Demand for Polystyrene in India Grew at a CAGR of Around 5.5% During 2015 -2019

The demand for Polystyrene in India grew at a CAGR of around 5.5% during 2015-2019 and is expected to achieve a healthy growth rate during the forecast period. Growth in domestic manufacturing of advanced refrigerators backed by robust growth in the demand for FDA compliant polymers for manufacturing disposable plastic cutleries and other kitchenware will drive the Polystyrene market in the forecast period.

High impact PS is known to possess high impact resistance and is predominantly used in consumer electronics and toys. Several grades of HIPS are formulated to develop exceptional characteristics for specific end-use, such as in refrigerator inner liner products and food trays that require high environmental stress crack resistance. The government's 'Make in India' scheme and its significant contributions towards expanding the country's ACE (Appliances and Consumer Electronics) industry are likely to impart great momentum to the demand for Polystyrene during the forecast period.

 

However, the sudden outbreak of COVID-19 has rendered a sharp downfall in manufacturing activities across several states of India. While demand for Polystyrene is witnessing an overall decline, some sectors have performed comparatively well. Throughout the period, the demand for food packaging remained strong while the demand for electronics and appliances remained subdued. 

Moreover, disruptions in trade flows and logistic constraints due to lockdown measures taken by the Indian government to contain the spread of coronavirus negatively impacted the country's Polystyrene industry. Threatened by the demand downturn due to undue halt in industrial activities, manufacturers had no other option but to shut their plants or run them at curtailed rates to manage the overflowing inventories.

This had a direct impact on the annual balance sheets of the key players operating in the Polystyrene sector which reflected substantial losses. Moreover, the recent styrene gas leak from the Vizag plant of the country's leading Polystyrene manufacturer, LG Polymers India, further heightened the loss to the country's PS market. The incident is likely to impact the country's overall Polystyrene production volume unless the plant returns to operations after the government's approval. With the ease in lockdown restrictions, massive restaurants are opting for using high-quality disposable cutlery and crockery to avoid the transmission of highly contagious coronavirus. This is likely to accelerate the demand for Polystyrene in the forthcoming quarters.

The study is useful in providing answers to several critical questions that are important for the industry stakeholders, such as Polystyrene manufacturers, distributors, and policymakers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.

In this report, the Indian Polystyrene market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Market, by Type- General Purpose Polystyrene (GPPS), High Impact Polystyrene (HIPS)

• Market, by End-use- Packaging, Electronics and Appliances, Jewelry Casings, Household/Stationery, Others

• Market, by Distribution Channel- Direct/Institutional Sales, Retail Sales, Other Channel Sales

• Market, by Region- North, West, East, and South

Contact us for LG polystyrene polymer manufacturer supplier and distributor in India visit at: https://vrion.in/ Source: ET