Green Renovation Wave: New Ceresana Study on the Global Market for Expandable Polystyrene (EPS)

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construction

Summary

Manufacturers and processors of expandable polystyrene (EPS), the bestselling insulation material, are benefiting from initiatives to improve energy efficiency.

Press Release

Crude oil helps with climate protection and energy saving. Less in heating or engines, but rather in the house facade: better building insulation is a key objective of the “European Green Deal”. Real estate is still responsible for almost 40% of the total energy consumption. That’s why the EU Commission is calling for a “renovation wave”: In order to drastically reduce greenhouse gas emissions, EU countries are to invest around EUR 200 billion a year to modernize the energy systems of homes and public buildings until 2030. According to the latest Ceresana study on the global EPS market, the demand for EPS in 2020 amounted to around 6.59 million tonnes.

Construction Industry is the Main Customer

EPS is a light, strong foam that can be shaped almost at will and is traded under brand names such as Styropor or Airpop. The versatile material consists primarily of air and expanded polystyrene, with the addition of flame retardants and other additives, such as graphite. Although EPS can also be found in safety helmets and life jackets, in beverage cups, casting moulds, and numerous other applications, however, around 53% of its market is accounted for by construction products. The construction industry uses the low-cost insulating material primarily to insulate against heat, cold and noise in new housing construction as well as in the renovation of old buildings. Its competitors are glass and rock wool, but insulating materials based on renewable raw materials are also becoming increasingly popular.

Growing Packaging Demand

Japan and South Korea, for example, also have ambitious climate protection goals with regards to buildings. In Asia Pacific and the Americas especially, EPS is not only used for insulation materials, but is also widely used for packaging, for example for transporting fresh fish or electronic products. The segment packaging accounts for over 40% of the total demand for EPS around the globe. According to the current, already fourth edition of Ceresana’s EPS market report, the Asia-Pacific region accounted for around 57% of the global EPS demand in 2020. For China, analysts expect growth rates to remain above average, despite a slowdown in the construction industry. Per capita demand for EPS packaging is rising, particularly in emerging and developing countries.

Further information about the market study “Expandable Polystyrene – EPS (4th Edition)”: www.ceresana.com/en/market-studies/plastics/expandable-polystyrene/

About Ceresana
As one of the world’s leading market research institutes, Ceresana specializes in the chemicals, plastics, packaging and industrial goods sectors, with a focus on automotive / mobility. Since 2002, companies have benefited from high-quality industry analyses and forecasts. Over 200 market studies provide more than 10,000 clients around the world with the knowledge base for sustainable success.