|
Forecast Period
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2024-2028
|
|
Market Size (2022)
|
USD 1.06 billion
|
|
CAGR (2023-2028)
|
4.96%
|
|
Fastest Growing Segment
|
Packaging
|
|
Largest Market
|
Asia Pacific
|
Market Overview
Global Expanded Polypropylene Foam Market has
valued at USD 1.06 billion in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 4.96% through 2028. Expanded polyethylene
foam refers to foams that are made from polyethylene, a versatile polymer
widely used in various industries. It is produced by expanding the polyethylene
beads, resulting in a lightweight and flexible foam material.
Expanded Polypropylene (EPP) Foam, on the other
hand, is a type of expanded foam that offers a multitude of benefits. It
possesses exceptional energy absorption capabilities, ensuring optimal impact
resistance. Additionally, EPP foam provides efficient thermal insulation,
chemical resistance, and is 100% recyclable, making it an environmentally
friendly choice.
EPP foam can be manufactured in a wide range of
densities, ranging from 15 to 200 grams per liter. These densities can be
further modified through molding, allowing for even greater versatility. The
resulting EPP foam densities can range from 18 to 260 grams per liter, catering
to various application requirements.
Automotive manufacturers extensively utilize
expanded polyethylene foam due to its numerous advantages. The lightweight
nature of EPP foam contributes to improved vehicle functionality, durability,
and fuel efficiency. Moreover, its excellent energy absorption properties make
it ideal for passenger safety parts and automotive bumpers, ensuring enhanced
protection for occupants.
EPP foam comes in two main types based on density:
low-density EPP grade and high-density EPP grade. High-density EPP grade foams
are commonly employed in automotive applications, while low-density EPP-grade
foams find usage in industrial packaging.
The cost-effectiveness and impressive mechanical
properties of EPP foam contribute to its widespread adoption in the automotive
industry. Implementing Expanded Polypropylene Foam can result in foam savings
of up to 7%. Furthermore, the use of EPP foam helps to reduce vehicle weight,
improving body balance and aerodynamics. Additionally, EPP foam aids in
minimizing the release of volatile organic compound (VOC) emissions from vehicles
and spare parts, aligning with the global trend towards environmentally
friendly transportation.
As a result, the Expanded Polypropylene (EPP) Foam
Market is expected to experience rapid growth during the forecast period.
However, certain challenges and restraints may hinder the overall expansion of
the market. Fluctuations in the price of EPP can cause disruptions in
manufacturing costs, prompting industries to seek alternatives with more stable
pricing.
Given its exceptional properties and versatile applications,
expanded polypropylene foam remains a viable and practical material,
particularly in the production of electric vehicles (EVs). These vehicles are
at the forefront of the global shift towards sustainable and eco-friendly
transportation.
In conclusion, the Expanded Polypropylene (EPP)
Foam Market is poised for substantial growth, driven by its unique properties,
and increasing demand across various industries. While challenges exist, the
benefits and versatility of EPP foam make it an attractive choice for
manufacturers seeking superior materials for their products.
Key Market Drivers
Growing Demand of Expanded Polypropylene Foam in Automotive
Industry
The automotive industry is increasingly turning to
Expanded Polypropylene (EPP) foam due to its numerous benefits. One of the key
advantages is its lightweight nature, which significantly contributes to
reducing the overall weight of vehicles. This reduction in weight not only
improves fuel efficiency but also addresses the critical factor of meeting
stringent emission norms set by regulatory bodies worldwide.
In addition to its lightweight property, EPP foam
offers superior energy absorption and multiple impact resistance, making it an
ideal choice for car bumpers and other safety components. Its excellent thermal
insulation properties also make it suitable for use in heating, ventilation,
and air conditioning (HVAC) systems in vehicles.
Furthermore, the recyclability of EPP foam aligns
with the growing emphasis on sustainability in the automotive industry. As
manufacturers strive to reduce the environmental impact of their operations,
materials like EPP foam fit the bill perfectly.
As the pressure on automotive manufacturers to
reduce vehicle emissions continues to mount, the demand for lightweight
materials such as EPP foam is expected to increase. Additionally, the expanding
electric vehicle market further drives the demand for lightweight materials to
offset the weight of the battery, making EPP foam a preferred choice.
As the automotive industry evolves, there will be a
growing demand for materials that are not only lightweight and durable but also
sustainable. With its unique properties, Expanded Polypropylene foam is
well-positioned to meet these demands and is anticipated to drive the growth of
the global EPP foam market in the coming years.
Growing Demand of Expanded Polypropylene Foam in Packaging
Industry
Expanded Polypropylene (EPP) foam is a remarkable
closed-cell bead foam that offers an exceptional balance of mechanical
properties and aesthetics. Its outstanding attributes include excellent energy
absorption, multiple impact resistance, thermal insulation, water, and chemical
resistance, and most notably, its recyclability. These qualities make EPP foam
highly sought after in various industries, particularly in packaging.
In the packaging industry, the demand for EPP foam
is steadily increasing due to its multitude of benefits. The lightweight nature
of EPP foam contributes to reduced shipping costs, while its exceptional
durability ensures the safe transportation of goods. As e-commerce continues to
thrive on a global scale, these features have become more critical than ever
before.
Furthermore, EPP foam's excellent thermal
insulation properties make it an ideal choice for temperature-sensitive goods,
such as pharmaceuticals and perishable food items. With the rise of online
grocery shopping and meal kit delivery services, the need for effective
insulating packaging materials has soared.
Sustainability is another key factor driving the
preference for EPP foam. As consumer awareness and environmental regulations
become more stringent, companies face increasing pressure to reduce their
ecological footprint. EPP foam offers a solution as it is 100% recyclable,
making it an eco-friendly choice for packaging applications.
As we continue to progress towards a more digital
and environmentally conscious world, the demand for materials that meet these
evolving requirements will only continue to rise. Expanded Polypropylene foam,
with its unique combination of properties, is positioned to fulfill these
demands. Therefore, it can be confidently stated that the growing demand for
EPP foam in the packaging industry will act as a driving force for the global
EPP foam market in the foreseeable future.
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Key Market Challenges
Volatility in Prices of Raw Materials
A key challenge facing the EPP foam market is the
volatility in the prices of raw materials, particularly propylene. Propylene,
which is an essential raw material used in the production of EPP foam,
frequently experiences price fluctuations due to various factors such as
changes in crude oil prices, supply chain disruptions, and geopolitical
tensions. These unpredictable shifts in propylene prices can have a significant
impact on the cost of finished goods, potentially limiting the market's growth.
The volatility in raw material prices not only
affects EPP foam manufacturers but also has a ripple effect on the entire
supply chain. Manufacturers may be compelled to pass on the increased costs to
their customers, resulting in higher prices for end-users. This situation could
potentially reduce the demand for EPP foam, especially if cheaper alternatives
are readily available.
Furthermore, the uncertainty surrounding costs can
create a sense of hesitation in investing in new production capacities or
technologies within the EPP foam industry. This hesitance, driven by the
unpredictability of raw material prices, could limit the market's potential for
growth and innovation.
In order to navigate these challenges, EPP foam
manufacturers need to carefully assess and manage the risks associated with raw
material price volatility. This may involve exploring alternative sourcing
strategies, hedging against price fluctuations, or investing in research and
development to discover more cost-effective materials. By proactively
addressing these issues, the EPP foam market can strive for stability,
sustained growth, and continued innovation.
Key Market Trends
Advancements in Processing Technology
Processing technologies play a crucial role in the
production of Expanded Polypropylene (EPP) foam. These advanced technologies
not only determine the quality, properties, and cost-effectiveness of the foam
but also pave the way for continuous improvements. Recent advancements in
processing technologies have revolutionized the EPP foam industry, enabling
manufacturers to produce higher quality foam more efficiently and sustainably.
The introduction of new processing technologies has
facilitated better control over the production process, allowing manufacturers
to fine-tune the foam's properties based on specific application requirements.
For instance, advanced molding techniques, such as injection molding and steam
chest molding, offer precise control over the foam's hardness, density, and
elasticity. This level of customization opens up a multitude of possibilities
for various industries that rely on EPP foam for their products.
In addition to enhanced control and customization,
breakthroughs in automation and digitization have streamlined the EPP foam
production process. Robotics and artificial intelligence have found their way
into foam manufacturing, automating complex tasks, and reducing human errors.
This not only increases productivity but also ensures consistency and quality
in every foam produced. Moreover, digital technologies like the Internet of
Things (IoT) have emerged as valuable tools in monitoring and optimizing the
production process in real-time. By collecting and analyzing data from sensors embedded
in equipment, manufacturers can gain valuable insights and make informed
decisions to improve efficiency and reduce waste.
The advancements in processing technology have had
a profound impact on the EPP foam market in several ways. Firstly, they have
significantly enhanced the quality and diversity of EPP foam products. With the
ability to control and customize foam properties, manufacturers can cater to a
wider range of applications. This expansion of the foam's application scope not
only drives market growth but also opens doors to new industries and innovative
solutions.
Secondly, the advancements in processing technology
have made the production process more efficient and sustainable. The
integration of automation and digitization has resulted in reduced production
costs, making EPP foam more competitive in the market. Additionally, with the
growing emphasis on sustainability, these advancements align with the
industry's goals of reducing environmental impact. By optimizing production
processes and utilizing eco-friendly materials, manufacturers can attract
environmentally conscious customers and comply with stricter environmental
regulations.
In conclusion, the advancements in processing
technology are shaping the future of the global EPP foam market. As these
technologies continue to evolve, they will further enhance the quality,
diversity, and sustainability of EPP foam products. Staying abreast of these
technological trends is crucial for stakeholders in the EPP foam market to
seize emerging opportunities and drive market growth. With ongoing research and
development, the EPP foam industry is poised for continuous innovation and
progress.
