Expanded Polystyrene Market

Expanded Polystyrene Market Outlook (2023-2033)

The global expanded polystyrene market is estimated to be valued at US$ 18.5 billion in 2023 and it is anticipated to grow at a CAGR of 5.0% to reach US$ 30.2 billion by the end of 2033.

Expanded polystyrene is inert and non-toxic to the atmosphere due to the absence of CFCs or HCFCs during the manufacturing process, hence, its non-interference with the ozone layer drives its sales. Expanded polystyrene saves costs and provides a versatile application option and reduces carbon footprint structures.

Report Attributes	Details
Expanded Polystyrene Market Size (2022A)	US$ 17.9 Billion
Estimated Market Value (2023E)	US$ 18.5 Billion
Forecasted Market Value (2033F)	US$ 30.2 Billion
Global Market Growth Rate (2023-2033)	5.0%
North America Growth Rate (2023- 2033)	~5.4% CAGR
East Asia Market Share (2023)	~26.4%
Key Companies Profiled	Alpek S.A.B. De C.V. Atlas Roofing Corporation BASF SE Bewisynbra Group Flint Hills Resources Llc Kaneka Corporation Nova Chemicals Corporation PJSC SIBUR Holding Saudi Basic Industries Corp. Sunpor Kunststoff GmbH Synthos S.A. Total S.A. Trinseo S.A. Unipol Holland B.V. Videolar - Innova S.A Xingda Group

Market Buoyancy Analysis

Expanded polystyrene is a lightweight cellular plastic with unique characteristics owing to its structure made of pre-expanded polystyrene beads. Expanded polystyrene is highly light and rigid and has outstanding characteristics such as good damping characteristics and good thermal insulation and a wide range of end-use applications such as surfboards, packaging, and construction materials. The expanded closed-cell design of polystyrene offers low vapor stability and minimal water absorption.

Molded EPS undergoes countless tests, including density, hardness, flammability, and porosity. Expanded polystyrene is not biodegradable, but the chemical inert that makes it stable filling material, providing secure and sanitary reclamation of landfill. When applied, expanded polystyrene insulation materials considerably decrease the energy requirement for cooling and heating in any structure.

• Short Term (2023-2026): Burgeoning demand from the packaging and construction activities is driving the market for expanded polystyrene.
• Medium Term (2026-2029): Asia Pacific and North America are anticipated to witness high expanded polystyrene demand on the back of the growing construction activities.
• Long Term (2029-2033): Initiatives by the market players to enhance sales coupled with the growing popularity of electric vehicles will drive expanded polystyrene demand in the long run.

Over the 2018-2022 historical period, the global expanded polystyrene market registered a CAGR of 3.2%, according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.0% CAGR between 2023 and 2033.

“Surging Demand from Automotive Industry to Provide Lucrative Opportunities”

Innovation in the automotive sector, including making vehicles lighter and more fuel efficient with superior protection properties by global vehicle manufacturers is driving EPS development over the forecast period.

Plastic foams are used in the interiors of vehicles to dampen vibrations and soundproof the cabin. The requirement for more thermal insulation in headliners and doors, which prevents cooling of the interior of the car, will increase the demand for parts made of EPS in electric cars. Their insulating qualities shield the battery from rapid temperature changes that can cause it to malfunction.

Rising fuel prices and a shift toward greener and cleaner transportation, along with various government initiatives have increased the sales of electric vehicles globally. In 2022, around 10 million units of electric vehicles were sold globally.

Increasing EVs’ popularity and demand will affect the expanded polystyrene market positively.

“High flammability due to the presence of Pentane May Obstruct Market Growth”

The main safety hazard associated with EPS transport, storage, handling, and processing is its flammability. The blowing agent, generally pentane, evaporates from beads during storage and processing and shaped products at distinct rates.

• Expandable polystyrene resin is rated as hazard class 9 by the UN Subcommittee on the Transport of Dangerous Goods and the US Department of Transportation, which is seen as a miscellaneous hazardous alternative.
• Colorless pentane vapors weigh around 10.5 times as much as air and ignite when vapor concentrations in air range from 1.4 to 8.3 percent. Low-intensity ignition sources can ignite mixtures in this range.

Expanded polystyrene is both recyclable, inert, and non-toxic to the environment as it does not contain CFCs or HCFCs in the manufacturing process and does not interfere with the ozone layer. However, thermal decomposition gases can be produced during manufacturing, cutting, and finishing activities for the production of expanded polystyrene.

Thermal decomposition gases may be irritating to the nose, eyes, and respiratory tract and furthermore can also cause long-term health. It also releases various toxic gases when burnt in the landfills which are harmful to the environment and can produce health issues too.

Country-wise Insights

How Will the Mushrooming Construction Industry in China Positively Influence EPS Market?

China is a leader in the automotive and construction industry. Owing to its large size and growing population leads to continuous construction activities in the country.

Currently, there are around 248 civil airports in China and according to a plan that was released in 2021, China is planning to have 400 airports by 2035.

Growth in the expanded polystyrene market will be further fueled by the expansion and growth of the automotive industry, and construction activities in China. Expanded polystyrene will continue to be in high demand from a variety of end-use industries, such as packaging, which will lead to more profitable market expansion chances. Easy access to cheap labor and an abundance of raw materials will further attract the attention of many manufacturers in China.

All these factors will supplement the growth of expanded polystyrene market in the country.

Will the Growing Automotive Industry in Germany Drive Expanded Polystyrene Demand?

Germany leads European automotive production due to the presence of leading automobile players in the country. Around 3.1 million vehicles were produced in Germany in 2021.

Germany is the world's leading producer of automobiles, and EPS is widely used in the production of dashboards, seats, and other car components. Germany is the second-largest exporter of furniture in the world and the third-largest producer after China and the US since it is the center of the furniture manufacturing industry. The foam that cushions the furniture during the transportation is made of expanded polystyrene.

Due to such favorable factors, Germany’s market for expanded polystyrene is expected to grow over the forecast period.

Category-wise Insights

Why is the White Expanded Polystyrene Mostly Preferred by End Users?

White EPS, a rigid, closed-cell foam plastic, has outstanding heat and mechanical characteristics, stable end-use dimensions, simple recyclability, and non-corrosive characteristics over grey EPS. The thermal resistance of the white material relies on the density of the finished product.

White matter has a closed cellular structure comprising simply stable air, and therefore the thermal resistance of white matter does not reduce over time. The cost of White Expanded Polystyrene is marginally less than that of Grey Polystyrene. Owing to these outstanding characteristics as compared to that of grey expanded polystyrene, the demand for white EPS is greater than that for grey EPS.

The white expanded polystyrene leads the market and accounted for more than 43.0% share of global revenue in 2022 and is anticipated to grow at a CAGR of 4.1% over the forecast period.

Will the Market Be Driven by Growing Packaging Sector?

As new online platforms compete to win over markets and customers throughout the Americas, Asia, Europe, and the Middle East, the delivery of restaurant meals to the home is experiencing rapid transformation. Customers who are accustomed to making online purchases through applications or websites with the utmost comfort and transparency are increasingly expecting the same experience when placing dinner orders.

Nowadays, leading online food service providers are delivering their products in many areas which are further expecting to boost the market of food packaging products and positively influence the global expanded polystyrene market.

Owing to the above-mentioned factors, the demand for expanded polystyrene from packaging is expected to expand in the upcoming period.

Competitive Landscape

Prominent expanded polystyrene manufacturers are Alpek S.A.B. De C.V., Atlas Roofing Corporation, BASF SE, Bewisynbra Group, Flint Hills Resources Llc, Kaneka Corporation, Nova Chemicals Corporation, Total S.A., Trinseo S.A., Unipol Holland B.V., Videolar - Innova S.A, and Xingda Group.

Players are focusing on improving their product offerings and expanding their manufacturing facilities by acquiring significant regional players. Establishing long-term trade relations with suppliers and end-users to gain high-profit margins and survive during unfavorable trade situations.

Fact.MR has provided detailed information about the price points of key manufacturers of expanded polystyrene positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Expanded Polystyrene Industry Research

• By Product Type :

  • White
  • Grey
  • Black

• By Production Method :

  • In-situ Suspension
  • Post-impregnation Suspension

• By End Use :

  • Building
    • Thermal Insulation
    • Sound Proofing
  • Construction
    • Roads
    • Bridges
    • Drainage Systems
    • Others
  • Packaging
    • Food
      • Poultry
      • Fish
      • Meat
      • Eggs
      • Carry-out meals
      • Others
    • Non-food
      • Electronic goods
      • Medical equipment
      • Consumer goods
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA