ID: MRFR/CnM/1905-CR | October 2018 | Region: Global | 135 pages
Market Research Future (MRFR) forecasts the Global Market for Polystyrene to cross over USD 33 Billion at an expected CAGR of 4.87% over the 2018-2023 forecast periods. The global demand for polystyrene derives much of its development from the expanded use of expandable polystyrene (EPS) in HVAC insulation applications.
Global Pandemic of COVID-19 has had a significant impact on the development of the building industry in the market. Stopping or slowing down building programmes, restricting moves, stopping production and labour shortages to curb the outbreak of COVID-19 contributed to a decrease in the development of the construction industry, which in turn, is likely to impede the market for expanded polystyrene in construction applications.
Growing Demand for Sustainable And Lightweight Solutions Drives Market Growth
Growing demand for sustainable and lightweight solutions that offer extreme longevity, combined with increased thermal insulation, is expected over the forecast period to fuel market development. The growth of the electronics & packaging industries is reflected by rapid urbanisation coupled with technology. In addition, rising sectors such as consumer products, medical devices and protection are providing impetus to the growth of the polystyrene industry. The growth in per capita income in these countries has resulted in the buying of more packaged goods by the emerging middle class. The demand for manufactured products has raised the use of polystyrene for their packaging, driving the industry. In addition, growing customer demand for robust commercial and residential buildings, which can easily survive drastic shifts in the external climate, is projected to fuel market growth over the forecast period.
Growing Adoption of Environmentally Friendly Materials to Create Opportunities for Key Players
The increase in green building demand is motivated by the growing impact of social causes, such as developing a sense of community environmental responsibility, raising understanding of physical fitness, and increasing developments in sustainable business practises.
Fluctuating Raw Material Costs Impede Market Growth
The increasing substitution of heavy metals for lightweight materials, on the other hand, is expected to fuel demand growth during the forecast period. A big constraint on the polystyrene industry was rigorous restrictions on plastic products. The risks involved in manufacturing and using polystyrene are specifically measured and controlled by government departments and regulators. Fluctuations of crude oil markets have a significant effect on the cost of raw materials, further disrupting the production process. Volatility in crude oil prices thus limits the growth of the market.
Based on the Type, Application, and End-Use Industry, the Global Polystyrene Market has been segmented.
By type, the market is segmented into expandable polystyrene (EPS), general-purpose polystyrene (GPPS), high-impact polystyrene (HIPS), extruded polystyrene (XPS), and others. The EPS segment accounted for the major market of the global polystyrene market in 2017 and is expected to be the largest segment in the prediction period. Increased demand for EPS in the automotive electronics, and building and construction sectors will help the CAGR segment rise by more than 5% over the forecast period, while the GPPS segment is expected to be the second largest segment.
By application the market is segmented into HVAC insulation, rigid packaging, seating, flexible packaging and others. The HVAC insulation segment is anticipated to lead the industry and hit approximately 9 billion over the forecast period.
The market has been segmented by the end-use industry into packaging, building and construction, electronics, consumer goods and appliances, and others. In 2017, the packaging segment had the highest market share, while the construction end-use segment is projected to be the fastest growing segment during the forecast period.
The geographical overview of the global market has been conducted in four major regions, including the Asia Pacific, North America, Europe, and the rest of the world.
Growing Infrastructural Projects Drives APAC Market Growth
In 2017, with a 44.7 percent share of the overall market, Asia Pacific emerged as the main market for polystyrene. Asia Pacific has experienced high growth in the building industry in recent years, with stable economic growth. For the global polystyrene market, rising urbanisation coupled with infrastructural projects offers lucrative growth opportunities. In addition, the growth of the food & beverage industry, especially in China, shows a positive trend. A growth factor for the APAC polystyrene industry is also expected to be regulatory support and government policies that encourage investment at the domestic level.
Growing Adoption of Recyclable Materials to Propel the European Market
Europe commands the second position in the global polystyrene market in 2017 and was valued at USD 5.22 billion. This rise can be attributed to the revival in building activity in Europe. Owing to the introduction of rules and regulations to be adopted by lightweight goods in end-use sectors, the demand in the European region has received a rapid boost. Moreover, in this region, manufacturers and investors in major industries are changing their from from traditional plastics to recycled products.
Growing Construction Activites to Boost MEA Market
Compared to others the Middle East & Africa market is projected to grow at a comparatively faster pace. Construction and infrastructure programmes account for the most significant portion of government spending in the country, which is projected to lead to the growth of the global polystyrene industry. Improving the outlook for the construction industry especially in the GCC economies, would allow the Middle East & Africa market to catch the highest CAGR of over 5.5% over the forecast period.
