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The US Expandable Polystyrene (EPS) Market size is forecast to increase by USD 587.88 million, at a CAGR of 4.46% between 2023 and 2028. Market growth is influenced by several factors, including the growth of e-commerce sales and increasing demand for expanded polystyrene (EPS) from the construction industry. Additionally, the environmental benefits associated with EPS are driving its adoption in various applications. These factors highlight the versatility and sustainability of EPS, making it a preferred choice in industries requiring lightweight, durable, and environmentally friendly materials. The market forecast report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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The market is driven by various factors such as supply chain disruptions, construction work stoppages, and labor shortages. Rising construction activities and the growing packaging sector also contribute to its growth. Trends include the demand for green alternatives and increasing emphasis on recycling. Challenges include addressing concerns related to flame retardants and additives, managing population growth and rapid urbanization, and ensuring compliance with thermal insulation standards, especially in external walls. E-commerce experience and online brands further shape market dynamics. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased demand for EPS from the construction industry is notably driving the market. One of the widely used areas of EPS in construction activities is insulation. The popularity of EPS foam boards in construction is based on the fact that they are utilized as insulation materials in the walls, ceilings, and floors for residential, commercial, and industrial buildings. The excellent insulation qualities of EPS are a critical factor in ensuring optimal indoor temperatures, thus reducing the heating and cooling costs and also enhancing the energy efficiency in the buildings. The uniqueness of the product lies in its mechanical properties as well as versatility and convenient installation, making it suitable for any construction scale.
Moreover, expandable polystyrene can be used as an insulation board or as a fill material for concrete blocks or lightweight structure components. This makes it a cost-effective solution suitable for builders and contractors to comply with the strict building codes. The superior water resistance of EPS, facilitated by its closed-cell construction, makes it a compelling choice for shielding buildings from water penetration and mitigating the associated issues such as mold and mildew growth. This feature not only enhances the durability and structural stability of buildings but also ensures resilience and thermal conductivity in diverse environmental conditions. Hence, such factors are driving the market growth during the forecast period.
Growing demand for lightweight containers and packaging is an emerging trend in the market. The demand for EPS for packaging from enterprises in industries including food and beverage, healthcare, and electronic appliances is continuously changing. In addition, the demand for lightweight containers and packaging is increasing. Furthermore, lightweight containers and packaging help reduce the environmental impact of consumer packaging and support enterprises to contribute toward sustainability.
Moreover, lightweight containers and packaging solutions also reduce the mass of packages effectively and the cost of production. Therefore, various enterprises are opting for lightweight containers and packaging. For instance, in June 2019, Versalis launched an innovative type of expandable polystyrene, Extir FL 3000. In addition, it offers the industry an opportunity to increase the use of sustainable products in sectors such as food packaging, containers, and seats. Therefore, it is positively impacting the US expandable polystyrene market. Hence, such factors are driving the market growth during the forecast period.
The availability of alternatives is a major challenge hindering the market. The availability of a wide range of alternative materials further intensifies competition for expandable polystyrene manufacturers. In addition, beyond bioplastics, other alternatives such as paper-based packaging, cardboard, bamboo-based materials, and even innovative biodegradable polymer are emerging as viable substitutes for expandable polystyrene in various packaging applications.
Moreover, this proliferation of alternative materials presents a significant challenge for expandable polystyrene companies, as they must contend with heightened competition and evolving market dynamics. In addition, to remain competitive, expandable polystyrene manufacturers must differentiate their products by emphasizing unique features such as enhanced insulation properties, superior durability, or compatibility with specific applications. Therefore, it is negatively impacting the US expandable polystyrene market. Hence, such factors are hindering the market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alfa Corporativo S.A. de C.V: The company offers EPS through its subsidiary Alpek SAB de CV such as ARCEL EPS that are used in the construction market for its lightweight thermal insulation properties and eCommerce segments because of its impact-resistance for consumer goods and electronics packaging.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In the market, factors like feedstock styrene costs and crude oil prices significantly impact production expenses. EPS, known for its resistance to pests and bacteria and closed-cell structure, finds versatile applications in construction elements, insulated panel systems, and facades. Its lightweight and durable nature makes it ideal for packaging products in industries like the fast-food industry and consumer goods sector. However, environmental concerns surrounding Chlorofluorocarbons (CFCs) and landfills prompt efforts for post-commercial EPS recycling through closed-loop and open-loop processes. Despite challenges, EPS remains integral to various sectors due to its cost-effectiveness and advantageous properties.
