Polystyrene Market

Polystyrene Market Growth Outlook (2023 to 2033)

The global polystyrene market is valued at US$ 34.5 billion in 2023 and is forecasted to surpass US$ 56.5 billion by the end of 2033, expanding at a steady CAGR of 5% from 2023 to 2033.

Noticeable growth in the packaging and electronics industries is attributed to rapid urbanization and technological advancements around the world. These industries are prominent end users of expandable polystyrene (EPS) and thus contribute substantially to market growth.

Rapidly growing sectors, including protection equipment, medical devices, and consumer products are generating lucrative opportunities for manufacturers of polystyrene. For example, various states with a significant population in Australia have banned the use of numerous single-use plastic items, such as bowls, cutlery, and straws. Further, new regulations in New South Wales are also prohibiting various hair, body, and face products that include plastic microbeads.

Businesses that violate the regulations risk tens of thousands of dollars in the form of fines. Rules and restrictions in New South Wales are a significant part of an initiative to reduce the amount of waste that is produced on a national scale. State officials in Victoria and Queensland have also applied certain similar bans at present time. There are a lot of environmental activists that have praised the laws.

Although various environmental activists are praising the laws there need to take certain other initiatives. At present time, Australia recycles only 16% of total plastic packaging, which falls short of its national goal of 70%.

In recent years, there is a noticeable increase in the demand for sustainable solutions owing to the increasing impact of social causes that are related to the development of a sense of responsibility toward the community environment. In addition, people are becoming more understanding of their physical fitness along with rising developments across sustainable business practices.

All these factors are closely related to the ultimate use of technology, and thus excellent opportunities are expected in the global polystyrene market over the coming years.

Growing demand for electric vehicles owing to their zero dependence on fossil fuel and excellent energy efficiency will bolster opportunities for manufacturers of the automotive segment. Increasing demand for hand-held devices and appliances will also propel the sales of polystyrene in the electric and electronics sector.

Report Attributes	Details
Polystyrene Market Size in 2023	US$ 34.5 Billion
Forecasted Market Value (2033)	US$ 56.5 Billion
Estimated Market Growth Rate (2023 to 2033)	5% CAGR
Canada Market Growth Rate (2023 to 2033)	4% CAGR
Germany Market Growth Rate (2023 to 2033)	3.6% CAGR
Key Companies Profiled	ACH Foam Technologies LLC BASF SE Formosa Chemicals & Fibre Corporation Innova INEOS Styrolution Group GmbH Kumho Petrochemical Co., Ltd. (KKPC) Trinseo LLC SABIC (Saudi Basic Industries Corporation)

Why is Polystyrene in Such High Demand Globally?

“Ever-increasing Trend of Packaged Food Products around the World”

The increasing per capita income of people from countries around the world has resulted in the purchasing of more packaged goods, especially by people from the emerging middle class. Moreover, the demand and production of various packaged products have stimulated the use of polystyrene for packaging solutions.

In recent years, there is a significant increase in the demand for lightweight and sustainable packaging solutions that provide extreme longevity. In addition, polystyrene also increases thermal insulation. Industry players are investing at an increased rate in new developments to generate future opportunities.

Companies in recent years are involved in the production of numerous cost-effective and environmental-friendly solutions while adopting mergers and acquisitions to expand their footprints globally.

For instance :

• Foam Holdings, a portfolio organization of Wynnchurch Capital, L.P. announced the purchasing of Concrete Block Insulating Systems (CBIS), Inc. and Amvic, Inc. Amvic is a leading market producer of radiant heat flooring and expanded polystyrene insulated concrete forms and some other building and insulation products. Further, the Massachusetts-based CBIS company produces premade concrete block insulation system that is made of EPS and insulated containers. The acquisition will help Foam Holdings to expand its geographic reach and product line while ensuring local supply efficiently.

“Growing Usage in Consumer Electronics Industry”

The growth of the polystyrene market is owing to increasing demand from consumer electronics manufacturers due to decreasing prices of products and changing technology. Developing countries, including India and others, are experiencing an increased demand for consumer electronics because of rising disposable income and urbanization.

Growing digitization activities are estimated to increase the consumption of electronics products, which is further predicted to contribute to target market growth.

What Has Been Denting the Demand Growth for Polystyrene in Recent Years?

“Stringent Government Regulations across Regions”

There is one big constraint that is limiting the adoption of polystyrene, which includes rigorous restrictions on the use of plastic products. The risks associated with the manufacturing, processing, and using polystyrene are specifically controlled, supervised, and measured by government regulations, special tribunals, agencies, and departments. Thus, these strict rules and regulations are predicted to limit the adoption of polystyrene.

“Market Availability of High-Performing Substitutes”

There is an increase in the count of various substitutes that are available globally. Plastic has numerous industrial applications due to its lightweight and thermal properties. Market substitutes such as polypropylene and polyethylene are replacing polystyrene in automotive and packaging applications owing to their superior physical properties.

The development of glass wool in buildings for thermal insulation can affect polystyrene demand from the construction industry.

Which Region Holds a Substantial Share of the Global Market?

“Stable Economic Growth in Asia Pacific Contributing to High Polystyrene Demand”

The Asia Pacific market is estimated to hold a significant share of the global market owing to high growth in the industry of building and construction in recent years. In addition, stable economic growth in the regional market is also predicted to drive demand for polystyrene.

