June 17, 2024

Polystyrene Foam Market Set to Exhibit 4.3% Growth by 2031

Polystyrene foam is widely used for insulation purposes in the construction industry due to its exceptional insulating properties and competitive pricing. It provides excellent thermal insulation along with sound insulation and is extremely lightweight in nature. The global demand for polystyrene foam has been rising rapidly due to growth in the construction industry worldwide.

The global polystyrene foam market is estimated to be valued at US$ 29.95 billion in 2024 and is expected to exhibit a CAGR of 4.3% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the polystyrene foam market are Kingspan Group, Sunpor Kunststoff GmbH, Drew Foam, Xella International, Alpek, BASF SE, ChovA, DuPont, Knauf Insulation, Synthos S.A., Shrushi Polymers Private Limited., Kamaksha Thermocol, K. K. Nag Pvt. Ltd, Styrotech, Inc., Michigan Foam Products LLC, ICA, Supreme Petrochem Ltd, Kaneka Corporation , Wuxi Xingda foam plastic new material Limited, Tamai Kasei Co., Ltd.

The growing construction industry across the globe is driving the demand for polystyrene foam. Rapid urbanization and infrastructure development activities in emerging economies are fueling the market growth. Furthermore, rising investments in the residential construction sector are further boosting the sales of polystyrene foam.

The Polystyrene Foam Market Size is witnessing significant expansion in Asia Pacific region. China, India, and other Southeast Asian countries are exhibiting high growth due to increasing construction activities. Heightening infrastructure development projects are augmenting the regional market. Additionally, growing population coupled with rapid urbanization is propelling the demand for polystyrene foam in Asia Pacific.

Market Key Trends

Development of bio-based polystyrene foam is one of the key trends gaining traction in the market. Several leading manufacturers are focusing on developing sustainable bio-based polystyrene foam using renewable resources such as sugarcane, corn, and sugar beet. These bio-based materials provide equivalent insulation and are recyclable like traditional petroleum-based polystyrene foams. Rising consumer preference for green building materials is steering the demand for bio-based polystyrene foams. The growing trend towards eco-friendly construction is anticipated to favor the market growth in the coming years.

Porter’s Analysis
Threat of new entrants: The polystyrene foam market requires high initial investments in manufacturing plants which pose a barrier for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power in this market as there are many established manufacturers.
Bargaining power of suppliers: A few large petrochemical companies dominate the supply of raw materials which gives them significant bargaining power.
Threat of new substitutes: Some new insulation materials like aerogel and vacuum insulated panels pose a threat, but polystyrene foam still has advantages in cost and manufacturing process.
Competitive rivalry: The market is dominated by a few large players and most others have narrow product ranges.

Geographical Regions
North America accounts for the largest share of the global polystyrene foam market in terms of value due to high consumption in construction and packaging industries. The United States is the largest consumer of polystyrene foam in this region.

The Asia Pacific region is expected to grow the fastest during the forecast period owing to rapid urbanization and industrialization in China, India, Indonesia, and other developing countries. Government initiatives to develop infrastructure will boost the demand for polystyrene foam in construction applications in these emerging economies.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it