Styrene Butadiene Styrene Market

The global styrene butadiene styrene market is projected to witness healthy growth during the forecast period of 2019 to 2025. The prominent factor favoring the growth of the global market is the increase in demand for styrene butadiene styrene in footwear sole manufacturing. The increasing use of styrene butadiene styrene in the major end-use industries such as building & construction and footwear industry, coupled with the healthy growth of these industries is expected to support the growth of the global market during the forecast period. However, fluctuating raw material prices is likely to hinder the growth of the global market during the review period. Nevertheless, the projected rise in demand for styrene butadiene styrene in the diverse end-use industries such as medical and adhesives & sealants is expected to create lucrative opportunities for the manufacturers of styrene butadiene styrene in the near future.

Styrene butadiene styrene (SBS) has a broad range of applications in diverse industries such as building and construction, footwear and consumer goods. However, it has been widely used in the manufacturing of the sole in the footwear industry. This is mainly due to its properties that are abrasion resistance, softness, lightweight, tear strength and durability. It is used in extensively in shoe material, for both appearance and functionality of shoe accessories, soles, heels, and insoles. It has been used in a wide range of shoes, including casual shoes, slippers, sports shoes, as well as medical shoes. SBS offers excellent adhesive properties so that it binds with any material with excellent wear resistance, lightweight and durability. Moreover, SBS provides waterproof soles with low-cost manufacturing and higher profit margins than conventional vulcanized rubber. According to RubberWorld, around 40% of the SBS supply is consumed by the Chinese footwear industry. Thus, the growth in the global footwear industry has a direct impact on the growth of the global styrene butadiene styrene (SBS) market.

The global footwear industry is at the boom and is likely to expand by 1.5 times throughout the forecast period. The growth in the footwear industry is mainly attributed to the increased demand for functional and lightweight shoes. With the increased consumer awareness, the demand for fancy coupled with comfortable shoes has increased. Moreover, with the rising consumer participation in sports and fitness activities further drives the demand for athletic shoes. Also, favorable government regulations on the footwear manufacturing and the material deployed is likely to boost the global demand of the styrene butadiene styrene market. In addition to this, the growing demand for synthetic rubbers over natural rubbers in the manufacturing of shoe soles is further driving the growth of SBS in the footwear industry.

Thus, the positive outlook in the footwear industry is driving the growth of the styrene butadiene styrene market globally.

Global Footwear Industry: Factor-Impact Analysis

SR. NO.

FACTORS

IMPACT

1.

REBALANCING

Emerging markets is expected to grow, becoming attractive destination for many companies and brands. Consumption growth will shift from conventional traditional developed markets to emerging ones. Moreover, the manufacturers are focusing their attention on Asian markets where they already have manufacturing units.

2.

AGEING

With the growing elderly population, the demand for footwear will focus on comfort shoes without compromising lifestyle. Different characteristics like usability, reliability and a long life cycle will be valued. Further, a new segment will emerge that is medical footwear which will demand for functional shoes.

3.

FEMALE POWER

With the growth in working women population and higher female education level, the demand for women shoes is likely to increase. Further, importance of fashion, especially to the young professional women will increase the demand for fashionable shoes and accessories.

4.

GLOBALISATION

Globalisation is taking new shape, cities will attract more people and intense migration will be observed in the coming future. These will be highly influenced by social phenomena and global citizenship. With the rise in globalisation, their will be increase in brand awareness amongst consumers and organized retail sector in the urban areas which will boost the demand for footwear industry.

5.

ONLINE

Growing online platforms such as Amazon, Walmart, etc. and rising internet penetration globally is likely to increase the sales of footwear industry. Manufacturers engaged in footwear industry are actively using online platforms to boost their sales.

Source: Wantstats Analysis

The global demand for the medical device industry was pegged at around USD 390 billion in 2018and is projected to witness a healthy growth in the coming future. The growth is mainly attributed to the increasing demand from end-use industries, high demand for advance technologies in the healthcare sector and rising government investments in the healthcare sector. Thermoplastic elastomers have long been used in the medical device industry and has gained huge momentum over the last five years. Usage of TPEs in medical tubing has benefitted the hospitals due to the polymer’s high extrusion rates and capability to endure high temperatures. They are also utilized in devices including gaskets and stoppers. However, medical-grade compounds are subject to pre-testing to standards such as ISO 10993 biocompatibility standards. The major application for SEBS in medical devices includes soft-touch surfaces, tubing, catheters, grips, vial closures, drug delivery, and monitoring patches and connectors among others. They provide the perfect solution for the demand for sterile medical-grade devices in clinical settings. Therefore, with the advancement in technologies, the global market is expected to create a lucrative opportunity in the coming forecast period.

Styrene butadiene styrene is generally produced by the copolymerization of butadiene with styrene. Thus, the fluctuation in prices of any raw material i.e. styrene and butadiene will highly affect the growth of the market. The production of butadiene, which is a major coproduct in the manufacture of ethylene by steam cracking where naphtha fractions are used as feed. The dependency of butadiene on crude oil derivatives has a negative impact on the global SBS market. Petroleum is a highly concentrated energy source and the present global transportation systems are almost completely dependent on it. As a result, the world economy is at risk if oil supplies are disrupted in any of the relatively few countries that are significant oil exporters. Additionally, the increasing demand for petroleum products in almost every end-use industry and the limited supply is expected to restrain the growth of the market. Global styrene prices have witnessed a downward trend in the last few years. This is mainly due to the oversupply of styrene due to rising capacities in China and declining demand from downstream markets. Furthermore, reduced manufacturing output and global economic crisis due to the coronavirus outbreak is expected to have a huge impact on the raw material prices and oil & gas industry. Thus, fluctuation in the raw material prices can be observed in the coming years, which is likely to hamper the market growth during the review period.

China accounts for more than 40% of the global chemical manufacturing industry, which has taken a toll due to the outbreak of Coronavirus in China. This has resulted in disruption in the supply chain as a result of shutting factories and businesses, canceled air transport routes, and lockdowns.

In response to prevent its workers from COVID-19, Eastman Chemical Company confirmed that operations are halted by its plant in Wuhan, China. Covestro, a leading polymer producer, predicts that its earnings in Q1 2020 will drop by USD 64.96 million (~€60 million) because of the Chinese Government restrictions on manufacturing plants. Shuanghuan Chemical, a Hubei-based company focused on chlorine chemistry, said that half of its revenues come from Hubei and that its first-quarter earnings will be severely impacted by the coronavirus epidemic.

Moreover, Hengli Petrochemical said that it has reduced its crude oil processing rate by 90% at its 400,000 bpd refinery and petrochemical complex in Dalian, China. The company also shut one of its reforming units which has a production capacity of 3.2 million tons per annum. The shutting of these factories and businesses has resulted in insufficient availability of raw materials, thereby creating a spike in raw material prices and affecting the production at a global scale.

According to the UN Economists, there has been a trade deficit of USD 50 billion in February 2020 alone. However, to conclude, the actual effect of COVID-19 on the global supply chain across various sectors would become clearer in the upcoming months.