Polystyrene Foam Product Manufacturing Market Definition
The polystyrene foam product manufacturing market consists of sales by entities (organizations, sole traders and partnerships) that manufacture polystyrene foam products which are used in food packaging, electronics packaging, automobiles and the construction industry. These products include coolers, ice chests, cups, dinnerware, insulation sheets and other products made from polystyrene foam. This market does not include sales of other plastic foam products.
Polystyrene is a lightweight plastic polymer made from suspension polymerization of styrene monomer. In suspension polymerization, styrene is treated with a polymerization initiator to convert it into polystyrene.
Polystyrene Foam Product Manufacturing Market Size
The polystyrene foam products market size reached a value of nearly $62.4 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 3.8% to nearly $75.1 billion by 2023.
Rapid growth in manufacturing and construction activity in emerging markets, increasing demand for electronic products globally and growth in the demand for automobiles globally are contributing to the growth of the polystyrene foam market.
Restraints such as stringent regulations relating to polystyrene foam products, increasing access to alternatives to polystyrene foam products and rising trade protectionism threaten the polystyrene foam products market.
Polystyrene Foam Product Manufacturing Market Drivers
The key drivers of the polystyrene foam product manufacturing market include:
Increase In Use Of Polystyrene Foam Packaging – The polystyrene foam products manufacturing market benefitted from increased use of food containers and packaging material due to a rise in the popularity of food delivery portals and take away restaurants. Polystyrene is widely used in food packaging as it provides good insulation, thus keeping food fresh for a longer duration, compared to other alternatives. The rise in online food delivery services due to a wide variety of food choices, convenience and flexible payment options increased the sales of restaurants and takeaways through online food aggregator service providers during this period. For instance, in 2016, the online food delivery industry in India grew by 150% in 2016. This growth in the online food delivery market is contributing to the increase in the demand for polystyrene packaging material.
Polystyrene Foam Product Manufacturing Market Restraints
The key restraints on the polystyrene foam product manufacturing market include:
Alternatives To Polystyrene Foam Products – The polystyrene foam products manufacturing market growth was limited due to increased access to alternatives to polystyrene foam products. Packaging material manufacturers are using environment friendly materials such as polypropylene, paper, cotton and fiber instead of polystyrene-based products. Polypropylene is produced by polymerization of propene and is reusable unlike polystyrene products which are used in single use products. Polystyrene is not easily biodegradable and it is also a serious cause of water pollution when exposed to water bodies, consequently most waste polystyrene packaging material is dumped into landfills. Access to biodegradable products made from palm trees, sugarcane bagasse and other agricultural residues also restricted the market growth. This increased use of environment-friendly alternatives to polystyrene foam negatively impacted the market during the historic period.
Polystyrene Foam Product Manufacturing Market Trends
Major trends influencing the polystyrene foam product manufacturing market include:
Polystyrene Foam Recycling
Polystyrene foam products manufacturing companies are increasingly investing in recycling technologies relating to polystyrene foam products. Polystyrene is not easily biodegradable and it is a major environmental pollutant. Companies in this industry are developing new technologies to recycle polystyrene foam, to reduce raw material costs and to comply with stringent environmental regulations relating to polystyrene foam products. For instance, in 2017, Pyrowave and Ineos Styrolution America LLC formed a strategic partnership to implement Pyrowave’s Catalytic Microwave Depolymerization (CMD) technology for recycling of polystyrene packaging material. Similarly, in 2017, GreenMantra Technologies received an investment of $2.2 million from Sustainable Development Technology Canada (SDTC) for construction of a demonstration plant to convert waste polystyrene into modified styrene polymers, which will be further used for manufacturing foam insulation and in other applications.
CO2RE Foaming Technology
Polystyrene manufacturing companies are using CO2RE foaming technology to reduce raw material consumption in the production of packaging material. In this process, liquid carbon dioxide is injected as a physical foaming agent. This process reduces the density of polystyrene sheets by up to 20%, thus reducing the amount of raw material used in the production. Major companies using CO2RE foaming technology in polystyrene foam products production include Styron and MuCell.
Opportunities In The Polystyrene Foam Product Manufacturing Market
Opportunities – The top opportunities in the global polystyrene foam product manufacturing market will arise in the global packaging end-user segment, which will gain $7.59 billion in annual sales. By country, China will yield the best opportunities at an increase of $2.45 billion, nearly twice as much as the second best, India. Strategies worth considering by polystyrene foam product manufacturers include adopting big data and IoT technologies, investing in expanding manufacturing operations, and improving infrastructure.
Polystyrene Foam Product Manufacturing Market Segmentation
The polystyrene foam product manufacturing market is categorized by segment, and by geography.
By Segment -
The polystyrene foam product manufacturing market is segmented by service type into
The packaging segment accounted for the largest share of the polystyrene foam products market in 2018 at $30.5 billion. Major factors for this growth include increasing demand for electronic products and packaged food products globally.
- a) Packaging
- b) Automotive
- c) Construction
- d) Others
By Geography - The polystyrene foam product manufacturing market is segmented into
Asia Pacific is the largest region in the polystyrene foam products market, accounting for 39% of the global market. It was followed by Western Europe and North America. Going forward, the fastest growth in the polystyrene foam products market is predicted for Asia Pacific, followed by Western Europe at a CAGR of 2.6%.
- o North America
- o Western Europe
- o Asia Pacific
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Polystyrene Foam Product Manufacturing Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Wuxi Xingda New Foam Plastics Materials Co., Ltd.
- • Dart Container Corporation
- • O. N. Sunde AS
- • Alpek S.A.B. de C.V.
- • Synthos S.A.
- • Reynolds Group Holdings Limited
- • JSP Corporation
- • Carpenter Co.
- • DowDuPont Inc.
- • BASF SE