PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1521090
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1521090
The expanded polystyrene (EPS) market is expected to grow at a CAGR of 3.38% over the forecast period to reach a market size of US$7.544 billion in 2029, increasing from estimated value of US$6.389 billion in 2024.
The Expanded polystyrene (EPS) market is expected to experience significant growth over the forecast period. Asia-Pacific is expected to be the key market, benefiting from booming demand in the packaging and construction segments. Some of the emerging factors being associated with the growth of this market include. An ever-growing global population and changing lifestyles are dictating the need for high quality and added value items like 'green' goods and the concepts of 'fair trade' A swiftly expanding application of the EPS in the marine floatation and floating decks. However, limitations such as high availability of products and environmental constraints continue to slow the growth of the market. However, amid these factors, the market is anticipated to grow owing to the rising necessity for bio-based polystyrene and emerging applications of EPS. There are other factors also which are fuelling the growth in this market.
The city population is collectively providing a tremendous contribution towards the market growth of Expanded polystyrene (EPS). With the development of the scale of urbanization, the primary task remains to use packaging and insulating materials as efficiently as possible. Theraplast's EPS product has good thermal insulation attributes, and it can also be considered environmentally friendly, which makes it ideal for meeting such requirements. Also, the technological development of various segments like electronics, automotive, and others has resulted in a higher demand for quality packaging materials. The already growing trend of e-commerce is complemented by the growing popularity of electric vehicles which also fuels the demand for EPS. Therefore, the market for EPS is likely to experience a sustained level of growth due to the support it receives from these two sectors.
The EPS market is also fundamental on the back of the increasing needs of the global population in environmentally friendly packaging and building materials. People around the world are developing a consciousness of environmental conservation and would prefer goods that are ecologically friendly. EPS is thus preferred for packaging due to its low density and the benefits it has for environment-conscious businesses. In construction, the EPS is also used for insulation, and it is also economical. This means that Awareness of energy efficiency and green practices is also a factor that is promoting the use of EPS. Since more governments are putting in place measures to conduct or support EPA and reduce waste on this material, the EPS market is anticipated to gain from these measures.
The need from emerging markets also constitutes one more factor that is playing a part in the popularity of the EPS market. Some of the areas that have grown rapidly over the recent past include China and India where the population is urbanized, and the economies are growing at a fast pace, thus giving rise to the demand for packaging and construction materials. This growth in the middle class which is a factor of growth in these countries is now demanding packaged goods and consequently EPS. Also, supportive infrastructure that is rapidly being adopted in these countries has created a greater market for EPS, especially in construction projects. There are also emerging markets that are slowly but steadily expanding and, therefore, with the increased market demand, the EPS market will have the opportunity to expand as well.
The white EPS segment is expected to be the fastest-growing product type in the expanded polystyrene (EPS) market during the forecast period. This kind of growth has been brought about by the ever-growing market demand for white EPS for use in the packaging sector. White EPS is the most popular type of EPS and it is preferred by most builders. White EPS is also expected to gain popularity in the future due to its general-purpose nature and its applicability in different fields. When it comes to packaging, white EPS is heavily utilized for the production of protective as well as insulating products for various consumers' goods, electronics, and foods. Some of the driving factors that have been attributed to this segment include: One of the major drivers for the need for white EPS in this segment is the growth in online shopping and the need for more superior packaging that is lightweight and has high strength and durability. Further, the escalating food service industry and need for the appropriate and sustainable packaging including trays and cups constituted from white EPS is also adding up to the segment. Aside from its use in packaging, white EPS is also used as construction material in structures for wall insulation and padding of roofs and foundations because of its thermal capability of EPS. The growth in the construction industry including the focus of governments to incorporate energy-efficient buildings and the integration of and innovation of improved energy codes and regulations around the world are factors that are predicted to motivate the use of white EPS. Besides, the sales having white EPS along with furniture, sports equipment, and automotive are boosting the segment's growth as well.
The grey and silver EPS segment is expected to drive the growth of the Expanded polystyrene (EPS) market by type. Based on the type, the EPS market has been segmented as grey and silver which is likely to show high growth rates for Expanded polystyrene in the future. Specifically, it has been forecasted that grey EPS will experience higher growth than other products because of its excellent thermal insulating properties, more so when cost is taken into consideration. Flame retardants, graphite, and other additives have been brought into the new segment of 'modified' EPS where competition has increased. The switches in society's preferences towards 'green' products and solutions, inclusive of a growing importance on sustainable packaging and the promotion of energy efficiency and 'green' building have continued to foster the global demand for grey and silver EPS. Not only this, the increasing use of protective packaging materials especially in the e-communication sector, and the demand for lightweight and durable insulating material in construction aspects also supplement the growth of this segment. Consequently, the grey and silver EPS segment can be projected as a major EPS driving force in its market, complementing the industries' increased use throughout the globe.
The growing application of Expanded polystyrene (EPS) in the building and construction industry is a key driver of the EPS market's expansion. Several authors have also commented on the increasing use of Expanded polystyrenes in the building and construction sector. The use of EPS for various purposes is increasing rapidly, especially in light of the fact that the construction and building industry is one of the most rapidly growing industries of the current era. EPS in the construction industry has come to prevail for its unique and unique ability to insulate, lightweight, and versatility. In construction, EPS applies widely, especially in walls and roof insulation, and provides lightweight support for the foundations. Thanks to its shut-porosity and low thermal conductivity it has been considered as an optimal solution for saving the energies in the constructions. EPS insulation improves heating and cooling management hence meeting the increasing demands for emissions reduction in the construction sector.
Moreover, characteristics such as the material's longevity, the inertness to termites and chemicals, and simple installation have reinforced the material's reputation in the construction market. EPS is also used in the construction of Structural Insulated panels (SIPs) that involve the insulation capability of the EPS and the structural capability of oriented strand boards or other facing materials. These SIPs are increasingly being used in constructing homes and small commercial structures since they aid in thermal and structural capacities.
The emission of sustainable construction activities, energy utilization, and cost-effective and more durable construction materials are among the reasons that have seen EPS gaining popularity in construction. With the advancement in the construction industry on the global level the EPS application is predicted to sustain its demand in the market growth of Expanded polystyrene.
Asia-Pacific region to dominate the Expanded polystyrene market during the forecast period.
The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region such as ASEAN countries. India and China have about 35.5% of the world's population. The Asia Pacific region is expected to dominate the expanded polystyrene market during the forecast period owing to the region being the home of several countries as mentioned above constituting significant production capacities that are driving the demand for eco-friendly materials.
The Asia Pacific has been identified as to lead in the Expanded polystyrene (EPS) market resulting from population growth, rising urbanization, infrastructural developments, and increasing manufacturing industries. The exponential growth of e-commerce markets in developing countries such as China and India is projected to raise the demand for lighter packaging aids that offer protection to products which, in turn, boosts the consumption rate of EPS. Furthermore, the constant economic development and the favorable government policies in the APAC contributed to a high market share and growth of the EPS industry.
Intense industrial and construction industries in the region are likely to support high EPS demand in markets such as insulation, packaging, and uses. There is a large demand in this region for sustainable packaging and construction material, which EPS is a good fit for as it is lightweight, recyclable, and cost-efficient. In addition, energy conservation and green building implementation in developed countries in the Asia-Pacific such as China, Japan, and South Korea are boosting EPS for construction usage and insulating materials. The population density is rapidly increasing throughout the region, and it is accompanied by the need for more housing and commercial area which in turn leads to a higher production demand for EPS usage for construction and packaging purposes. Altogether, factors such as the Asia-Pacific region's economic progress, population, and infrastructure development for the EPS market align in favor of its growth, resulting in its global dominance.