22 October, 2019
RALEIGH, North Carolina, October 22, 2019 - The global polystyrene (PS) market is estimated to be growing at a rate of 1.9 percent until 2023, according to Beroe Inc., a procurement intelligence firm. The current capacity is 25.62 million metric tons (MMT) and demand is 18.66 MMT. By 2023, the capacity is expected to reach 25.51 MMT with a demand of 20.20 MMT driven by demands from construction and electronics industries.
The PS HIPS/GPPS market is driven majorly by the Asian market, which is expected to grow by 3-4 percent CAGR until 2023. The PS EPS market is driven by firm demand from the Asian market, which is expected to grow by 3–4 percent CAGR during by 2023, while mature markets, like Europe and North America, are expected to grow by 0-2 percent CAGR during the same period. China continues to be the largest importer of HIPS/GPPS, due to the increasing use in the consumer electronics industry.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Increase in packaged food demand, rising demand for food containers, and disposable cutlery in Asia are expected to be the key drivers in the coming years with the food packaging demand in Asia accounting for 25–35 percent of the total demand. An increase in disposable income is likely to drive the home appliances demand from the Asian markets. Capacity reductions by major suppliers and delay in feedstock styrene capacity additions in the past years are posing a challenge to the growth of the market.
The prominence of recyclable polystyrene has been growing as with stricter regulations in place, the emphasis on a lot of packaging companies has been to recycle and create more biodegradable products that would not harm the environment. The usage of such products would help reduce greenhouse emissions by 15 percent and it will also reduce the amount of waste sent to landfills. This packaging requires 6 percent less usage of material along with an annual decrease of the generation of 120,000 pounds of waste per year
The research methodology adopted for the report included:
The majority of costs for PS are driven by the volatility in raw materials rather than supply-demand situations. Benefitted by lower production costs, this volatility in raw material prices could decline in Asia, as the region is expected to be self-sufficient by 2020 with upcoming capacities of styrene coming online. As Asia offers the lowest fixed as well as labor cost, the contribution of raw material continues to remain as the highest among all the regions.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
COVID-19: Assess impact on your suppliers and ensure business continuity with Beroe’s WIRE
(World Instant Risk Exposure)