Expanded Polypropylene (EPP) Foam Market Analysis By Product (Low Density, Medium Density, High Density), End Use (Automotive, Packaging, Consumer Goods, Others) And Segment Forecasts, 2018 - 2025

Industry Insights

The expanded polypropylene (EPP) foam market size was estimated at USD 896.4 million in 2016. The increasing penetration of the product in applications such as packaging, consumer goods, and furniture is expected to have significant impacts on the overall market growth 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 demand for EPP foam beads and molded products over the coming years.

U.S. EPP foam market revenue by product, 2014 - 2025 (USD Million) 

The increasing application scope of the product can be attributed to the superior product qualities such as durability, chemical & 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 industry. However, the price volatility associated with this material is expected to impact product prices over the coming years.

The EPP foam market 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 such as JSP Corporation and BASF SE follow an integrated production chain, which results in barriers to entry for raw material suppliers as well as product manufacturers.

Product Insights

The low density segment accounted for a substantial share of the overall industry revenue in 2016 and is expected to grow at a CAGR of 4.0% 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 highest growth of 4.7% during the forecast period, owing to the 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 the 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 the product demand.

The high density segment was valued at USD 439.2 million in 2016 and is expected to grow at a significant growth rate during the forecast period. This can be attributed to the 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 applications. 

End-use Insights

The automotive industry accounted for the largest share of the industry revenue in 2016, accounting for over 40%. This end-use segment is expected to witness considerable demand growth for the product over the forecast period, mainly on account of the increasing use of the product in passenger safety and NVH reduction applications.

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 driver for the industry growth.

EPP foam market volume share, by application, 2016 (%)

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 & 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 molded products in the packaging industry is a key driver for market growth. 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 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 the product demand over the forecast period.

The industry in Japan accounted for a substantial share of the overall regional industry revenue in 2016 and is expected to grow at a CAGR of 3.3% over the forecast period, 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 industry 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.

Competitive Insights

The EPP foam market 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 molded sheets and other molded 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 & 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 industry.

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

Report Scope

Segments covered in the report

This report forecasts volume and revenue growth at regional & country levels, and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the Expanded Polypropylene (EPP) Foam Market on the basis of technology, application, and region:

• Product Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)

  • Low density

  • Medium density

  • High density

• End-use Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)

  • Automotive

  • Packaging

  • Consumer goods

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S

  • Europe

    • Germany

    • U.K

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa