India’s Polystyrene Demand is Projected to Achieve a CAGR 5.5% by 2030

by Chem Analyst Chemical Database Price

According to ChemAnalyst report, “India Polystyrene Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India’s Polystyrene market is expected to grow at a healthy CAGR of 5.5% during the forecast period due to increasing Polystyrene utilization in food packaging applications and take-away containers backed by country’s strongly growing restaurant food chains and expansion of FMCG sector. Moreover, increasing Indian government initiatives like Make in India scheme and continuous investments in expanding the country’s ACE (Appliances and Consumer Electronics) industry are likely to propel the Polystyrene demand during the forecast period.

Browse the Complete Report : India Polystyrene (PS) Price

Polystyrene (PS) is a thermoplastic known to possess excellent electrical and mechanical properties. Because of its easy processability, Polystyrene finds varied applications from thin-film packaging to electronic goods. Packaging is one of the key uses of polystyrene which holds a significant share (about 25%) in the country’s overall Polystyrene demand. The report has segmented the India’s Polystyrene market into two types-General-Purpose Polystyrene (GPPS) and High-Impact Polystyrene (HIPS). Both being FDA complaint, are widely used in the food packaging sector. General purpose PS is a low-cost, completely transparent, and rigid Polystyrene, commonly used for manufacturing disposable utensils, cutleries and various other consumer durables. In addition, GPPS which had been traditionally used in CD cases is now being popularly used in manufacturing ubiquitous jewelry boxes and food storage containers. HIPS is more expensive than GPPS and on the other hand, highly impact resistant and not naturally clear or transparent. Due to its easy processability, FDA compliance and matte finish, HIPS is a preferred material for thermoforming and is commonly used in food processing applications such as yogurt cups. Moreover, increasing demand from the refrigerator liner sheets which are commonly formed from HIPS core layer is likely to drive the Polystyrene market during the forecast period.

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According to ChemAnalyst report, “India Polystyrene Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India’s domestic capacity is sufficient to cater to its Polystyrene demand. However, India imports huge volumes of the feedstock Styrene Monomer from Singapore, U.S., Korea and Taiwan. Domestic players operating in India Polystyrene market are Supreme Petrochem Limited, LG Polymers India Private Limited and INEOS Styrolution India Limited with Supreme Petrochem dominating the market with more than 50 per cent share. BASF, SABIC, Dow Inc., NOVA Chemicals Corporation, Styrochem, Formosa Chemical & Fibre Corp and Kumho Petrochemical are some of the leading international players operating in the India Polystyrene market. With key players planning to expand their installed PS capacities and huge investments in the country’s strongly growing FMCG sector, the demand for Polystyrene is likely to spur in the forecast period.

However, sudden outbreak of COVID-19 has rendered a significant disruption in the India Polystyrene demand supply patterns, triggered by indefinite halt in manufacturing activities in the several downstream factories. Although Polystyrene demand in Q4 FY20, has witnessed an overall decline, some sectors like food and medical packaging supported in keeping afloat the overall industrial performance to some extent. Moreover, lack of transportation and trade disruptions not only affected the exported cargoes but also pressurized the volumes of Styrene monomer which is majorly imported from Singapore, U.S., Korea and Taiwan. Already threatened by the demand downturn, the domestic PS industry also suffered a major setback after a massive styrene gas leak incident from the Vizag plant of the country’s second largest Polystyrene manufacturer, LG Polymers India. The incident which took place in the month of May in Q1FY21, has left the 118 KTPA PS plant non-operational for indefinite period till further approval by the Indian government, thereby impacting the country’s overall PS production. However, with ease in lockdown restrictions, players are anticipating that massive restaurants would prefer utilizing high quality disposable cutlery and crockery in the wake of maintain social distancing. This is likely to accelerate the demand for Polystyrene in the next three quarters. Moreover, with massive expansion of the food packaging sector on the cards, the PS demand is likely to spur in the forecast period.

“Indefinite plant turnarounds have rendered a significant fall in the domestic Polystyrene market in Q4 FY20 with significant implications being felt even in the Q1 FY21. Although the PS industry faced demand downturn from other major end users, the packaging sector emerged as a major savior projecting its huge growth potential in the next five years. As India is totally dependent on imports for feedstock Styrene Monomer, weak Styrene due to sudden crash in upstream crude and Benzene values is likely to bring good days to the domestic manufacturers who are constantly finding ways to combat the injury caused to the industry since the onset of the pandemic. Styrene imports had risen by 25% to 852 KT last year, from 679 KT due to growing demand for PS for light packaging applications in sectors like food delivery, e-commerce, and several consumer products. However, the Indian government is planning to impose a 15% “COVID-19” tax on some imported petrochemicals, which if implemented on the Styrene monomer imports, might cause a huge damage to the PS industry. Amid these uncertainties in the global and India Polystyrene market, it has become extremely crucial for the domestic players to efficiently direct their inventories and ensure protection from undue dumping of goods from the international players after trade disruptions ease as economies head towards recovery. It is also crucial for market leaders to trace the movements of their competitors and estimate what impact these changes will have on the country’s domestic business. With downstream FMCG players planning for huge investments in the Indian subcontinent, the demand for Polystyrene will accelerate with a greater pace in the next 2-3 years. ” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.

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Source: ChemAnalyst