Styrenics Market Size, Share & Trends Analysis Report By Type (Polystyrene, Acrylonitrile Butadiene, Expanded Polystyrene, Styrene-Butadiene Rubber, Unsaturated Polyester Resin), By End-User (Automotive, Packaging, Construction, Electrical and electronics, Medical, Wind Energy, Consumer Goods) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global styrenics market size was valued at USD 86.9 billion in 2023 and is projected to reach USD 126.9 billion by 2032, registering a CAGR of 4.3% during the forecast period (2024-2032). The styrene market share is predicted to grow fast due to rising applications in end-user markets such as automotive and construction.

Styrenics are a class of polymer polymers generated from styrene monomers. Styrene is an organic molecule that is derived from benzene and ethylene. Styrene polymerization yields a variety of styrene polymers with distinct characteristics and applications.

The rapid growth in population and affluence resulted in increased demand for various items in the automobile, construction, and food processing industries. The increased demand for these items has directly influenced the demand for the styrenics market. Furthermore, greater public awareness of the greenhouse gas effect on the environment due to the availability of a wide range of building raw materials has increased demand for the styrene market. Governments worldwide are pushing for sustainable methods, such as wind energy, to minimize greenhouse gas emissions caused mainly by fossil fuels and industrialization. The growth in population and the presence of extra finances in families resulted in increased consumer purchasing power in the automotive sector. An increase in demand for various vehicles, including passenger automobiles and industrial trucks, forklifts, etc, has driven the styrenics market growth.

Highlights

• Acrylonitrile Butadiene accounts for the largest share of the market by type.
• Automotive is a significant contributor to the market based on end-user.

Market Dynamics

Market Drivers

Growing Packaging Industry

The packaging industry is predicted to increase demand for styrene over the forecast period. It is frequently utilized in the packaging sector because of its lightweight, durable, flexible, thermally efficient, and moisture-resistant qualities. Styrenics is widely used in packaging food such as fish, meat, fruits, dairy products, and processed foods. Furthermore, it offers a low-cost and environmentally friendly packaging solution that does not release chlorofluorocarbons (CFC) or hydrochlorofluorocarbons (HCFC). The booming e-commerce business, increasing urbanization, changing consumer lifestyles, and rising disposable income levels increase demand for packaging materials. In 2023, worldwide e-commerce revenues were expected to be approximately USD 5.8 trillion. This represents a 7.6% growth from 2022, with e-commerce revenues predicted to rise 10.4% in 2023. By 2027, worldwide e-commerce sales are expected to exceed USD 8 trillion. 

Additionally, Polystyrene is a popular material for packaging applications due to its low cost, lightweight nature, and ability to protect against impacts and moisture. The growth of the packaging sector directly correlates with the growing demand for styrene polymers, particularly polystyrene and EPS. Styrenics manufacturers profit from increased demand for packaging materials in various industries, including food and beverage, electronics, healthcare, and consumer goods. The global packaging industry's continued growth is a crucial driver of the worldwide styrenics market trend, encouraging innovation and generating chances for manufacturers to meet different packaging needs across sectors.

Market Restraints

Environmental and Regulatory Concerns

Styrenic polymers, particularly polystyrene, have come under fire for being non-biodegradable and challenging to recycle. This has increased regulatory actions and public awareness to decrease the usage of specific styrene materials. Several regions and countries have imposed prohibitions or limitations on single-use plastics, particularly styrene-based items like expanded polystyrene (EPS) foam containers. For example, on July 2, 2021, the European Union's (EU) Directive on Single-Use Plastics took effect. The guideline prohibits certain single-use plastics for which alternatives are available.

Similarly, in 2021, the Ministry of Environment, Forest, and Climate Change issued a notification prohibiting the manufacture, use, sale, import, and handling of single-use plastics (SUP) beginning July 1, 2022. Furthermore, as of January 2023, ten states and territories have statewide bans on single-use plastic bags: California, Connecticut, Delaware, Hawaii, Maine, New Jersey, New York, Oregon, Vermont, and Washington. Bans will take effect in Colorado and Rhode Island on January 1, 2024. According to a United Nations Environment Programme (UNEP) report, approximately 75% of the world's plastic garbage is non-recyclable, with polystyrene ranking among the polymers with the lowest recycling rates. The Ellen MacArthur Foundation projects that if no meaningful action is taken, the annual flow of plastics into the oceans will triple by 2040, driving global attempts to limit plastic usage, particularly single-use plastics.

