• Polystyrene Market Intelligence | Price, Forecast, Cost Models, Market Analysis

Polystyrene Market Description

The global market for polystyrene is estimated to reach $40.41 million by 2022, growing at a steady CAGR of 3.4 percent. It will continue to be driven by steady demand for EPS resin in construction and HIPS/GPPS resin in packaging sectors. China is likely to propel the demand for HIPS/GPPS resin due to the growing demand in the consumer electronics industry. This sector alone is expected to grow by 8 to 10 percent until 2022. The global production capacity for polystyrene (HPPS and GPPS) is estimated to be around 14 MMT, with Asia accounting for approximately 54 percent of the total capacity.

The single largest end-user application of HIPS is packaging, which is growing at a rate of 3 to 5 percent. The EPS market has also been one of the fastest growing styrenics markets due to high demand from the building & construction sector. The report provides a comprehensive analysis of the market outlook of polystyrene industries in regions such as North America, Europe, APAC, and the LATAM. This includes global trade dynamics, imports and exports, trade dynamics, and supply-demand trends. The report also gives an industrial analysis, including Porter’s five forces analysis, industry drivers and constraints, along with key industry events and innovations.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Global Capacity–Demand Analysis
Global Trade Dynamics
Regional Market Snapshot-North America, Europe, Asia
Cost Structure Analysis

Polystyrene Market Trend, Analysis & Forecast

Category Intelligence on Polystyrene covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Polystyrene Executive Summary

1.1 Supply Market Outlook
1.2 Demand Market Outlook
1.3 Industry Best Practices

2. Polystyrene Market Analysis

2.1 Value Chain Analysis
2.2 Global Market Outlook
– Current Market Size
– Demand-Supply Trends and Forecast
– Key end-use Industries
– Trade dynamics
2.3 Regional Market Outlook [US, Europe & Asia]
– Current market size
– Demand-Supply Trends and Forecast
– Key end-use Industries
– Trade dynamics

Global Market Outlook on Polystyrene

The global market is estimated to grow at 3.4 percent during 2015-2022 driven by steady demand for EPS resin in construction and HIPS/GPPS resin in packaging and electronics sectors
China will propel the demand for HIPS/GPPS resin due to the growing demand in the electrical and electronic industry.This sector is expected to grow by 8– 10 percent during 2015– 2022

polystyrene-market-size

Industry Best Practices

Volume/ Minimum Order Quantity

Direct buying is preferred for minimum order quantity of one or above truck load /rail load
Low volumes may limit the benefits of direct buying for a CPG company
One truck load Volume: 25 MT
One Rail load Volume: 90-110 MT

Logistics

Logistics management is one of the major cost component in the direct buying process
Fuel cost, which is a major spend in transportation, is expected to be three times lower for rail cars over truck load

Process Complexity

Producers may give preference to large convertors and distributors over CPG buyers
However, CPG buyers can enter into long term contracts with producers with a minimum guarantee so that a steady business relationship is maintained over time

Global Market Size-Polystyrene

The global PS market is expected to grow at 3.4 percent during 2017–2022, driven majorly from downstream users, like construction and electronics. The global PS market is expected to reach $40.41 billion by 2022
The HIPS/GPPS market is driven by healthy demand from the Asian market, which is expected to grow by 4–5 percent CAGR during 2017– 2022
The EPS market is driven by healthy demand from the Asian market, which is expected to grow by 3 –4 percent CAGR during 2017–2022, while mature markets, like Europe and North America, are expected to grow by 2 –3 percent CAGR during 2017 –2022

Global Capacity-Demand Analysis

Global production capacity for polystyrene* (HIPS and GPPS) is estimated to be around 14 million metric tons, with Asia accounting for about 54 percent of the total capacity
Global production capacity for polystyrene* (EPS) is estimated to be around 12 million metric tons, with Asia Pacific accounting for about 70 percent of the total capacity
The global PS market is expected to grow by 3– 4 percent during 2017–2022, driven majorly from downstream users, like construction and electronic

Market Outlook

Capacity Dynamics

Mature markets like Europe, North America and Japan have witnessed capacity rationalisation resulting in a total of 4-6 suppliers per region, while developing nations like Middle East , China and Taiwan have witnessed capacity additions and are expected to grow at a rate of 1-3 percent during 2017-2022

Demand Dynamics

The HIPS/GPPS market is driven by healthy demand from the Asian market, which is expected to grow by 4–5 percent CAGR during 2017–2022
The EPS market is driven by healthy demand from the Asian market, which is expected to grow by 3–4 percent CAGR during 2017–2022, while mature markets, like Europe and North America, are expected to grow by 2–3 percent CAGR during 2017–2022

Engagement Outlook

For CPG buyers with volume of 5,000–10,000 MT, one can look at direct buying from producers as a viable option
Direct buying can reduce the overall sourcing spend of PS by 5–8 percent, as the margins between intermediaries, like distributors and convertors, get eliminated