US Foamed Plastic Demand to Reach 8.4 Billion Pounds in 2013

Demand for foamed plastics is forecast to grow 2.7 percent annually through 2013 to 8.4 billion pounds, valued at $27.1 billion. Advances will be stimulated by a turnaround in building construction and motor vehicle production.  Foamed urethane will continue as the largest type and expand to 4.3 billion pounds in 2013, driven by insulation and cushioning applications.  Construction and packaging together accounted for nearly 60 percent of all foamed plastics demand in 2008. These and other trends, including market share and product segmentation, are presented in Foamed Plastics, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Demand for foamed urethane is projected to increase at a 2.8 percent annual pace through 2013. Slightly better growth is expected for foamed flexible urethane than its rigid counterpart. Good growth is expected for foamed flexible urethane in motor vehicle and carpet underlay applications in light of rebounding motor vehicle and residential building construction markets. Foamed rigid urethane demand will exhibit rapid advances in building and tank/pipe insulation based on heightened construction activity. Good growth is anticipated for foamed rigid urethane in structural insulated panels.

Demand for foamed polystyrene will rise at a 2.3 percent annual pace to 2.5 billion pounds in 2013 due to myriad packaging and construction insulation applications. Packaging will continue to account for 70 percent of all foamed polystyrene’s markets in 2013 based on cost and performance advantages over other resins and materials.

Foamed vinyl demand is expected to increase nearly three percent annually to 265 million pounds in 2013, buoyed by renewed vigor in the residential building segment, as well as replacement applications for vinyl windows, doors, flooring and other products. Foamed engineering plastics demand is projected to rise 3.4 percent annually to 315 million pounds in 2013 as a result of needs for more cost effective and higher performing materials, particularly in motor vehicle and electrical and electronic applications.  Foamed polypropylene opportunities will reflect the resin’s low cost, high mechanical strength and other performance properties. The most rapid growth, however, is expected for much smaller volume biodegradable foam in light of increased availability and environmental awareness.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.