Expanded Polypropylene Foam Market Size, Share & Trends Analysis Report By Product (Low-, Medium-, High-density), By End-use (Automotive, Appliances), By Region (APAC, Europe), And Segment Forecasts, 2021 - 2028

Report Overview

The global expanded polypropylene foam market size was valued at USD 936.8 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 6.3% from 2021 to 2028. The increasing product penetration in applications, such as packaging, consumer goods, and furniture, is expected to have a significant impact on the overall market growth during the forecast years. The increasing product application scope in various industries can be attributed to its superior qualities, such as durability, chemical & water resistance, thermal insulation, and recyclability. Moreover, rising investments in manufacturing activities across major economies have resulted in an increased automobile and consumer goods production.

This, in turn, is expected to drive the demand for Expanded Polypropylene (EPP) foam beads and molded products over the coming years. 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 production 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 affect the final product prices, thereby restraining market growth to some extent.

The global market is characterized by the presence of several large-, small-, and medium-sized companies, including raw material 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 high-density product segment accounted for the highest revenue share of more than 50% in 2020 and is expected to grow at the fastest CAGR during the forecast period. This high growth can be attributed to the rapid expansion of the automotive industry in key economies, such as Germany, China, India, and South Korea, with high product usage for passenger safety and NVH reduction applications.

The low-density product segment accounted for the second-highest revenue share in 2020 and is expected to grow at a steady CAGR over the forecast period. The considerable growth of this segment can be attributed to the growing product demand in the packaging industry, owing to its superior characteristics compared to other common plastic materials.

The medium-density product segment is expected to register the second-fastest growth rate 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 segment growth over the forecast years.

The segment is estimated to have a high growth potential in Asia Pacific, Europe, and North America, mainly as a result of the rapid expansion of the consumer goods industry in these regions. Moreover, rising consumer disposable income levels in these regions are expected to have a positive impact on consumer goods demand, thereby supporting the segment growth.

End-use Insights

The automotive end-use segment accounted for the largest revenue share of over 43% in 2020. The segment is expected to grow steadily retaining the leading position throughout the forecast period, mainly on account of the increasing product usage in passenger safety and NVH reduction applications. The automotive industry uses a significant amount of EPP foam in the floor, door panels, seats, and bumpers for acoustic management, thermal insulation, and impact absorption. The growing importance of reducing overall vehicle weight to improve fuel economy is expected to drive the product demand in the automotive segment over the forecast period.

The consumer goods industry is expected to witness significant growth over the coming years. This is mainly due to the growing product usage in the production of electronics, furniture, toys, and household appliances on account of its improved chemical and mechanical properties. Increasing demand for the aforementioned consumer goods, primarily in developing economies, acts as a key driver for segment growth.

EPP foam offers a high strength-to-weight ratio, impact, chemical, & water resistance, and ease of fabrication, which enables custom designing and printing. The increasing use of foam beads and molded products in the packaging industry is also a key driver for market growth. The growing importance of protective packaging and flexible packaging solutions respectively across various 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 accounting for a revenue share of over 52% in 2020, 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 expected to drive the product demand over the forecast period.

Japan accounted for a substantial share of the APAC regional market in 2020 and is expected to grow at a steady CAGR over the forecast period mainly due to the presence of key players, such as JSP Corporation, Kaneka Corporation, and Furukawa Electric Co., with extensive product portfolios and vast geographical reach.

The market in Europe is expected to witness significant growth over the coming years 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 growth of the automotive sector, thereby driving the product demand.

Key Companies & Market Share Insights

The market faces moderate to high competition on account of the presence of a large number of manufacturers, fabricators, and distributors in the industry. The presence of relatively lower-priced substitutes, such as Expanded Polyethylene (EPE) and Expanded Polycarbonate (EPC) in the market further intensifies the competition.

A majority of the companies follow an integrated approach, from the 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. 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 to sustain competitive positions in the industry.

Technological collaborations 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. Research activities focusing on new materials, which combine several properties, are projected to gain wide acceptance in the industry in the coming years. Some of the prominent companies in the global Expanded Polypropylene (EPP) foam market include:

• JSP Corp.

• BASF SE

• Kaneka Corp.

• DS Smiths plc

• Hanwha Corp.

• Furukawa Electric Co., Ltd.

• Sonoco Products Company

• Knauf Industries

• IZOBLOK

• Clark Foam Products Corp.

• Armacell International S.A.

Expanded Polypropylene Foam Market 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 2028. For the purpose of this study, Grand View Research has segmented the global expanded polypropylene foam market report on the basis of product, end-use, and region:

• Product Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2028)

  • Low-density

  • Medium-density

  • High-density

• End-use Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2028)

  • Automotive

    • Bumpers

    • Roof pillars

    • Seat bracing

    • Armrests

    • Others

  • Packaging

    • Food Packaging

    • Non-food Packaging

  • Consumer Goods

    • Electronics

    • Furniture

    • Toys & Sporting Goods

    • Others

  • Appliances

    • Kitchen Appliances

    • Non-Kitchen Appliances

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa