Global Expanded Polypropylene (EPP) Foam Industry Grows Steadily at a CAGR of 7.05%

Introduction

Foams composed of polyethylene are referred to as expanded polyethylene foam. Expanded Polypropylene (EPP) Foam is an adaptable bead foam that offers energy absorption, impact resistance, thermal insulation, chemical resistance, and complete recyclability. EPP can be manufactured in a wide variety of densities, from 15 to 200 grammes per liter, which can then be molded into densities between 18 and 260 grammes per liter. Automobile manufacturers make extensive use of expanded polyethylene foam because to its numerous performance advantages, light weight, enhanced functionality, durability, and recyclable nature.

It possesses new qualities such as high energy absorption, resistance to impact, thermal insulation, chemical and water resistance, etc. EPP is offered in grades suitable for a wide variety of applications based on their technical requirements. Low-density EPP grade and high-density EPP grade are the two varieties of EPP foams based on their densities. High-density EPP grade foams are mostly utilized in automobile applications for passenger safety components and bumpers. In contrast, industrial packaging utilizes low-density EPP-grade foams.

Market Dynamics

Material's Non-Toxic and Recyclable Nature Drives the Global Market

Expanded polypropylene foam is good for the environment. It is easy to recycle and completely non-toxic. Recycling polypropylene is becoming recognized as a powerful and cost-effective solution. The entire recycling procedure is made simple by an expert EPP recycling machine. The GREENMAX EPP Recycling Machine from INTCO Recycling can compress EPP into ingots, which are then given to producers to use in other products. The recycling process consists of five steps: collection, sorting, cleaning, reprocessing via melting, and producing new products using recycled polypropylene.

As a result, the first three steps for recycling most other products are the same. But the last two are the most significant. During the reprocessing phase, collectible PP materials are put into an extruder, melting at 2,400 °C, and then ground into granules. These pellets can then be used to start making new things.

Increasing Demand for Packaging Creates Tremendous Opportunities

With its outstanding energy absorption, water and chemical resistance, multiple impact resistance, clean and easy handling, and material recyclability, EPP foam has unique properties that make it ideal for packing food. The food packaging industry has expanded dramatically globally due to the rising demand for packaged goods. EPP foam may be used in conjunction with food products. Due to its structural integrity and capacity for thermal insulation, it is appropriate for containers such as food delivery containers, beverage coolers, and comparable goods.

EPP is resistant to microbial development and may be steam cleaned into sterility. Due to their robustness and built-in ability to absorb shock during transit, EPP foams are frequently used to create dunnage, reusable industrial packaging. There is a significant need for containers, cold-chain transport boxes, and fast-food packaging in places like North America, Asia-Pacific, and the Middle East.

Regional Analysis 

Asia-Pacific is the highest revenue contributor and is anticipated to grow at a CAGR of 7.25% over the projection period. It was initially predicted that China's economic growth rate in 2020 would be low compared to the previous year. Businesses can now penetrate overseas markets in quest of new resources and commercial opportunities thanks to the more intense market competition in China's food and beverage industry. The food processing industry in China is likewise developing and growing at a reasonable rate. Processed and packed frozen foods are trendy among consumers who prefer dairy, infant food, and confectionary items, which is predicted to be the industry's key driver.

North America is anticipated to grow at a CAGR of 7.15% during the projection period. The food and beverage industry plays a significant role in the US economy. E-commerce and delivery services are growing in popularity. Due to changes in consumer behavior, the beverage industry has grown significantly in the U.S. American retailers make up the majority of beverage sales in North America. Due to the extensive use of the internet and the growing need for convenience, customers are increasingly ordering groceries and other food products online. Customers can purchase fresh veggies without leaving their homes thanks to an increasing number of services, such as Amazon Fresh.

Key Highlights

• The global expanded polypropylene (EPP) foam market was valued at USD 998.90 million in 2022. It is projected to reach USD 1,844.17 million by 2031, growing at a CAGR of 7.05% during the forecast period (2023-2031).
• Based on raw material, the global expanded polypropylene (EPP) foam market is bifurcated into synthetic polypropylene and bio-based polypropylene. The synthetic polypropylene segment is the major contributor to the market and is estimated to exhibit a CAGR of 6.95% during the forecast period.
• Based on form, the global expanded polypropylene (EPP) foam market is bifurcated into Fabricated EPP, Molded EPP, and Other Forms. The Molded EPP segment is the major contributor to the market and is estimated to exhibit a CAGR of 7.05% during the forecast period.
• Based on this, the global expanded polypropylene (EPP) foam market is bifurcated into automotive, dunnage, furniture, food packaging, HVAC, sports and leisure, and other applications. The automotive segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.30% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to exhibit a CAGR of 7.25% during the forecast period.

Competitive Players

Competitive Players

The global expanded polypropylene (EPP) foam market's major key players are Automa Multi Styrene, BASF SE, Clark Foam Products Corporation, Engineered Foam Products, Hanwha Group, IZOBLOK, JSP, and Kaneka Corporation.

Recent Developments

Market News

• In October 2021, BASF expanded the Neopolen color grade family with a new product with the release of NEOPOLEN P 9434 LB. The product exhibits strong chemical, static, and dynamic loading tolerance, a low tendency to absorb water, and high thermal insulating qualities. The product is exceptionally well suited for toys and recreational items, dunnage trays in automotive manufacturing, and other items.
• In April 2021, BEWI declared that it had agreed with IZOBLOK to purchase the majority (54.21%) of the business. The contract terms were fulfilled in July 2021, and BEWI ASA became an indirect majority shareholder of IZOBLOK SA.

Segmentation

Global Expanded Polypropylene (EPP) Foam Market: Segmentation

By Raw Material

• Synthetic Polypropylene
• Bio-based Polypropylene

By Form

• Fabricated EPP
• Molded EPP
• Other Forms

By Applications

• Automotive
• Dunnage
• Furniture
• Food Packaging
• HVAC
• Sports and Leisure
• Other Applications

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA