The Global Polyolefin Foam Market Size is estimated to be valued at USD 4.4 billion in 2018 and will register a CAGR of 4.6% between 2017 and 2028.
The polyolefin foam market is well positioned for growth and is witnessing significant sales from automotive sector. The product finds its usage in automotive interiors. As per the estimates, worldwide automotive sales reached over 90 million in 2017, up 2.3% than that in 2016. This has indirectly boosted the demand for polyolefin leading to 4.8% growth in 2017. Advancement in technology is expected to further create new market opportunity for industry players.
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Bekryl’s market research report, Global Polyolefin Foam Market Size Analysis and Industry Opportunity, finds Asia Pacific to account for 46% of global sales in 2018. China accounted for nearly half of the regional demand in 2018. China not only leads in production of automotive sector but also has well settled distribution networks in retail and industrial sector. This has created remarkably higher market opportunity for industry players in the country. As per the estimates, China represented over 30% of global passenger car sales in 2017 with an estimated 28 million unit sales. Furthermore, manufacturing sector accounts for nearly 40% of china’s GDP. As such, polyolefin foam market is highly favorable in the country. India is another country which is expected to create high incremental opportunity for industry players.
Some key trends from the global Polyolefin Foam market:
Trend#1: Plant Expansion
Demand for polyolefin has significantly increased in last few years. As such, many notable changes were witnessed in last five years. Companies are strategically focusing on plant capacity addition in order to lower supply chain gap. For instance, in August 2017, Kaneka Corporation announced its plan to set up a new production plant in Thailand for its polyolefin product – EPERAN™ and EPERAN™-PP. The move is expected to help company lower its operational cost and compete with competitors on better pricing levels. Furthermore, the move will help company to target Indian Subcontinent market effectively. The plant is expected to be operational by September 2018 and will produce nearly 3,000 tons of product annually.
In addition to Asia Pacific polyolefin foam market, Kaneka Corporation, in January 2018, announced its plan to expand polyolefin foam production capacity in Belgium, Europe.
Another company, Palziv North America –invested USD 5.2 million on plant expansion in Louisberg, Carolina, U.S. in 2017. Besides U.S., the company has its production channel located in Israel and Romania.
In 2016, Toray Industries announced its plan to increase polyolefin foam production capacity with investment of US$ 39 million at its Virginia Plant, U.S. The plant is expected to be operational in 2018. The company has strong foothold in North America and Latin America and caters to wide range of industry clients having its core focus on North America automotive companies. In addition to its plant in U.S. and Japan, the company is also considering China for future expansions.
Trend#2: Innovative Product Development
The polyolefin foam market is highly fragmented. As such, degree of competition is fairly among players. Leading companies are facing stiff competition from regional players based in China and India. As such, companies are focusing on differentiated product development. For instance, in 2017, SABIC announced its plans to launch LDPE based polyethylene foam. The product launch is meant to cater to growing demand in Middle East and Africa.
Another major producer – Dow Packaging and Specialty Packaging – won Ringer Technology Innovation Award for its patented Enhanced Expanded Polyethylene foam in 2017. As per the company, the product delivers 20% greater strength than that of standard EPE resin.
Trend#3: Construction and Automotive Sectors to be Lucrative Destination for Polyolefin Foam Market Players
Inclination towards greenhouse codes and energy saving modes has led to demand for eco-friendly buildings capable of saving thermal energy. As such, companies are actively pushing towards high quality insulating products. Polyolefin foam has proven to be effective product to meet energy saving guidelines. The demand for polyolefin foam in construction application will increase by 6% CAGR between 2018 and 2028.
Automotive sector is also expected to create high incremental opportunity for industry players. Many companies have strategically focused their business expansion to meet growing demand from automotive sector. For instance, in 2017, Sekisui Chemical Co. Ltd, established polyolefin foam Production Company for automobile interiors in China.
Some key global Polyolefin Foam Market Players are Kaneka Corporation, Toray Industries Inc. The Dow Chemical Company, Palziv, Sekisui Chemical Co. Ltd, Sabic, Armacell, Zotefoams, and Carefoam.
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