Expanded Polypropylene (EPP) Foam Market

How the Historical and Future Outlook of EPP Foam Market Compares?

The EPP foam market has been gaining impetus due to the growing requirement of energy management materials or shock absorbers for bumpers, door panels, seats, roof liners and other parts necessary for manufacturing automotive. EPP foams also help in improving the functions of a vehicle like reducing its weight, thus making it more fuel-efficient. Primarily, in the automotive application, EPP is used for manufacturing energy absorbing components. Moreover, EPP foams are widely used for applications, including packaging of electronic items, in construction sector.       

The end-use industries are looking for more efficient and economic solutions. To fulfill this, manufacturers are developing innovative, high-quality, and cost-effective products. These factors are contributing for product innovations, which is expected to ultimately increase the sale of EPP foam. Furthermore, industries are looking for solutions to lower carbon emissions and minimize waste generated, which will help them save cost of waste disposal or waste treatment. This is expected to shift focus towards EPP foams. According to FMI’s analysis, EPP foam sales have grown at 4.2% CAGR between 2016 and 2020

Porous EPP foam and high density EPP foam are finding increasing application in the automotive industry. Owing to the COVID-19 impact, the global supply chain of the EPP foam market has been affected to a considerable extent. In order to overcome this situation, key players are assessing better solutions in the supply chain, which can maintain business continuity without disruption. Moreover, key players are planning to implement an innovative value chain to continue their production without interruption in face of such challenging scenarios.

What is the Commercial Potential of EPP Foam?

EPP foam is a closed cell foam material that is used as packaging for protective applications in electronic and other items. Moreover, EPP foam is used in manufacturing several parts in automotive sector. Owing to all these factors, the material has augmented its demand on the commercial scale, since it can be used in various industries for several purposes.

The easy availability of propylene, which is key raw material used in the production of EPP foam, has been improving the commercial viability. Besides demand in the automotive sector, increasing application in consumer goods will guarantee improvement in sales in the near future.

Besides industrial applications, use of EPP foam in reusable industrial packaging is expected to surge considerably in the coming years. The inherent durability and ability of EPP foam to absorb energy during transit makes it a top choice in industrial packaging.

What is the Regulatory Impact on Global EPP Foam Sales?

The regulation related to safety standards and hazard generated from chemical substances are also applicable in the case of EPP foam. To comply with it, companies that are associated with the manufacturing and marketing in Europe have to identify and manage the risk and hazard associated with their products.

Basically, polypropylene is a plastic product which is used in various industries for the production of food Packaging materials, Industrial Packaging materials, and is also used in the manufacturing of EPP foam. The compound is associated with the potential to cause significant damage to the environment.

Below are some regulations that are applicable on EPP Foam and the products made from it:

• IS: 10910- "Food Safety and Standards,”. IS: 10910 standard specifies the methods for testing the sample of polypropylene that are used for the manufacturing of plastic products which are associated with food and beverages, pharmaceuticals and drinking water.
• IS 15410 – this BIS standard defines the specifications for the containers to be used for Industrial Packaging and for Mineral Water and Packaging.

Country-wise Insights

What is the Share of China in the EPP foam Market?

China is anticipated to remain one of the key countries for the EPP foam producers throughout the course of the forecast period. The country is expected to remain the leading consumer and prominent manufacturer of EPP foam in East Asia. The demand for EPP foam in China is further expected to grow in the coming decade due to the continuously growing manufacturing of automotive, packaging and growing construction sector.

According to the China Association of Automobile Manufacturers, favorable policy support and recovering demand is expected to lift earnings within the automotive sector post COVID-19. This will present attractive opportunities for EPP foam sales in the country.

How is the Market Scenario in Germany?

The demand for automotive and consumer products is high in Germany and it is expected to provide lucrative business opportunities for EPP foam producers. Consumer products include specialty products, convenience products, electronic items, shopping products and unsought products. EPP foam is used in consumer products due to its light weight, and protective applications.

In the consumer product segment EPP foam is used in compost bins, modular light weight furniture, model aircraft, swimming aid for children, floor levelers, and shelving units, surfboards and in other areas.

Furthermore, in Germany the adoption of EPP foam is high in various application industries, moreover due to the presence of several automotive giants, enormous opportunities for the market of EPP Foam is being expected in the country.

Does the U.S. Dominates the Global EPP Foam Market?

The U.S. accounts for a significant market share in the global market of EPP foam. The dominance of the country is backed by the presence of some of the leading automotive manufacturers and consistent demand from the construction industry. Considering this, increasing spending on construction works will continue aiding sales in the country.

Moreover, there is increasing importance of custom packaging solution for medical devices, industrial equipment, and electronics in U.S., which is driving the demand for packaging solutions, including EPP foams.

How is a fast growing economy propelling the EPP Foam market in India?

