Global Foamed Plastic Insulation

Global Foamed Plastic Insulation

Through 2026, global demand for foamed plastic insulation is forecast to increase 3.3% per year to 9.7 million metric tons, valued at $29.1 billion. Gains will primarily be driven by:

• increasing nonresidential building construction, notably in the Asia/Pacific region, where countries with fast-growing economies are constructing a variety of retail and industrial buildings.
• rising global incomes, which allow for the purchase of refrigerators, freezers, motor vehicles, and other products that utilize foamed plastic insulation for its thermal and acoustic properties
• growing efforts in areas such as the European Union and the UK to improve the energy efficiency of buildings through the use of foamed plastic insulation

While gains in volume terms will be healthy, growth in market value will slow significantly as a result of the severe moderation in foamed plastic insulation prices from their highs in 2021 and 2022, which were elevated due to supply chain issues and high raw material costs.

Developing Countries – Particularly India – Will Offer the Best Growth Opportunities

The sizable stock of substandard housing units in the Asia/Pacific and Africa/Mideast regions – which together account for over 75% of the world’s population – presents a significant growth opportunity for greater use of foamed plastic insulation. Governments of many of the developing countries in these areas are working to improve housing quality, including through the adoption of minimum insulation requirements. Additionally, foamed plastic insulation sales in these countries will be driven by:

• improving income levels and standards of living in developing countries
• rural-to-urban migration, which leads to increased construction in urban areas (where buildings generally use more insulation)
• rapidly expanding nonresidential building construction markets

EPS will remain the most used type of foamed plastic insulation, accounting for 49% of demand in 2027. Significant use of EPS will continue to be supported by:

• the ongoing use of concrete building construction methods throughout the world, as EPS used in insulated concrete forms can enhance the insulation of concrete building products without affecting their structural strength
• gains in industrial and HVAC equipment production, where EPS is favored due to its low cost, light weight, and ability to be wrapped around pipes
• its lower price compared to other foamed plastic products, which can be an important consideration in lower income markets

Study Description