Press Release Description
Rise in Infrastructural Development in the Tourism Sector Boosts the Expanded Polystyrene Market in GCC
The GCC Expanded Polystyrene Market is set to record around 6.4% CAGR during 2023-28, cites MarkNtel Advisors in their recent research report. The governments of the UAE, Qatar, Saudi Arabia, etc., have developed comprehensive tourism development strategies as they have realized the potential of tourism for diversifying their economies away from the oil & gas sector. Hence, they are massively investing in the expansion of their respective tourism industries, owing to which there is an increasing number of lodging facilities like hotels, resorts, amusement parks, etc., in the entire region, i.e., augmenting the demand for EPS for insulation in walls, roofs, & floors.
Saudi Arabia has set a target to gain 10% of its GDP from tourism and attract 100 million tourists annually by 2030. Similarly, the UAE, in line with its ‘Tourism Strategy 2031’, has also planned to host 40 million hotel guests by 2030. These strategies are resulting in an ever-increasing construction of hotels across the region, i.e., propelling the expanded polystyrene market growth. Besides, the flourishing packaging industry, backed by the strong demand from e-commerce, food & beverage, & pharmaceutical industries, are also instigating the demand for EPS packaging products.
In addition, the automotive sector is another prominent area of opportunity for the key players operating in the GCC expanded polystyrene market, which owes to the increasing number of EV (Electric Vehicle) manufacturing facilities in Saudi Arabia, the UAE, etc., backed by government initiatives like tax rebates & subsidies, i.e., escalating the demand for EPS-based packaging & automotive parts, further states the research report, “GCC Expanded Polystyrene Market Analysis, 2023.”
White EPS to Exhibit Substantial Sales through 2028
White expanded polystyrene holds a sizable share of the GCC Expanded Polystyrene Market. It ascribes to its increasing use in a variety of industries, especially the construction sector, owing to its superior insulation capabilities, environmentally friendly nature, and the fact that it does not leach any chemicals into the ground. In addition, sports good manufacturers are also increasingly adopting white EPS for foaming purposes in products like boxing pads, hockey pads, helmets, etc. Moreover, the GCC's e-commerce sector is also booming due to the increasing penetration of the internet & smartphones.
As per International Trade Administration, in 2020, the UAE stood out in the arena of e-commerce with a remarkable surge, witnessing a substantial 53% growth and USD 3.9 billion in e-commerce sales, which constituted around 10% of total retail sales. The boom in the e-commerce sector and rapid population growth are benefitting the consumer goods sector, which, consequently, is accelerating the demand for white EPS and fueling the overall market growth.
With the Booming Construction Sector, the UAE Recorded Significant Market Growth
With the rapidly expanding construction industry, backed by various ambitious government projects, including UAE Vision 2030, the UAE has become a significant market for expanded polystyrene. The government has issued various new licenses for establishing production plants in the country. For instance,
- In 2022, Ministry of Industry and Advanced T
- echnology (MoIAT) issued 263 new licenses for new industrial production plants, i.e., a 20% increase from 2021.
Additionally, the rapid growth in the electronics, consumer products, & food manufacturing sectors has resulted in a flourishing packaging industry and, in turn, boosted the EPS consumption in the country. Furthermore, the UAE government's plans to increase tourism and diversify the economy are leading to increasing number of hotel & resort construction projects in the country, which would simultaneously boost the demand for EPS in the coming years.
With strategic initiatives, such as mergers, collaborations, & acquisitions, the leading market players, including BASF, Kaneka Corp., SIBUR Holding, BEWI, SUNPOR, Synthos, TotalEnergies, SABIC, Sundolitt Ltd., UNIPOL, Ravago Manufacturing, Styro Qatar, Al Muhaidib Polystyrene Production Company, Kuwait Styrene Company (TKSC), etc., are looking forward to strengthening their position in the GCC Expanded Polystyrene Market.
Key Questions Answered in the Research Report
- What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the GCC Expanded Polystyrene Market?
- What are the trends influencing the current scenario of the GCC Expanded Polystyrene Market?
- What key factors would propel and impede the industry across the region?
- How has the industry been evolving in terms of geography & product adoption?
- How has the competition been shaping across various countries?
- How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
- Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
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