Segmental Insights
Type Insights
Based on the category of type, the high-density segment
emerged as the dominant player in the global market for Expanded Polypropylene Foam
in 2022. High-density expanded polypropylene (EPP) foams are extensively
utilized in energy management systems, including bumpers, side tails, and
safety parts of vehicles. These foams possess exceptional strength against
impacts, making them ideal for industrial packaging applications as well. As
the demand for lightweight and premium products continues to rise, the market
for high-density EPP foam is projected to witness substantial growth over the
forecast period.
Moreover, the global surge in the demand for
electric and hybrid cars is expected to drive the utilization of lightweight
and chemically stable materials for automotive components. Notably, countries
such as India, China, and Indonesia are experiencing a significant rise in
disposable income and evolving lifestyles, which further contributes to the
increased production of automobiles. This, in turn, is poised to have a
positive impact on the growth of the automotive industry. Considering these
factors, the high-density EPP foam segment is anticipated to flourish in the
region during the forecast period, backed by the prevailing market trends and
customer preferences.
Application Insights
The Automotive segment is projected to experience
rapid growth during the forecast period. The increasing usage of EPP foam in
automotive end-use can be attributed to its exceptional properties and
benefits. EPP foams provide a smooth and long-lasting finish, coupled with high
resistance to chemical and UV exposure. This makes them ideal for automotive
interior and exterior equipment, where high-impact resistance is crucial.
Moreover, the construction industry has also
embraced the use of EPP foams due to their high resistance nature. These foams
are extensively used in the production of various parts such as roof pillars,
ceilings, and more. The durability and corrosion resistance of products made
using EPP foam, compared to EPS, make them highly suitable for manufacturing
food containers and other materials.
In addition to these applications, EPP foam finds
its place in different areas including bumpers, seat bracing, roof pillars,
armrests, and more. The global market for EPP foam in the building sector is anticipated
to witness growth driven by factors such as population growth and favorable
demographics for manufacturing.
Overall, the versatility and advantageous
properties of EPP foam make it a sought-after material in various industries,
ensuring its increasing demand and market growth.
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Regional Insights
Asia Pacific emerged as the dominant player in the Global
Expanded Polypropylene Foam Market in 2022, holding the largest market share in
terms of value. In recent years, the consumer goods and electronics
manufacturing industries in China, India, and Japan have witnessed remarkable
growth. This can be attributed to the rapid pace of industrialization, abundant
availability of raw materials, and a readily available labor force. As a
result, the demand for EPP foam is expected to soar during the forecast period,
driven by the increasing needs of these expanding industries. The lightweight
and versatile nature of EPP foam makes it an ideal choice for applications in
various sectors, such as automotive, packaging, and construction. With its
exceptional properties and the ongoing industrial advancements in these
countries, EPP foam is poised to play a crucial role in meeting the evolving
demands of the market.
Recent Developments
- In March 2022, Hanwha Solutions, a leading company,
has announced plans to split off its advanced materials business. The strategic
move aims to raise USD 491 million for investments both domestically and
internationally. This decision comes after careful consideration since November
2021. In order to facilitate the split, private equity firm Glenwood PE is set
to acquire a 49% stake in the division for KRW 600 billion (equivalent to USD
491.4 million). With this acquisition, Glenwood PE will become the
second-largest shareholder in the advanced materials business, second only to
Hanwha.
- Moving to February 2022, following a series of
transactions, BEWI, a prominent company, has successfully completed the
favorable tender offer made in November 2021. As a result, BEWI has acquired a
significant 9.62% of the capital share in Izoblok, a notable company in the
country. Notably, this recent acquisition adds to the 54.21% shares of Izoblok
that BEWI had already acquired in August 2021. With this latest development,
BEWI now holds a controlling stake of 63.83% in Izoblok, solidifying its
position as a major player in the industry.
Key Market Players
- BASF SE
- KANEKA
CORPORATION
- FURUKAWA
ELECTRIC CO., LTD.
- Sonoco
Products Company
- DONGSHIN
INDUSTRY INCORPORATED
- Clark
Foam Products Corporation
- Paracoat
Products Ltd.
- IZOBlok
SA
- Signode
Industrial Group LLC
- Armacell,
LLC
|
By Type
|
By Application
|
By Region
|
- Low Density
- High Density
- Porous Polypropylene
|
- Automotive
- Packaging
- Consumer Products
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Expanded Polypropylene
Foam Market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
- Expanded Polypropylene Foam
Market, By
Type:
o Low Density
o High Density
o Porous Polypropylene
- Expanded Polypropylene Foam
Market, By
Application:
o Automotive
o Packaging
o Consumer Products
o Others
- Expanded Polypropylene Foam Market,
By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Expanded Polypropylene Foam Market.
Available Customizations:
Global Expanded Polypropylene Foam Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Expanded Polypropylene Foam Market is an
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report or want to confirm the date of release, please contact us at [email protected]