Increasing trends that are related to urbanization and infrastructural products are expected to offer lucrative opportunities in the market. A noticeable growth in the food & beverages industry, especially in china can show a positive trend in the coming years. Moreover, supportive government policies and regulatory support can encourage investment at the domestic level and thus help in market growth.

China holds a noticeable share in electronics production and gives tough competition to existing upstream producers, such as Taiwan, Singapore, and South Korea. Electronic products, including tablets, OLED TVs, smartphones, and so on, have a significant contribution to target industry growth. A noteworthy increase in the disposable income of people from the middle class is forecasted to stimulate demand for various electronic products.

Thus, substantial growth in numerous end-use industries is projected to fuel demand for polystyrene during the forecast period.

Country-wise Insights

Why is Japan an Opportune Market for Polystyrene Manufacturers?

“Rising Production of Electronic Products Fueling Demand for Polystyrene”

Demand for polystyrene is estimated to expand at a CAGR of 2.9% from 2023 to 2033. The growth in the market is attributed to the increasing production of electronic products that require polystyrene at an increased rate and thus contribute to market growth.

Why Does the United States Hold a Noticeable Market Position?

“Presence of Key Manufacturers of Electric Vehicles”

The value of the United States market was more than US$ 8 billion in 2022 owing to the development as well as expansion of retail chains that will fuel the requirement for insulation and thus stimulate the use of polystyrene foams. Moreover, the United States also boasts the presence of key manufacturers of electric vehicles, for instance, Tesla, Inc. In addition, the rising use of electric vehicles can also aid in market growth.

Moreover, the Canadian market is projected to advance at a moderate CAGR of 4% through 2033.

What Makes Germany a Significant Market for Polystyrene in Europe?

“Growing Initiatives to Increase Recyclability to Attain Sustainability”

Sales of polystyrene in Germany are forecasted to progress at a CAGR of 3.6% during the forecast period from 2023 to 2033. The growing investment by government bodies is estimated to promote a circular and green economy in the country. Further, rising initiatives by key manufacturers to increase recyclability to attain sustainability goal is also predicted to contribute to market growth.

Category-wise Insights

Which Type of Polystyrene is Increasing in Popularity?

“Growing Use of High Impact Polystyrene in Packaging Industry”

The global market is divided into expanded polystyrene (EPS), high impact polystyrene (HIPS), general purpose polystyrene (GPPS), extruded polystyrene (XPS), and others. Among these segments, the HIPS segment is predicted to grow at a noticeable speed.

HIPS contains rubber and is transparent compared to GPPS. It is mainly used for products that need high-impact resistance. Compared to GPPS, HIPS is less glossy, crack resistant, and has a standard flow. It is used generally in injection molding.

Owing to economic cost and good dimensional stability, HIPS finds application in covers and housing, fixtures, models and prototypes, printed graphics, and low-strength structural components. Packaging is a key segment of HIPS and uses them for consumer packaging (CD covers, cassettes), industrial packaging, and food packaging (dairy packaging, fruit trays, egg cartons, and meat trays).

Driven by the rising population, demand for various packaged food & beverages is expected to experience significant growth. A remarkable shift from rural to urban living is a significant factor that is putting an impact on the consumption of different packaged food. In addition, HIPS is used at a significant rate in electronics and appliances, for example, freezers and refrigerators, TV housings, and computer housings.

Who Will Remain Substantial End Users of Polystyrene?

“Rigid Packaging and Flexible Packaging Segments to Lead Product Demand”

Based on application, the global market is classified into HVAC insulation, flexible packaging, rigid packaging, seating, and others. Among these, flexible packaging and rigid packaging segments are estimated to hold significant shares of the global market in the coming years.

The dominance of these segments is attributed to the increasing consumption of polystyrene by manufacturers of automotive and food & beverages. The products from the target market are lightweight materials and have the feature of thermal insulation and shock absorption. These characteristics make them the ideal solution for packaging purposes.

Competitive Landscape

Prominent manufacturers of polystyrene are indulging in different inorganic marketing strategies, such as new developments and mergers & acquisitions for quality control of products and supply chain management. The newly developed products try to match regulations set for safety with minimal environmental impact.

For instance :

• The Lismore Recycling & Recovery Centre deployed the latest machine, which is used to recycle polystyrene and ensure effective assistance for the respective purpose. The NSW (New South Wales) Environment Protection Authority provided funding for this center. This funding aims to improve the recycling capacity of the unit.

Key providers of polystyrene include ACH Foam Technologies LLC, BASF SE, Formosa Chemicals & Fibre Corporation, Innova, INEOS Styrolution Group GmbH, Kumho Petrochemical Co., Ltd. (KKPC), Trinseo LLC, and SABIC (Saudi Basic Industries Corporation).

Segmentation of Polystyrene Industry Research

• By Type :

  • Expanded Polystyrene (EPS)
  • High Impact Polystyrene (HIPS)
  • General Purpose Polystyrene (GPPS)
  • Extruded Polystyrene (XPS)
  • Others

• By Application :

  • HVAC Insulation
  • Flexible Packaging
  • Rigid Packaging
  • Seating
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa