United States Expandable Polystyrene (EPS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The US expandable polystyrene (EPS) market was estimated at around USD 530 million in 2020, and the market is expected to register a CAGR of over 3% during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19 in 2020. Owing to the pandemic scenario, the country went into lockdown to curb the spread of the virus. The supply chain disruptions, construction work stoppages, and labor shortages negatively affected the market. Due to the pandemic, construction activities have been halted and postponed in 2020. However, the condition is expected to recover in 2021, which is expected to restore the growth trajectory, thereby benefitting the market studied.

• Over the medium term, increasing construction activities in the country are expected to drive the market's growth.
• On the flip side, the availability of green alternatives and the negative impact of the COVID-19 pandemic hinder the market growth.
• Recycling in the EPS industry ​is likely to act as an opportunity for market growth in the near future.

Scope of the Report

Expanded polystyrene (EPS) is a thermoplastic that blends intense lightweight with flexible power and thermal insulation, derived from pre-expanded polystyrene beads. The US expandable polystyrene (EPS) market is segmented by type and end-user. By type, the market is segmented into white, grey, and silver. By end-user, the market is segmented into building and construction, packaging, and other end users. For all the above segments, market sizing and forecasts have been done on the basis of revenue (USD million) and volume (kiloton).

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Key Market Trends

Grey and Silver EPS Segment to Drive the Market Growth

• Manufacturers have created a highly competitive market for EPS by modifying the regular grade EPS. The addition of flame retardants, graphite, and other additives have introduced the segment of ‘modified’ EPS.
• Grey EPS is one such innovation wherein the addition of graphite has increased its refractive and reflective properties to provide better thermal insulation. The graphite works on a very small scale to increase the refraction of IR light and make the path for the escaping heat less direct. It has a unique color (gray to black), good mechanical properties, high water resistance, and increased fire resistance. This allows for the use of the same equipment used to process conventional EPS.
• Due to its unique properties, it allows for a reduction in thermal conductivity by 20% and thus, reduces the board thickness by 20% while still maintaining the same properties. It is used for the insulation of external walls, roof systems, foundations, floors, thermo-acoustic insulation, the manufacture of insulated and left-in-place formwork, and lightweight building blocks.
• The use of grey EPS significantly improves both old and new buildings' insulation and helps meet the criteria for reducing power costs. It has the same density as white EPS; however, it isolates 20% better.
• This has made it particularly attractive in the United States, where people are becoming more inclined toward housing renovation and lower maintenance costs.
• Although the price for grey EPS is higher than white EPS, the increasing demand from the construction industry is expected to lower its price in the near future.
• The COVID-19 outbreak has negatively affected the growth of the United States construction industry, which has become a major restraining factor for the growth of the gray and silver EPS segment.
• The above-mentioned factors are likely to affect the demand for gray and silver EPS during the forecast period.

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