Expanded Polystyrene for Packaging Market

Expanded Polystyrene for Packaging Market Snapshot 2023 to 2033

The global Expanded Polystyrene for Packaging market is anticipated to accumulate a market value of US$ 11.05 billion in 2023 and is expected to record a market valuation of US$ 25.2 billion by exhibiting a CAGR of 8.59% in the forecast period 2023 to 2033. The market for expanded polystyrene solutions for packaging registered a CAGR of 6% in the historical period 2018 to 2022.

• With the rising influence of social factors, such as improving occupant health & well-being, encouraging sustainable business practices, and creating a sense of community, the demand for expanded polystyrene is bound to increase.
• Properties of polystyrene (EPS), like moisture resistance, thermal insulation, and outstanding shock absorption, are driving its demand in packaging applications.
• Substantial gains in the food service industry, on account of growing number of food retail chains coupled with the increased demand for packaged food, are anticipated to boost the consumption of polystyrene solutions for packaging during the forecast period.
• Industrial packaging frequently utilizes expanded polystyrene packaging. Due to its shock absorption ability, this packaging offers industrial items the most suitable material for comprehensive protection and safety from risk during transportation and handling.
• The hard, lightweight foam can be moulded into various shapes to protect and insulate delicate things during storage and transportation, such as fragile healthcare equipment, electronic items, electrical consumer goods, toys, and horticultural products.
• Products made from expanded polystyrene are easy to use, cost-effective, and versatile. Its recyclability and biocompatible nature are the reasons determining the utilization of polystyrene in several industries.
• The expansion of business in the construction industry assists in driving the growth of this industry. A special hike in energy prices is forcing the users to increase their thermal efficiency for minimizing their energy consumption thereby pushing the product demand.
• On the other hand, growing food packaging trends in the world will also propel the market for polystyrene solutions shortly. This packaging solution is mostly preferred in the packaging of foods such as fish, shellfish, meat, fruits, and ice cream. Furthermore, new applications for molded EPS will present new opportunities for the industry growth.
• In addition to this, governments are taking initiatives on using recyclable plastics to lessen the plastic concentration in the environment; this factor is expected to propel the market growth.
• Besides this, increasing requirement of lightweight materials in the automotive sector for flexibility in integrating components to reduce corrosion and encourage longer vehicle life is fueling the demand for these packaging solutions
• Surging demand for expanded polystyrene packaging from green buildings and absence of other alternatives are presenting substantial growth opportunities in the expanded polystyrene market.
• The idea behind green buildings or sustainable buildings is to design most economic and durable buildings. In these green buildings, polystyrene is used as an insulation material, which is further expected to impel growth of the market in the near future.

Geographically, the Asia Pacific region dominated the industry in 2022 and accounted for over 40% revenue share. It will retain its dominance by reaching 44% market share by end of the forecast period. This region is expected to be one of the largest as well as the fastest-growing regional markets during the forecast period, owing to accelerating demand for the product from key applications, including automotive, packaging, and construction, in emerging economies, such as India and China. Moreover, the rapidly growing construction industry in the Asia Pacific region will support regional growth.

On the other hand, North America is expected to garner a significant market share of 34% by end of the projection period. The growth is attributed to the adoption of polystyrene packaging solutions by the buildings and construction industry for various applications like roadways, residential & commercial buildings, and other constructional activities. Additionally, growing use of expanded polystyrene for the thermal insulation is anticipated to drive market growth in the forecast period.

Data Points	Key Statistics
Expected Market Value in 2023	US$ 11.05 billion
Projected Market Value in 2033	US$ 25.2 billion
Growth Rate (2023 to 2033)	8.59% CAGR

How Competitive is the Market?

Recent developments in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing expanded Polystyrene for Packaging are anticipated to create lucrative prospects for market growth during the forecast period.

• On July 2022: BEWI ASA offered a letter of intent to acquire the Lithuanian insulation company ‘BalPol’. This acquisition will help BEWI to expand its geographical reach.
• On June 2022: BEWI ASA acquired an additional 51% stake in Jablite Group, an insulation and packaging company. This purchase may further help BEWI expand its presence in the United Kingdom.

