Polypropylene Foams Market
According to the Bureau of Transportation Statistics (BTS), the total truck freight between the U.S. & Mexico/Canada observed 7.1% rise year over year. Similarly, due to the emergence of e-commerce and other factors such as the rise in trade of various products across the globe, the logistics sector is making strides. Apparently, this rise in logistics is significantly disrupting the packaging industry, and polypropylene foam packaging bears a substantial share in the same. The projected growth in the logistics sector across the globe will further flourish the polypropylene foams market that was valued to be $1.02 billion as of 2018. Furthermore, the demand for polypropylene foams from various industries is projected to increase at a healthy compound annual growth rate (CAGR) of 5.90% during the forecast period of 2019 to 2025.
Owing to the growth of the automotive industry and the fact that APAC leads in the consumer appliances market that largely utilizes polypropylene foams, the market has been observing a definite demand influx for the product. Moreover, the construction industry is also making propitious progress in order to suffice the infrastructural demand for the growing population in the region, which is again supporting the polypropylene foams market. Given that APAC has a diverse marketplace for polypropylene foams in various sectors, the region had the maximum polypropylene foams market share of 30% as of 2018.
Polypropylene foams are thermoplastic polymers made of expanded polypropylene (EPP). These foams are used as polypropylene foam sheets, polypropylene foam block, polypropylene foam rolls, and polypropylene foam insulation in various sectors depending on the purpose of their applications. Predominantly, they are used in the construction as a base material. Moreover, polypropylene foams also find applications in consumer appliances and pharmaceutical industries for packaging purpose.
In 2018, the total number of vehicles produced was valued to be 91,538,640, according to the International Organization of Motor Vehicles Manufacturers (OICA). The seats of vehicles including car, trucks, and two-wheelers are incorporated with polypropylene foam which is used as a cushion. Evidently, the rise of disposable personal income (DPI) and the foreseeable demand for the vehicles will lead to production growth in the polypropylene foams market in order to suffice the need for the automotive sector. The key application of polypropylene foam is found to be in the automotive industry, and it is estimated to grow at a substantial CAGR of 5.10% through to 2025.
The Soaring Sales in the HVAC Industry –
Global warming and the catapulting demand for construction is leading to an upsurge in the sales of HVAC products such as air conditioner and refrigerator. These appliances are inculcated with polypropylene foams for their piping, ducting, and venting. The future is poised to observe a rise in the revenues of the HVAC industry, which will significantly drive the polypropylene foams market.
The Demand Inflow from the Pharmaceutical Sector –
The International Federation of Pharmaceutical Manufacturers Association (IFPMA) had assessed the global pharmaceutical production to be $997 billion worth in 2014, and the figure is projected to escalate and reach $1,430 billion by 2020. Evidently, a considerable amount of this revenue is attributable to the medicines that are transported from one place to another place. Polypropylene foams offer tight tolerances, temperature control capabilities, and shock absorption for the protection of these medicines. So, these drugs are often packaged using polypropylene foams. The projected growth in demand for pharmaceutical products will create opportunities in the polypropylene foams market.
Temperature Controlled Packaging for Food &
Nowadays, there is a remarkable demand for frozen food products, and so is the case with cold beverages. Evidently, these food products need packaging that can control the temperature, and polypropylene foam packaging is most widely used for the purpose. Furthermore, hot and cold catering boxes, cake rings, synthetic corks, and wine packs are observing an amplified demand from the food & beverages sector, and polypropylene foams are an integral part of these packaging. The discernible demand from the food & beverages industry is chiefly supporting the polypropylene foams market.
The Use of Eco-Friendly Packaging – There is a
growing awareness among consumers and vendors pertaining to the importance of
using ecofriendly packaging in order to reduce the impact on the environment.
The extruded polypropylene foam is found to be ecofriendly which is a major
reason a lot of plastic packaging vendors are venturing into the polypropylene
Need for Recyclability of the Material – It’s perceptible
that the future foresees demand for recyclable materials in each sector. The
recyclability of polypropylene foams enables cost-efficiency and conservation
of packaging resources.
The major challenge faced by the vendors in the polypropylene foams market is the availability of cheaper alternatives such as starch-based foam planks, layered corrugated pads, and recycled polyethylene foam. Furthermore, the expensive raw material for the manufacturing of polypropylene foams happens to restrain the progress of the market even further. The manufacturers dither to venture into the market due to the overall cost of manufacturing. However, the market players are able to reap profits by optimizing the selling price of the material. Moreover, increasing awareness about the application of recyclable materials is making up for a sustainable polypropylene foams marketplace.
The major players crusading for greater polypropylene foams market share are BASF SE, Borealis AG, DS Smith PLC., Hanwha Corporation, Pregis Corporation, Kaneka Corporation, Sonoco Products Company, Synbra Holding, JSP, Mitsui Chemicals, and Winconsin Foam Products.
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the polypropylene foams market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The polypropylene foams market research report also analyses the application of the product in the packaging, automotive, and other sectors.
The polypropylene foams market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
Is the market demand for polypropylene foams growing? How long will it continue to grow and at what rate?
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Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
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What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
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How many patents have been filed by the leading players?
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What is our Vision 2030 for the polypropylene foams market?