Polystyrene enjoys a reputation as one of the most common plastics used in everyday life. Uses include these McDonald's Happy Meal Toys which are made from Dow Chemical's AIM 4800 styrenic resins over ABS for the housings and other parts of the toys.

A new study by the Freedonia Group predicts world demand for polystyrene, including both solid and expandable bead polystyrene or EPS, will increase 3.4 percent per year to 13 million metric tons in the year 2002.

According to the study, "World Polystyrene," packaging markets for polystyrene will benefit from strong demand in developing regions, particularly Latin America and Asia, where efforts to improve sanitation conditions in the food processing industries are expanding the use of plastics. An important variable, the study reports, is rising demand for fast foods and take-out foods, since these are the strong-hold applications for polystyrene packaging. Packaging markets in most developed regions are mature, and incremental expansion is related to demographic and social trends, such as the number of single-person households. Shifts in consumer tastes also play a role, such as the current proliferation of new coffee shops in North America and Western Europe, which has created significant new demand for polystyrene foam coffee cups, the study states.

Demand for polystyrene in consumer goods will benefit from rising production levels for appliances, electronic equipment and housewares. The study reports that high-impact polystyrene (HIPS) will retain strong presence in refrigeration and air conditioning equipment, where it reportedly offers excellent durability and ease of design and processing.

Polystyrene also will continue to benefit from the diffusion of compact discs and CD-ROMS, since it is the primary resin used for CD cases.

According to the study, demand in insulation will feel the effects of a slowing construction market in North America, and weak construction activity throughout Asia, particularly Japan. However, demand for foamed insulation will get a boost from heightened energy standards and continued product innovation, Freedonia says.

According to the study, China's polystyrene market will continue to expand. However, growth in other Asian markets will decelerate markedly from its previous strong pace due to the financial crisis that has impacted the Pacific Rim.

Latin America will have solid growth, due mainly to evolution of the plastic packaging and durable goods markets in Argentina and Brazil. Eastern Europe also offers growth opportunities, especially the Czech Republic, Hungary and Poland.

The 282-page World Polystyrene study is available for $3,900 from The Freedonia Group Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For more information, contact Corinne Gangloff at (440) 684-9600, FAX: (440) 646-0484, or via E-mail: pr@freedoniagroup.com.

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