Market Trends of US Expandable Polystyrene (EPS) Industry
Grey and Silver EPS Segment to Dominate the Market
- Grey and Silver EPS are pivotal in foam production, especially for insulation materials. Their unique coloration stems from a trace amount of carbon or graphite embedded in the polymer matrix.
- With enhanced thermal performance, Grey and Silver EPS excel in insulation applications and outlast traditional EPS materials in durability and resistance to degradation.
- These materials are integral to producing insulation solutions like foam boards and panels.
- Grey EPS, an innovative variant, incorporates graphite to boost its refractive and reflective properties, enhancing thermal insulation. The graphite subtly amplifies IR light refraction, making heat escape less direct. With its distinctive gray-to-black hue, robust mechanical properties, high water resistance, and enhanced fire resistance, grey EPS can be processed using the same equipment as conventional EPS.
- Owing to its unique attributes, grey EPS achieves a 20% reduction in thermal conductivity, allowing a 20% decrease in board thickness without compromising performance. Its applications span insulating external walls, roof systems, foundations, and floors, as well as thermo-acoustic insulation, manufacturing insulated formwork, and creating lightweight building blocks.
- EPS usage boosts insulation in both old and new buildings, aiding in power cost reductions. While it matches the density of white EPS, its isolation capability is 20% superior.
- This enhanced performance has made grey EPS especially appealing in the United States, where there's a growing trend towards housing renovations and a focus on lower maintenance costs.
- In construction, grey and silver EPS find applications in building insulation, roofing, and flooring.
- Beyond construction, they're vital in packaging, serving roles in protective packaging and cushioning materials.
- According to data from International Paper, the United States exported 391 billion square feet of corrugated packaging in 2023, with projections indicating an increase to 406 billion square feet in 2024.
- Flexible packaging significantly curtails waste in beverages and products, enabling online brands to refresh their packaging for a superior e-commerce experience.
- The US Department of Commerce notes that e-commerce sales jumped from USD 1.040 trillion in 2022 to approximately USD 1.119 trillion in 2023, marking a 7.6% annual growth.
- Looking ahead, this upward trajectory is set to persist into 2024, with e-commerce sales projected to hit USD 1.25 trillion, reflecting an estimated growth rate of 10.5%. This bodes well for the EPS market in the United States.
- Given these dynamics, the demand for grey and silver EPS is poised to be influenced during the forecast period.
Understand The Key Trends Shaping This Market
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Building and Construction Segment to Dominate the Market
- In the building and construction industry, expandable polystyrene (EPS) is pivotal, enhancing energy efficiency, sustainability, and affordability in structures.
- The United States, recognized as the world's largest economy, boasts a diverse industrial landscape, from heavy to small-scale industries, and is renowned for its vibrant commercial activities.
- The United States is also a huge market for the building and construction industry. As per the data from the US Census Bureau, the value of construction in the United States in 2023 was USD 1,978.7 billion, 7% higher than the USD 1,848.7 billion spent in 2022. However, the residential construction in 2023 was only USD 864.9 billion.
- In 2023, an estimated 1,469,800 housing units were authorized by building permits, 11.7 percent below the 2022 figure of 1,665,100. Moreover, an estimated 1,413,100 housing units were started in 2023, 9.0 percent (±2.5 percent) below the 2022 figure of 1,552,600, as per the data from the US Census Bureau.
- In August 2024, construction spending was projected at a seasonally adjusted annual rate of USD 2,131.9 billion, slightly down by 0.1% (±1.2%) from July's USD 2,133.9 billion. This August figure, however, shows a 4.1% (±1.6%) increase from August 2023's USD 2,047.4 billion. For the first eight months of 2024, construction spending totaled USD 1,428.5 billion, marking a 7.6% (±1.2%) rise from the USD 1,327.0 billion during the same timeframe in 2023, as per the data from the US Census Bureau.
- Given these trends in the construction sector, the demand for EPS in the United States is poised to rise during the forecast period.
