Expanded Polystyrene Market Growth & Trends
The global expanded polystyrene market size is anticipated to reach USD 13.5 billion by 2028, according to a new report by Grand View Research, Inc., growing at a CAGR of 4.8% from 2021 to 2028. The rising demand for eco-friendly, lightweight, durable, and sustainable products and components, primarily for thermal and acoustic insulation, in the automotive, construction, and packaging industries is driving the market growth over the forecast period.
Technological advancements and the growing popularity of Electric Vehicles (EVs) have increased the need for lightweight, durable, and recyclable products. A gradual increase in EVs on roads is expected to positively propel market growth. However, the Covid-19 pandemic has immensely affected the production of automobiles and the value chain of the automotive industry. Production cuts or halt in manufacturing activities, weak consumer sentiments, and declining demand from consumers owing to the pandemic are expected to limit the market growth to some extent.
The Asia Pacific regional expanded polystyrene (EPS) market is projected to have an adverse effect in some application segments owing to the pandemic. The pandemic has led to limitations on cross-border trade, complete lockdowns imposed in major economies, and waning consumer demand that has severely affected the regional manufacturing and construction activities and compelled several manufacturers and contractors to either close or slow down their operations.
Expanded Polystyrene Market Report Highlights
- The global market was valued at USD 9.5 billion in 2020 and is estimated to grow at a CAGR of 4.8% from 2021 to 2028.
- Construction was the largest application segment in 2020; however, the packaging segment is estimated to register the fastest CAGR from 2021 to 2028
- The product is widely utilized in the packaging of electrical & electronics, consumer goods, medical & healthcare products, and glass bottles
- White EPS is anticipated to emerge as the fastest-growing product segment over the forecast years owing to increasing demand for consumer goods, electronics products, and food packaging solutions, such as food trays, clamshell containers, and disposable cups
- Asia Pacific accounted for the largest revenue share of more than 54% in 2020 and is projected to record the fastest CAGR from 2021 to 2028
- The growth of this regional market can be credited to the rising number of construction projects in emerging economies, such as China and India