Global Polypropylene Foams Market Report

Global Polypropylene Foams Market Report, By Type (Expanded Polypropylene (EPP) Foams and Extruded Polypropylene (XPP) Foams), End-Use Industry (Automotive, Packaging and Consumer Products) and Geography – Global Market Share, Trend Analysis & Forecast , 2019 - 2028

Report Code : 10022 | Publish Date : August 2022 | Industry : Chemicals_Materials | Geography : Global


MARKET OVERVIEW- POLYPROPYLENE FOAMS MARKET

Polypropylene foam (PP), also known as polypropylene, is an engineering plastic material with advanced chemical and physical properties such as energy absorption, structural strength, thermal insulation, and acoustical properties. Polypropylene foam sheets have a unique closed cell structure, with expansion ranging from 2 to 5 times by foam extrusion. The material has a wide range of features, offering a better alternative to plywood, cardboard, corrugated plastic, solid PP or HDPE sheet. Factors such as unique polypropylene features such as absorption, acoustical properties, thermal insulation, structural strength, and chemical inertness are projected to propel the global polypropylene foams market. Furthermore, the growing automotive and packaging industries coupled with a surge in the demand for durable foams and recyclable foams are also some of the factors fueling the market’s growth. However, environmental concerns related to polypropylene usage are one of the major factors hindering the global polypropylene foams market’s growth.

MARKET DRIVERS 

The market for polypropylene foams has grown significantly as a result of increasing demand from the automotive and packaging industries. Accordingly, throughout the forecast period, growing urbanization, as well as the rise in disposable income and quick shift in consumer lifestyle, are also playing a significant role in boosting the growth of the polypropylene foams market. Additionally, the market for polypropylene foams is expanding due to rising demand for durable foams and recyclable foams, growing preference for packaged and frozen foods, and the high demand for these foams. Moreover, increasing investments in manufacturing activities among major economies, increase automobile and consumer goods production. The demand for polypropylene foam is also being driven by improved physical qualities like quality, lightweight nature, high energy absorption property, and durability in expanding end-user sectors like automobiles and food and beverage packaging. 

MARKET OPPORTUNITIES

Additionally, high demand for high-end polypropylene foams in the automotive sector from emerging nations, as well as the rising demand for new goods and innovations and the growing need for polypropylene foam research and development, will provide a variety of growth opportunities for the market of polypropylene foams. Companies are supplying high, medium, and low-density foams to fulfill the rising demand for different densities of polypropylene foams based on uses. For various uses, companies like JSP, BASF, and Kaneka offer a variety of materials in various densities. Moreover, market goliaths like BASF and JSP also introduced two new recyclable polypropylene foams in an effort to gain an advantage over their competitors. During the anticipated period, the aforementioned factors are expected to support the expansion of the polypropylene foams market.

MARKET RESTRAINTS

The excessive lack of awareness about polypropylene foams has the potential to pose a threat to the growth of the polypropylene foams market in the upcoming forecast period. The high cost of the foams as well as the fluctuating prices of raw materials and growing environmental awareness issues may act as key restraints for the polypropylene foams market growth rate.  

MARKET GROWTH CHALLENGES

The availability of less expensive substitutes, including foam planks made of starch, multilayer corrugated pads, and recycled polyethylene foam, is the biggest risk for suppliers in the polypropylene foam market. Furthermore, the growth of the market is constrained by the high cost of the raw materials used to manufacture polypropylene foams. Due to the overall expense of manufacturing, manufacturers hesitate to enter the market. However, by maximizing the material’s selling price, market participants can profit.

Analysis of cumulative growth

The report provides an in-depth analysis of Global Polypropylene Foams Market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. Rapid industrialization & urbanization and rising demand for lightweight and low-emission automotives are attributed to the market’s growth.

Market Segmental Overview

The Global Polypropylene Foams Market comprises of different market segments like type, end-use industry and geography. 

Polypropylene Foams Market by Type 

Based on type, this market is segmented into 
  • Expanded Polypropylene (EPP) Foams
  • Extruded Polypropylene (XPP) Foams
Among all types, the expanded polypropylene foams accounted for the largest share of the Polypropylene Foams market due to increasing product penetration in applications such as packaging, consumer goods and furniture.

Polypropylene Foams Market by End User

Furthermore, based on the end-use industry, this market is categorized into 
  • Automotive
  • Packaging
  • Consumer Products
Among these, the automotive segment is anticipated to have the largest revenue share during the forecast period, chiefly due to the growing product usage in passenger safety and NVH reduction applications. PP foam is widely used in the automobile sector for impact absorption, thermal insulation, floors, door panels, and seats. Over the projected period, product demand in the automotive sector is anticipated to be driven by the increasing importance of overall vehicle weight to increase fuel efficiency.

Polypropylene Foams Market by Geography

The Global Polypropylene Foams Market is studied for the following regions
  • North America
  • Europe
  • Asia-Pacific
  • Rest of the World (RoW)
Asia-Pacific is likely to dominate the Polypropylene Foams Market due to increased product demand in key end-use verticals, such as consumer goods and packaging. Over the projected period, it is anticipated that the region’s rapidly expanding automotive industry will increase product demand. Japan accounts for a substantial share of the APAC regional market in 2020 and is anticipated to expand at a steady CAGR over the forecast period due to the presence of major companies with a broad product portfolio and extensive geographic reach, including JSP Corporation, Kaneka Corporation and Furukawa Electric Co. The market in Europe is witnessing significant growth over the forecast period due to the recovering automobile industry and the rapidly emerging consumer goods industry in major economies such as Germany, France, Spain, and Russia.

COVID-19 IMPACT ANALYSIS ON THE GLOBAL POLYPROPYLENE FOAMS MARKET

Axiom MRC provides an exclusive 360-degree analysis of micro and macroeconomic factors on the Global Polypropylene Foams Market. With a complete analysis of changes in the Global Polypropylene Foams Market expenditure, economic and international policies affecting the supply and demand side. The report also studies the impact of the pandemic on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market. The COVID-19 pandemic’s after effects have a negative impact on the market for Polypropylene Foams. The global spread of the coronavirus has nearly crippled the entire world and almost all nations have implemented strict social distancing measures. This has forced us to shut down almost every production plant across the globe. The spread of coronavirus has halted many kinds of activity across borders, affecting supply-demand equations, including the market for polypropylene foams.

COMPETITIVE LANDSCAPE ANALYSIS

Technological partnerships between manufacturers, fabricators, and end-use sectors are crucial for growth due to improved quality products made by using molding and fabrication technologies. In the upcoming years, the industry is expected to increase research projects focusing on novel materials that combine a number of properties. The majority of companies are aiming towards product launches and mergers and acquisitions to enhance their visibility in the highly competitive arena of the market.  
The key players studied in the market are 
  • BASF SE
  • Kaneka Corporation
  • Hanwha Corporation
  • Mitsui Chemicals, Inc.
  • Borealis AG
  • Furukawa Electric Co., Ltd.
  • Sonoco Products Company
  • DS Smith PLC.
  • K. K. NAG Ltd.
  • Pregis Corporation.
  • Sekisui Alveo AG
  • Ssw Pearlfoam GmbH
  • Synbra Holding BV
  • The Woodbridge Group.

RECENT DEVELOPMENT:

In February 2022, Wayne, PA introduced foam polypropylene (FPP) food trays. Tekni-Plex consumer products are increasing the packaging options available to packers of fresh meat. According to the company, a significant wholesale company is the first user of the FPP trays for meat at retail.
In October 2021, BASF expanded the Neopolen color grade family with the launch of a new product named NEOPOLEN P 9434 LB, which is made by using polypropylene foam. This product exhibits strong chemical, static, and dynamic loading tendencies, a low tendency to absorb water and high thermal insulating qualities. The product is well suited for use in toys and recreational items, automotive manufacturing, and others.
In April 2021, BEWI announced that it had entered a deal with IZOBLOK to acquire a major stake of 54.21% in the company. The terms of the agreement were completed in July 2021 and BEWI ASA became an indirect majority shareholder of IZOBLOK SA.

POLYPROPYLENE FOAMS MARKET SUMMARY

Based on type, this market is segmented into Expanded Polypropylene (EPP) Foams and Extruded Polypropylene (XPP) Foams. Expanded Polypropylene (EPP) foam has superior performance characteristics such as high impact resistance, lightweight, water & moisture resistance, and shapes retention property. Rising demand for bio-based polypropylene foam and replacement for EPS and EPE products by EPP is likely to act as an opportunity in the future. Furthermore, based on the end-use industry, this market is categorized into Automotive Packaging and Consumer Products. Polypropylene foams are extensively used in the automotive end-use industry. The growing demand for lightweight automobiles is leading to an increase in the demand in the polypropylene foams market. The rising demand for new products and innovations, as well as the need for research and development in polypropylene foams, has encouraged companies to adopt organic and inorganic strategies and to increase their market shares in their respective regions. The global Polypropylene form market is studied for the following region North America, Europe, Asia-Pacific, and the Rest of the world (RoW). Asia-Pacific is likely to dominate the Polypropylene Foams Market due to increased product demand in key end-use verticals, such as consumer goods and packaging. Over the projected period, it is anticipated that the region’s rapidly expanding automotive industry will increase product demand.

SCOPE OF THE REPORT:

Market Sizing for Year:
2021-2028
Base Year:
2021
Forecast Period:
2022-2028
Value:
USD Million
Market Segment studied: 

Type

End Use

Geography
Market Players and its Competitors:

BASF SE

Kaneka Corporation

Hanwha Corporation

Mitsui Chemicals, Inc.

Borealis AG

Furukawa Electric Co., Ltd.

Sonoco Products Company

DS Smith PLC.

K. K. NAG Ltd.

Pregis Corporation.

Sekisui Alveo AG

Ssw Pearlfoam GmbH

Synbra Holding BV

The Woodbridge Group

FREQUENTLY ASKED QUESTIONS

What are the drivers for Polypropylene Foams Market?

The key driving factors of the market are rapidly increasing automotive and packaging industry.

Which is the leading end-user segment for the Polypropylene Foams market?

Automotive Industries has accounted for the major market share and is expected to witness growth at the highest pace during the forecast period.

Which region is gaining majority of market share during the forecast period (2021-2028)?

Asia Pacific is expected to dominate the Polypropylene Foams market during the forecast period (2021-2028).