The global polystyrene packaging market is expected to be valued at USD 24.01 billion in 2023. Polystyrene packaging sales are projected to increase at a healthy CAGR of 4.4% and top a valuation of USD 37.06 billion by 2033.
The polystyrene packaging market revenue totaled USD 22.70 billion for 2022, according to Future Market Insights’ analysis. The demand for plastic polystyrene packaging is expected to accelerate at a positive rate, with top manufacturers holding more than 10%-15% of revenue in 2023.
Foam polystyrene is light in weight and is environmentally sustainable. Expanded polystyrene (EPS) has a property of versatility due to which it can be manufactured in any size or shape. Also, the light weight of EPS helps in the packaging of lightweight materials as these materials require utmost care.
| Attribute | Key Insights |
|---|---|
| Polystyrene Packaging Market Size (2023E) | USD 24.01 billion |
| Projected Market Size (2033F) | USD 37.06 billion |
| Value CAGR (2023 to 2033) | 4.4% |
| Top 3 Countries Market Share | 34.3% |
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The global polystyrene packaging market grew at a CAGR of 2.7% over the period of 2018 to 2022. However, the market for polystyrene packaging is predicted to expand at a significant pace over the forecast period.
Due to the numerous benefits, the demand for polystyrene packaging in diverse industries such as food & beverage, pharmaceutical, electrical & electronics, consumer goods, etc., is increasing.
With increasing demand from the aforementioned sectors, manufacturers are expanding their production capabilities of polystyrene packaging. Backed by these factors, FMI predicts the polystyrene packaging market is expected to increase at a CAGR of 4.4% in the next decade.
Furthermore, producers are focusing more on EPS, which is foam material. This is due to surging demand for EPS as it is sustainable and safe throughout its life cycle. As EPS is eco-friendly and long-lasting, it helps in reducing carbon footprint and has a lower negative impact on the environment.
EPS is a thermoplastic foam material, known as expanded polystyrene, made up of 98% of air and just 2% of polystyrene. EPS is a very cost-efficient way of packaging which not only saves money but also saves resources. The energy required to manufacture is way too less than any other alternative packaging material. Thus, EPS is also a resource-efficient packaging.
As expanded polystyrene is safe and eco-friendly, it can be recycled. Recycled EPS can also again be used in the packaging of fast-moving consumer goods products. In addition, due to the high air present in EPS, it is insulating, shock-resisting, and very light in weight.
It is considered the best alternative for the packaging of consumer goods due to its different properties and applicability. Hence, the consumer goods packaging industry has been drastically changed due to EPS product properties and sustainability as compared to other packaging materials.
Polystyrene packaging helps in minimizing the damage and risk to the sender. The materials are precious and sometimes small so utmost care is needed while transporting electronics via post or courier services. Hence, to ensure the quality and safety of the products, the adoption of polystyrene packaging materials is expected to surge.
To ensure the materials do not move or bump during transportation, polystyrene helps keep items suspended and locked inside. In addition, the package should not get moisture or rain, polystyrene does not absorb moisture and it has an insulating property, which helps in keeping the temperature inside stable and maintains the products. Thus, due to these benefits, polystyrene packaging is being number one choice in the electronics industry.
Expansion of Plastic Industry to Push Polystyrene Packaging Demand in the United States
Increasing demand for plastic is anticipated to drive sales in the United States polystyrene packaging market, as per Future Market Insights (FMI). As per the Plastic Industry Association, the demand for plastics is rising in the United States with growing applications in the food & beverage sector. This is expected to positively affect the sales of polystyrene packaging, boosting the market.
On the back of these factors, the overall sales of polystyrene packaging in the United States are estimated to reach more than USD 4.4 billion by 2023 end.
Rising Application of Polystyrene Packaging in the Pharmaceutical Sector to Push Demand
According to the Reserve Bank of India RBI, India ranks third worldwide for pharmaceutical production by volume and fourteenth by value. In addition, the export turnover for the year 2020 to 2021 was USD 24.4 billion and India’s domestic pharma market is estimated to grow to USD 65 billion by the year 2024, which is expected to rise to USD 130 billion by the year 2030.
Significant growth in the pharmaceutical industry is projected to create demand for the polystyrene packaging market in India. As per the study, the Indian polystyrene packaging market is expected to create an incremental opportunity of USD 13.4 billion by the end of 2033.
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Polystyrene Cups to Hold Lion’s Share in the Global Market
Polystyrene cup packaging has the highest market share, accounting for around 11.8% of demand share in 2023. This is due to the benefits it provides and its ability to maintain hot food hot and cold food cold and is better at holding carbonation. In addition, rising demand for these cups from the beverage industry is expected to boost the demand.
Polystyrene cups do not need double cupping and it protects hands from hot beverages like tea or coffee. It is also resource-efficient and can be manufactured with less energy, so manufacturers are focusing on producing them more.
