Ethylbenzene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Ethylbenzene Market is projected to register a CAGR of over 4% during the forecast period (2021-2026).

The market is negatively impacted by COVID-19 in 2020. Considering the pandemic scenario, the construction and automotive manufacturing activities were stopped temporarily during the government-imposed lockdown, thus had decreased the demand for the ethylbenzene-based polymer and other products including automotive dashboard, exterior panels, styrene-acrylic emulsions, solvent and reagent for paints and coatings, and others, which in turn has negatively impacted the demand for the ethylbenzene market. However, the demand for packaging, based on the ethylbenzene's derivative polystyrene has increased from the food and e-commerce packaging segment during the current situation, thereby stimulating the demand for the market studied.

• Over the short term, the increasing demand for styrene from various end-user industries and increasing usage of ethylbenzene in the recovery of natural gas are expected to drive the market's growth. On the flip side, strict regulations pertaining to the usage of ethylbenzene are expected to hinder the growth of the market studied.
• The construction industry dominated the market and is expected to grow during the forecast period, as ethylbenzene finds application as solvent and reagents in the production of various products, such as paints and coatings, adhesives, and cleaning materials.
• Asia-Pacific dominated the market across the world, with the largest consumption from countries, such as China and Japan.

Key Market Trends

Styrene Production to Dominate the Market

• Styrene production will have a positive influence on ethylbenzene market demand. Styrene is a precursor to several industrial polymers, including acrylonitrile-butadiene-styrene, polystyrene, styrene-butadiene elastomers and latex, styrene-acrylonitrile resins, and unsaturated polyester.
• The aforementioned styrene-based polymers, elastomers, and resins find a wide range of applications in various end-user industries, such as electronics, packaging, agriculture, petrochemicals, and construction.
• Polystyrene is majorly used in disposables, packaging, and low-cost consumer products. Packaging applications, such as containers, lids, closures, and vending cups are the key end-uses for polystyrene.
• Expandable polystyrene beads are majorly used in food and beverage packaging, cushion packaging, and insulation. Enhanced grades of resins are used in higher performance applications, including home electronics and appliances.
• The global electronics and IT industries production was valued at USD 2,972.7 billion in 2020 and is estimated to reach USD 3,175.6 billion by 2021, with a growth rate of 7% year on year, thereby is expected to increase in the demand for ethylbenzene-based polymer from electronics segment, which will enhance the demand for the ethylbenzene market in the coming years.
• Styrene acrylic emulsions offer excellent adhesion, gloss development, and water resistance in buildings and deck enamels, thus, boosting the demand for ethylbenzene in the production of styrene.
• The global construction industry was valued at about USD 12 trillion in 2019, with a growth rate of about 4% compared to the previous year, thus led to an increase in the demand for various construction materials including styrene acrylic emulsions, acrylonitrile-butadiene-styrene, styrene-acrylonitrile resins, and others, thereby stimulating the demand for the market studied.
• Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region dominated the global market share. With growing construction and packaging industries, and increasing application as solvent and reagents in paints and coatings, dyes, perfumes, inks, and synthetic rubber in countries, such as China, India, and Japan, the usage of ethylbenzene has been increasing in the region.
• Ethylbenzene is mainly used for the production of styrene, which further gets processed to form polystyrene, a major raw material for packaging products. According to the Packaging Industry Association of India (PIAI), the Indian packaging market was valued at USD 50.5 billion in 2019 and is expected to reach USD 204.81 billion by 2025, with a CAGR of 26.7%, thus led to an increase in the demand for the packaging with in the country, thereby stimulating the demand for the market studied.
• With increasing investments in public infrastructure, renewable energy, infrastructure, and commercial projects, the construction sector is expected to record growth at a moderate pace over the next few years, thereby, improving both consumer and investor confidence, in turn, stimulating the demand for ethylbenzene over the forecast period.
• In 2020, the Chinese construction industry was valued at about USD 1,049.2 billion and is estimated to reach about USD 1,117.4 billion by 2021, with a growth rate of about 6.5%, thereby enhancing the demand for paints and coatings and ethylbenzene-based polymers from the construction industry, which in turn stimulates the demand for the studied market.
• The demand for lightweight automotive materials has increased during this period, owing to the increased demand from the electric vehicles segment. Ethylbenzene-based polymers including acrylonitrile-butadiene-styrene and others are used for manufacturing various automotive exterior and interior parts including dashboard, exterior panels, bumpers, and others.
• In 2020, around 25.31 million vehicles were sold in China compared to 25.78 million vehicles that were sold in 2019, witnessing a decreasing growth rate of about 1.9%, thus led to a decrease in the demand for raw materials used to produce automotive parts such as dashboard, and others, which in-turn negatively impacted the demand for the market studied.
• Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

Competitive Landscape

The ethylbenzene market is partially fragmented with the top-five players accounting for a significant share of the market. The major companies include LyondellBasell Industries Holdings B.V., Chevron Phillips Chemical Company LLC, INEOS, Honeywell International Inc, and Dow, among others.

Reasons to Purchase this report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.