Asia-Pacific region stimulating polystyrene growth

Polystyrene is a polymer produced in two principal forms — solid polystyrene and expanded polystyrene foam. It is often used in cosmetic applications where hygiene is important but the substance can also be used in packaging.

The global packaging segment in particular consumes a large amount of polystyrene, individual application areas for the substance are projected to develop at highly similar growth rates during the upcoming eight years.

According to the market researcher's recent report, it is a segment that is generating a rise in numbers which will reach approx. US$26 billion in 2020, with more than 90% of these new capacities being created on the Asia-Pacific region.

"In order to satisfy the rising glob​al demand, however, production capacity has to increase again. Hence, the global production capacity will be expanded by about 700,000 tonnes until 2020​," Oliver Kutsch, CEO of Ceresana explains.

Emerging countries stimulating economic growth​

The report further indicates that almost every second tonne of polystyrene is processed on the AP region, and for this reason Asia is the most important sales market, followed by the industrialized regions North America and Western Europe.

Emerging countries, on the other hand, are profiting from a continuous increase of wealth and a moderate population growth.

"Even though the region is expected to expand its position as worldwide largest consumer, Africa, the Middle East, Eastern Europe, and South America are also projected to develop at dynamic growth rates,"​ the report states.

Focus on high-quality products​

According to Ceresana, by now, manufacturers are more focused on quality than on quantity.  

In the past, capacity utilization of polystyrene plants averaged at only about 75%. This resulted in an, in part, considerable reduction of capacities and restructuring undertaken by manufacturers.

Industrialized countries in Western Europe and North America as well as Japan and South Korea have responded to the excess capacities by reducing production volume and refocusing on growth markets.