Expanded Polystyrene (EPS) Market Size, Share, Opportunities, And Trends By Product (EPS Sheets, EPS Boxes, EPS Chips, Others), By Industry Vertical (Automotive, Building And Construction, Healthcare, Packaging, Others), And By Geography - Forecasts From 2023 To 2028

The expanded polystyrene (EPS) market is expected to grow at a compound annual growth rate of 3.18% over the forecast period to reach a market size of US$7.144 billion in 2028, from US$5.740 billion in 2021.

A strong and durable closed-cell foam, expanded polystyrene (EPS) is made of tiny plastic beads that are fused. According to Thermal Engineering, over two-thirds of the demand for expanded polystyrene comes from the building and construction industry. The increasing building and construction activities around the globe are a major growth driver in the EPS market. Moreover, other factors propelling the expanded polystyrene (EPS) market are higher prevalence in rigid food service containers, CD cases, appliance housings, envelope windows, tub and shower products, automobile body panels, wind turbine parts, and many more goods. Various campaigns to encourage the usage of EPS are further driving the EPS market.

Growing Building and Construction Industry

Expanded polystyrene, a lightweight insulation product made from the same material, is used in buildings to make walls and roofs. The advantages of EPS such as energy efficient, eco-friendly, and recyclability make it an excellent building material. Therefore, the widening building and construction industry is contemplated to augment the expanded polystyrene (EPS) market. For instance, overall investments in building construction increased by 6.3% to reach $19.9 billion in April 2021, according to Statistics Canada. According to the U.S. Department of the Treasury, the amount spent on building manufacturing facilities in the US has seen a startling increase. Since the end of 2021, real manufacturing building spending has doubled. Around $1.8 trillion worth of structures are created every year in the US as per The Construction Association.

Government Programs in Housing Sector

Various housing programs and related construction initiatives by several nations are further boosting the building and construction market thereby propelling the expanded polystyrene (EPS) market. For instance, a measure to establish the National Bank for Financing Infrastructure and Development (NaBFID), a $2.5 billion entity that will finance development projects, was approved by the Parliament of India in March 2021. The Canadian MP for Vancouver Granville, announced a $3.5 million donation to the construction of 2150 Keith Drive in January 2023, a cutting-edge hybrid mass wood office complex in the False Creek Flats section of Vancouver. In addition, the province of British Columbia is supporting the project with a $500,000 payment through the Mass Timber Demonstration Programme (MDTP) and the NetZero Energy Ready Programme.

Multiple Campaigns Worldwide

Various campaigns to encourage the usage of EPS are further driving the EPS market. For instance, in March 2021, a coalition of 18 European businesses engaged in the production, recycling, and supply of expanded polystyrene (EPS) raw materials started the "Smart Packaging Europe" campaign to draw attention to the advantages of EPS packaging on the social, economic, and environmental fronts. The purpose of Smart Packaging Europe is to show that EPS will be a significant component of the European packaging market in the future.

North America is Expected to Grow Significantly

The construction industry is one of the major consumers of EPS, utilizing it for insulation in both residential and commercial buildings. According to The Construction Association, the construction industry in the United States is one of the major contributors to the U.S., economy which nearly creates $1.8 trillion worth of structures every year. Another significant market for EPS in the United States is packaging. EPS is commonly used for cushioning and protecting fragile items during transportation. Its lightweight nature and shock-absorbing properties make it ideal for packaging delicate goods such as electronics, appliances, and medical equipment. Moreover, in 2021, Pregis, a leading manufacturer of protective packaging solutions, acquired Free-Flow Packaging International (FP International). This acquisition expanded Pregis' product portfolio and strengthened its position in the protective packaging market, including EPS-based packaging solutions. The demand for EPS in the United States is also driven by its use in the food and beverage industry. EPS is often used in the production of food containers, disposable cups, and coolers due to its insulation properties and ability to maintain temperature control. Furthermore, the EPS market in the United States has also witnessed continuous advancements in its production techniques, such as improved molding processes and manufacturing automation, which contributes to increased efficiency and cost-effectiveness. These advancements make EPS more accessible and attractive to various industries, driving market growth.

Expanded Polystyrene (EPS) Market Scope:

Segmentation:

• By Product
  • EPS Sheets
  • EPS Boxes
  • EPS Chips
  • Others
• By Industry
  • Automotive
  • Building and Construction
  • Healthcare
  • Packaging
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others