Published By : 09 Sep 2016 | Published By : QYRESEARCH
The global foam trays market is expected to experience a sluggish growth in the coming years owing to the rise in the competition based on price and the availability of eco-friendly substitutes. However, the cost effectiveness of foam trays and a rise in the demand for expanded polystyrene (EPS) foam are helping the market to grow. Major players in the market are focusing on technological advancements to help foam trays to be recyclable. This is also expected to emerge as an opportunity of growth in the market.
Reduction in Crude Oil Price Benefits Market
A drop in the price of crude oil is also leading to a drop in the price of raw materials which are required to manufacture foam trays. This is reducing the production cost of foam trays, thus boosting their adoption worldwide. Additionally, manufacturers are adopting downward hedging technique to minimize the fluctuating prices of raw materials. Another strategy followed by manufacturers are a rising concentration on reducing the amount of input material required for producing each unit. Manufacturers are attempting to do so, by applying source reduction techniques, which is helping them to keep their profit margin same.
Non-biodegradable Nature of Foam Dampens Market
Foam trays are made of polystyrene, which are hazardous for the human health and also for the environment. This is because they take a long time to get decomposed. Foam trays also take up more space in landfills as opposed to their greener alternatives. Polystyrene foam trays re-enter the environment when landfills are impacted by mechanical or water forces. Also, these products are heavily polluting and non-sustainable. Moreover, with the introduction of plans that ban plastic foam containers at food service establishments, such as the one announced in January 2015 by Bill de Blasio, the Mayor of New York City, the use of foam trays will be restricted.