United States Expandable Polystyrene (EPS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

 The United States Expandable Polystyrene (EPS) market was estimated at around USD 530 million in 2020 and the market is expected to register a CAGR of over 3% during the forecast period (2021-2026). The market was negatively impacted due to COVID-19 in 2020. owing to the pandemic scenario, the country went into lockdown to curb the spread of the virus. The supply chain disruptions, construction work stoppages, and labor shortages, negatively affected the market. Due to the pandemic, construction activities have been halted and postponed in 2020. However, the condition is expected to recover in 2021, which is expected to restore the growth trajectory, thereby benefitting the market studied.


- Over the medium term, increasing construction activities in the country are expected to drive the market's growth.

- On the flip side, the availability of green alternatives and the negative impact of the COVID-19 pandemic is expected to hinder the market growth.

- Recycling in the EPS industry ​is likely act as an opportunity for the market growth in the near future.

Key Market Trends

Grey and Silver EPS Segment to Drive the Market Growth

- Manufacturers have created a highly-competitive market for EPS by modifying the regular grade EPS. The addition of flame retardants, graphite, and other additives have introduced the segment of ‘modified’ EPS.

- Grey EPS is one such innovation wherein the addition of graphite has increased its refractive and reflective properties, to provide better thermal insulation. The graphite works on a very small-scale to increase the refraction of IR light and make the path for the escaping heat less direct. It has a unique color (gray to black), good mechanical properties, high water resistance, and increased fire resistance. This allows for the use of the same equipment used to process conventional EPS.

- Due to its unique properties, it allows for a reduction in thermal conductivity by 20%, and thus, reduces the board thickness by 20%, while still maintaining the same properties. It is used for the insulation of external walls, roof systems, foundations, floors, thermo-acoustic insulation, the manufacture of insulated and left-in-place formwork, and lightweight building blocks.
- The use of grey EPS significantly improves the insulation of both old and new buildings, and helps meet the criteria for reducing power costs. It has the same density as white EPS; however, it isolates 20% better.

- This has made it particularly attractive in United States, where people are becoming more inclined toward housing renovation and lower maintenance costs.
- Although the price for grey EPS is higher than white EPS, the increasing demand from the construction industry is expected to lower its price in the near future.

- The COVID-19 outbreak has negatively affected the growth of the United States construction industry, which has become a major restraining factor for the growth of the gray and silver EPS segment.

- The above-mentioned factors are likely to affect the demand for gray and silver EPS during the forecast period.

Building and Construction Segment to Dominate the Market



- The United States is the world’s largest and most powerful economy. However, the economic growth of the country has been slowed in the recent past with the GDP growth rate dropping from 3% in 2018 to 2.2% in 2019. Additionally, the GDP of the country contracted by 4.3% in 2020, indicating the severe impact of the COVID-19 pandemic. However, expected to rise to 3.1% in 2021 according to International Monetary Fund.

- United States has one of the world’s largest construction industry and it recorded annual revenue of USD 1,306 billion in 2019. The United States is a major industrialized nation that houses multiple industries in heavy-scale, medium-scale, and small-scale categories. The country is known for its booming commercial activities.

- The commercial construction sector is expected to increase by 1.5% in 2021, according to a survey conducted by American Institute of Architects. Construction activities in the healthcare sector is expected to register a growth rate of 3.4% in 2021. The report also indicates the growth of office spaces by 3% in 2021.

- According to US Census Bureau, the total Residential housing units authorized by building permits in March 2020 were at a seasonally adjusted annual rate of 1,353,000 representing 5% growth over March 2019 rate of 1,288,000. The total number of privately‐owned housing starts in March 2020 were at a seasonally adjusted annual rate of 1,216,000 representing 1.4% growth over March 2019 rate of 1,199,000.

- Even though United States construction sector has taken a plunge in 2020, the industry is expected to recover and grow by late 2021, thereby increasing the demand for expandable polystyrene (EPS) market from the construction sector during the forecast period.
- Thus, such trends in the construction sector is likely to influence the demand for EPS in the country during the forecast period.

Competitive Landscape

The United States Expandable Polystyrene (EPS) is highly consolidated with the top players accounting for a major chunk of the market. Some of the key players in the market include StyroChem, NexKemia, Flint Hills Resources, Alpek S.A.B. de C.V., and SABIC, amongst others.

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