Global Polyethylene Foam Market To Grow At Over 5% Till 2021

Global Polyethylene foam market to grow at over 5% till 2021

13-Jan-17

Polyethylene (PE) Foams Market is projected to grow from US$5.14 bln in 2016 to US$6.85 bln by 2021, at a CAGR of 5.9% from 2016 to 2021, as per MarketsandMarkets. Growth in this market is mainly driven by the rising demand for PE foams in the building & construction, automotive, and protective packaging end-use applications, especially from the Asia-Pacific region.

Protective packaging is one of the most significant end-use applications of PE foams. This segment accounted for the largest share of the polyethylene foams market in 2015. However, increasing demand for PE foams from the building & construction and automotive end-use applications is anticipated to surpass the protective packaging end-use application during the forecast period. In addition, rise in the number of residential and commercial buildings, and growing population in various countries such as China and India are factors driving the growth of the polyethylene foams market in the building & construction end-use application segment. PE foams are widely utilized in the manufacture of automobiles owing to their superior properties, such as lightweight and durability. The use of PE foams has resulted in significant improvement in the weight, safety, durability, and comfort of automobiles. This, in turn, has contributed to the growth of the polyethylene foams market in the automotive end-use application segment.

Non-XLPE foam is slightly abrasive, relatively expensive, requires more fabrication, and is resistant to tearing, cracking, and crumbling. It is moisture resistant, and is virtually unaffected by most industrial chemicals. Non-XLPE foam is widely used in packaging and building & construction end-use applications, which, in turn, has contributed to the growth of the non-XLPE segment in the polyethylene foams market. The Asia-Pacific region accounted for the largest share of this market, in terms of volume and value, in 2015. The market in this region is projected to grow at the highest CAGR during the forecast period. This growth is mainly attributed to the easy availability of raw materials and increasing foreign investments. In addition, countries such as China, India, Indonesia, and Thailand have witnessed increased demand for polyethylene foams from protective packaging, building & construction, and automotive end-use applications.