The Global Polystyrene market size is forecast to reach USD 28.1 Billion by 2032 from the current valuation of USD 20.4 billion, registering a CAGR of 3.6% between 2023 and 2032. Polystyrene is a transparent and versatile thermoplastic available in both solid form and in the form of rigid foam material and can be processed by injection moulding, thermoforming and extrusion. The production of polystyrene involves various steps such as polymerization of styrene monomer, purification, and processing. The polymerization can be achieved by different methods that involve suspension polymerization, bulk polymerization, and emulsion polymerization.
The two main types of Polystyrene are general purpose polystyrene (GPPS) and high-impact polystyrene (HIPS). Out of the two, GPPS is widely used in low-specification applications owing to its ease of processing. HIPS is used in computer monitors, televisions and other electrical & electronic appliances. HIPS contain a small amount of polybutadiene that further improves the impact resistance and strength of the resin. Blend of HIPS-GPPS is also used for packaging applications with several applications that require high impact resistance and toughness. Owing to its easy processability, Polystyrene is used in various application, including electrical & electronics, construction, consumer goods, packaging and others. One of the major use of polystyrene is in food packaging, such as disposable plates, cups, and containers. Polystyrene is also used in the production of insulating material for building & construction. The Asia-Pacific region is expected to dominate the Polystyrene market during the forecast period, as a result of the increase in the demand from the electrical & electronics, packaging and construction industry in countries, like China and India.
The global Polystyrene production capacity in 2023 stood at 14,800 Kiloton, including GPPS and HIPS. For GPPS/HIPS, production capacities are concentrated in 30% in Asia (excluding China), 28% in China, 23% in Americas, 11% in Western Europe, 5% in Central & Eastern Europe, and 4% in the Middle East and Africa. According to Prismane Consulting Capacity database, between 2016 and 2021, global capacity in the Polystyrene market increased steadily, posting moderate growth over the period. Global Polystyrene demand market grew by less than 2% percent in the historical period. The global Polystyrene industry has been under pressure due to changing consumer behaviour, environmental concerns, product substitution and rising raw material costs. The moderate growth for Polystyrene has resulted in several producers switching their Polystyrene facilities to ABS, which has a higher demand outlook. Polystyrene is supplied on a global basis, with greatest demand coming from Asia Pacific, Western Europe and North America. Global Polystyrene operating rates have remained in the mid-70s over the past five years as demand has grown in line with limited capacity additions, mainly in Asia. In the coming years Asia will heavily influence global operating rates, with China accounting for almost 35% of global Polystyrene demand.
In 2023, the global Polystyrene demand (GPPS and HIPS) was estimated to be around 11,800 Kiloton, with electrical & electronics and packaging applications together accounting for over 70% of global Polystyrene market. In terms of Polystyrene demand by region, Asia Pacific dominates the global Polystyrene market accounting for more than 55% in 2023, followed by Western Europe and North America together accounting for 25%. China is the largest consumer in the Asia-Pacific region accounting for almost 60% of the regional Polystyrene demand, and is further projected to witness strong growth during the forecast period.
The Polystyrene demand in North America was estimated to be over 2000 Kiloton in 2022, growing by less than one percent between 2016-2021, and it is further anticipated to continue to grow at similar growth in the forecast period. North American and Western European Polystyrene producers have responded to the decline in demand by closing plants, reducing inefficiencies, and consolidating businesses, that resulting in significant capacity reductions in these regions. For instance, in 2019, Total Petrochemicals closed its polystyrene production site in El Prat, Spain and INEOS Styrolution converted its Polystyrene line in France to produce ABS. In the coming years, the majority of capacity growth is expected to come in Asia Pacific and the Middle East & Africa.
In Western Europe, INEOS, TotalEnergies, and Trinseo are major Polystyrene producer together accounting for more than 70% of the regional capacity. Western Europe accounted for around 11% of the global Polystyrene market and it is poised to grow at a CAGR of 1% in long term forecast. Owing to lower demand growth and lower margins, the Polystyrene production in the region has undergone production rationalization. INEOS is one of the largest Polystyrene producer in Western Europe with installed capacity of more than 650 Kiloton in 2021 with operating facility in Wingles, France and Antwerp, Belgium.
Trinseo, Ineos Styrolution, TotalEnergies, Versalis, Rank Group, American Styrenics, Dart Polymers, Sabic Innovative Platics, Resinor, Unigel, HDC Hyundia, LG Chemical, Supreme Petrochem, Polychem, DIC Corporation, Toyo Styrene Co. Ltd., PS Japan, Huajin Group Panjin Ethylene Industrial, Chevron Chemical (SAL PC - Dow/Asahi), Zhenjiang Chi Mei Group, PetroChina Dushanzi, GPPC chem, are some of the key Players in Polystyrene Market
Turkey based Dioki Petrokimya is planning to construct a 70 Kiloton GPPS plant. The plant is expected come online in early 2023. The company currently operates a 60 Kiloton GPPS and 18 Kiloton EPS plant in Turkey.
In early 2023, Zhangzhou CHIMEI started production of newly built 350 Kiloton Polystyrene plant. The production lines with production capacity of 350 Kiloton/year is expected to be fully operational by H1 of this year. The addition of new capacity will bring group s capacity to be around 900 Kiloton in China.
IRPC has decided to discontinue its GPPS line and has converted its GPPS plant line to HIPS at full capacity in Rayong, Thailand. This company will only produce 120 Kiloton/year of HIPS.
Chiemei Corporation will no longer produce and sell GPPS products in Tainan, Taiwan instead Zhenjiang Chimei and Zhangzhou Chimei will focus on GPPS production capacity.
Supreme Petrochem is the largest GPPS/HIPS producer in India with installed capacity of 220 Kiloton. The company is further planning to increase the production capacity by 80 Kiloton. The plant is expected to be fully operational by the early 2023.
In June 2020, Saudi Polymers Company (SPCo) ceased 200 Kiloton Polystyrene production plant owing to high costs of production and low profit margins.
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