Growing Focus on Expanding Regional Footprint to Improve Market Scope
With the existence of many major and small players involved in the production and development of products, the polystyrene industry seems to be dynamic. On the basis of consistency, price, production and creativity, these main players compete with each other. The demand for polystyrene is expected to expand at a fast pace, which is likely to draw more market entrants, resulting in intense potential competition. The large product portfolio and strong investment in R&D activities for increased polystyrene, sales, capital spending, workforce power, and regional reach of companies define the market domination of these companies.
December 2020: Total, Intraplás and Yoplait announced their partnership to use certified chemically recycled polystyrene in yogurt pots. The test, led by Total in collaboration with Intraplás, which focused on the extrusion of plastic sheets for the food industry, and Yoplait, identifying chemical recycling in France as a possible route for recycling polystyrene.
November 2020: Agilyx, a leader in advanced recycling technology, and AmSty, the largest polystyrene producer in the Americas, announced the effective accomplishment of a fully circular pathway for polystyrene recycling.
This MRFR viewpoint assesses the developments in the polystyrene industry. A six-year (2017-2023) business projection also contains it. In the research paper, market trends such as factors, constraints and opportunities are extensively explored.
The MRFR report includes a detailed segmental overview of the global demand for polystyrene for the purpose of the review.
By End-Use Industry
Frequently Asked Questions (FAQ) :
The global polystyrene market is estimated to register 4.87% CAGR during 2017 to 2023.
Consumer electronics, automotive, thermal insulation, pharmaceuticals, packaging, construction are the major end-user industries of polystyrene.
Asia Pacific holds the largest share in the global polystyrene market followed by North America and Europe, respectively.
SABIC, Trinseo, Innova, INEOS Styrolution Group GmbH, Alpek SAB De CV, ACH Foam Technologies, Inc., BASF SE, Formosa Chemical & Fibre Corp., Chi Mei Corporation, Total, and Kumho Petrochemical, are some of the major players operating in the global polystyrene market.
Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global polystyrene market adopt to gain a larger competitive advantage.
Market Research Future (MRFR) projects the global polystyrene market to reach above USD 33,000 Mn at an estimated CAGR of 4.87% over the forecast period of 2018-2023. The global polystyrene market was valued at USD 24,926.7 Mn in 2017.
The global polystyrene market is deriving much of its growth from the heightened use of expandable polystyrene (EPS) in HVAC insulation applications. EPS is expansively used as a construction material owing to its sustainability quotient apart from being a natural derivative and fully-recyclable. Usage of EPS in construction allows for faster construction, cost reduction and protection against adverse weather conditions. EPS meets safety standards, including seismic resistance and is thermally insulating, light-weight and inexpensive which makes it suited for application in constructions. The efficacy of EPS as a construction material has already been proven which has increased its adoption rate.
High thermal stability, good tensile strength, and high dielectric properties have given rise to a number of applications in the Heating, Ventilation, and Air-Conditioning (HVAC) industry. EPS molded foams used for HVAC applications are demonstrated to be energy efficient and offer outstanding thermal properties. Moreover, they also find application in refrigerators and air conditioning. EPS provides lifelong stable insulation performance throughout the entire life of a building. Increasing acceptability of EPS in HVAC applications propels the growth of the global polystyrene market.
Polystyrene is a versatile product which is also used in the production of a variety of consumer products. As a hard, solid plastic, it is used in food packaging. Polystyrene food packaging typically insulates better, keeps food fresh for a longer time and is cheaper compared to other packaging alternatives. Moreover, polystyrene packaging is safer and hygienic than cardboard packaging. Being recyclable, it is perfect for disposable usage and consequently ensures a cleaner environment. Flourishing FMCG industry has been an affirming push to the growth of the global polystyrene market.
The expansion of construction activity in North America and Europe is expected to provide growth opportunities to the global polystyrene market. Ongoing major infrastructural and other public projects coupled with the popularity of green building technologies has created a vast demand for polystyrene products.
The global polystyrene market has been segmented based on type, application, and end-use industry. By type, the market has been segmented into expandable polystyrene (EPS), general-purpose polystyrene (GPPS), high-impact polystyrene (HIPS), extruded polystyrene (XPS), and others. The EPS segment accounted for the largest share of the global polystyrene market in 2017 and is projected to be the largest segment over the forecast period. Increasing demand for EPS in automobiles, appliances, and building and construction will help the segment grow at a CAGR of above 5% over the forecast period while the GPPS segment is projected to be the second largest segment.
By application, the market has been segmented into HVAC insulation, rigid packaging, seating, flexible packaging, and others. The HVAC insulation segment is expected to dominate the market and attain approximately 9000 Mn over the forecast period.
