Asia Pacific Expanded Polyethylene (EPE) Foam Market Analysis

Asia Pacific Expanded Polyethylene Foam Market Analysis

The rising e-commerce industry across the globe has provided lucrative opportunities for Asia Pacific expanded polyethylene foam market expansion over the forecast timeframe. According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), in 2017, the internet retailing market share of Asia Pacific was around 47.2%. The share already surpassed the combined share of North America & Europe and is expected to further showcase a significant growth rate.

Cell size and cell size distribution are the essential characteristics that enhance the efficiency and performance of EPE foams. The development of several special additives that enhance such characteristics is important in several crucial applications such as insulation, leisure articles, and noise reduction applications. Additives such as Atmer 7300 contain an anti-static agent that enhances mold release performance along with improvement in cell size distribution of the end products.
 

Growing automotive industry coupled with presence of several leading automobile manufacturers such as Toyota, Honda, General Motors, Nissan among others in the region will drive the demand for EPE foam over the study timeframe. Additionally, other European automobile players, such as Volkswagen, BMW, and Daimler AG are having their production facilities across the Asia Pacific.
 

Rising population, increasing purchasing power, and better standards of living create an upsurge in effective mobility and luxurious vehicles. All these will support the Asia Pacific expanded polyethylene (EPE) foam market growth.
 

Fluctuating crude oil prices are posing major threat to the Asia Pacific expanded polyethylene foam market. The expanded polyethylene foam is manufactured by polyethylene (PE) resin, mainly low-density polyethylene (LDPE). The price of PE resins is volatile in nature as it is directly linked to the international crude oil prices, resulting in high fluctuations. Rising geopolitical disputes coupled with growing oil price war between several countries including Saudi Arabia and Russia are bringing frequent price fluctuations in the market.
 

EPE foam coils & rolls are widely used in several applications and accounted for over 40% consumption share in 2019. The availability of a wide range of EPE foam coils & rolls, i.e., in various dimensions and colours, along with easy handing of these forms will increase its usage.
 

Coils are mainly used in insulation of AC ducting, air handling units, and split AC. Rising urbanization and the growing usage of chillers & cold storage applications in several end-user industries are expected to drive the Asia Pacific expanded polyethylene foam market demand over the forecast timeframe.
 

Laminated EPE foam products hold around 25% of the volumetric share in the Asia Pacific expanded polyethylene foam market. It will showcase a considerable growth owing improved characteristics of these products such as strength and chemical properties. These products are laminated with several materials depending on the foam applications such as HDPE and aluminum, among others.
 

Laminated foams are mainly available with foam thickness lower than 10 mm. These products are used in thermal insulation applications and as foam covers for laptops & other electronic equipment.
 

The packaging application holds dominance in the Asia Pacific expanded polyethylene (EPE) foam market share owing to the growing e-commerce industry across APAC. This segment will witness prominent gains of over 5.3% CAGR by 2026. EPE foams are widely used in packaging applications owing to excellent weight to strength and shock absorption properties.
 

EPE foams are sustainable and environment friendly. The rising trends toward the usage of such products to minimize adverse environment impacts coupled with the development of new EPE foam packaging materials are expected to drive the demand for EPE foams in the packaging applications.
 

China holds dominance in the Asia Pacific expanded polyethylene (EPE) foam market, accounting for over half of volumetric shares owing to the growing packaging and automotive industries in the country. The rising automotive production and proliferating online shopping across the country are expected to drive the regional growth.
 

China is amongst the major importers of EPE foam from several Asian and North American industry players. However, ongoing trade war with the U.S., and other health issues are affecting the market and are expected to slow the market growth over the next two to three years.