The white segment is estimated to witness significant growth during the forecast period. EPS refers to a white foam plastic material that is produced from solid beads of polystyrene. In addition, its main applications include packaging, insulation, and others. Furthermore, in the US EPS market, it is used in the construction industry as it is a closed-cell and can absorb water and, in return, not promote mold or rotting when used as a core material.
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The white segment was the largest segment and was valued at USD 1.42 billion in 2018. Moreover, EPS has shock-absorbing properties, which make it suitable for storing and transporting fragile items such as wines, chemicals, electronic equipment, and pharmaceutical products. In addition, its thermal insulation and moisture-resistant properties are suitable for the food and beverage industry, such as packaging cooked food as well as perishable items such as seafood, fruit, and vegetables. Furthermore, the advantages of expandable polystyrene include high thermal insulation, resistance to moisture, extreme durability, easy recyclability, versatility in strength, and others. Hence, such factors are fuelling the growth of this segment which in turn drives the US EPS market growth during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market thrives in diverse sectors like packaging, construction, and medical industry, offering water absorption resistance and lightweight properties of expanded polystyrene (EPS) for road construction and marine applications. EPS finds use in food packaging, building insulation, and transportation due to its energy-efficient and thermal attributes. It supports green building design and indoor environmental quality in commercial and residential projects while catering to healthcare and leisure industries. EPS serves as flotation material for marinas and pontoons, ensuring safe and reliable solutions in various applications. Further, the EPS market plays a vital role in various sectors such as packaging and construction.
Additionally, with its chemical inertness and moisture resistance, EPS is ideal for roofing, road construction, and industrial packaging. It offers lightweight fill solutions for void filling and embankments, contributing to energy-efficient building materials. They are extensively used in food packaging, including fruit trays, food service containers, and clamshell containers, ensuring shelf life and preserving vitamin C content. Moreover, it serves in medical equipment and electronic components, providing shock absorption and protection during transportation. In the sports & leisure industry, EPS is utilized for foam coolers and packaging density, offering toughness and rigidity. Its applications span automotive parts, retail sector, and commercial real estate, contributing to robust economies and sustainable development. Further, the market serves diverse sectors like packaging and construction, offering solutions for roofs, road construction, and embankments due to its low weight and high density. \
Furthermore, in packaging, EPS ensures the safety of packaged food, fruits, and drink cups, maintaining their quality during transportation. It finds applications in toys and horticultural products owing to its moulding capabilities. The Building & Construction sector utilizes EPS for underfloor heating systems and concrete floor slabs due to its insulating properties. EPS (expanded polystyrene) plays a crucial role in green building design applications, providing energy-efficient solutions for commercial buildings, hospitals, and colleges. Moreover, it contributes to affordable housing and homeless services initiatives, reflecting its importance in addressing social challenges and fostering sustainable development in the E consumption era.
US Expandable Polystyrene (EPS) Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.46% |
Market growth 2024-2028 |
USD 587.88 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.32 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alfa Corporativo S.A. de C.V., Alpek SAB de CV, Atlas Roofing Corp., BEWI ASA, Dart Container Corp., Epsilyte LLC, Foam Products Corp., Foamcraft USA LLC, Integreon, Kaneka Corp., Koch Industries Inc., LG Chem Ltd., Michigan Foam Products LLC, RAG Stiftung, RAPAC, Saudi Arabian Oil Co., Styrotech Inc., Synthos SA, TotalEnergies SE, and BASF SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Market Segmentation by Distribution Channel
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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