The global Polyolefin Foam market size is estimated to be valued at USD 4.4 Bn

Posted by Alex Werner on February 5th, 2018

Global Polyolefin Foam Market Size Analysis

The global Polyolefin Foam market size is estimated to be valued at USD 4,442.9 million in 2018 and will register a CAGR of 4.6% to create collective absolute revenue opportunity of USD 61 billion during the forecast period.

Polyolefin foam are used as a substitute to natural cushioning materials and is widely gaining recognition as the preferred choice for end-use sectors. Though polyurethane still accounts for highest market share and is nearly 7X higher than polyolefin, the latter is expected to gain fastest CAGR creating new market opportunity for industry players. The industry is characterized by regional localization wherein many companies at small scale operates regionally. However, increased competitiveness has led to industry shifting towards consolidation.

Global Polyolefin Foam Market Drivers and Challenges

Polyolefin foam market is driven by various macroeconomic factors as well as supply and demand drivers. Industrialized regions namely Europe, North America and East Asia are progressively registering upward trend – showing a favorable market landscape for cumulative growth. Furthermore, construction activity has increased considerably in Asia Pacific. As per the U.S. Bureau, total construction spending increased by 6.5% in 2016 than that in U.S. It is expected to be nearly 4.3% in 2017 – suggesting healthy growth for overall industry. Growth in construction sectors is expected to create favorable market opportunity for polyolefin foam market players.

Next, automotive sector is also creating high incremental opportunity. Polyolefin foam finds usage in seats. Automotive sector has witnessed gradual improvement post economic recession. Sales has increased significantly totaled nearly 90 million units in 2017 – up 6% from 2015. As such the industry will create opportunity for market players.

Other factors that will drive the polyolefin foam market sales are technological improvement, and physical properties of the product.

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Exhibit 1:

Global Polyolefin Foam Market Analysis, Product Analysis

Cross Linked Polyethylene foam (XLPE Foam) accounted for majority of the market share by product type. It will further gain market share to account for 50% of global share by 2028. XLPE Foam finds wide applications across protective packaging and automotive seat manufacturing. Low cost compared to other products and higher tensile property has significantly boosted overall demand. Polypropylene foam (PP foam) will register fastest growth during the forecast period.

Global Polyolefin Foam Market Size and Forecast: Regional Analysis

Asia Pacific is expected to dominate the global polyolefin foam market. Growth in the region is primarily driven by China and Japan. As per the estimates, Asia Pacific is expected to account for 47% of market share in 2018 and will gain 852 basis points to create higher incremental opportunity for industry players. The region is expected to witness decline in growth rate from 6.3% in 2017 to 5.9% in 2018. The marginal decline is primarily attributed to macroeconomic policies along with decline in China GDP growth rate. However, in absolute terms, it will represent high market value. 

Growth in Asia Pacific is expected to be strong post 2020 wherein various government initiated projects such as Smart City Projects, boost to electric vehicles and large local market will support the favorable market conditions for polyolefin foam market. Various companies are coming setting up their production channels to meet the growing demand the products. For instance, Japan based Kaneka Corporation announced its plan to expand its polyolefin foam production plant to Thailand. Another company – Toray – is planning to scale its business operations in China by setting up industry in the region.

Western Europe was reeling under economic slowdown post 2010. This has hampered the overall demand supply. However, the period was temporary in nature and is now reviving towards optimistic growth. The region is expected to register a CAGR of 2.7% between 2018 and 2028.

Global Polyolefin Foam Market Size and Forecast: Competition Landscape

Some of the key Polyolefin Foam market industry 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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