Expanded Polystyrene Market Size

Expanded Polystyrene Market size was valued at USD 11.1 billion in 2023 and is poised to grow from USD 11.79 billion in 2024 to USD 19.07 billion by 2032, growing at a CAGR of 6.2% during the forecast period (2025-2032).

Increasing infrastructure development activity, expansion of packaging industry, extensive use of expanded polystyrene in the automotive industry, rise in demand for cold chain logistics, and advancements in recycling are some key aspects that are slated to bolster the demand for expanded polystyrene through 2032.

Boom in urbanization and industrialization on a global level has resulted in increased Infrastructure development activity. Expanded polystyrene (EPS) is widely used in the construction sector for insulation, roofing, and structural applications due to its lightweight nature, thermal insulation properties, and durability. Launch of new construction projects is estimated to create new growth opportunities.

Excellent cushioning properties and resistance to moisture have helped expanded polystyrene emerge as a primary material for packaging of fragile goods, electronics, and food products. Boom in e-commerce activity around the world coupled with high demand for protective packaging are slated to create new opportunities for expanded polystyrene suppliers focusing on the packaging industry. Surge in automotive manufacturing activity and high use of expanded polystyrene in production of car seats, interior components, and impact-resistant parts are also forecasted to bolster the global expanded polystyrene market growth going forward.

Increase in demand for cold chain logistics for pharmaceutical and food industries is also slated to offer new business scope for expanded polystyrene suppliers. Excellent thermal insulation capabilities of expanded polystyrene are helping it find extensive adoption in temperature-sensitive packaging thereby creating new revenue generation potential for market players over the coming years. On the contrary, environmental concerns regarding waste, availability of sustainable alternatives, volatile raw material pricing, limited recycling infrastructure, and flammability issues are expected to hurt demand outlook across the global expanded polystyrene market forecast and beyond.

In January 2025, The Plastics Industry Association (PLASTICS) through a collaborative effort announced the formation of the Polystyrene Recycling Alliance (PSRA). The initiative is aimed at improving polystyrene sustainability by advancing recycling efforts across the United States. The newly formed entity has also created a roadmap to guide the advancement of polystyrene recycling through collaboration with experts from Resource Recycling Systems (RRS).

Improving the recycling infrastructure for expanded polystyrene remains a key area of interest for almost all market players around the world. Launch of new efforts to promote the use of recycled expanded polystyrene is slated to offer new opportunities for expanded polystyrene suppliers in the long run. Launching new expanded polystyrene products that are in accordance with the sustainability trend can also help companies stand out from the competition. Use of sustainable manufacturing technologies and collaborations from product innovation can also offer new business scope for established as well as incoming expanded polystyrene vendors.

In April 2024, BEWI, a leading provider of insulation and packaging solutions headquartered in Norway announced the launch of new expanded polystyrene (EPS) raw material grades. The company also launched new EPS fish boxes made from Circulum Balance, the company’s novel EPS raw material grade derived from recycled feedstock and were incorporated into BEWI’s GreenLine product series. The newly launched innovative materials claimed to reduce carbon dioxide (CO₂) emissions by up to 60%.

In April 2023, Epsilyte, a renowned expanded polystyrene producer from Texas, United States announced the launch of a new expanded polystyrene product made with minimum 50% post-consumer recycled (PCR) content. 124LR is specially designed for packaging applications and was only possible through the company’s extrusion technology at its facility in Piqua, Ohio. Through this move, Epsilyte is focusing on moving towards 100% recycled products to minimize environmental impact and promote sustainability in the long run.