End-use industries including automotive and building & construction are witnessing a considerable growth after the pandemic which is propelling the demand of EPP foam in India. According to the Invest India, the National Investment Promotion and Facilitation Agency, by 2025, the construction industry in India is expected to emerge as third-largest globally. This presents attractive opportunities for EPP foam sales in the country.

Moreover, owing to its increasing application in furniture, in playground floor surfacing, structural insulation panels, in insulating the wiring system and in other areas, EPP foam is expected to grow at a significant rate in the country.

How Big is the Scope in Japan?

Japan is another key country in the global EPP Foam market, which is estimated to account for about one fifth of the market share in East Asia. EPP foam market is growing in Japan due to its use in technological advancements in the automobile industry. Besides this, the rising demand from the country’s building and construction sector will continue supporting growth of the market in Japan.

Category-Wise Insights:

Why Automotive industry Holds Higher Share?

Accounting almost half of the overall market share, automotive industry is expected to remain dominant through the course of the forecast period. The rising demand for durable, lightweight and fuel-efficient cars has become the major factor encouraging EPP foam application in automotive industry. The chemical and physical properties of polypropylene and modern processing technologies are fuelling the demand for EPP foam material in car designing.

Industrial packaging segment also is estimated to account for considerable market share and is further expected to grow in the coming years. EPP foam can provide suitable protection for products that are mistakenly dropped, since distributors don’t need high-quality EPP for packaging, the material can be purchased at a low price. Hence, the demand for EPP foam is expected to grow considerably in the near future.

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How is High Density EPP Foam More Preferred?  

The high density segment is expected to account for a significant global share among grade type over the forecast period. High density EPP foam is considered under 80 g/L to 200 g/L range of densities and is mainly utilized in automotive sector. These high density grade foams are prominently used in the automotive parts for their energy absorption property in interior passenger safety components, automotive bumpers and in many other parts.

Opportunities in EPP Foam market:

According to FMI, electric cars are positively capturing the automobile manufacturing markets of the U.S., Asia and Europe. EPP foam plays a vital role in electric cars on account of its excellent thermal insulation and energy absorption capabilities. Headliners, door pads and mats made of EPP foam ensures a constant air temperature in the cockpit and create the ideal conditions for battery operation. Hence, electric vehicles have become an excellent avenue for the EPP foam market.

Tesla Motors has emerged as a leading player in the production of electric automobile. The Tesla Model 3, an electric car, is presented in three variants - Long Range AWD, Performance & Standard Plus. The performance variant is capable of hitting 0 to 60 mph in 3.6 seconds, whereas the standard & long-range variants take 5.3 seconds and 4.4 seconds, respectively.  Several other automakers are expected to follow the suit. The rising focus on electric vehicle production will increase scope for EPP foam application in the near future.

Competitive Landscape

The key players in the EPP foam market are seeking ways to provide higher quality products at lower costs and stable supply for long durations to help industries operate smoothly. Most of the small players go into long-term contracts with contract manufacturers to supply customized products at cost-competitive prices for the end use applications. The EPP Foam market is a fragmented market in which more than half of the market value share is owned by the main players.

Some of the leading companies operating in the market are:

• BASF SE
• Schaumaplast GmbH & Co. KG
• Hanwha Corporation
• Recticel
• Furukawa Electric Co., Ltd
• Knauf Industries
• Dongshin Industry Inc.
• Kaneka Corporation
• JSP Corporation
• The Woodbridge Group
• SSW Pearl Foam GmbH
• Sonoco Products Company
• Clark Foam
• Bradford Company
• DS Smith Plastics
• Paracoat Products Limited
• ACH foam Technologies
• Marko Foam Products, Inc.
• Eurofoam Group
• Dongguan City Prosperous Mass Poly Foam Co.Ltd

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Key Questions Answered in the Report

• Which is the most lucrative market for EPP Foam?

  China is estimated to remain one of the leading markets for EPP foam owing to strong presence of various end use industries along with a fair share of key manufacturers.

• Which are the top-selling EPP Foam?

  High density grade EPP foams are top selling products. The demand for high density foam is expected to increase in the near future, especially due to its excellent shock absorption property.

• Who is the Key End User of EPP Foam?

  EPP foam is widely used in automotive applications. Its usage in electric vehicles, car designing and automotive parts is rising day-by-day, enabling growth in the market.

• Which are some of the leading companies providing EPP Foam?

  Some of the leading companies manufacturing EPP Foam are BASF SE, Schaumaplast GmbH & Co. KG, Hanwha Corporation, Knauf Industries and others.

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Is this research conducted by Future Market Insights?

Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

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FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology

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EPP Foam Market by Category

Grade Type

• Low Density
• High Density
• Porous PP

Application

• Automotive
• Industrial Packaging
• Consumer Products
• Building & constructions
• Others

Region

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