Foams market faces rising costs and environmental regulations

• “The skyrocketing prices of crude oil and its derivatives has affected almost all manufacturers of organic chemicals, including foam suppliers.” This has caused price increases and diminishing margins.

• “Compounding this challenge is that most end users, particularly those in the commodity segments of comfort and packaging applications, are extremely cost conscious and unwilling to absorb these price increases.

• “With many companies now relocating manufacturing bases to eastern European countries offering cheaper labor, many polymer foam suppliers—especially those catering to end—user markets such as expandable polystyrene (EPS) in packaging—will see an erosion in their customer base.

• “With environmental regulations becoming stricter, companies will also need to look into improving the public perception of polymer foams. The public still considers polymer foams as harmful to the environment. Although many manufacturers have moved to environmentally friendly blowing agents, this has adversely affected the process economics as the alternatives come at a high cost.”

Frost & Sullivan’s research covers polyurethanes, EPS, polyvinyl chloride, polyolefins, and phenolic foams. For more information, e-mail Katja Feick at [email protected], or call 011/44.20.7915.7856.

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