Global Polyethylene (PE) Foam Market - 2023-2030

Global Polyethylene (PE) Foam Market - 2023-2030

Market Overview

The global polyethylene foam market reached US$ XX million in 2022 and is expected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of 6.20% during the forecast period (2023-2030).

Polyethylene is a closed-cell foam, which means that its structure is made up of millions of microscopic bubbles that are shut off from one another. It gives water resistance and strength and rigidity not found in open-cell foams. It is also resistant to solvents & petroleum chemicals and is antimicrobial, limiting mold, mildew and bacterium growth. A robust polymer, polyethylene, returns to shape after compression while giving enough cushion and security when needed. Together with its versatility and customization options, the properties make it suitable for many applications.

Polyethylene foam, which is formed by heating polymer compounds, can have additives added to its formula to change its characteristics before being heated and ejected into its solid-state form. Anti-static types are available in addition to normal polyethylene sheet foam. Anti-static qualities help pack, handle and ship sensitive electronics by dispersing electro-static charges that might accumulate and damage components.

Market Dynamics

The growing demand for the packaging application due to its great impact-bearing capabilities drives the market's growth. Furthermore, raw material price volatility is expected to slow market growth.

The growing demand for CO-2 polyols

Polyethylene foams have grown in popularity due to the constant advancement of chemistry and polymer architecture, as they may meet sustainability standards. Resource availability, such as drilled oil, is projected to decline gradually. CO2-based polyols are projected to replace petroleum-based products because CO2 is less expensive than petroleum-based raw materials.

Natural oil-based polymers utilize less drilling oil than petroleum-based polymers; however, manufacturing natural oil-based polyols need crop-growing land. One of the primary reasons CO2-based polyols are overtaking traditional polyols.

Growing demand for polyethylene (PE) foam in various end-use industries

Building and construction, protective packaging, automotive, medical and footwear, sports and recreation are among the major industries that use polyethylene foams. Polyethylene foams are forging, pipe-in-pipe, doors, roof board and slab applications in the building and construction business. XLPE foams are suitable for building and construction use because of their superior thermal insulation, moisture resistance and sound and vibration absorption qualities.

Packaging is required for all goods for safety and insulation. Polyethylene foams are used in the automotive industry for headliners, door panels & water shields, seat liners, mirror seals, dashboard padding, air conditioning ducting and trunk liners. Automobile makers are constantly attempting to reduce vehicle weight to enhance fuel consumption and performance, for which polyethylene foams are employed. XLPE foam, which is hypoallergenic, non-toxic and latex-free, is employed in the medical business and can even be used in operating rooms.

The volatility of raw materials price

The cost and access to raw materials impact the pricing structure of products. Naphtha, low-density polyethylene (LDPE) resin, high-density polyethylene (HDPE) resin and additives are the primary raw ingredients used to manufacture polyethylene foams. The production cost structure of the products is affected by volatile raw material costs. Oil prices have been extremely unpredictable over the last two years (2019-2020) due to increased global demand, war and foreign military action in Middle East.

The market for polyethylene foams is hampered by fluctuating raw material prices. Recently, price fluctuations in petrochemical-based raw materials have impacted the polyethylene foams market. Consistent worldwide demand, combined with main chemical and resin capacity limits, has tightened supply and raised the price.

COVID-19 Impact Analysis

The global implementation of COVID-19 lockdowns resulted in a considerable drop in MDI demand from March to June 2020. The key customers in Asia-Pacific either canceled or postponed their advance orders. The outbreak and spread of COVID-19 have resulted in a TDI scarcity in important places worldwide. Most industrial enterprises have ceased operations and several countries have closed their ports, preventing product transit. As a result, numerous TDI orders have been canceled.

The global economy has recently become significantly more intertwined. The negative repercussions of numerous efforts associated with COVID-19 containment are visible in global supply chain disruptions, lower demand for imported goods & services and a rising unemployment rate. With all-time low-interest rates and significant falls in equity and commodity prices, risk aversion has intensified in the financial industry. Consumer and business confidence have both plummeted.

Segment Analysis

By end-user, the polyethylene (PE) foam market is segmented into building & construction, protective packaging, automotive, medical and others.

