ID: MRFR/CnM/8216-HCR | February 2021 | Region: Global | 185 pages
The global expanded polypropylene foam market size was at USD 938.8 million in the year 2020 and it is continuing to grow with a healthy CAGR of 6.1% during the forecast period. This growth is influenced by the utilization of expanded polypropylene in applications such as automotive components, packaging, consumer goods, electrical, and electronics. The increasing investments in manufacturing facilities across the globe and the increasing economic condition are promoting the overall growth of the expanded polypropylene industry.
The potential features such as durability, water resistance, thermal insulation, and recyclability are some of the major drivers of the expanded polypropylene industry. They are generally bifurcated as low density, medium density, and high density. The high-density foams are used for aerospace, automotive and industrial purposes. The medium density is used for electronics and furniture. The lower density is used in packaging. Therefore the industry is carefully bifurcated and serves varied applications.
COVID 19 Analysis:
The expanded polypropylene foams are used in the automotive industry primarily, which had faced severe distress during the pandemic. The study reported by OICA shows that the automotive industry had faced a downfall of over 5% and reached about 91.79 million in the year 2019. The stringent regulations imposed by the government and the changing attitude of the consumers have affected the sales of vehicles that have therefore affected the growth of the expanded polypropylene industry.
On the other hand, the packaging industry was severely utilizing the expanded polypropylene foams for safer delivery. The restriction on movement has paved way for the growth of e-commerce thereby propelling the overall growth of the expanded polypropylene industry during the pandemic.
The major applications of the expanded polypropylene industry include consumer goods and electronics, they are also driving the expanded polypropylene market growth significantly due to the utilization of the medium density product. The increasing disposable income in the regions like Asia-pacific, Europe, North America was propelling the end-user industries to adopt the expanded polypropylenes to offer the highest quality service and thereby promoting the expanded polypropylene market growth.
The stimulating growth of the automotive industry in recent times, which registered a revenue share of 43% globally, had shown the demand for automotive manufacturing. Passenger safety and comfort were considered as the key factors, which have propelled the overall growth of the expanded polypropylene industry. The expanded polypropylene was also used for thermal insulation, acoustic management, absorption, and significant other applications in automotive.
The growth in the automotive and other key end-user industries and the increasing investment in these industries are presenting lucrative opportunities for the overall growth of the expanded polypropylene industry. The expanded polypropylenes were used in various parts of a vehicle. The floor, door panels, seats, bumpers, and other applications were utilizing the expanded polypropylene intensively. The manufacturers were also inclined towards adopting lightweight products. Therefore they are expected to boost the overall growth of the expanded polypropylene industry during the forecast period.
The demand for consumer goods and the demand for electronics, furniture, toys were also increasing due to growing urbanization, the changing attitude, and potential and effective marketing strategies. These are expected to propel the overall growth of the expanded polypropylene industry during the forecast period. Moreover, the increasing demand for electric vehicles due to the potential benefits and the stringent norms in buying electric vehicles are expected to impact the overall growth of the expanded polypropylene industry during the forecast period.
The change in the price of the raw materials is expected to hinder the overall growth of the expanded polypropylene industry.
It is costlier than the competitive materials available in the market. The other structural foams are cheaper yet more effective.
The presence of established market players in the industry with the experience and strategies are restricting the growth of emerging market players. The changes in the bargaining power of the suppliers and consumers are also impacting the growth of the expanded polypropylene industry.
The threat of new entrants and complex technologies and the requirement of higher capital are some of the challenges in the expanded polypropylene market growth.
Cumulative growth analysis:
The market value of the expanded polypropylene industry was at USD 1.02 billion in the year 2021 and it is expected to surpass the market value of over USD 1.56 billion by the year 2028 while registering a CAGR of 6.5% during the forecast period. The market growth was slightly disturbed by the pandemic. The supply and demand chain disruptions and the logistics issues have created a serious adverse effect on the growth of the expanded polypropylene industry. However, the increasing environmental concerns related to non-renewable energy cars have bolstered the demand for electric vehicles, thereby presenting lucrative opportunities for expanded polypropylene market growth.
