Expanded Polystyrene Market Size, Share & Trends Analysis Report By Product (White, Grey), By Application (Construction, Automotive, Packaging), By Region, And Segment Forecasts, 2020 - 2027
Expanded Polystyrene Market Growth & Trends
The global expanded polystyrene market size is anticipated to reach USD 12.9 billion by 2027., expanding at a CAGR of 4.6% from 2020 to 2027. The rising demand for environmentally friendly, lightweight, durable, and sustainable products and components, primarily for thermal and acoustic insulation, in the automotive, construction, and packaging industries, is driving the demand for Expanded Polypropylene (EPS) over the forecast period.
Technological advancements and the growing trend of electric vehicles have increased the need for lightweight, durable, and recyclable products.A gradual increase in electric vehicles on roads is expected to positively propel the growth of the market in the coming years.
However, the COVID-19 outbreak has immensely affected the production of automobiles and has negatively impacted the value chain of the automotive industry. Production cut or halt in manufacturing activities, weak consumer sentiments, and declining demand from consumers owing to COVID-19 are expected to impact the demand for expanded polystyrene in automotive applications.
The growth of the market in Asia Pacific is projected to be negatively impacted in some application segments owing to the COVID-19 pandemic.The pandemic has led to limitations on cross-border trade, lockdowns of major cities, and waning consumer demand.
This has severely affected the regional manufacturing and construction activities and compelled several manufacturers and contractors to either close or slow down their operations to contain the spread of the virus, which is expected to hamper the product demand in the fourth quarter of 2020.
Expanded Polystyrene Market Report Highlights
• The packaging segment was the second-largest application segment in 2019. Expanded polystyrene is widely utilized in the packaging of electrical and electronics, consumer goods, medical and healthcare products, and glass bottles
• White EPS is expected to emerge as the fastest-growing product segment in the forecast period owing to increasing demand for food packaging solutions such as food trays, clamshell containers, and disposable cups, consumer goods packaging, and electronics products packaging
• As of 2019, Asia Pacific accounted for more than 54.0% share of the overall revenue. The rising number of construction projects in emerging economies such as China and India is propelling the product demand in the region.