The global polystyrene foam products manufacturing market was estimated at $64.7 billion in 2019, and is expected to grow to $75.1 billion in 2023 at an annual growth rate of more than 3.5%. The polystyrene foam products manufacturing market is expected to continue to benefit from the steady economic growth forecast for many developed and developing countries. In the historic period between 2014 to 2018, economic growth led to increasing disposable income levels, thus increasing the spending on electronics, automobiles and other industries which use polystyrene foam products. Economic growth also increased funding for petrochemical manufacturing plants including styrene, which is a major raw material used in polystyrene foam products manufacturing. Similarly, in the forecast period, greater economic growth is likely to boost public and private investments, and joint ventures. For instance, in 2018, Selit North America Inc. announced investment of $45 million for an extruded polystyrene foam plant in Georgia, USA. Emerging markets are expected to continue to see generally higher levels of growth than the developed markets during this period. For instance, India’s GDP is expected to grow at 7.4%, whereas China’s is forecast to register GDP growth of 6.8% in 2018. These factors are likely to boost the growth in end-user industries such as electronics and automobiles, thus increasing the demand for polystyrene packaging material and further driving the polystyrene foam products manufacturing market during the forecast period.
The global polystyrene foam products manufacturing market will also benefit from increased construction activity during 2019 to 2023, especially in emerging markets. Polystyrene foam sheets are used in residential and commercial building construction for thermal insulation. Expanded polystyrene (EPS) and extruded polystyrene (XPS), which are types of polystyrene foam classified on the basis of methods of manufacturing, are both used in manufacturing polystyrene foam sheets for building construction.
Polystyrene-based products are used in building roofs and walls as they provide thermal insulation and are resistant to water. Major emerging markets which are expected to contribute to the growth of the market include China, India, Brazil, Saudi Arabia, and Indonesia. China’s construction market is forecast to grow at an annual rate of 9.6% until 2020. According to the Global Construction 2030 report, the volume of global construction output will grow by 85% to $15.5 trillion by 2030. China, US and India will account for 57% of this growth. This rise in construction activity is expected to drive the demand for polystyrene foam products during the forecast period.