Market Opportunity

Development of Sustainable Alternatives

The growing demand for environmentally friendly materials presents an opportunity for styrenics makers to provide bio-based, recyclable, and biodegradable alternatives to existing styrenic polymers. Investing in environmentally friendly solutions can help businesses keep up with changing consumer tastes and legal obligations. Professor Kotohiro Nomura's research group at Tokyo Metropolitan University collaborated with Director Hiroshi Hirano's research group at the Osaka Research Institute of Industrial Science and Technology to develop biobased polyesters from inedible plant resources that are easily chemical recyclable and have promising mechanical properties in film compared to commodity plastics. Furthermore, some businesses are investing in R&D to produce styrene polymers from renewable and plant-based feedstocks, lowering reliance on fossil fuels.

Moreover, companies are looking into sustainable styrenic solutions for packaging applications to reduce the environmental impact of single-use plastics. For example, Ineos Styrolution America LLC, a styrene plastics producer based in Aurora, Illinois, has obtained International Sustainability & Carbon (ISCC) Plus certification for its manufacturing locations in Decatur, Alabama, and Bayport, Texas. The accreditation encourages using modern recycling technologies and bio-based feedstocks to manufacture recycled polystyrene (PS) and other styrenic goods. 

Furthermore, industry collaborations and partnerships are growing to speed up the development and implementation of sustainable styrene alternatives. The Ellen MacArthur Foundation's New Plastics Economy initiative brings partners across the value chain to build a circular economy for plastics. Such efforts promote collaboration in the pursuit of sustainable material development.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global styrenics market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global styrenics market shareholder and is estimated to grow at a CAGR of 4.5% over the forecast period. The increase can be credited to the growing population in developing countries like China and India and the expansion of industries like automotive, medical, electronics, packaging, and others. Businesses in several sectors are increasingly turning their attention to this region due to the abundant raw materials, cost-effective labor, and enhanced production capabilities. This is anticipated to boost the demand for a variety of consumer products. This will increase the demand for styrene due to its widespread application in packaging and consumer goods. The Packaging Industry Association of India (PIAI) reports that the packaging sector in India is expanding at a compound annual growth rate (CAGR) of 22–25%. The packaging industry is projected to increase from USD 1.1 trillion in 2023 to USD 1.33 trillion by 2028. 

In addition, the rise in consumers' per capita disposable income has boosted the automotive sector by increasing purchasing power. This has had a favorable effect on the industry, which utilizes styrenics for various manufacturing applications and to reduce vehicle weight. It offers excellent moisture resistance, thermal efficiency, durability, and flexibility. Statista reports that India's total car production in 2023 is around 25.93 million units, showing growth compared to the previous year. The automotive industry is a significant component of India's expanding economy, accounting for over 7% of the nation's GDP. It employs about 40 million people either directly or indirectly nationwide. 

Europe is anticipated to exhibit a CAGR of 4.8% over the forecast period due to the expanding automotive sector that utilizes styrenics for interior and exterior purposes. In 2023, new commercial vehicle registrations in the European Union (EU) rose by 14.9% to 1,846,580 units, as the European Automobile Manufacturers' Association (ACEA) reported. New van registrations in the EU increased by 7.7% in the first quarter of 2023, primarily because of the low comparative basis from the previous year. Spain experienced a significant increase of 31.2%, reaching 34,200 units. This surge results from the rising per capita income and increasing demand for personal vehicles driven by population growth. Increasing worries regarding sustainability and the environment are compelling the styrenics business in the United Kingdom to use eco-friendly techniques. An increasing emphasis is being placed on developing bio-based styrenics from renewable sources, such as plant-based materials, in the local market.

Moreover, market participants in the United Kingdom are allocating resources to recycling technology to recover and reuse styrene monomers and polymers. Industrialization and urbanization have increased the demand for various consumer goods in different industries like electronics, food and beverages, and packaging. This has positively influenced the demand for styrenics for these industries' packaging materials. Hence, considering these aspects, the demand for styrenics is anticipated to increase in the region in the following years.

North America is predicted to have a moderate market share. There is a forecasted substantial growth in the United States market during the upcoming term. The demand for styrene in the United States is rising due to new technologies focused on enhancing styrene production efficiency and sustainability. Catalytic dehydrogenation (CDH) is a promising process used in the market to convert ethylbenzene to styrene without producing harmful byproducts. These technologies are expected to decrease energy usage and greenhouse gas emissions linked to styrene manufacture in the United States.

