The global expanded polystyrene market is projected to reach USD 18.97 Billion by 2022, at a CAGR of 5.1% from 2017 to 2022. Growing construction activities and increase in the demand for packaged food has led to an increase in the demand for expanded polystyrene from the building & construction and packaging industries. The rising demand from end-use industries in countries across the globe is expected to further fuel the growth of the expanded polystyrene market.
Building & construction is estimated to be the largest segment of the market in 2017, in terms of volume, followed by the packaging segment. The rising demand for new and innovative products, and need for research & development in expanded polystyrene has led to companies adopting organic and inorganic growth strategies to increase their market shares.
White expanded polystyrene estimated to be the leading product type segment of the market. The demand for white expanded polystyrene is driven by the adoption of expanded polystyrene in various applications. White expanded polystyrene is a rigid, closed-cell foam plastic. It has persistent thermal properties, stable dimensions for varied end use, excellent mechanical properties, recyclable, and non-corrosive.
The Asia-Pacific region is projected to witness the highest growth in the expanded polystyrene market, in terms of value and volume, from 2017 to 2022. Increased construction activities and the rise in demand for packaged food products, due to increasing population and rising disposable income is expected to drive the expanded polystyrene market in the region.
The expanded polystyrene market growth may be restrained, due to the volatility of crude oil prices and availability of high-performance substitutes. Insulation materials such as rockwool and extruded polystyrene are used in commercial and residential buildings. Rockwool is extensively used as compared to expanded polystyrene. However, due to lower price, the demand for expanded polystyrene is expected to increase in near future.