No insulation: Reduced demand from motor vehicle manufacturers drives down revenue

Operators in the Plastic Foam Product Manufacturing industry have faced tough operating conditions over the past five years. Lower domestic demand for industry products has negatively affected the industry’s performance. Industry revenue has been volatile over the period as demand from motor vehicle manufacturers, one of the industry’s key downstream markets, has decreased sharply. Motor vehicle manufacturers use polyurethane foam in car seats, headrests, armrests and other panels. Polyurethane plastic foam is also used to manufacture a range of goods, such as beds, mattresses, pillows, couches and other furniture. Food processors use industry goods to package fruit, vegetables and other food products. Overall, industry revenue is expected to decrease at an annualised 0.9%...read more.

Industry Statistics & Market Size
Revenue
$576m
Annual Growth 14-19
-0.9%
Forecast Growth 19-24
Profit
Employment
1,588
Businesses
109

Industry Threats & Opportunities

  • Industry players have been consolidating their operating facilities over the past five years
  • Homogeneity in many major plastic foam products ensures strong price competition
  • Industry revenue is forecast to decline due to demand contracting from local car manufacturers
  • Industry Report - Industry Products Chapter

    Plastic foam products are highly versatile and have a variety of uses, such as in bedding, food packaging, noise suppression and weather insulation. Industry products are also heavily used as input products in the manufacture of other goods, such as shoes. The industry's products are divided based on the proportion of revenue that each segment generates.PolyurethanePolyurethane foams vary in density, resilience and hardness, resulting in a range of possible applications. Lightweight and flexible polyurethane foams are often used to manufacture motor vehicle interiors, including car seats, headrests, armrests, steering wheels and dashboards. Rigid forms of polyurethane foam are used in car exteriors, such as in bumpers and fenders. Fur...purchase to read more.

    Additional Insights for the Plastic Foam Product Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Plastic Foam Product Manufacturing are:

  • Undertaking technical research and development
  • Proximity to key markets
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Dwelling commencements and Real household discretionary income in the Plastic Foam Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Plastic Foam Product Manufacturing Industry?

    Companies in the industry manufacture polymer foam products. Firms that manufacture polymer filler products that are used to fill in wall cavities, insulate walls, and cushion swimming pools and spas are also included in the industry.

    Industry Products
  • Expanded polystyrene
  • Polyurethane
  • Extruded polystyrene
  • Industry Activities
  • Bicycle helmet
  • Polymeric foam cooler and ice chest
  • Polymeric foam cup
  • Polymeric foam food container
  • Polymeric insulation and cushioning material
  • Sheet foam
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Dwelling commencements
  • Real household discretionary income
  • Domestic price of plastic and rubber products
  • Demand from furniture manufacturing
  • Demand from motor vehicle manufacturing

  • Current Performance
  • Downstream uses
  • Plant consolidation
  • Motor vehicle manufacturing
  • Downstream import competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Motor vehicle manufacturing
  • Substitute products
  • Table: Plastic Foam Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plastic Foam Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Manufacturing
  • Household Appliance Manufacturing
  • Mattress Manufacturing
  • Wicker and Fibreglass Furniture Manufacturing
  • House Construction
  • Road and Bridge Construction

  • Key Selling Industries
  • Industrial and Agricultural Chemical Product Wholesaling
  • Synthetic Resin and Synthetic Rubber Manufacturing

  • Products & Services
  • Polyurethane
  • Extruded polystyrene
  • Expanded polystyrene
  • Other
  • Chart: Plastic Foam Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Wholesalers and retailers
  • Construction industries
  • Other
  • Chart: Major Market Segmentation for the Plastic Foam Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Plastic Foam Product Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plastic Foam Product Manufacturing Industry

  • Industry Globalization
    Australian Comfort Group Holdings Pty Ltd, Joyce Foam Pty Ltd, Huhtamaki Holdings Pty Limited, Huntsman Corporation Australia Pty Limited,
  • Table: Australian Comfort Group Holdings Pty Ltd - financial performance
  • Table: Joyce Foam Pty Ltd - financial performance
  • Table: Huhtamaki Holdings Pty Limited - financial performance
  • Table: Huntsman Corporation Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Plastic Foam Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Plastic Foam Product Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Polymer
  • A large molecular compound used as an input in the production of synthetic fibres such as plastic.
  • Polystyrene
  • An inexpensive and hard plastic used in many applications, including packaging and insulation.
  • Polyurethane
  • An elastic and durable material that does not melt when it is heated.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Plastic Foam Product Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    This report on Plastic Foam Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Plastic Foam Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Plastic Foam Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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