Global Foamed Plastic Insulation

Report Overview

Foamed Plastic Insulation Market Booms on Efficiency and Innovation

Key questions answered in this report:

• What are the key factors driving the adoption of foamed plastic insulation in residential construction, particularly for energy-efficient buildings, and how are sustainability initiatives influencing this trend?

• How do variations in raw material prices and rising construction activities in emerging economies, particularly in Asia-Pacific, impact the pricing and demand for foamed plastic insulation?

• How do environmental regulations, sustainable building certifications (e.g., LEED, BREEAM), and the growing trend of retrofit and renovation projects influence the production and use of foamed plastic insulation materials?

Featuring 258 tables and 91 figures!

Global demand for foamed plastic insulation totaled 8.6 million metric tons in 2023, valued at $27.2 billion. Going forward, the market is forecast to rise 3.5% to 10.2 million metric tons in 2028, while market value is anticipated to grow 4.8% per year to $34.4 billion in 2028.

Push for Energy-Efficient Buildings Boosting Demand for Foamed Plastic Insulation

The demand for efficient insulation materials is rising as global sustainability efforts intensify. This increase is driven by the focus on net-zero energy buildings, which require insulation that maximizes energy savings. These buildings, which are designed to produce as much energy as they consume, rely on superior insulation to reduce energy loss and maintain performance. Foamed plastic insulation – especially SPF – is a good option for residential and nonresidential buildings due to its seamless, gap-free insulation; it significantly improves energy efficiency by eliminating air leaks and maintaining temperature regulation. With stricter building codes and energy efficiency regulations being enforced around the world, the demand for high-performance materials like foamed plastic insulation will continue to rise, making it crucial for sustainable construction.

From Containers to Cars: Insulation Finds New Frontiers

Beyond the building sector, packaging and automotive applications are also seeing increasing use of foamed plastic insulation. E-commerce sales of perishable items and the shipping of temperature-sensitive pharmaceuticals have boosted the use of insulated shipping containers, which often use foamed plastic insulation to maintain the necessary environmental conditions for storage in order to prevent spoilage. In the automotive sector, these materials are increasingly used for thermal management within vehicle interiors, helping to regulate temperatures while reducing overall energy use.

Prefabricated Building Boom Boosts Lightweight Insulation Demand

A significant trend in the construction industry is the rise of prefabricated buildings driving demand for lightweight, pre-installed insulation materials. These buildings, which are manufactured off-site and then assembled on location, are popular for their cost-effectiveness and speed. Foamed plastic insulation offers superior thermal resistance and lightweight properties, so it is ideal for this sort of prefabrication. It integrates easily into building modules to reduce installation time and labor costs, as well as support energy efficiency. This insulation also promotes sustainability by reducing construction waste and energy consumption. As more builders adopt these methods, the market for lightweight, pre-installed insulation materials is set to grow.

Historical Market Trends

In any given year, global demand for insulation is impacted by a number of factors including:

• levels of residential and nonresidential building construction spending

• the types of buildings being built, as single-family houses have considerably more insulation than a multifamily unit and the amount of insulation per office and institutional building is substantially higher than manufacturing facilities and warehouses

• government efforts to improve housing quality or meet current shortages

• changes to building codes

• energy efficiency regulations

• construction or repair of infrastructure

• appliance, HVAC equipment, industrial equipment, automobile, shipbuilding, and aerospace production

Given the importance and widespread use of these products across several industries, foamed plastic insulation demand in volume terms does not experience high levels of volatility, even during times of economic crisis. Year-to-year volatility in value terms is more significant, given the fluctuations in chemical prices, as well as currency effects relative to the US dollar. Additionally, supply chain issues and an inflationary environment caused prices for all insulation materials to spike in 2021 and 2022.

Competitive Materials

Foamed plastic mainly competes with fiberglass and mineral wool, as these three materials account for almost 90% of global insulation volume demand. These materials compete directly with each other in nearly all markets, although product mix and applications can vary significantly for each product and market.

Cost is the biggest deterrent to greater adoption of foamed plastic, as it is the most expensive of the three major materials. However, foamed plastic’s superior energy efficiency boosts its use in applications where performance is of greater importance.

Foamed plastic is the dominant insulation material in the appliance industry:

• It is easier to install in narrow spaces than fiberglass or mineral wool, and it offers sufficient energy efficiency in thin layers.

• Concerns about the possibility of water leaking into freezers, condensing,  and then freezing on fiberglass insulation have led suppliers to uniformly adopt foamed plastic in these applications.

Foamed plastic is also frequently used in commercial buildings due to the ease with which it can be installed on steel framing. While residential buildings are also a significant market for foamed plastic insulation, the material sees greater competition from fiberglass and mineral wool in these applications, since all three materials can be attached to wood framing with relative ease.

In general, availability is the primary determinant of how commonly a particular insulation material is used in a given region:

• In North America, fiberglass is the leading material in volume terms due to its affordability and familiarity with its use among end users, as the world’s four largest fiberglass insulation manufacturers – Owens Corning, Saint-Gobain (CertainTeed), Knauf, and Berkshire Hathaway (Johns Manville) – are all either based in North America or have significant manufacturing and distribution operations in the region.

• In Eastern Europe, mineral wool is the most commonly used type of insulation, accounting for over half of volume demand, because three of the largest mineral wool suppliers are headquartered on the continent.

• Foamed plastic tends to be the most used type of insulation in countries with significant appliance manufacturing industries.

 Global Foamed Plastic Insulation Report Details

 Key Participants Driving Trends:

Report Scope & Methodology

This study analyzes global supply of and demand for foamed plastic insulation. Historical data (2013, 2018, and 2023) and forecasts for 2028 and 2033 are provided for insulation demand by material (in dollars and metric tons) and market (in dollars and square meters R-1), net exports (in dollars), and production (in dollars) on a country-by-country basis. Annual data for 2020 to 2027 is also presented. Demand in value terms is shown at the manufacturers’ level and excludes distributor and retailer markups.

Materials broken out include:

• expanded polystyrene, including graphite polystyrene

• polyurethane and polyisocyanurate (e.g., rigid board and spray)

• extruded polystyrene

• small volume foamed plastic (e.g., elastomeric, phenolic, polyolefin, melamine)

The major market segments analyzed are:

• residential buildings (e.g., single-family, including manufactured homes, and multifamily)

• nonresidential buildings (including, office, retail and lodging, institutional, and industrial buildings)

• industrial and plant equipment (e.g., power generation, oil and gas, petroleum refining, chemicals, food and beverages, pharmaceuticals)

• HVAC/air distribution equipment (including residential, commercial, and heating and air ducts)

• appliances (e.g., refrigerators, freezers, ovens, dishwashers, clothes washers and dryers)

• transportation equipment:

  • motor vehicles (cabins, engines)

  • aerospace equipment (fuselages, air ducts)

  • ships and boats (hulls, cabins)

  • railroad equipment (railcars, insulated cars)

  • other insulation markets, including nonbuilding construction, packaging, furniture, bedding, clothing, and off-road equipment

Both thermal and acoustic insulation are included in the scope of this study.

The metric measures of thermal value used in this study cannot be converted to English units (those used in the Freedonia Group’s US insulation studies) simply by converting square meters to square feet. The metric version of thermal value defines heat transfer in metric units (watts) and is based on a material sample one meter thick; the English version of thermal value defines heat transfer in British thermal units and is based on a material sample one inch thick.

Taking into account all of the differences in measurement, approximately 16.4 square meters of R-1 value (metric system) is equal to 1,000 square feet of R-1 value (English system).