By end-use industry, the market has been segmented into packaging, building and construction, electronics, consumer goods and appliances, and others. The packaging segment held the largest market share in 2017 while the construction end-use segment is expected to be the fastest growing segment over the forecast period.
By region, the global polystyrene market has been segmented into Asia Pacific, North America, Europe, Middle East & Africa, and Latin America. In 2017, Asia Pacific emerged as the largest market for polystyrene with a 44.7% share of the global market. With steady economic growth, Asia Pacific has observed high growth in the construction sector in the recent years. Increasing urbanization coupled with infrastructural projects presents lucrative growth prospects for the global polystyrene market. Moreover, the development of the food & beverage industry shows a positive trend, especially in China. Regulatory support and government policies promoting investments at the domestic level are also foreseen to be a growth driver for the APAC polystyrene market.
Europe commanded the second position in the global polystyrene market in 2017 and was valued at USD 5,220.3 Mn. The resurgence of constructional activities in Europe can be attributed for this growth.
The Middle East & Africa market is expected to expand at a relatively faster rate compared to others. Constructional and infrastructure projects for the most significant chunk of the government spending in the region which is expected to be conducive for the growth of the global polystyrene market. Improving construction sector outlook especially in the GCC economies will help the Middle East & Africa market capture the highest CAGR of above 5.5% over the forecast period.
Chi Mei Corporation, Total, Kumho Petrochemical, Alpek SAB De CV, Trinseo, Formosa Chemical & Fibre Corp., SABIC, Innova, BASF SE, ACH Foam Technologies, Inc., and INEOS Styrolution Group GmbH.
Global Polystyrene Market: Competitive Landscape
The prominent players in the global polystyrene market are INEOS Styrolution Group GmbH (Germany), Total (France), BASF SE (Germany), SABIC (Saudi Arabia), Trinseo S.A. (US), Innova (Brazil), Chi Mei Corporation (Taiwan), ACH Foam Technologies, Inc. (US), Formosa Chemicals & Fibre Corp. (Taiwan), Kumho Petrochemical (South Korea), Alpek SAB de CV (Mexico) and among others
The top five players, namely, SABIC, INEOS Styrolution Group GmbH, BASF SE, Trinseo S.A., and ACH Foam Technologies, Inc. are some of the major industry participants in the market. Collectively they accounted for over 50% of the global market share in 2017. These players are adopting various organic and inorganic growth strategies such as capacity expansions, product launches, joint ventures, agreements, and acquisitions to cater to the growing demand. Asia-Pacific and Europe are the growth-centric regions in the market and global players are focusing on these two regions for business capacity expansions. Industry players are adopting approaches such as acquisitions and expansions to earn maximum revenue and are entering into partnerships, considering the high threat from new entrants.
In June 2018 – BASF, a global leader in the chemical industry, announced plans to increase the production capacity for its graphite-based expandable polystyrene product Neopor by 40,000 metric tons per year. This capacity expansion will enable the production of 200,000 metric tons of Neopor a year. This strategic move will allow the company to meet the rising demand for gray material in the Asian market.
March 2018 – INEOS Styrolution Group GmbH (INEOS Styrolution) operates as a subsidiary of INEOS Styrolution Holding Limited. INEOS Styrolution manufactures and distributes styrenics. The company provides styrene monomer, a basic building block for the production of dispersions, foams, and polymers. The company had opened a styrene monomer plant on the US Gulf Coast. The new plant is expected to give the company a competitive advantage in supplying to the global market
June 2018- Total is an integrated oil & gas company that operates globally. It has four operating business segments—exploration and production, gas, renewables and power, refining and chemicals, and marketing and services. it had collaborated with Saint-Gobain, CITEO, and Syndifrais, the French union of fresh dairy product manufacturers, to establish an industrial-scale polystyrene channel in France. The sorted and prepared polystyrene will be sent to Total for use in its plastic production units located at Carling, France, and Feluy, Belgium
December 2017 – ACH Foam Technologies, Inc.is actively involved in manufacturing insulation solutions based on expanded polystyrene (EPS) and graphite polystyrene (GPS). Company launched its water absorbing polystyrene insulation under the brand name Foam-Control PLUS. The product has superior R value performance when subjected to moisture and can be used as an alternative for extruded polystyrene (XPS).
April 2017- Alpek SAB de CV (Alpek) is a renowned petrochemicals manufacturer in the Americas. Alpek operates through two business segments—polyester and plastics and chemicals. As part of its plastics and chemicals business, the company manufactures polystyrene; it has the largest production plant for EPS in the Americas. The company has invested USD 33 million in the expansion of its existing EPS capacity at its Altamira facility, Brazil from 165,000 KTPA to 250,000 KTPA as a part of its growth strategy. With the additional capacity, the company became one of the five largest manufacturers of EPS in the world.