Styrene Market Outlook:
Today, innovations are working in a direction to maintain a healthy environmental balance. Plastic recycling is one of the measures being adopted worldwide in order to retain the environmental balance. In order to promote recycling of plastic, a wide number of initiatives and partnerships are being set up between private and public organizations. These developments are boosting demand for styrene composites, thereby fueling growth of the Styrene Market. Expanded polystyrene (EPS) offers energy and resource-saving benefits thereby making it a sustainable choice for end-user industries as it helps in dealing with elevated levels of global warming. Owing to these properties of styrene composites, demand for the global styrene market attained a value of $49 billion in 2018, and is anticipated to rise at a CAGR of 4.5% during 2019-2025.
APAC dominating the Global Styrene Market –
APAC is dominating the global styrene market, and held a regional share of 52% in 2018. China’s styrene market is in demand consistently owing to the large base of plastic manufacturing, which is an end use industry of styrene. Furthermore, demand from Asian countries such as India and South Korea is set to boost styrene market demand in the APAC region. Demand from these countries is attributed to be originating from automotive and other manufacturing industries. On the whole, with huge investments rising in APAC countries, a large number of manufacturing plants that are yet to come online will boost the styrene market growth in APAC during the forecast period.
On the other hand, the geopolitical issues of the U.S are impacting the end-user industries of the styrene market in that country.
Rising Demand from Packaging Segment Driving Styrene Market Growth –
Packaging is the predominant application segment of the styrene market. Outstanding thermal insulation and shock absorbent features of styrene composites make them ideal for packaging purposes. In that context, packaging for transport and storage of fragile and expensive items such as wines, chemicals, electronic equipment, and pharmaceutical goods boosts the styrene market demand. Exceptional moisture resistance, affordability, and compression resistance properties make styrene ideal for the food and beverages industry in the packaging of fresh fruits, vegetables, and seafood. Owing to this huge demand from packaging, the global styrene market in this segment is growing with a CAGR of 4% over the forecast period.
Styrene Market Growth Drivers –
- Demand from Food Industry Augmenting Growth of the Styrene Market –
Polystyrene, a derivative of styrene, is popular in the food packaging industry, since it lets food products retain their nutritional value and remain fresh for a longer duration. Along with keeping food tasty and visually appealing, polystyrene also offers affordability and accessibility benefits. In addition, it ensures a longer shelf life, thereby reducing food wastage. Owing to these benefits, the growing food and beverages industry is fuelling demand for the styrene market.
- Numerous Applications in Transportation Enhancing the Styrene Market Growth –
Styrene-based composites enable reduction of vehicle weight which increases fuel efficiency standards in the transportation sector. Building lighter trains, boats, cars, and other types of vehicles ensures resource efficiency and minimizes environmental hazards.
Since styrene derivatives are light and durable, they are best-suited for automobile applications. For instance, styrene-based elastomers provide grip between surfaces when used in car tires. Thus, increasing applications in the transportation industry is boosting growth of the styrene-based composites market.
- Demand for Recycling Plastic Is Boosting Growth of Expandable Styrene Market –
Expandable polystyrene, a derivative of styrene, is widely used for manufacturing plastics and can be recycled. This expandable polystyrene is popularly accepted by many organizations for sustainable recycling. Recently, PlasticsEurope, an association of plastics manufacturers in Europe, initiated “Plastics 2030” to focus on the circularity of plastic in packaging applications. This initiative aimed to prevent leakage of plastics into the environment and improve their performance. As the association trades globally, initiatives such as this significantly promote the need for plastic reuse in and around Europe. Moreover, these types of initiatives are observed in different countries such as the U.S. and Australia too. Consequently, this enhances the expandable polystyrene market demand in and around European countries.
In 2016, more than 8.4 million tons of plastic wastes were collected to recycle inside and outside of Europe. Besides, the volume of plastic wastage recycling has increased immensely by almost 80% during 2006-2016. This rising demand from plastic recycling is a major growth driver of the expandable styrene market.
- Climatic changes increasing need for energy-efficient solutions –
Buildings are one of the major contributors to energy conservation. In order to ensure environmental sustainability, it is crucial to choose appropriate thermal insulation material for construction of buildings. Polystyrene provides lighter, solid, and rigid materials for ensuring thermal insulation of the buildings. The affordable and accessible solutions provided by polystyrene benefit the environment as well as consumers.
To withstand changing weather conditions and increasing pollution levels, architecture and design experts opt for foamed polystyrene panels to insulate walls, roofs, and floors in order to keep temperatures warm in winter and cool in summer. These properties of polystyrene are augmenting demand for the styrene market, especially in tropical and sub-tropical countries such as India owing to its growing construction industry.
- Demand for EPS Cladding Systems Boost Demand in the Construction and Infrastructural Sectors –
EPS find varied application in the construction and infrastructural sectors owing to multiple benefits it offers. For instance, of all the available EPS in Australia, the country uses about 70% in the construction sector and 30% for packaging goods. As EPS is lightweight to transport, it makes a construction project eco-friendly owing to its energy-saving capabilities. In building exteriors, EPS is used for the insulation panel in domestic and commercial construction applications as it provides thermal insulation and is extremely cost-effective.
Styrene Market – Key Players Perspective
Predominant players in the styrene market include Chevron Phillips Chemical Company LLC, SABIC, Total SA, Nova Chemicals Corporation, Royal DSM, Styron LIC, Ashland Inc., ENI S.p.A., INEOS Styrolution Holding Ltd., and Dow Chemical Company.
New Product Launches in the Styrene Market –
- Recently, INEOS Styrolution Holding Ltd., a market leader in styrenics, announced that three of their acrylonitrile butadiene styrene (ABS) materials were selected by NIO for applications such as mirror housing, door panel, and B-pillar. NIO is an automotive company dedicated to electrical vehicles (EVs), headquartered at Shangai, China. This also marked the expansion of INEOS Styrolution in the manufacturing sector of China.
- In 2018, ELIX Polymers, a global leader in the manufacturing of acrylonitrile butadiene styrene (ABS) resins and derivatives, launched a new product line of ABS products under Chemical Compliance (CC). They aimed to satisfy the increasing need of consumers and safety aspects of the materials used for every-day use. Their applications include cosmetic containers, products that come in touch with food, and toys with special requirements on safety of use.
- In order to assist the healthcare industry, INEOS Styrolution newly launched Styroflex® 4G80 to meet the requirements of medical tubing applications of styrene. This product offers superior processing rates as compared to other materials and its major properties include kink resistance, clarity, good bonding performance, and the ability to be processed on standard tubing extrusion equipment.
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