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The expanded polystyrene for packaging market size is forecasts to increase by USD 5.98 billion with growth at a CAGR of 8.8% between 2023 and 2028. The Expanded Polystyrene (EPS) market for packaging experiences growth due to several key factors. Firstly, the environmental benefits of EPS, such as its insulation capabilities and lightweight nature, make it an attractive option for businesses seeking sustainable packaging solutions. Secondly, the burgeoning e-commerce sector relies heavily on EPS for secure and protective shipping, leading to increased demand. Lastly, the high rate of recycling for EPS further bolsters its market potential, as it can be recycled and reused, reducing waste and environmental impact. Overall, these factors contribute to the robust growth of the EPS packaging market.
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The Expanded Polystyrene (EPS) finds extensive applications in the packaging industry, catering to various sectors such as food service, industrial packaging, automotive, and pharmaceutical. EPS, a lightweight plastic foam material, is formed from polystyrene beads and is crucial for its foaming plastics properties, offering resilience ideal for packaging products ranging from delicate electronics to fresh foods. Its buoyancy makes it essential in flotation devices, boats, and life preservers, enhancing safety in marine environments. In recent years, the focus has shifted towards bio-based polystyrene and organic alternatives, driven by trends in green buildings and health and wellness goods, promoting sustainable packaging solutions across various industries. EPS continues to evolve as a preferred choice for its reliability and versatility in protecting fragile products and ensuring the safe transport of goods. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The growth of the e-commerce sector is notably driving market growth. The growth of the e-commerce sector has a direct impact on the packaging industry. Packaging plays a major role in the first impression that consumers have of brands. Therefore, most brands try to differentiate themselves by offering various types of packaging.
Many companies, such as BEWiSynbra Group AB (BEWiSynbra), focus on offering premium gray expanded polystyrene for packaging, which can be used as an indication of high-quality products. Some products that consumers buy from e-commerce platforms are food and beverages, electronics, personal care products, and healthcare products. In healthcare, folding cartons are used for the packaging of medicines and drugs to protect them against unfavorable external elements, such as biological contamination, degradation, physical damage, and counterfeiting. Therefore, the growth of the e-commerce sector will increase the need for during the forecast period.
Growing demand for lightweight containers and packaging is the key trend in the market. The demand for these from enterprises in industries such as food and beverage, healthcare, and electronics appliances is continuously evolving. The demand for lightweight containers and packaging is increasing. Lightweight containers and packaging help reduce the environmental impact of consumer packaging and support enterprises to contribute toward sustainability. Lightweight containers and packaging solutions also reduce the mass of packages effectively as well as the cost of production. Thus, various enterprises are opting for lightweight containers and packaging.
Hence, several companies offer lightweight containers and packaging. The product helps end-users significantly reduce the weight of the packaging. In the transportation and warehousing industries, lightweight packaging materials are in high demand as they reduce fuel consumption and operational costs. Thus, the high demand for lightweight containers and packaging will drive the growth of the global market for packaging during the forecast period.
The popularity of bioplastic packaging is the major challenge impeding market growth. Bioplastics are biodegradable plastics that are derived from renewable biomass sources, such as corn starch, vegetable fat and oil, straw, woodchip, food waste, and others. Environmental awareness and sustainability are key areas of concern for customers, which is forcing packaging companies to adopt sustainable packaging. This is increasing the demand for bioplastic packaging. Several governments have started initiatives to promote the use of bioplastics over hazardous polymer and plastic materials. The fund aimed to support projects that utilize household food scrap to create environmentally friendly plastic bags and cups as well as smart labels.
Hence, many end-users are shifting to bioplastics, including flexible bioplastic packaging. Some major companies that offer flexible bioplastic packaging are Uflex and Parkside Flexibles Ltd. (Parkside Flexibles). The rising use of bioplastics for packaging is reducing the popularity of the use for packaging. This will negatively affect the growth of the market during the forecast period. Some companies, such as BASF and BEWiSynbra, are focusing on the development of biomass-balanced to reduce the effect of the challenge.
The market share growth of the electronic appliances segment will be significant during the forecast period. In the electronic appliances industry, expanded polystyrene is used for electronic packaging appliances such as blenders, washing machines, air conditioners, personal computers, scanners, and television screens to protect them and ensure their safe transportation, contributing to the Industrial Packaging Market.
