The new study from Ceresana Research covers the plastic expandable polystyrene (EPS). The construction industry is the largest EPS market, with a worldwide share of just less than 60 % and is forecast to account for 66 % of EPS demand in 2016. After EPS revenue had increased at an average rate of 7.3 % per year between 2000 and 2008, market value fell to roughly 4.3 billion EUR in 2009.
Price decreases caused revenue to fall by up to one third in certain regions. However, the study expects that the 2008 level will be seen again in 2012. The primary reasons for this are consumption increases in China, as well as foreseeable price increases starting in 2010. Nevertheless, consumption in Western Europe and North America during 2016 will most likely remain below levels seen in 2008.
Ceresana anticipates a compound annual growth rate of 7.1 % in Eastern Europe and 5.9 % in Asia, until 2016. Japan and South Korea are the exception here, and will most likely see decreases in production. Capacities in China will grow by more than 750 kt, while Eastern Europe will see an increase of just less than 350 kt, according to the study.