Expanded polystyrene for packaging is manufactured by an injection moulding technique. The distinct characteristic features which the expanded polystyrene for packaging possesses are: cushioning of fragile products, thermal insulation, and high strength for weight-bearing.

The lightweight yet durable nature for expanded polystyrene has led to its growing acceptance for the packaging of fragile as well as heavy-duty products. This adoption is expected to drive the demand for expanded polystyrene for packaging in the global market.

Expanded Polystyrene for Packaging market- Market dynamics

The expanded polystyrene for packaging exhibits unique characteristics because of which the demand for the packaging in the electronics and electrical appliances packaging is anticipated to gain traction all over the world. The expanded polystyrene for packaging is majorly used due to light-weight and effective insulation properties in the packaging of pallets in the building and construction industry.

The expanded polystyrene for packaging is formed by melting and solidifying process. The expanded polystyrene for packaging is demanded more in the form of thermocol slabs made up of expanded polystyrene beads. Also, the expanded polystyrene offers cost-effective packaging, with an ideal shock-resistant during transportation. The closed-cell structure of expanded polystyrene contributes to low vapour permanence and minimum water retention.

The expanded polystyrene does not possess biodegradable traits but is a chemical inert that makes it solid fill material and renders reliable and clean landfill redemption. The expanding demand for cold chain packaging solutions in the pharmaceutical segment as a medium for promoting product safety coupled with the demand from fresh food packaging industry is presumed to continue to be an essential driving factor for the sales of expanded polystyrene packaging solutions.

Among different expanded polystyrene for packaging, white EPS is a prominently used product type. It is closed-cell foam plastic which is rigid and has superior thermal and mechanical attributes.

The white EPS has firm dimensions for end-use and is non-corrosive. The thermal detention of the white EPS depends on the density of the finalized product. White EPS holds a closed cellular composition containing only stabilized air, consequently, the thermal resistance of the white EPS does not fade with time. Therefore, the expanded polystyrene for packaging market will have good growth and will be preferred in high demands.

Expanded Polystyrene for Packaging market- Regional Outlook

The Asia Pacific region is expected to account for maximum market share in the global expanded polystyrene for packaging market by 2020. The expanded polystyrene for packaging is highly in the demand because of large usage of plastic and polymer materials for packaging in various sectors such as food, healthcare, electronics and electrical application etc, especially on a large scale in the East Asian countries such as China, Japan, and South Korea. The market of expanded polystyrene has gained traction in European countries as sales of washing machines, refrigerators, and other consumer durables have registered a hike in the countries of Eastern Europe.

In North America, consumers have high-income levels and maintain a good standard of living, so the demand for expanded polystyrene for packaging market holds good in the American countries.

Expanded Polystyrene for Packaging market- Key Market Players

Some of the key manufacturers operating in the expanded polystyrene for packaging market are as follows-

• BASF SE
• ACH Foam Technologies, Inc.
• Unipol Holland BV
• KANEKA CORPORATION
• Ravago
• Styrochem
• NOVA Chemicals Corporation
• Sunpor Kunststoff GMBH
• SABIC, DOW Inc.
• Synthos
• Versalis S.P.A.
• Alpek S.A.B. De Cv
• Sundolitt Ltd

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain.

The report provides an in-depth analysis of parent market trends, macroeconomic indicators and governing factors along with market attractiveness as per segments of expanded polystyrene for packaging. The report also maps the qualitative impact of various market factors on expanded polystyrene for packaging market segments and geographies.

Regional Analysis Includes

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East & Africa (MEA)

Expanded Polystyrene for Packaging Market segmentation

Product:

• Black
• Grey
• White

Application:

• Sheets
• Trays & Clamshells
• Foam coolers
• Cups & bowls
• Packaging peanuts

End-use:

• Food and beverages
• Foodservice
• Healthcare
• Electronics and Electrical appliances
• Building and constructions