The global expanded polypropylene (EPP) foam market is expected to reach USD 1.30 billion by 2025, according to a new report by Grand View Research, Inc. The rapid growth of the automotive industry in recent years has been a major factor driving market growth. Further, the increasing application scope of the product in the consumer goods, construction, and packaging industries is expected to have significant impacts on the overall market growth over the coming years.
The product witnessed wide application in the automotive industry for the manufacture of floor, door and hood panels, primarily for noise and thermal insulation in passenger and commercial cars. The considerable growth of the automotive industry in Germany, China, and India is expected to drive product demand over the projected period.
The increasing use of molded EPP foam products in protective and flexible packaging applications for numerous verticals, including medical, consumer electronics, food & beverages, household appliances, and industrial equipment, is expected to drive the industry growth over the forecast period.
The consumer goods vertical is expected to witness the highest growth over the coming years, projected to grow at a CAGR of 5.3% during the forecast period, in terms of revenue. The rapidly growing consumer goods industry across major economies of Asia Pacific, Europe, and North America is expected to drive the product demand over the forecast years.
U.S. EPP foam market revenue by product, 2014 – 2025 (USD Million)
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The EPP foam industry was estimated at USD 896.4 million in 2016 and is expected to grow at a significant rate during the forecast period on account of increasing application scope of the product in consumer goods and protective packaging industry verticals
- The medium density segment accounted for a considerable share in 2016 and is expected to witness the highest growth of 4.7% over the forecast period owing to increasing application scope in consumer goods and furniture applications
- The product demand in the consumer goods segment is expected to grow at the highest CAGR of 5.3% during the forecast period, primarily on account of increasing application scope in the rapidly-growing consumer goods industry worldwide
- The Asia Pacific region dominated the overall industry revenue in 2016 and is expected to witness the highest growth of 5.3% during the forecast period, on account of high product application scope in the growing automotive, consumer goods, and packaging verticals
- The key strategies adopted by the industry players include capacity expansions, mergers & acquisitions, technical collaborations, and distribution agreements. For instance, in March 2016, JSP Corporation completed the expansion of EPP foam manufacturing facility in Thailand.
For more information: http://www.grandviewresearch.com