As compared to other packaging materials, polystyrene provides more good quality and is more cost-efficient, so polystyrene cups are predicted to contribute a significant market share. On the back of this, the demand for polystyrene cups is expected to surge by 1.9X. During the forecast period, the cup segment is expected to grow at a CAGR of 6.1%.
Nearly 32% of Polystyrene Packaging Sales are Contributed by the Food & Beverage Industry
In terms of end-use, the food & beverages sector is expected to account for 31.8% of the demand share in the global polystyrene packaging market. The increase in the use of packed foods and preference for ready-to-eat meals is expected to boost polystyrene packaging demand.
The segment is expected to register growth at a CAGR of 5.5% over the forecast period. Polystyrene packaging is used in various industries due to its properties such as sustainability, shock-resistant, resource efficiency, etc.
It is being used widely in the food & beverage industry due to its ability to keep food fresher for a longer time and is used in the pharmaceutical industry due to clarity and ease. Polystyrene packaging is also a better option than other packaging materials.
As per the report, the global polystyrene packaging market is extremely fragmented and competitive. Key players use a variety of marketing techniques, including mergers & acquisitions, expansions, collaborations, and partnerships.
Leading organizations also use new product creation as a strategic way to expand their market presence among customers. Advanced polystyrene packaging has been incorporated as a result of these tactics.
Some of the recent developments in the market are as follows -
Alpek SAB de CV and Styrochem to Create a Milestone with Recycled Polystyrene Packaging
The words eco-friendly, sustainability, bio-degradable, recycle, etc. are gaining immense popularity among the youth as awareness regarding global warming spreads. Manufacturers in the packaging industry are no different, even they are utilizing these words to turn up the heat!
When it comes to polystyrene packaging, Alpek SAB de CV and Styrochem are likely to be the leading horses in the race. These two packaging industry giants are forging alliances with other companies and spreading their wings in the food & beverage industry as well.
Leveraging their recyclable and eco-friendly packaging products, these two companies are eyeing the food & beverage industry to gain revenue. Amid increasing environmental impact, these leading companies have forgone the use of plastic and instead are focusing on ‘expanded polystyrene’.
The Canada-based company, Styrochem, also known as EPSilyte is focusing on going carbon-neutral by 2023 with its recyclable and sustainable products used in life-sustaining applications. 70% of their products are developed and used to reduce energy usage.
Also, Alpek is considered to be one of the world’s leading packaging industry giants. With a mission to achieve net zero emissions by 2050, the company announced its ambitious target of increasing its PET bottle recycling capacity to 300,000 annual metric tons in 2021.
The company is also planning to achieve carbon neutrality by 2050 and reduce carbon emissions by 27.5% by 2030. Alpek is planning to achieve this by acquiring small and middle-sized packaging companies, specializing in polystyrene packaging, and strengthening its roots across the globe. For instance, on June 7th, 2021, Alpek acquired CarbonLite Recycling LLC’s state-of-the-art PET recycling and pelletization facility in Pennsylvania, USA.
Likewise, on May 31st, 2022, Alpek SAB de CV acquired OCTAL Holding SAOC, a leading PET packaging manufacturer and supplier, assuming control on June 1, 2022. This is expected to help the company in reaching its recyclability and sustainability goals.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value (In USD billion) and Volume (Tonnes) |
| Key Countries Covered | The United States, Canada, Mexico, Brazil, Germany, the United Kingdom, France, Italy, Spain, Russia, China, Japan, India, GCC countries, and Australia |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; the Middle East & Africa; and Oceania |
| Key Segments Covered | Material, Product, End Use Industry, and Region |
| Key Companies Profiled | ACH Foam Technologies; Alpek SAB de CV; Jackon; Monotez; Sunpor Kunststoff; Styrochem; Versalis; Sonoco Products Company; Sealed Air Corp; Huhtamaki Oyj; Rogers Foam; NEFAB GROUP; Huebach Corporation; Ohishi Sangyo Co.,Ltd. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The global market value is estimated to be around USD 24.01 billion in 2023.
ACH Foam, Alpek, and Jackon are some top players in the present global market.
The United States market remains lucrative with an expected valuation of USD 4.4 billion for 2023.
Indian market is projected to reach a valuation of USD 13.4 billion by 2033.
The demand for Polystyrene cups could lead with 11.8% market share in 2023.
| Expected Market Value in 2023 | USD 11.05 billion |
|---|---|
| Projected Market Value in 2033 | USD 25.2 billion |
| Growth Rate (2023 to 2033) | 8.59% CAGR |
| Market Value (2022) | USD 10.1 Billion |
|---|---|
| Market Value (2032) | USD 20.61 Billion |
| Market CAGR (2022 to 2032) | 7.4% |
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