Segmental Analysis

The global styrenics market is segmented based on type and end-user.

The market is further segmented by type into Polystyrene, Acrylonitrile Butadiene, Expanded Polystyrene, Styrene-Butadiene Rubber, and Unsaturated Polyester Resin.

The Acrylonitrile Butadiene Styrene (ABS) category will experience the highest Compound Annual Growth Rate (CAGR) in the next forecast period. ABS is a durable thermoplastic polymer known for its exceptional mechanical characteristics and impact resistance. ABS is commonly used for parts in the automotive sector, including dashboards, bumpers, and interior trims. It is used in automobile parts, consumer electronics, appliances, and building materials because of its toughness, heat resistance, and ease of processing. ABS is highly versatile and may be molded, extruded, or thermoformed, making it ideal for various production processes. ABS is in demand due to its mechanical qualities, which are suitable for applications that need impact resistance and strength.

Expanded Polystyrene (EPS) is a lightweight and stiff cellular material commonly utilized for insulation and packaging. The EPS market is impacted by the construction sector's requirement for insulation materials and the packaging industry's demand for protective and lightweight materials. The building industry uses expanded polystyrene (EPS) to decrease energy usage and greenhouse gas emissions. Green constructions have gained popularity in recent years compared to regular ones. Green buildings offer enhanced air quality, reduced operating expenses, and fewer maintenance requirements than traditional structures.

By end-user, the market can be further bifurcated into Automotive, Packaging, Construction, Electrical and electronics, Medical, Wind Energy, and Consumer Goods.

The automotive industry is a significant consumer of styrenics. Polystyrene and ABS are used for interior and external components such as dashboards, door panels, bumpers, and trim elements. Expanded polystyrene (EPS) is used for insulation and reducing weight in vehicle parts. Styrene-butadiene rubber (SBR) is essential in tire production, offering traction, durability, and resistance to abrasion. Anticipated increase in demand during the projected period due to global economic inequality, urbanization, interest in electric vehicles, and technological advancements. Worldwide sales of electric cars are projected to rise by 21% in 2024 to reach 16.7 million units, with 70% being fully electric.

Styrenic polymers are used in electrical and electronic applications because of their electrical insulating qualities, heat resistance, and mechanical strength. ABS is frequently used to produce casings, connections, and enclosures for electronic gadgets and appliances. Polystyrene is utilized in manufacturing computer casings and consumer electronics. Styrenic materials guarantee the longevity, safety, and versatility of electrical and electronic components.

Impact of covid-19

COVID-19 has caused chaos in the world economy, humanitarian aid, and healthcare systems. The rapid spread of the virus has a substantial impact on the worldwide automobile industry, causing a drop in the demand for both new and used automobiles.

The pandemic has a tremendous impact on the electric vehicle industry as the vehicles are regarded as cutting-edge mobility and are prohibitively expensive to buy. Due to the vigorous spread of the virus worldwide, many commodities' demand and supply chains have come to a standstill due to the lack of transportation medium.

However, by the end of 2020, the COVID-19 situation had stabilized in several countries, leading to the end of demand-supply imbalance and a considerable increase in new automobile registrations. It was due to the necessity of avoiding public transportation for the commute.

Additionally, the transmission market has lost its market share due to low or near-zero automobile sales and new requirements. Although over 90% of autos in the United States have adopted automatic transmission, large-scale markets such as India have failed to adopt automatic gearbox.  Automatic transmissions have become increasingly popular among drivers worldwide, assisting the industry in dealing with the pandemic and delivering high statistics in the aftermath of COVID-19.

Recent Developments

• September 2023- Alpek, S.A.B. de C.V. reported that Corpus Christi Polymers has chosen to halt the building of their integrated PTA-PET factory in Corpus Christi, Texas, temporarily.
• November 2023- INEOS Styrolution, a significant company in the styrenics industry, revealed that Joinease Hong Kong Limited has selected the Luran® ECO solution for their LESSMORE® drinkware line. The sustainable solution offers exceptional transparency and is well-suited for molding sensitive walls.
• December 2023- Asahi Kasei and an associated company have obtained the globally acknowledged international sustainability certification ISCC PLUS for Styrene-butadiene rubber (SBR), Asaprene™ solution-polymerized SBR.
• February 2024- BASF's dispersion facilities in Dahej and Mangalore received certification to supply water-based polymer dispersions with a verified low carbon footprint and biomass balance.