U.S. demand for plastic foams is forecast to rise 2.3 percent annually to 8.8 billion pounds by 2020, according to a new report.
The Freedonia Group has valued the potential 2020 market at $25.2 billion, with the construction sector anticipated to lead growth prospects for foam insulation products.
The Cleveland-based industry research firm said rising consumer spending levels will bode well for foams used in household products such as bedding, furniture, and appliances.
It also said packaging will remain the leading outlet for plastic foams through 2020, accounting for nearly one-third of total volume.
Freedonia said polyurethane was the leading resin in the plastic foams market. However the report said polyurethane foam insulation will continue to face competition from fiberglass and polystyrene foam which are lower cost alternatives.
Flexible polyurethane foam will remain in high demand through 2020 based on healthy growth in the bedding and carpet underlay markets, where it is valued for its cushioning properties.
Expanded polystyrene geofoam was also predicted to exhibit especially rapid growth, albeit from a relatively small base.