Rising usage of polyethylene (PE) foams in packaging

The continued growth of packed products in the food and beverage industry is driving the polyethylene foam market expansion. Lightweight material, heat insulation, shock and vibration resistance and frost resistance, among other advantages, make it appropriate for packaging material, stimulating market expansion. Furthermore, developments in packaged food product consumption due to busy lives, on-the-go dining patterns and affordability boost industry use of polyethylene foams, consequently contributing to market expansion.

Furthermore, due to the e-commerce boom, the increasing use of polyethylene foams for packing and shipping due to their durability complements industry growth. It is likely to continue driving market growth throughout the projection period. Furthermore, because of their hypoallergenic, non-toxic and latex-free qualities, XLPE foams are employed in pharmaceutical packaging. It is commonly used in the medical business to package and protect surgical tools from the elements. As a result, the widespread use of polyethylene foams in the medical industry propels market expansion.

Geographical Analysis

Low-cost labor and government initiatives in Asia-Pacific

Asia-Pacific has emerged as a leading producer and consumer of polyethylene foam. Low-cost labor, government programs such as Make in India and the proposed strategy for entrepreneurship development may create more opportunities in India's industrial and infrastructural sectors. Polyethylene foam is widely used in Asia-Pacific packaging, automotive and medical applications. The region's growing middle-class population and increased emphasis on sustainable construction, transportation and medical facilities are driving the rise of the application segments.

In Asia-Pacific, China is the major market for polyethylene foams. The Chinese market for polyethylene foams has expanded significantly. It is expected to expand more shortly due to the ongoing relocation of polyethylene foam production facilities to China. Most companies in North America and Europe intend to relocate their manufacturing bases to China since it provides comparatively inexpensive raw materials, low production costs and the potential to serve the developing local market.

Competitive Landscape

The polyethylene (PE) foam sector is competitive with many worldwide and regional players. Vendors are placing a greater emphasis on product differentiation and innovation. Major global polyethylene (PE) foam market companies include Armacell, ZoteFoams PLC, Recticel NV, INOAC Corporation, Thermotek Pty Ltd, Pregis LLC, JSP Corporation, Dafa A/S, Sealed Air Corporation and Toray Industries Inc.

Armacell

Overview: Armacell is a prominent provider of tailored foams and a leader in flexible insulation foams for the equipment-insulation sector. Advanced Insulation and Engineered Foams are the two primary operations of the company. In markets requiring energy distribution, such as plumbing, industrial pipe insulation & cooling systems in residential & non-residential building projects and process lines in various industries and the international oil & gas business, the advanced insulation company develops flexible insulation foam products for the insulation of mechanical equipment. The company's headquarters are in Luxembourg. It employs about 3,135 people and operates 25 manufacturing facilities in 17 countries.

Product Portfolio: ImcoSheet® closed-cell polyethylene foam is manufactured by Armacell. It avoids heat loss and pipe-freezing in residential, commercial and industrial plumbing operations. ImcoSheet is extremely flexible, making it simple to cut and install. ImcoSheet has a very low water vapor transfer rate and thermal conductivity. The low-density product offers outstanding thermal, physical and chemical resistance capabilities and a wide service temperature range of -297°F to 200°F.

Key Development: Armacell purchased Nomaco's Insulation Business in 2017, an extruded PE insulation foam product manufacturer. Armacell's domestic production capacity and regional distribution network have been greatly strengthened by acquiring the Yukon, Oklahoma-based manufacturing facility. The acquisition of Nomaco's insulation company expands Armacell's current PE insulation foam product offering and raises customer service standards across North America.

Why Purchase the Report?
• Visualize the composition of the polyethylene (PE) foam market segmentation by type, resin type, end-user and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the polyethylene (PE) foam market by analyzing trends and co-development deals.
• Excel data sheet with thousands of polyethylene (PE) foam market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global polyethylene (PE) foam market report would provide access to an approx. 61 market data table, 52 figures and 204 pages.

Target Audience 2022
• Polyethylene (PE) Foam Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Polyethylene (PE) Foam Manufacturers