Market Overview 

Asia Pacific foam blowing agents market generated a revenue of $425.95 million in 2021, which is projected to exceed the valuation of $672.68 million by 2030 at a CAGR of 5.4% during the period 2022–2030.

Today, foam blowing agents are used in the production of rigid and flexible foams, which are increasingly being used in a wide range of applications such as construction, automotive, packaging, and others. The Asia Pacific region is the largest market for foam blowing agents, owing to the growing demand from end-use industries across the globe.

China is the leading country in the Asia Pacific foam blowing agents market, followed by Japan and India. The high growth in these countries can be attributed to the growing demand from end-use industries such as construction, automotive, and packaging. Moreover, China is also one of the leading manufacturers of foam blowing agents. Other countries in the Asia Pacific region such as South Korea, Indonesia, and Taiwan are also expected to witness significant growth during the forecast period.

The rising demand for energy-efficient and lightweight products, the increasing use of polyurethane foam in the automotive industry, and the growing construction industry in the region are some of the factors driving foam blowing agents market growth. In addition, government initiatives to promote energy-efficient buildings are expected to fuel market growth.

However, volatile raw material prices and stringent regulations on HCFCs & HFCs are restraining factors for market growth. Moreover, fluctuating crude oil prices have a direct impact on raw material prices, which is projected to restrain market growth during the forecast period to some extent.

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Competitors:

DU Pont, Honeywell International Inc., Arkema S.A., Harp International Ltd., Daikin Industries, Sinochem Group, Exxon Mobil Corporation, Zeon Corporation, Haltermann Gmbh, Solvay S.A and Sundow Polymers Co., Ltd are some of the prominent players in the Asia Pacific foam blowing agents market. The combined share of these players is 36.4%. The ultimate use, price, accessibility, and performance of each variety of foam influence its relative demand. Further, these players have come up with various strategies to stay competitive in the market. 

Top Market Players and their Growth Strategies:

In May 2021: The Solstice Gas Blowing Agent (GBA) from Honeywell, which has a very low global warming potential, was announced to be used for creating the extruded polystyrene (XPS) insulating boards.
SOPREMA, (which is involved in roofing, waterproofing, wall protection, and civil engineering) would join the growing club of XPS producers employing Solstice GBA. Thus, more XPS producers are moving from hydrofluorocarbon (HFC) to low-GWP blowing agents to comply with changing environmental regulations that call for a global phase-down of HFCs. 

In June 2021, Arkema, one of the key players in foam blowing agents market, announced to increase the production of hydrofluoroolefin-1233zd, the ingredient that causes insulation to foam, in the US and China. Arkema announced a plan to invest US$60 million at its production in Calvert City, Kentucky, to add 15,000 metric tons of annual HFO capacity. 
The business would begin 5,000 tons of production in China in the year 2022, as part of a contract with chemical producer Aofan. HFO-1233zd has a substantially lower effect on global warming than the hydrofluorocarbons (HFCs), which is why it is meant to replace HFCs. 

In July 2021: Daikin Industries, Ltd, by employing the non-blended and single component HFC-32 in its HVAC- R equipment, included 123 new patents to its pledge. The pledge also includes a grant of free access to its promised patents (R-32). 
Currently, 300 patents are available for use without authorization or a formal contract with Daikin in the Asia Pacific foam blowing agents market. The company would promote HFC-32 adoption in the future because it has a lesser global warming impact than several other commonly used refrigerants now. The numerous advantages of HFC-32 can assist reduce the harmful environmental effects of air conditioners, heat pumps, chillers, and other suitable equipment. 

By looking at the strategies of these players, it is evident that the inclusion of chemicals with a global warming potential (GWP) was the fundamental problem with the foam business. Thus, these companies are continually attempting to create new generations of spray foams with constituents which have a lower ozone draining potential (ODP) and GWP impact. 

Market Trends:

Growing Preferences for Eco-Friendly Materials 

In the Asia Pacific foam blowing agents market, there is a growing trend towards the use of more environmentally friendly products. This is being driven by increasing regulations in many countries in the region, as well as by consumer demand for more sustainable products.

There are a number of different types of foam blowing agents on the market, and the trend is towards using agents that have a lower global warming potential (GWP). Hydrofluorocarbons (HFCs) are the most commonly used type of foam blowing agent, but their high GWP means that they are coming under increasing scrutiny.

Alternatives to HFCs in the foam blowing agents market include hydrocarbons, carbon dioxide, and water. These alternatives have much lower GWPs, and so are becoming more popular choices in the Asia Pacific Market. In addition, many of these alternatives are also much cheaper than HFCs, which is another factor driving their adoption.

For instance, spray foam produced with a hydrofluoro-olefin (HFO) blowing agent was released by JM Corbond IV in 2021. 

