Extruded Polypropylene Foam Market Forecasts to 2028 - Global Analysis By Type, By End User and By Geography

According to Stratistics MRC, the Global Extruded Polypropylene (XPP) Foam Market is accounted for $1136.99 million in 2022 and is expected to reach $2036.33 million by 2028 growing at a CAGR of 10.2% during the forecast period. An elastomer known as extruded polypropylene (XPP) foam is often used in a variety of applications. These kinds of foams have a barrier or shock absorber. These products contain a layer of foam that is made to endure pressure and stress, reducing the impact on the primary component. Extruded polypropylene foam is a type of plastic material renowned for being eco-friendly. Both high-density and low-density extruded polypropylene foam variants of these are readily accessible. Extruded polypropylene foam is mostly utilized in the automobile industry, although it also has use in packaging, building and construction, and other industries.

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Market Dynamics:

Driver:

Rising demand from end user industries

Increased demand from the automotive, packing, building and construction, and electrical & electronic industries is expected to fuel the global extruded polypropylene (XXP) foam market. This is because XXP foam composite has unique properties like thermal insulation, impact resistance, chemical and water resistance, and high strength. The production of packaging materials for the food and beverage sector as well as for safe packing requires the use of XXP foam composite. However, the composite is a material that is easily recyclable and beneficial to the environment.

Restraint:

High price and low consumer awareness

The lack of knowledge of extruded polypropylene foam is recognized as the main obstacle to the growth of the XPP foam industry. The fluctuating cost of polypropylene is a major concern for manufacturers. Manufacturers are looking for alternatives to extruded polypropylene foam because of volatile oil prices and future hedging. Cost adjustments have had an effect on the food packaging market, resulting in an increase in packaging costs and a decline in earnings.

Opportunity:

Due to its light weight XPP foam is used in various components

XPP foam's lightweight properties are one of its main benefits. For applications where weight is an issue, XPP foam is up to 50% lighter than conventional foam materials. For components like door panels, headliners, and trunk liners, it is therefore popular in the car sector. XPP foam is a lightweight substance that is also resistant to moisture, chemicals, and UV radiation. This makes it a long-lasting and durable material. Because of this, it can be utilized in exterior applications like underlayment, insulation, and roofing. The sustainability of XPP foam is another important benefit. Polypropylene, which is a recyclable material, is used to make XPP foam. This makes it an attractive alternative for packaging applications, where sustainability is taking on a greater role.

Threat:

Availability of cheaper alternative foam materials

The extruded polypropylene foam demand is being hampered by the emergence of more affordable and versatile alternative foam materials. Extruded polypropylene foam laws and recommendations from the government are also anticipated to have a negative impact on market expansion.

COVID-19 Impact:

Coronavirus infections spread around the world in 2020, causing a pandemic. Because the world was not prepared for an event of this magnitude, the pandemic had a negative effect on the world economy and caused the collapse of numerous markets. Lockdown limitations caused the closure of businesses and production facilities in numerous countries, which had a negative effect on demand for extruded polypropylene foam. Extruded polypropylene foam demand, however, has increased in the post-pandemic period as businesses and trade activity have returned to pre-pandemic levels. Vendors of extruded polypropylene foam are concentrating on increasing their capacity for revenue development to make up for the losses they suffered in 2020 as a result of lockdowns across the world.

The low density segment is expected to be the largest during the forecast period

Because of the rising demand from protective packaging, automotive, and insulation applications, the low-density type segment is anticipated to hold the largest share of the market over the projection period. Additionally, low-density XPP foam usage is regulated by the automotive industry. However, the widespread use of low-density in automotive applications aids in vehicle weight reduction and impact prevention. These elements are augmenting the segments growth.

The building and construction segment is expected to have the highest CAGR during the forecast period

Building and construction segment is expected to have productive growth throughout the prognostication period. Polypropylene foams with densities between 70 and 250 kg/m3 and film thicknesses of 1.5 and 6.0 mm are typically utilized in construction, especially for interior projects and housing. The components have outstanding impact properties, which are lightweight and rigid, and most importantly, have great thermal insulation qualities. Furthermore, home builders and consumers are gradually moving toward building strategies that deliver performance and energy savings over time as the number of building codes that support energy-efficient structures increases

Region with largest share:

Due to expanding construction activity and rapid urbanization in nations like China, India, Indonesia, Thailand, Vietnam, and others, the Asia-Pacific region led the global market share in 2018 and is anticipated to continue to do so during the projected period. Extruded polypropylene foam is becoming more widely used in the area. However, over the projected period, the nation is likely to experience an investment in housing of around USD 1.3 trillion during the period when 60 million new homes are likely to be constructed. As a result, by 2024, India's supply of affordable housing is predicted to increase by almost 70%.

Region with highest CAGR:

As China has the largest packaging sector in the world, the Asia-Pacific region is predicted to grow profitably over the forecast period. Due to the rise of customized packaging and rising consumer demand for packaged consumer goods, such as frozen foods, microwave foods, and snack foods, the nation is predicted to continue growing during the projection period. Furthermore, the fast-moving consumer goods (FMCG) sector in the nation experienced rapid growth. The country's middle-class consumers' increased spending on higher-end and healthier goods was a major factor in the FMCG sector's expansion in this region, which is favorable for market growth.

Key players in the market:

Some of the key players in Extruded Polypropylene (XPP) Foam market include: BASF SE, Borealis AG, Braskem, DS Smith PLC, JSP Corporation, Mitsui Chemicals Tohcello.Inc., NMC International SA, Pregis LLC, Sekisui Voltek, LLC, Sohner Plastics, Sumitomo Chemical , Toray Industries, W.R Grace, Zotefoams Plc and Furukawa Electric Co. Ltd.

Key Developments:

In March 2023, BASF has announced plans to expand its polymer dispersions production capacity by adding a second production line at its site in the Daya Bay Petrochemical Industrial Park in Guangdong, China. The new line is scheduled to start operations at the beginning of 2024. This expansion marks another key milestone in the development of our polymer dispersions business in Greater China," said Jeff Liu, Director of Dispersions Greater China at BASF. Innovative Polymer Dispersions are vital for our customers to succeed in their markets. The additional capacity will enable agility and sustainable growth for our customers, especially in the South China market.

In January 2023, BASF and Cargill further expand their partnership to offer high-performance enzyme solutions to animal protein producers in the United States. With the expanded geographical reach, BASF and Cargill aim to bring the voice and commercial insights of US protein producers to craft the next generation of enzymes jointly. Through this next stage of collaboration, BASF and Cargill strive to deliver solutions that address productivity, sustainability, and cost challenges for US customers.

Types Covered:

• High Density
• Low Density
• Other Types

End Users Covered:

• Automotive
• Building & Construction
• Electrical & Electronics
• Packaging
• Transportation
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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