Ethylbenzene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

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.

Scope of the Report

Ethylbenzene is a clear, flammable liquid with an odor similar to gasoline. It is commercially manufactured by a catalyzed reaction of ethylene and benzene at approx. 40 bar and temperatures around 250 °C. Ethylbenzene is captively used as a raw material to produce styrene monomer. It finds its major application in the construction, packaging, and electronics industry. The ethylbenzene market is segmented by application, end-user industry, and geography. By application, the market is segmented into Styrene, Gasoline, Diethylbenzene, Natural Gas, Paint, and Asphalt and Naptha. By end-user industry, the market is segmented into Packaging, Electronics, Construction, Agriculture, Automotive and Other Applications. The report also covers the market size and forecasts for the ethylbenzene market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo tons).

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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.

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