Regulatory Changes to Curtail Packaging Foam Demand Growth

The packaging foam market is expected to grow at a CAGR of 4.8% during the forecast period to reach a value of $22.43 billion by 2025 "
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Tampa - Florida - US


TAMPA, Fla. - March 7, 2020 - PRLog -- With its recently published study "Packaging Foam Market: Global Drivers, Restraints, Opportunities, Trends, and Forecast up to 2025", Infoholic Research forecasts that the demand for polymer foam-based packaging products will witness relatively moderate growth during the forecast period with regulatory bodies limiting the usage in direct consumer applications, including food & beverage, consumer durables, and electrical & electronics. The packaging foam market is projected to grow at a CAGR of 4.8% during the forecast period to generate market revenue of $22.43 billion by 2025.

The polystyrene market is expected to face the heat from regulations trying to reduce plastic waste, key contributor towards environmental pollution. European Union's ban on disposable food packaging items, expanded polystyrene (EPS) ban in restaurant's food packaging in few states of the US, and Chinese policy to enforce re-use of EPS containers in online food packaging deliveries are major shaping factors for EPS packaging foam. However, the overall EPS demand growth from other segments will more than compensate for the potential demand loss due to regulatory limitations. Polyurethane foam and polyolefin foams are expected to grow faster owing to no direct restrictions in any of the key geographies, thereby leading to their increased market share during the forecast period.

The Asia Pacific is the leader in the packaging foam market, accounting for more than 40% of the global demand, largely led by the Chinese market. The market dominance of Asia Pacific is expected to be further extended by the rapid growth in developing countries. The eruption of delivery business by online platforms has been fueling the demand growth in two of the most populated countries of China and India, creating demand for the packaging foam market. Further, increased industrialization in the developing countries of Indonesia and Bangladesh is further expanding the consumer segment and logistical opportunities for foam packaging. All these factors are contributing towards regional demand dominance extension, which will contribute an even higher share of global demand in packaging foam in 2025. On the other hand, Europe and North America are expected to witness slower growth in per capita packaging foam consumption, largely owing to the changing consumer trends and already high base.
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