As the demand for electronic appliances continues to rise, there is a parallel growth in the Packaging Solutions Market, Packaging Products Market, Sustainable Packaging Market, Flexible Packaging Market, Rigid Packaging Market, and Industrial Packaging Market. These segments play a crucial role in providing efficient and sustainable packaging solutions for electronic appliances, ensuring their protection and preservation throughout the supply chain.
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The electronic appliances segment was valued at USD 3.85 billion in 2018. It has properties such as heat flexibility and water resistance, which make it reliable for the packaging of electronic equipment such as air conditioners, refrigerators, televisions, and washing machines. The growing global consumer electronics market will drive the growth of this segment during the forecast period.
APAC is estimated to contribute 75% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The market for packaging is growing at a high pace in APAC, emphasizing market research and growth. Developing economies, such as China and India, are expected to emerge as major revenue contributors to the market for packaging in APAC during the forecast period, highlighting market growth and forecasting dynamics.
This is primarily because of the rapidly expanding e-commerce, FMCG, household appliances, and personal care end-user industries, influencing the Protective Packaging Market, Food Packaging Market, and Consumer Packaging Market. APAC characterizes a growing e-commerce industry, especially in countries such as China, India, and Japan, shaping Market forecasting and the outlook for the Expanded Polystyrene Market. The growth of the e-commerce industry in APAC is attributed to the rising population in the region, which is fueling the overall demand for goods through online distribution channels. Also, the rise in counterfeiting in the e-commerce industry in countries such as China and India is augmenting the demand for expanded polystyrene for packaging.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Ravago - The company's offerings include polymers, chemicals, and building materials. They also offer expanded polystyrene, which allows the intrusion of water over time and withstands the elements and the test of time.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Alpek SAB de CV, Arkema Group, Axion Recycling Ltd., BASF SE, Chimei Corp., DuPont de Nemours Inc., Eni SpA, Epsilyte LLC, Formosa Chemicals and Fibre Corp., INEOS AG, Kaneka Corp., LG Chem Ltd., NOVA Chemicals Corp., PS Japan Corp., Ravago, Saudi Basic Industries Corp., Supreme Petrochem Ltd., TotalEnergies SE, Trinseo PLC, and Videolar Innova SA
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The Expanded Polystyrene serves a crucial role across diverse packaging applications, prominently in the food service, automotive, and electronics packaging sectors. Utilizing injection moulding techniques, EPS provides lightweight yet durable solutions for fresh food packaging, burger boxes, coffee cups, and take-out containers, ensuring thermal insulation and protective cushioning due to its thermal insulating properties and closed-cellular structure. This versatile material, available in white EPS and grey EPS, supports sustainable practices through post-consumer and post-commercial recycling, contributing to innovative building products like crown moldings and faux marble. With applications spanning from marine floatation to global seafood market packaging, EPS continues to evolve as a preferred choice for its reliability, durability, and environmental benefits in the packaging industry.
Moreover, Expanded Polystyrene (EPS) plays a pivotal role across various industries, particularly in food service, automotive, and packaging sectors, due to its versatile properties and applications. In the food service industry, EPS is widely used for fresh food packaging, fast-food containers, and prepackaged food, ensuring thermal insulation and protection during transportation. The automotive sector utilizes EPS in components like buoys for flotation and white goods for lightweight applications. In packaging, EPS is favored for its closed-cellular structure, providing excellent mechanical resistance, low thermal conductivity, and sound absorption properties. With advancements in recycling technology, EPS supports closed-loop recycling, contributing to sustainable practices across pharmaceutical, electronic, and horticultural product packaging. EPS continues to innovate as a preferred material for ensuring comprehensive protection and sustainable handling in diverse applications.
Expanded Polystyrene For Packaging Market Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.8% |
Market growth 2024-2028 |
USD 5.98 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.49 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 75% |
Key countries |
China, US, Germany, Japan, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alpek SAB de CV, Arkema Group, Axion Recycling Ltd., BASF SE, Chimei Corp., DuPont de Nemours Inc., Eni SpA, Epsilyte LLC, Formosa Chemicals and Fibre Corp., INEOS AG, Kaneka Corp., LG Chem Ltd., NOVA Chemicals Corp., PS Japan Corp., Ravago, Saudi Basic Industries Corp., Supreme Petrochem Ltd., TotalEnergies SE, Trinseo PLC, and Videolar Innova SA |
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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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