Expanded Polystyrene (EPS) Market Analysis By Product, By Application (Construction, Automotive, Packaging), By Region (North America, Europe, Asia Pacific, Central & South America, MEA), And Segment Forecasts, 2018 - 2025

Industry Insights

The global expanded polystyrene (EPS) market size was estimated at 6.62 million tons in 2016. Rising demand for the packaging industry in emerging markets including Brazil, China, India, and Vietnam as a result of increasing manufacturing output on a domestic level is expected to be a driving force.

EPS is a low-density polymer arranged in individual cells, capable of providing excellent moisture resistance, good chemical barrier protection along with light weight characteristics. The addition of graphite results in improving the insulating properties of finished products imparting paving the way for use in construction industry

U.S. EPS market, by product, 2014 - 2025 (Kilo Tons)

Rising importance of insulation property in the building sector of developed economies including China and India is expected to promote the usage of high-quality polymers. Furthermore, increasing spending toward enhancing the durability of commercial complexes and residential buildings during extreme external environmental factors is expected to over the next eight years.

Growing demand for cold chain packaging solutions in the pharmaceutical sector as a tool for improving product safety and keeping the freshness of packaged food fresh during transportation is expected to remain a key driving factor. Furthermore, improvement in the frozen food industry of major economies including the U.S. and Japan is projected to expand the scope of EPS in packaging sector in the near future.

Over the past few years, population growth and urbanization in emerging markets including Brazil, India and China have resulted in national governments for increasing the spending on improving to the manufacturing sector of packaging, construction and automotive industries. For instance, the government of India launched Make-In-India Policy in September 2014, which is aimed at promoting the investments in the manufacturing sector on a domestic level. These favorable government policies are expected to open new markets over the next eight years.

Gaining popularity of lightweight polymer foam in automotive ancillaries manufacturing as a result of ensuring the comfort to drivers is expected to fuel the demand for advanced materials. The recovery of automotive manufacturing sector in the U.S., Japan, Germany and India as a result of increased sales volumes of four wheelers is expected to drive the market in the near future

Product Insights

White product forms accounted for 58.1% in 2016. The product segment is expected to witness significant gains in packaging sector on account of exhibiting excellent properties including water resistance and superior mechanical durability.

Grey EPS is projected to grow at a CAGR of 4.5% from 2017 to 2025. These products are expected to witness growth on account of providing excellent insulation properties. However, the high price of grey products as compared to other polymers including silicone and polyurethane is expected to have an adverse impact.

With increase in investment across companies to develop and redesign EPS products, regions such as EU, developed Polysolve to recycle EPS, where biodegradable solvents are used to extract polystyrene and polycarbonate from a mixture of waste, resulting in recycled polymer having high rate of purity and performance compared to that of the original material

Application Insights

Packaging industry dominated the market, accounting for 42.5% of total volume share in 2016. Rising government spending toward the development of FMCG and electronic equipment manufacturing sectors in emerging markets including China, India is expected to have a positive impact

Global EPS market volume, by application, 2016 (%)

The Automotive industry is projected to grow at a volume CAGR of 32.8% from 2017 to 2025. Extensive requirements of EPS for ensuring vehicles to be lightweight, inline safe for passengers, as well as reducing weight and making fuel efficient is expected to have a substantial impact over the forecast period.

The construction industry is projected to account for 21.4% of global volume share by the end of 2025. The improvement in the construction industry of China and India as a result of the inclusion of infrastructure development in 12th five-year plans is projected to play a significant role in increasing the usage of polystyrene product forms over the next eight years.

Regional Insights

North America accounted for 10.1% of global volume share in 2016. The high adoption rate of polystyrene in construction applications including residential, loose roadways, and sports stadiums are expected to increase the demand over the forecast period.   

Asia Pacific is projected to witness revenue growth at a CAGR of 6.1% from 2017 to 2025. The positive outlook for packaging and automotive sectors in the major markets including China and India owing to regulatory support along with government policies that promote investments on a domestic level is expected to be a major driving factor.

Central & South America is projected to account for 2.9% of global volume share by the end of 2025. The firm foothold of automotive manufacturing units such as Brail on account of renewing existing government policies to create favourable tax benefits for Brazilian manufacturers is expected to expand the market size of Expanded polystyrene over the projected period.

The Middle East and Africa is projected to witness a volume growth at a CAGR of 4.5% from 2017 to 2025. The introduction of government policies and shift from transport to mobility in Gulf region as well as exports of electronic equipment is expected to expand the existing market for Styrofoam over the forecast period.

Competitive Insights

Key vendors include BASF, SABIC, DOW chemicals, NOVA Chemicals, TOTAL SA, Versalis S.P.A., Unipol Holland BV, Ravago group, Alpek S.A.B. De Cv, Styrochem, Brodr Sunde group, Synthos SA, Sunpor Kunststoff GMBH, Kaneka Corporation, and ACH foam technologies.

The market is highly fragmented on account of a vast number of companies engaged in the manufacturing of polystyrene. With latest research and development, companies have excelled in designing the variety of EPS products with exceptional properties, and are also catering to various demands of consumers. However, regional players seem to attain a larger section of opportunity then multi-national players on account of supplying the product forms at low prices 

In May 2017, Total inaugurated its Carling petroleum complex, which increased polystyrene production capacity along with upgrading the Polyethylene unit to cater the health care industry by delivering advanced plastics., automotive market by producing lighter plastics thereby reducing the consumption of steel.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, 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 EPS market on the basis of product, application, and region:

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

  • White

  • Grey

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

  • Construction

  • Packaging

  • Automotive

  • Others

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

  • North America

    • U.S.

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)