Expanded Polypropylene Foam Market Size, Share & Trends Analysis Report By Product (Low Density EPP Foam, Medium Density EPP Foam, High Density EPP Foam), By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global expanded polypropylene foam market size was valued at USD 921.5 Million in 2019. The increasing penetration of the product in end-use industries such as packaging, consumer goods, and furniture is expected to have a significant impact on the overall market for expanded polypropylene (EPP) foam during the forecast years. The high investments in manufacturing activities across major economies have resulted in an increased automobile and consumer goods production, which in turn is expected to drive the market for EPP foam beads and molded products over the coming years.

The increasing end-use scope of the product can be attributed to the superior product qualities such as durability, chemical and water resistance, thermal insulation, and recyclability. The growing demand for chemical and water-resistant materials in the packaging and consumer goods industries is slated to propel product demand over the forecast period.

The easy availability of propylene, which is the key raw material used for the manufacture of EPP foam, in major economies has helped strengthen the raw material supply in the global market for expanded polypropylene (EPP) foam. However, the price volatility associated with this material is expected to impact product prices over the coming years.

The market for expanded polypropylene (EPP) foam is characterized by the presence of large, small, and medium-sized players, including raw materials suppliers, manufacturers, fabricators, and distributors. The key players in the market for expanded polypropylene (EPP) foam such as JSP Corporation and BASF SE follow an integrated production chain, which results in entry barriers for raw material suppliers as well as product manufacturers.

Product Insights

The low-density segment accounted for a substantial revenue share in the expanded polypropylene foam market in 2019 and is expected to witness a revenue-based CAGR of 5.4% over the forecast period. The considerable growth of this segment can be attributed to the growing demand for the product in the packaging industry, owing to the superior product characteristics in comparison to other common plastic materials.

The medium density segment is expected to witness the second highest growth rate of 6.1%, in terms of revenue, during the forecast period. This is owing to increasing use of the product in consumer goods such as electronics, toys, and appliances. The fast-emerging consumer goods industry in major economies across the globe is expected to drive product demand over the forecast years.

Asia Pacific, Europe, and North America are the key regions expected to witness significant growth of the medium density products, mainly as a result of the rapid growth in the consumer goods industry. The rising disposable incomes of consumers in the region is expected to have positive impacts on the consumer goods demand, thereby also impacting product demand.

The high-density segment was valued at USD 468.4 Million in 2019 and is expected to witness a significant growth rate of 6.5%, in terms of revenue, during the forecast period. This can be attributed to substantial growth of the automotive industry in key economies such as Germany, China, India, and South Korea, with the product increasingly being used for passenger safety and NVH reduction end use.

End-use Insights

The automotive industry accounted for the largest revenue share in the market for expanded polypropylene (EPP) foam in 2019, accounting for over 43.0%. This end-use segment is expected to witness considerable demand for the product over the forecast period, mainly on account of increasing use of the product in passenger safety and NVH reduction end use.

The consumer goods industry is expected to witness significant growth over the coming years on account of growing use of the product for the manufacture of electronics, furniture, toys, household appliances. The increasing demand for the aforementioned products primarily in developing economies acts as a key factor driving the market for expanded polypropylene (EPP) foam.

The increasing demand for the product in consumer goods, furniture, and construction verticals can be attributed to the improved chemical and mechanical properties of expanded polypropylene. EPP foam offers high strength-to-weight ratio, chemical and water resistance, impact resistance, and ease of fabrication, which thereby offers scope for custom designing and printing.

The automotive industry uses a significant amount of EPP foam in floor, door panels, seats, and bumpers for acoustic management, thermal insulation, and impact absorption. The growing importance of reducing vehicle weight in order to improve fuel economy is expected to drive the demand for EPP foam in the automotive segment over the forecast period.

The increasing use of foam beads and moulded products in the packaging industry is a factor driving the market for expanded polypropylene (EPP) foam. The growing importance of protective and flexible packaging solutions across end-use verticals, such as electronics, FMCG, and industrial equipment, is expected to have a positive impact on the overall product demand over the coming years.

Regional Insights

Asia Pacific dominated the overall market for expanded polypropylene (EPP) foam in terms of revenue and volume, on account of increased product demand in key end-use verticals such as consumer goods and packaging. The rapidly growing automotive industry in the region is also expected to drive product demand over the forecast period.

The market for expanded polypropylene (EPP) foam in Japan accounted for a substantial share of the overall regional industry revenue in 2019 and is expected to exhibit a revenue-based CAGR of 5.8% over the forecast period. This is mainly on account of the presence of key players such as JSP Corporation, Kaneka Corporation, and Furukawa Electric Co. with wide product portfolios and vast geographical reach.

The market for expanded polypropylene (EPP) foam in Europe is expected to witness significant growth on account of the recovering automobile industry and rapidly emerging consumer goods industry in major economies such as Germany, France, Spain, and Russia. The presence of key automotive OEMs in the region is expected to strengthen the automotive growth, thereby also driving product demand.

Expanded Polypropylene Foam Market Share Insights

The market for expanded polypropylene (EPP) foam faces moderate to high competition on account of the presence of a large number of manufacturers, fabricators, and distributors in the industry. A majority of the companies follow an integrated approach from production of raw materials, to the manufacturing of EPP foam beads, to the distribution of moulded sheets and other moulded products to various end-use verticals.

The presence of relatively lower-priced substitutes such as Expanded Polyethylene (EPE) and expanded polycarbonate in the market further intensifies the competition. Expansions, mergers and acquisitions, technological collaborations, and distribution agreements are the key strategic initiatives implemented by the key players to diversify product portfolios and expand geographical reach in order to sustain competitive positions in the market for expanded polypropylene (EPP) foam.

Technological collaboration between manufacturers, fabricators, and end-use industries is crucial for growth, as molding and fabrication technologies enable the players to improve their product quality, customization services, and customer reach.

Research activities focused on new materials, which combine several properties, are projected to gain wide acceptance in the market for expanded polypropylene (EPP) foam in the coming years. Some of the prominent companies manufacturing these products include JSP Corporation; BASF SE; Kaneka Corporation; DS Smith plc; Furukawa Electric Co., Ltd.; Hanwha Corporation; Sonoco Products Company; Knauf Industries; IZOBLOK; Dongshin Industry, Inc.; Clark Foam Products Corporation; Paracoat Products Ltd.; Molan Pino South Africa (PTY) Ltd; and PDM Foam; and Armacell International S.A.

Report Scope

Segments Covered in the 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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the globally expanded polypropylene foam market report on the basis of product, end use, and region:

• Product Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Low Density

  • Medium Density

  • High Density

• End-use Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Automotive

  • Packaging

  • Consumer goods

  • Appliances

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa