Global Expanded Polypropylene (EPP) Foam Outlook Report - Market Size, Share Analysis and Forecast (2024-2032)

Expanded Polypropylene (EPP) Foam Market Growth

Polypropylene is used to make expanded polypropylene (EPP) foam. Expanded Polypropylene (EPP) foam is a flexible bead foam that offers energy absorption, impact resistance, thermal insulation, chemical resistance, and 100% recyclability. EPP foams are mostly utilised in industrial packaging because of their cushioning properties and flexibility, which provide great security for complex designs.

The key factors that are anticipated to augment the expanded polypropylene (EPP) foam demand growth include the growing awareness of environmental concerns and the increasing demand for lightweight and fuel-efficient cars. The automotive industry is developing quickly due to the demand for automobiles and the rise in production; hence, the global EPP foam market is expected to proliferate further in the coming years. In addition, the rising need for bio-based polypropylene foam and alternatives for EPS and EPE products by EPP will further provide opportunities for the growth of the expanded polypropylene (EPP) foam market in the forecast period.

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Key Trends and Recent Developments

Growing inclination towards lightweight materials, focus on recyclability and sustainability and technological innovation are a few factors shaping the expanded polypropylene (EPP) foam market dynamics and trends.

April 2021

Sulzer Chemtech and Borealis have successfully concluded the development of a novel process for the economical extrusion of expanded polypropylene-ePP beads.

Growing Demand for Lightweight Materials

The automotive and aerospace industries are the major demand drivers for EPP foam due to its lightweight and high-impact resistance characteristics. This is encouraging fuel efficiency and, subsequently, a reduction in emission levels, hence the increased application of EPP in vehicle manufacturing and becoming a trend in the expanded polypropylene (EPP) foam market.

Focus on Sustainability and Recyclability

Increasing environmental concerns encourage manufacturers to work on recyclable and eco-friendly EPP foam solutions. The advancement of technologies in recycling and the use of renewable raw materials is making EPP an environmentally friendly option for packaging and insulation applications.

Technological Innovations in the Production of Foam

Improvement in foam manufacturing techniques, such as in mouldings and composites, is also increasing the application areas of EPP. In turn, it is also improving performance characteristics like durability and thermal insulation, thereby making the foam more usable in a greater variety of industries and opening up expanded polypropylene (EPP) foam market opportunities.

Expanded Polypropylene (EPP) Foam Market Trends

Increasing Product Penetration in Several Applications Augmenting the Market Growth

During the forecast period, the increased product penetration in applications such as packaging, consumer goods, and furniture is expected to aid the overall expanded polypropylene (EPP) foam industry growth. Its exceptional properties, such as durability, chemical and water resistance, thermal insulation, and recyclability, can be ascribed to its expanding product application scope in numerous industries. Also, the rising investments in manufacturing activities across major economies have resulted in increased automobile and consumer goods production. The rising demand for chemical and water-resistant materials in the packaging and consumer products industries is expected to drive the global expanded polypropylene (EPP) foam market over the forecast period.

Industry Outlook

Global Demand for Air Conditioning Units and the Demand for Electric Vehicles, Aids the Growth of the Expanded Polypropylene (EPP) Foam Market.

Global demand for air conditioning units will surge from 1.9 billion units in 2020 to 5.6 billion units by 2050. These factors will in turn boost the demand of expanded polypropylene (EPP) foam market. India leads the projected growth of air conditioning units between 2016 and 2050, with a remarkable growth of 4206%, followed by Indonesia with 1845%, Mexico with 697%, Brazil with 503%, and the Middle East with 347%. But these figures are also joined by growth from the EU, which is at 185%; China, 149%; and the U.S., 45%, at a slower rate. The increase in the number of air conditioning units naturally raises the demand for raw materials used to make them, such as EPP foam. EPP foam has several properties that make it perfect for air conditioning systems: it is light and resilient with good insulation characteristics. Air conditioners are bound to increasingly use the EPP foam in their components, such as housings, ducts, and insulation panels since manufacturers are trying harder to achieve better energy efficiency and performance. This is slowly becoming a trend of the expanded polypropylene (EPP) foam market and boost sales. 

Sales of EVs are expected to reach 17.5 million units in 2024, up 27% from 13.8 million units last year, on the back of increasing adoption in major regions. Greater China remains the leading market and accounts for more than half of all global EV sales. It is followed by Europe and North America, with respective shares projected to account for 22.4% and 12.8% in 2024. This expansion in EV sales significantly reflects strong demand for lightweight materials such as expanded polypropylene foam, which has many end-applications in the automotive industry. EPP foam has excellent impact resistance, good thermal insulation properties, and is lightweight. Several manufacturers use it in EVs for casings in batteries, bumpers, and interior parts to improve vehicle efficiency by weight reduction and enhance safety features.

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Expanded Polypropylene (EPP) Foam Industry Segmentation

“Expanded Polypropylene (EPP) Foam Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

By raw material, the market includes:

• Synthetic Polypropylene
• Bio-based Polypropylene

Based on form, the market can be segregated into:

• Fabricated EPP
• Moulded EPP
• Others

Based on application, the market can be divided into:

• Automotive
• Dunnage
• Furniture
• Food Packaging
• HVAC
• Sports and Leisure
• Others

Based on region, the mouth fresheners market segmentation includes:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Expanded Polypropylene (EPP) Foam Market Share

Automotive Application Expected to Dominate the Market Growth

AS per expanded polypropylene (EPP) foam industry analysis, the automotive segment is predicted to lead the market growth throughout the forecast period owing to rising product utilisation in passenger safety and noise reduction applications. EPP foam is used extensively in the automotive industry for noise management, thermal insulation, and impact absorption in the floor, door panels, seats, and bumpers. Over the forecast period, the growing necessity of reducing overall vehicle weight to enhance fuel efficiency is expected to drive the product demand in the automotive market.

Over the next few years, the consumer products industry is predicted to rise significantly. Due to the increased chemical and mechanical qualities, the product is increasingly being used in the production of electronics, toys, furniture, and household appliances. Growing demand for consumer goods, particularly in developing nations, is a major driver for segment expansion, pushing the expanded polypropylene (EPP) foam demand.

Durability, Recyclability, And High Resistance To Impacts Are Some Of The Factors Contributing To The Increasing Demand For Expanded Polypropylene Foam In Several End-Use Markets.

• The excellent strength-to-weight ratio of EPP foam makes the material right for different industries, ranging from automotive and packaging to consumer goods and even reaching to construction. 
• EPP foam is fully recyclable, hence moving toward increased environmental regulations and sustainability goals. 
• EPP foam exhibits very effective energy absorption and resistance to impacts, improving safety in automotive applications and protective packaging.
• AS per expanded polypropylene (EPP) foam market analysis, company innovation in developing efficient production processes and the advancement in moulding technologies have helped lower the cost and improve the quality of the products produced.

Variable Raw Material Prices, Economic Slowing, and High Initial Costs May Provide a Hurdle to Growth in This Market.

• Fluctuations in raw material prices, such as polypropylene resin used, affect the price of production.
• Whereas the economic slowdowns resulted in reduced demand for key industries using this technology and therefore had a global cooling effect on market growth.
• Production of EPP foam is more expensive compared to most other types of foam, and this may hinder penetration in several price-sensitive markets, affecting the expanded polypropylene (EPP) foam demand globally
• The manufacture of EPP foam tends to be tricky with requirements for specialised equipment. 
• In the packaging sector, there is competition for EPP foam; that is, the expanded polystyrene and polyurethane foams, both cheaper.

Growing Automotive Sector, Sustainability Trends, and Rapid Industrialisation Provide Opportunities in the Market.

• Increasing demand for light-weight materials from automotive manufacturers will bolster the expanded polypropylene (EPP) foam market growth.
• Increasing awareness regarding the protection of environmental concerns and rising demand for eco-friendly materials are propelling the recyclable EPP foam market. 
• Growing industrialization and construction activities in developing economies open up new prospects for the market. 
• Continuous research and development can further create new avenues for application with enhanced performance characteristics.

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Expanded Polypropylene (EPP) Foam Market Regional Analysis

Asia Pacific and Europe to be Significant Regional Markets for Expanded Polypropylene (EPP) Foam

The expanded polypropylene (EPP) foam industry in Asia Pacific region is expected to account for a significant share in the market in the coming years. This leading position of the Asia Pacific EPP foam market can be attributed to the rising product demand among various industry verticals, including packaging and consumer goods. The increased consumption of plastics and polymers in the region is projected to fuel the market for expanded polypropylene (EPP) foam, which is expected to be driven by the country's growing manufacturing activity. Also, the fast-paced growth of the automotive industry in Asia Pacific is expected to bolster the expansion of the Asia Pacific EPP foam market in the coming years.