Market Driver:

Growing Need for Insulation foam for Buildings and Electronic Appliances 

One of the most efficient ways to minimize CO2 emissions and a critical step toward attaining more energy-efficient design for commercial and residential structures is driving the demand for insulation foams in buildings and appliances. As a result, the foam production in Asia Pacific foam blowing agents market is constantly expanding.

Sandwich panels, marine flotation foam, and commercial refrigeration all use rigid Polyurethane Foam (PU) due to its outstanding thermal insulation performance. It is increasingly being employed to insulate walls, floors, saddle and flat roofs, and ceilings. The demand for Asia Pacific foam blowing agents market is derived from the widespread usage of integral skin foams, a type of plastic foam, which is used for making cushions in the flooring and furniture sectors around the world. 

Segmental Analysis

Type of Agents

By type of agent, the Asia Pacific foam blowing agents market is bifurcated into chemical and natural. Wherein, chemical type accounted for 77.9% market share in 2021. However, the natural segment is expected to grow at the highest CAGR during the projection period 2022–2030.  It has also been observed that natural foam-blowing agents such as azodicarbonamide and hydrazocarbonamide are quickly replacing HCFCs. However, it will take some time before natural foam blowing agents completely replace chemical foam blowing agents.

Application

Appliance insulation segment in the Asia Pacific foam blowing agents market is projected to offer a lucrative growth of opportunity of US$ 87 million during 2022-2030. The segment is also projected to grow at fastest CAGR of 5.8% in the upcoming years. Foam-blocking substances are frequently used to increase an appliance's energy efficiency because foam functions as a thermal barrier to keep refrigeration and freezer compartments under set temperature longer period by slowing down temperature modulation. 

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Distribution Channel

Offline distribution channel generated a revenue of 88.6% of the Asia Pacific foam blowing agents market in 2021. However, the online segment is anticipated to witness fastest growth at the loss of offline segment. 

The online channel is the fastest growing sales channel. The reasons for this trend are convenience and ease of purchase, along with the ability to find lower prices online. As the trend towards online shopping continues to grow, so does the demand for foam blowing agents.

There are a number of reasons why consumers are turning to the online channel to purchase foam blowing agents in the Asia Pacific foam blowing agents market. First, it is convenient and easy to purchase products online. Consumers can compare prices and products from a variety of retailers without having to leave their homes. Second, online retailers often offer lower prices than brick-and-mortar stores. This is due to the fact that they have lower overhead costs associated with running an online business. Finally, many consumers feel more comfortable purchasing items like foam blowing agents online because they can read reviews from other customers before making a purchase.

Country

China is the largest consumer and producer of foam blowing agent in the foam blowing agents market. The country has a vast and growing demand for insulation in its construction industry. Foam blowing agents are used to create cellular structure in foams, providing thermal insulation. China’s consumption of foam blowing agent grew at an annualized rate of 6.4% percent between 2015 and 2021.

During that time period, polyurethane was the most popular type of foam blowing agent used in China foam blowing agents market, accounting for an estimated 70% of total demand. HFCs are being phased out globally under the Montreal Protocol due to their high global warming potential (GWP). As a result, their use is expected to decline going forward. Apart from this, The Chinese government has been encouraging manufacturers to switch to alternative foam blowing agents as part of its commitment to reduce greenhouse gas emissions. Incentives such as tax breaks and subsidies are being offered to companies that make the switch. As a result, HCs are becoming increasingly popular as an alternative to CFCs.

List of Key Companies Profiled

• Arkema S.A.
• Daikin Industries
• E.I. Du Pont De Nemours & Company
• Exxon Mobil Corporation
• Haltermann Gmbh
• Harp International Ltd.
• Honeywell International Inc.
• Sundow Polymers Co., Ltd.
• Sinochem Group
• Solvay S.A.
• Zeon Corporation
• Other Prominent Players

Segmentation Overview

The following are the different segments of the Asia Pacific foam blowing agents market:

By Components

• HFC
• CFC
• HCFC
• Others

By Foam

• Polyurethane Foam (PU)
  • HFC
  • CFC
  • HCFC
  • Others
• Polystyrene Foam (PS)
• Phenolic Foam
• Polyolefin Foam
• Others

By Type of Agents

• Natural
• Chemical
  • Organic
  • Inorganic

By Application

• LNG Ship Insulation
• Appliance Insulation
• Panels/Boardstock
• Others

By Distribution Channel

• Offline
  • Direct
  • Distributor
• Online

By Country

• China
• India
• Japan
• South Korea
• Australia & New Zealand
• ASEAN
  • Malaysia
  • Indonesia
  • Thailand
  • Philippines
  • Singapore
  • Vietnam
  • Rest of ASEAN
• Rest of Asia Pacific