Published September 2023
Expandable polystyrene (EPS) is a rigid cellular plastic originally invented in Germany by BASF in 1950. EPS is 98% air and the rest is made from tiny, spherical EPS beads — themselves made only of carbon and hydrogen. EPS is among the largest commodity polymers produced in the world and is the second-largest styrene derivative, after polystyrene. It is a solid foam with a unique combination of characteristics, such as lightness, insulation properties, durability and excellent processability. EPS is used in many applications, such as thermal insulation board in buildings, packaging, cushioning of valuable goods and food packaging.
In the last few years, the EPS market has faced the challenges of a worldwide oversupply, weakened demand and continued negative customer perception of EPS products. Although global demand will see a slight increase during the next five years, the overall capacity burden does not seem to be going away during the forecast period. As of 2022, there is an excess EPS capacity of over 5.9 million metric tons, with the majority held in mainland China, accounting for 71% of the global surplus.
The following chart presents world consumption of expandable polystyrene (EPS):
Building and construction is the largest demand segment; however, this application no longer drives the EPS industry from a growth perspective due to stagnant demand in Northeast Asia and Western Europe, coupled with an offset in stronger packaging growth. Mainland China’s construction industry downturn, along with declining insulation demand, have been significant factors leading to the overall weakening of global EPS demand into the building and construction markets.
EPS consumption into packaging applications is primarily used as a cushioning protectant in fragile items, as well as in disposable trays, cups, plates, bowls, etc. The growth in this market is primarily driven by the electronics and appliance industry. Mainland China is again the dominant consumer, driven by the large domestic consumer electronic and home appliance industry, which requires EPS packaging for transport. EPS thermal packaging for the cold chain industry (agricultural produce and fresh food) is also included in this category.
Other applications include EPS beads used to make cups, loose beads used in bean bag chairs and loose-fill packing material (“peanuts”) for protecting products from damage during shipping. Overall, global consumption of EPS is expected to increase at about 2% per year in 2022–27.
For more detailed information, see the table of contents, shown below.
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