Expanded Polystyrene is one of the largest commodities and second largest derivative of styrene produced by suspension process with pentane. EPS finds its applications in thermal insulation, packaging, air conditioning and is also used in production of foam. Potential growth in expanded polystyrene is driven by demand in thermal insulation boards used in construction. EPS prices generally show more stability than other grades of polystyrene with fluctuations in styrene prices. Building & construction and packaging together accounts for more than 80% share of total Expanded Polystyrene market.
Global Expanded Polystyrene Demand Supply 2016-2032 (Kilo Tons)
In 2021, global EPS capacity stood at 12,000 kilo tons, an increase of more than 700 kilo tons from 2016. In the long term forecast till 2032, an average 100 kilo tons of capacity addition is expected each year majorly in Asia and Middle East & Africa. China is the largest producer of EPS with installed capacity of more than 6500 kilo tons followed by Western Europe. The global EPS market was estimated to be around 8,200 kilo tons in 2021, growing at an aggregate average growth rate of 2% in last five years, mainly supported by the strong demand from construction packaging, and consumer goods industry. In the long-term forecast till 2032, the global EPS market is projected to grow at an average of 3.5%. The construction industry is the biggest outlet for EPS while other important applications packaging, electrical & electronics, consumer goods, automotives and other applications. The global Expanded Polystyrene market is driven by increasing its demand from downstream industries such as construction, packaging, electrical & electronics, and automotive industries, as well as rapid urbanization and d economic growth.
Global Expandable Polystyrene Demand By Region - 2021 (Kilo Tons)
The Expanded Polystyrene market is driven by the growing Construction Industry as EPS is one used in improving building’s design and construction integrity. Construction industry is the biggest consumer of EPS accounting for more than 55% of the global EPS demand. Owing to its excellent insulation properties, lightweight, and durability properties, EPS is widely used in building walls, and roofs to provide insulation and improve energy efficiency. EPS is also used in the construction of cold storage facilities. In addition, EPS is also used as packaging material as it is lightweight and offers excellent insulating properties, and shock absorption capabilities. It is majorly used in packaging of home appliances, medical equipment, food and beverages, electronics, and other fragile goods. The global market for Expanded Polystyrene packaging was estimated to be around 2000 kilo tons in 2021 and is expected to cross 2750 kilo tons by 2032, growing at a CAGR of 4% during the forecast period.
Northeast Asia is by far the largest producing and consuming region for EPS, accounting for almost 66% of the global EPS capacity and an estimated 44% of global EPS demand. Northeast Asian market, comprised mainly of China, Japan, South Korea and Taiwan, consumed the largest volume of EPS in the world, equal to around 50% of global consumption. China is the largest consumer of EPS in Northeast Asian accounting for around 80% of the regional market and 44% of the global market. In China, growth in EPS consumption has been driven by construction, packaging, and electrical & electronics demand, which now together accounts for more than 90% of Chinese EPS demand. The increased purchasing power and living standard of consumers will further drive the Expanded Polystyrene market in the coming years.
Global Expandable Polystyrene Demand By Application 2016-2032 (Kilo Tons)
LG Chemical, Korea Kumho Petrochemical Co Ltd (KKPC), SH Chemical Ltd, Supreme Petrochem, DIC Corporation, Toyo Styrene Co. Ltd, Kaneka Corp, Jiangsu Xinheqiao Chemical Co. Ltd, Jiangyin Nijiaxianj New Material, Loyal Group, Ming Dih Group, Taita Chemical, and Chi Mei are some of the major EPS producer in Asia Pacific. Before 2021, Supreme Petrochem and LG Polymers were the major producers of EPS in India. LG Polymers closed its EPS capacity due to styrene gas leak that occurred while starting up the facility in 2020, leaving Supreme Petrochem the largest leading Expanded Polystyrene producer in India.
Asia-Pacific accounts for the major market of EPS with an estimated demand share of 55-60% of global demand followed by Western Europe. Low investment and operating cost favours EPS producers to setup their plants in China and the country now contributes around 45% of the global EPS capacity. Development in Chinese building & construction has slowed down considerably; however, increasing demand of Expanded Polystyrene for packaging has been able to overcome the decline in growth in the construction sector. Owing to increasing population, the growth of EPS is anticipated to be higher in growing economies. Global EPS market is likely to witness a CAGR of about 3-4% in the long-term forecast till 2032.
In 2022, Epsilyte announced to increase the production capacity of EPS at its facility in Peru, Illinois by 11 kilo tons. The expansion is expected to be completed by end of 2023. The company has also commissioned an engineering study to further expand the capacity by another 100 kilo tons.
In 2021, Lotte chemical decided to stop the production of EPS with installed capacity of around 80 kilo ton in Yeochon, South Korea. The company will convert existing facility to produce high value-added acrylonitrile butadiene styrene (ABS).
In December 2022, Supreme Petrochem completed EPS capacity revamp programme at its facility in Manali, Chennai, India. The company has expanded the EPS from 24 kilo tons per annum to 33 kilo tons.
In March 2022, Supreme Petrochem announced to increase the production capacity of EPS at its facility in Nagothane, Maharashtra from 70 kilo tons to 100 kilo tons. The capacity expansion is expected to be completed by end of 2024. Post commissioning Nagothane, EPS facility the total Supreme Petrochem’s EPS capacity is expected to reach around 130 kilo tons.
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