According to a new report published by Allied Market Research, titled, "Expanded Polystyrene Market by Type and End-user Industry: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global expanded polystyrene market was valued at $15.3 billion in 2018 and is projected to reach $22.8 billion by 2026, growing at a CAGR of 5.1% from 2019 to 2026.
Expanded polystyrene (EPS) is a rigid and light weight insulation material. It has various properties such as shock absorption, resistance to humidity, resistance to compression, retention to vitamin C, hygienic, and resistance to chemicals. It finds application in automotive, furnishing, packaging, and construction industries.
The expanded polystyrene market is impacted by its applications in various industries. The properties such as thermal insulation, versatility, mechanical resistance, and slow ageing are desirable in construction markets. Therefore, increase in use of EPS in the construction industry drives the growth of the expandable polystyrene market. Furthermore, it is the lightest packaging available due to its low weight and is ideal for packaging fruit and vegetables. Therefore, these applications in the packaging industry further fuels the market growth. However, volatility of crude oil prices and availability of high-performance substitutes are expected to restrain the market growth. Meanwhile, the properties of EPS such as recyclability and biodegradability offers lucrative growth opportunity for the industry.
The global expandable polystyrene market is divided on the basis of type, end-use industry, and region. Based on product type, the market is divided into white, grey, and black. The white segment was the highest contributor to the market in 2018 and is expected to grow with a CAGR of 4.8% during the forecast period. The white segment was also the highest contributor in terms of volume and is expected to grow at a CAGR of 4.5% during the forecast period.
Based on end-use industry, the market is segmented into packaging, building & construction, domestic appliances, consumer electronics, medical, and others. The packaging segment was the highest contributor to the market and is expected to grow at a CAGR of 5.4% during the forecast period. The building & construction is the fastest growing segment and is predicted to grow with a CAGR of 6.3%.
Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor in 2018 and is expected to grow with a CAGR of 5.6% during the forecast period. The demand for EPS insulation is on a continuous rise in Asia-Pacific, owing to the encouragement of private ownership of real estate and rise in home renovation & construction activities. Moreover, the Chinese government has developed policies promoting building energy efficiency. Government initiatives to increase construction expenditure to improve public and commercial infrastructure along with energy conservation initiatives to reduce greenhouse gas emissions augment the market growth.
The key players operating in the expandable polystyrene industry are Alpek, Arkema SA, Basf SE, Nova Chemical Corporation, Styrochem, LG Corporation, Kaneka Corporation, Total SA, and Evonik Group of Industries.
Key Findings of the Study:
- In 2018, the Asia-Pacific market held a share of over 48.0% in the global expanded polystyrene market.
- North America is expected to grow with the highest CAGR of 3.8% during the forecast period.
- The building & construction segment is projected to grow at a CAGR of 6.3% by 2026.
- Mexico was the highest revenue contributor in North America expanded polystyrene market size and is expected to grow with the CAGR of 4.1%.
- Packaging materials made from EPS are corners, edge protectors, flat pads, custom cut pads, specialty items, end caps, door cores, wall panels, roof panels, concrete void fillers, and specialty panels. Therefore, wide applications of EPS in the packaging industry is expected to drive the market growth.