The key applications like food packaging, furniture, logistics, and the automotive industry are increasingly showcasing demand and the non-toxic and recyclable nature of expanded polypropylene are propelling the industries to adopt them for the key applications. The potential characteristics such as optimal performance, lighter weight, and significant others are expected to propel the overall growth of the expanded polypropylene industry during the forecast period.
Value chain analysis:
The rapid expansion of the automotive industry combined with the favorable economic condition of the developed countries is propelling the expanded polypropylene market growth. Among other types, the high-density products were holding higher market share across the expanded polypropylene industry. The developed countries like Germany, China, and India are focusing on passenger safety and comfort, therefore they are enhancing the driving experience and are investing in the expanded polypropylene market growth.
On the other hand, the low-density products were used across the packaging industry; the increasing trend of e-commerce is presenting lucrative opportunities for the overall growth of the expanded polypropylene industry. The safety of the articles sent through courier is highly reliant on the materials used for the packaging. The rising trend of ordering even expensive goods online has promoted the overall growth of the expanded polypropylene industry in recent times.
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Asia-pacific is expected to dominate the expanded polypropylene market share and hold about 53% revenue share in the year 2020 and it is expected to continue with a healthy CAGR. The increasing production of automotive, consumer goods, and packaging sectors have presented favorable conditions for the overall growth of the expanded polypropylene industry.
Countries like Europe are propelling automotive manufacturers to develop electric vehicles and are increasing the investment to provide lighter components. Such factors are presenting lucrative opportunities for the overall growth of the expanded polypropylene industry. Also, the demand for consumer goods across this region is higher the major economies like Germany, France, and Spain are strengthening the automotive industries and thereby propelling the expanded propylene industry.
IEA states that by the year 2030, the sales of electric vehicles will surpass 125 million, and over 70% of sales will be from China. Therefore key market players are investing in the region and bringing in innovations in China.
On the other hand, Japan is also expected to have decent growth in the expanded polypropylene industry due to the presence of leading market players like Kaneka Corporation, Furukawa Electric Co., JSP corporation, and significant others.
In the year 2020, one of the leading market players, JSP had announced their product line which is named ARPRO 5134 RE, which contains recycled content with over 25% and they are produced from the recycled expanded polypropylene. Therefore they reduce wastage and landfills.
In the year 2020 one of the leading market players, BASF had introduced their product range that is named Neopolen P 9235 which is capable of exhibiting improved surface properties and color impression with over 20%.
This report has covered:
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|Market Size||USD 2.1 Billion (2030)|
|CAGR||CAGR of over 5.4% (2027)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||JSP Corporation (Japan) Kaneka Corporation (Japan), Hanwha Chemical, Corporation (South Korea), BASF SE (Germany), The Dow, Chemical Company (US), DS Smith Plc (UK), Sonoco Products Company (US), Chemische Fabrik Budenheim Kg (Germany), Automa Multi Styrene (South Africa), Clark Foam Products (US)|
|Key Market Opportunities||The growth of global expanded polypropylene market is its increasing areas of applications such as air ducts, aerospace, and building & construction, expanding production capacities of polypropylene across the globe, especially in China and Russia and favorable government policies on the use of environment-friendly and recyclable plastic components|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The market value of the expanded polypropylene industry was at USD 1.02 billion in the year 2021 and it is expected to surpass the market value of over USD 1.56 billion by the year 2028 while registering a CAGR of 6.5% during the forecast period.
Global Expanded Polypropylene Market will be expecting valuing USD 2.1 Billion by the end of 2027.
• Automotive • Dunnage • Furniture • Food Packaging • HVAC • Sports • Other Applications
• Synthetic Polypropylene • Bio-based Polypropylene
• Izoblok • JSP • KANEKA CORPORATION • K.K. Nag Ltd • Knauf Industries • Package Design & Mfg • Polyfoam Australia Pty Ltd