Expanded Polystyrene Market Size, Share & Trends Report

Expanded Polystyrene Market Size, Share & Trends Analysis Report By Product (White, Grey), By Application (Construction, Automotive, Packaging), By Region (APAC, Europe), And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-603-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 100

Report Overview

The global expanded polystyrene market size was valued at USD 9.5 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028. Increasing demand for sustainable and lightweight solutions that provide extreme durability coupled with improved thermal insulation is projected to boost the growth of the market over the forecast period. The rising demand for acoustic and thermal insulation in the building & construction industry in developing economies including China and India is expected to increase the demand for high-quality polymers. Furthermore, rising construction activities of durable commercial and residential buildings, which can easily withstand extreme external environmental factors are expected to propel the market growth over the forecast period.

U.S. EPS market size, by product, 2016 - 2028 (USD Million)

Expanded polystyrene (EPS) is used in the construction industry to reduce energy consumption and Greenhouse Gas (GHG) emissions. In recent years, green buildings have been gaining more popularity over conventional ones. Green building offers advantages including improved air quality, reduction in operating expenditure, reduction in overall load on metal frames, and efficient use of energy & water as compared to conventional buildings.

Excellent insulation offered by EPS is significantly boosting its demand in green buildings. Thus, with the rising demand for green buildings, the market for EPS is also expected to witness substantial growth over the forecast period.

Expanded polystyrene is lightweight, strong, and recyclable. The market is expected to grow owing to the increasing product application scope in various end-use sectors. Rising demand for lightweight, reusable, chemically stable materials in automotive components, packaging solutions, and furniture are projected to propel the market growth.

Product Insights

The white EPS product segment led the market and accounted for more than 57.0% share of the global revenue in 2020. The segment will expand further at the fastest CAGR from 2021 to 2028 owing to the growing product demand in packaging applications, such as food packaging (drink cups, food trays, and clamshell containers) and electronics and consumer goods packaging among others.

White EPS is also used in furniture, sports helmets, construction, and automotive applications. Moreover, the growing food service industry and demand for better-quality packaged foods are further projected to propel the segment growth. Grey EPS offers enhanced performance as compared to white EPS. Graphite is added to the mixture in grey EPS, which improves the overall performance of the material. It is majorly used in construction applications and is costlier than white EPS.

Application Insights

The construction application segment led the global market in 2020 and accounted for more than 46% share of the global revenue. However, the packaging application segment is estimated to record the fastest CAGR from 2021 to 2028. The growth can be credited to the extensive product usage in packaging applications due to the excellent shock-absorbing properties that make it ideal for the storage and transportation of products, such as electronics equipment, consumer goods, wines, healthcare, and chemical products. Excellent moisture resistance and thermal insulation offered by EPS help retain the freshness of perishable products, such as seafood, fruits, and vegetables.

Furthermore, compression resistance offered by these materials drives their demand for stackable packaging goods. The Covid-19 pandemic is likely to have less impact on the packaging industry as the demand for packaging of healthcare products and food has increased sharply, while the demand for luxury, industrial, and some B2B-transport packaging has declined on account of the slowdown and halt in industrial operations.

Global EPS market share, by application, 2020 (%)

The product demand in construction applications is expected to witness significant growth over the forecast period owing to various beneficial characteristics of EPS, such as excellent thermal insulation, lightness, chemical inertness, and bacterial & pest resistance.

The global pandemic has severely affected the growth of the construction sector. Stoppage or slowdown of construction projects, restriction on movements, halts in production, and labor shortages to contain the spread of the virus have led to a decline in the growth of the construction industry, which, in turn, is anticipated to hamper the demand for EPS in construction applications.

The automotive application segment is also anticipated to witness considerable growth over the forecast period on account of increasing product demand in automobile parts, such as storage compartments, headrest & seats, footpads, and bumper systems. The material is used in the automotive application on account of its properties, such as lightness, impact resistance, and shock absorption.

Regional Insights

The Asia Pacific regional market accounted for the largest revenue share of more than 54% in 2020. The region is estimated to expand further at the fastest CAGR from 2021 to 2028 due to rising product demand in the key application segments including automotive, packaging, and construction, in emerging economies, such as China and India. The construction sector in APAC is the fastest-growing market across all regions. Rising urbanization & disposable income along with government initiatives, such as the “Housing for All” in India, are driving the growth of the construction sector in the APAC region.

Europe is the second-largest consumer of the market owing to high demand from the automotive, packaging, and construction sectors. The product has applications in several industries due to its versatile benefits and easy molding and shape formation properties. In recent years, the product demand from green buildings design applications in the Europe market has witnessed a significant increase owing to its excellent environmental advantages that can provide an improved indoor environment, maximized energy efficiency, and enhanced durability.

The Central & South America market is expected to witness substantial growth over the forecast period owing to the region’s economic growth in the past few years. Recovering the residential building & construction sector in CSA is expected to fuel the demand for EPS in the construction sector. Significant new investments in housing and public works by the government and green building construction initiatives are expected to boost infrastructural growth in Colombia, thereby propelling the product demand over the forecast period.

Key Companies & Market Share Insights

The majority of the market players are engaged in the expansion of manufacturing facilities, mergers & acquisitions, and vertically integrating across the value chain. These initiatives enable companies to cater to increasing global demand, ensure competitive effectiveness, enhance sales & operations planning, develop innovative products & technologies, lower production costs, and expand customer base.

For instance, in June 2019, BASF SE increased its global production capacity of Neopor (a graphite polystyrene rigid foam and a type of EPS) by 40,000 metric tons per year. The capacity addition was done at two production sites, namely Ulsan (Korea) and Ludwigshafen (Germany). This move allowed BASF SE to cater to the surging demand for grey material in the Asian market. Some of the major companies operating in the global expanded polystyrene (EPS) market include:

  • BASF SE

  • Kaneka Corp.

  • Total

  • NOVA Chemicals Corporate

  • Ravago

  • SABIC

Expanded Polystyrene Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 9.7 billion

Revenue forecast in 2028

USD 13.5 billion

Growth rate

CAGR of 4.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in kilotons, revenue in USD million/billion, and CAGR from 2021 to 2028

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors, and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Germany; U.K.; China; India; Brazil

Key companies profiled

BASF SE; Kaneka Corp.; Total; NOVA Chemicals Corporate; Ravago; SABIC

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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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 polystyrene market report on the basis of product, application, and region:

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

    • White

    • Grey

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)

    • Construction

    • Packaging

    • Automotive

    • Others

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

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • India

      • China

    • Central & South America

      • Brazil

    • Middle East & Africa

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