On the other hand, the expanded polypropylene (EPP) foam market share in Europe to witness significant growth opportunities in the global market. This trend can be attributed to the recovering automotive industry in the region and the rapid emergence of the consumer goods market in several major countries, such as France, Russia, Germany, and Spain. Furthermore, the strong presence of major original equipment manufacturers in the automotive industry is also expected to support the expansion of Europe's market shortly.

Competitive Landscape

The key players in the expanded polypropylene (EPP) foam market are engaging in R&D of value-added material development, capacity expansion, and strategic partnership to offer the product portfolio and cater to the demands of various industries.

BASF SE, established in 1865 and headquartered in Ludwigshafen, Germany under the trade name "BASF Foam”, produces a line of EPP foam solutions targeting high-performance applications related to automobiles, construction, and consumer goods, while focusing on innovation, sustainability, and further enhancement of the material properties.

Founded in 1985 and headquartered in Atlanta, Georgia, Engineered Foam Products provides various EPP foam solutions tailor-made for industries such as automotive to packaging. Additionally, the company offers value-added services like custom design for impact resistance and thermal insulation, depending on the customers' needs, made possible by advanced technologies in foam.

JSP, headquartered in Tokyo, Japan and founded in 1969, is one of the largest EPP foam manufacturers with a wide range of products available in automotive, packaging, and industrial uses. Its product range is in response to light, durable, and greener solutions through continuous research and development to further enhance the performance of foam.

Other key players in the expanded polypropylene (EPP) foam market include KK Nag Pvt. Ltd, and Knauf Industries, among others.

Competitive Strategies of the Global Expanded Polypropylene [EPP] Foam Market.

• Adding new EPP foam grades that offer improved performance properties, such as higher heat resistance or greater strength, can therefore provide further differentiation of the products in the marketplace. 
• Innovation in recycling and environmental performance for the EPP foam attracts ecologically sensitive consumers and industries. 
• Solutions that will be made to conform to the particular needs of the customers-for example, the shape or the properties-raise competitiveness. 
• Cost-effective solutions without quality compromise may increase the circle of customers and therefore be able to elevate market share, propelling the expanded polypropylene (EPP) foam market revenue. 
• The companies that simplify operations and reduce waste will lower the cost of production and hence pass on the price advantage to end-users. 
• Thus, products made to high safety standards and performance help in long-term durability and appeal to industries like automotive and construction. 
• Stronger distribution channels and partnerships translate into wider market reach and accessibility. 
• Understanding of local market dynamics and regulatory requirements helps them to better penetrate the market and engage with customers more effectively.

Key Demand Indicators of Global Expanded Polypropylene (EPP) Foam Market.

• The demand for lightweight materials has increased over the past years in the automotive industry for increasing fuel efficiency and reducing emissions, thereby driving the demand for EPP foam.
• A growing consumer preference toward materials that are sustainable and recyclable will contribute to the development of EPP foam packaging and consumer goods.
• EPP foam can be used as thermal insulation in buildings owing to its properties. This, in turn, fosters this segment of EPP foam.
• Protection packaging applications drive the usage of EPP foam owing to the impact resistance and recyclability it provides, aiding the growth of the expanded polypropylene (EPP) foam market.
• Growth in e-commerce creates an increasing demand for efficient and environmentally friendly packing materials. 
• New grades/formulations in EPP foam improve performance and thereby create new opportunities in the market.

Global Expanded Polypropylene [EPP] Foam Price Indicators

• Fluctuations in crude oil prices impact the production lines of polypropylene and consequently brings about fluctuations in the prices of EPP foam. 
• Technological changes and enhancement in the manufacturing process can reduce the cost of production and thereby impact prices.
• The economies of scale allow companies to offer competitive pricing.
• The other reason for competitive pricing strategies could be intense manufacturer competition to gain market share.
• The environmental regulations will likely increase the cost of production and may be reflected in price.
• When the demand is greater than supply, the prices rise. On the other hand, when supply exceeds demand, the price drops, affecting the expanded polypropylene (EPP) foam industry revenue. 
• Supply chain disruptions and the shift in global trade policy are other factors that determine the pricing dynamics.