Global Foam Plastics Market Size USD 135.50 Billion By 2030 | CAGR of 3.6%

Introduction

Foamed plastic is a type of polymer in which air bubbles have been incorporated. The softness or rigidity of the sponge-like structure of the hardened plastic can be adjusted. The properties of foamed plastic are considerably more varied than those of conventional plastic. Foam plastics are often identified as cellular polymers or expanded plastics, and almost any type of polymer can be used to create them. Foams with a closed-cell structure can be produced by adding a blowing agent that decomposes at the melting point of the plastic, thereby releasing trapped gas bubbles during the gelling process. Under pressure, foams with an open-cell structure are produced by adding an inert gas to the resin, releasing the mixture into the atmosphere, and curing the resulting foam.

In the building and construction industry, foam plastics are commonly used for various applications, including forging, doors, roof boards, and slabs. In addition, new infrastructure growth, substantial investments in new housing projects, and renovation of non-residential buildings are expected to propel the global foam plastics market during the forecast period in both developed and developing economies. Low-cost foam plastic materials feature a low heat conduction coefficient, low density, low water absorption, relatively good mechanical strength, and excellent insulating properties. As a result, this item is also in high demand in the automotive and building & construction industries. It is anticipated that these factors will propel the global foam plastics market shortly.

Market Dynamics

The Growing Demand for Polyurethane Foam in Building Insulation Drive the Global Foam Plastics Market

The building & construction, telecommunications, and automobile industries utilize polyurethane foam. Flexible polyurethane foam is commonly used for cushioning in the automotive industry. It is one of the most effective insulating materials available, making it ideal for use in the electronic industry, specifically in refrigerators and freezers. The construction segment is the primary end-user industry of this material because polyurethane foam is utilized as rigid insulation, coatings, sealants, and adhesives. Polyurethane foams are highly flexible materials that reduce overall infrastructure expenses by minimizing building energy consumption. Foam is employed for sealing and thermal insulation in the construction and manufacturing industries. It is an ideal thermal and acoustic insulator due to its flexibility and lack of fibrous structure. In addition, foam is increasingly used in cold countries with significant temperature differences between indoors and outdoors because it helps retain heat during cold spells. This type of foam aids in the reduction of building noise. Consequently, these factors contribute to expanding the global foam plastics market.

PU foams, also known as polyurethane foam, are commonly used in the production of mattresses and other furniture because they can be molded into any shape and provide comfort and support. Polyurethane foam is produced using techniques such as foam coring and contouring, so the finished product offers a more supportive sleeping surface than other types of foam. Increased consumer interest in upscale and designer furniture will drive the industry's revenue expansion. There have been numerous advances in chemistry that have led to the creation of new polyurethane foams. These foams will self-adjust to the shape of each individual's body and offer a very high level of comfort. As a result, foam plastics market growth is accelerated.

Regional Insights

The Asia Pacific will hold the most significant market proportion during the forecast period and grow at a CAGR of 3.1%. Especially in China, India, and Southeast Asia, the foam plastics market in Asia-Pacific has exhibited robust growth. The foreign investments of multinational manufacturers drive the demand in China. Profit margins are increased by investing in foam production to access inexpensive labor and raw materials. Asia-Pacific is the region with the highest foam plastics demand. This is due to increased consumer spending on luxury and household items and the need for foam plastics in bedding and mattresses. Additionally, a rising disposable income, significant regional furniture and bedding industry expansion, and favorable FDI policies are driving regional growth.

In addition, the presence of a large population, a robust manufacturing base, and relatively harsh climatic conditions are the primary reasons why Asia-Pacific is the market leader for foam plastics insulation. Moreover, infrastructure development projects in several of the region's emerging economies facilitate industrial expansion. EPE (expanded polyethylene) foam is widely used as the primary acoustic material in construction projects. It is anticipated that real estate development in India will increase product demand. In addition, the use of EPE foam as reusable floor protection for interior construction projects is on the rise, promoting industry expansion.

Europe will hold a revenue share of USD 32,162 million while growing at a CAGR of 3.7%. Polyurethane consumption in Europe is anticipated to be driven by its versatility as a product in new applications, its uses and properties, such as sustainability and lightness, and the expansion of major end-use industries, such as automotive components and furniture & bedding, in the United Kingdom. Increasing demand for insulation from low-income households to improve energy efficiency would increase the industry's market share. According to the European Association of Diisocyanate & Polyol Producers, buildings waste a significant amount of the energy they collect, resulting in the warming of the planet instead of the warming of buildings. As a result of its superior insulating properties, polyurethane significantly contributes to building resources and energy conservation. Durability and abrasion resistance are the principal characteristics that contribute to the long service life of the products.

In addition, Eastern European nations such as Hungary, Poland, and Slovakia are anticipated to experience a significant increase in spending on furniture and bedding, thereby driving the demand for flexible polyurethane foam. The anticipated resurgence of the automotive industry in countries such as Germany, Italy, Spain, and France is an additional factor expected to balance demand. In addition, Germany's ongoing transition to a sustainable energy system is driving the need for green buildings. As a result, the Europe polyolefin foam market is anticipated to experience sufficient growth opportunities during the forecast period owing to the region's advancing construction industry.

Key Highlights

• The global foam plastics market had a revenue share of USD 102,108 million in 2021, expected to reach USD 135,500 million while growing at a CAGR of 3.6% during the forecast period.
• Based on type, polyurethane foam plastics are expected to hold the most significant market proportion and expand at a CAGR of 3.1% during the forecast period.
• Based on application, the building & construction segment is projected to advance at a CAGR of 3.3% and hold the largest market share during the forecast period.
• Based on regional analysis, the Asia Pacific will have the most significant market proportion during the forecast period and grow at a CAGR of 3.1%.

Competitive Players

Competitive Players in the Market

• Alchemie Ltd.
• BASF SE
• Covestro
• Hexion Inc.
• Huntsman International LLC
• Repsol
• SABIC
• Dow Chemical Company
• Total SA.
• Wanhua Chemical Group Co., Ltd.

Recent Developments

Market News

• In 2022, BASF SE and Confoil collaborated to develop DualPakECOâ, a certified compostable and dual ovenable food tray based on paper.
• In 2022, BASF SE launched Ultramidâ A3EM8 OP, enabling more sustainable automotive parts painting.

Segmentation

Global Foam Plastics Market: Segmentation

By Type

• Polyurethane
• Polystyrene
• Polyolefin
• Phenolic
• Others

By Application

• Building & Construction
• Packaging
• Automotive
• Furniture & Bedding
• Footwear, Sports, & Recreational
• Others

By Region

• North America 
• Asia Pacific
• Europe
• LAMEA