Market Trends of Polyethylene Foam Industry
High Demand for Polyethylene Foam in Packaging Applications
- Polyethylene foam, a versatile closed-cell foam with minor air pockets, is extensively used in packaging due to its lightweight nature, heat insulation, and exceptional resistance to shock, vibration, weather, and oil. It is ideal for transporting goods susceptible to these threats and meets FDA food contact regulations. Moreover, polyethylene foam maintains the freshness and quality of exported processed foods, making it a preferred cushioning material in shipping containers and food product packaging.
- In recent times, exports of processed foods have been experiencing slow growth, resulting in a steady demand for polyethylene foam to be used in packaging processed foods.
- According to the latest data released by the United States Department of Agriculture (USDA), the total amount of food exports in 2023 was around USD 36.61 billion, compared to USD 38.11 billion in 2022, registering a decline of 3.9%. However, the packaged food exports experienced consistent growth between 2020 and 2022.
- Food product exports registered an overall growth of more than 20% in 2023 compared to the overall food export value in 2020.
- The majority of processed and packaged foods were exported to Canada from the United States. In 2023, the total value of the food product exports to Canada was around USD 12.23 billion. Mexico is the second largest importer of processed and packaged foods from the United States, with a value of USD 5.86 billion in 2023.
- According to the data released by the European Commission, the EU agri-food exports reached EUR 228.6 billion (USD 252.29 billion) in 2023. The European Union trades with a large number of countries, with the United Kingdom being the top destination for EU agri-food exports, accounting for 22%, which was around EUR 51.3 billion (~USD 56.42 billion) in 2023.
- With the increase in exports of various food products worldwide, the demand for polyethylene foam in the packaging industry is expected to increase during the forecast period.
Understand The Key Trends Shaping This Market
Download PDF
Asia-Pacific Expected to Dominate Polyethylene Foam Market
- Asia-Pacific holds a significant share of the global polyethylene foam market, which is expected to grow over the next few years.
- Asia-Pacific accounted for a major portion of global construction spending. In the construction industry, polyethylene foam is used for pipe-in-pipe doors, roofing sheets, and slabs. The building sector extensively utilizes its qualities, which include high levels of thermal insulation, resistance to frost, and pliability.
- In 2024, the real estate sector in India is expected to surge with the construction of more than 530,000 new homes, which is expected to increase the demand for polyethylene foams in the country's construction sector.
- According to the data released by the National Bureau of Statistics of China, in 2023, the country completed 998.31 million square meters of floor space, representing a significant rise of more than 16% from the previous year.
- With the rise in various construction projects in countries like India and China, the demand for polyethylene foams in the Asia-Pacific construction sector is poised to witness growth.
- Polyethylene foam is also used as a cushion in the furniture industry. In Asia-Pacific, the furniture sector is a major consumer of polyethylene foams. According to Invest in India, the country's furniture sector is set to witness a CAGR of 10.9% from 2023 to 2028, aiming to reach a value of USD 32.7 billion by 2026.
- Thus, the demand for polyethylene foam is expected to rise from various end-user industries, such as construction, furniture, and packaging, in the coming years.
Get Analysis on Important Geographic Markets
Download PDF
