pacific.
- Besides building and construction, polystyrene foam also finds applications in food and industrial packaging sector to protect the consumer products and to offers safety from risk in transport and handling.
- It possesses shock absorption property, due to which it is widely used in the packaging of delicate electronic components, medical equipment, electrical consumer goods, horticulture products, and foodstuffs including fruit, vegetables, and seafood.
- Further, the product is also used in various automotive applications such as vehicle parts, trims, knobs, instrument panels, sound dampening foam, and energy absorbing door panels. It is widely utilized in the manufacturing of child protective seats.
- Rapidly growing construction, packaging, and automotive sector in India, China, and Japan are propelling demand for polystyrene foam which will further enhance growth of market studied.
- As per the National Bureau of Statistics of China, output value of the construction works in China accounted for CNY 25.92 trillion in 2021 compared to CNY 23.27 trillion in 2020, thereby enhanced the demand for polystyrene foam-based construction industry products such as insulated panel systems for walls, facades, floors, roofs, and others.
- As per Japan Packaging Institute (JPI), the Japanese packaging industry was valued at JPY 6,147.7 billion in 2021, over JPY 6,010.9 billion in 2020, which is likely to enhance the demand for polystyrene foam in respective application.
- According to India Brand Equity Foundation, the India e-commerce industry is likely to increase by 21.5%, reaching USD 74.8 billion, in 2022. Furthermore, country’s e-commerce industry is expected to reach USD 350 billion by 2030. Rising trend in e-commerce sector is likely to enhance the demand for packaging, which will in turn, augment the demand for studied market in the country.
- According to OICA, China produced 26.08 million unit’s vehicles in 2021, registering an increase of 3% compared to 25.23 million units produced in 2020. As per India Energy Storage Alliance (IESA), the Indian EV industry is expected to expand at a CAGR of 36%, which in-turns stimulates the demand for polystyrene foam.
- Additionally, presence of major players such as DuPont, Arkema, BASF SE, and TotalEnergies in the Asia Pacific region will augment growth of the region during the forecast period.
- The key companies operating in the Asia Pacific polystyrene foam market are focusing on the capacity expansion. This trend is anticipated to continue and will boost growth of the region over the forecast period.
- All aforementioned factors are likely to fuel growth of the Asia-Pacific polystyrene foam market over the forecast time frame.
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The polystyrene foam market is partially consolidated in nature. Some of the major players in the market (not in any particular order) include DuPont, Alpek S.A.B. de C.V., BASF SE, Arkema, KANEKA CORPORATION, among others.
- In October 2021, StyroChem Canada, Ltd., one of the leading producers of expandable polystyrene (EPS) was acquired by Epsilyte Holdings LLC. This acquisition is likely to strengthen Epsilyte’s ability to enhance its portfolio through StyroChem’s operational technology and expected to create one of the largest manufacturers of EPS in the North America.
- In October 2021, Epsilyte LLC, has increased the prices of its expanded polystyrene grades by USD 110 per ton. The decision has been taken as an effort to stay up with the high supply chain expenses and operational difficulties arising from country’s limited availability of feedstocks.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Increasing Green Construction
4.1.2 Growing Demand for Protective Packaging
4.2.1 Volatility in Raw Material Prices
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1.1 Expandable Polystyrene Foam
5.1.2 Extruded Polystyrene Foam
5.2.1 Building and Construction
5.2.3 Other Applications
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.2 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle-East and Africa
220.127.116.11 Saudi Arabia
18.104.22.168 South Africa
22.214.171.124 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 Alpek S.A.B. de C.V.
6.4.3 BASF SE
6.4.5 KANEKA CORPORATION
6.4.6 Wuxi Xingda foam plastic new material Limited
6.4.7 Versalis S.p.A (Eni S.p.A.)
6.4.10 Tamai Kasei Co., Ltd.
6.4.11 Epsilyte LLC
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Emerging Applications in Marine Floatation and Floating Decks
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Frequently Asked Questions
What is the study period of this market?
The Polystyrene Foam Market market is studied from 2017 - 2027.
What is the growth rate of Polystyrene Foam Market?
The Polystyrene Foam Market is growing at a CAGR of >5% over the next 5 years.
Which region has highest growth rate in Polystyrene Foam Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Polystyrene Foam Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Polystyrene Foam Market?
DuPont , Alpek S.A.B. de C.V., BASF SE , Arkema, KANEKA CORPORATION are the major companies operating in Polystyrene Foam Market.