Styrenic Block Copolymer Market Size, Share & Trends Analysis Report By Product (SBS, SIS, SEBS, SEPS), By Application (Adhesives & Sealants, Footwear), By Region (North America, APAC), And Segment Forecasts, 2023 - 2030

Report Overview

The global styrenic block copolymer market size was estimated at USD 8.19 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2023 to 2030. Styrenic Block Copolymers (SBCs) are produced by ionic copolymerization of styrene, isoprene, and butadiene and are considered one of the largest volume commercial thermoplastic elastomers. The market is expected to be driven by the rising demand from various applications, such as footwear, adhesives & sealants, paints & coatings, polymer modification, paving & roofing, toys, and medical devices.

Rising positive coronavirus cases again in China and across the globe have boosted the demand for medical components, such as IV drip chambers, bags, and tubing, further propelling the market growth. On account of their molecular structure, SBCs possess processing characteristics of thermoplastics and mechanical properties of rubbers. SBCs consist of one soft elastomeric midblock and two hard polystyrene end blocks. The SBCs display good elastomeric properties once they solidify and exhibit higher tensile strength, compared to unreinforced vulcanized rubbers. The raw materials of SBCs, such as styrene, isoprene, and butadiene, are derived from derivatives of crude oil.

External factors that could affect the price of raw materials include the unpredictability of changes in laws or regulations, war, pandemics, political instability, production disruption, natural disasters, civil unrest, terrorist attacks, and degradation of transportation infrastructure used to deliver raw materials in any of the countries. Future supply-demand changes are likely to lead to volatility in the prices of SBC. The cost of these raw materials is also significantly influenced by the changes in energy prices. For instance, the ongoing eastern European geopolitical conflict between Russia and Ukraine has spiked energy prices, thus significantly imprinting its marks on the SBCs’ raw material prices. The U.S. dominated the market in North America in 2022.

Since the inception of the Interstate Highway System in 1950, the U.S. government has poured billions of USDs into the construction of new highways and roads. The growing number of automobiles running on roads has driven the U.S. government to fund new road and highway infrastructure projects to tackle congestion issues. Moreover, the U.S. government has also announced funding to modernize and repair existing roads, bridges, ports, rails, and intermodal transportation systems, which can drive the demand for asphalt modification, thereby fueling the demand for SBCs in the U.S. For instance, on August 11, 2022, the U.S. Secretary of Transportation announced that more than USD 2.2 billion have been awarded till the above-mentioned date to carry out the modernization of roads, bridges, rail, and ports infrastructure, indicating a positive market outlook for SBCs in the U.S.

Product Insights

Styrene Butadiene Styrene (SBS) was the dominant product segment in 2022 and accounted for over 34.0% of the overall revenue share. SBS falls under the category of unsaturated SBCs along with Styrene Isoprene Styrene (SIS). The polystyrene composition of SBS provides durability while the polybutadiene chain of the composition allows the material to be able to return to its original state upon stretching. SBS is most widely utilized in demanding, high-performance applications, such as adhesives & sealants, asphalt/bitumen modification, polymer modification, and vulcanized compounding. These copolymers display significant advantages for adhesives formulation since they work efficiently at processing temperatures & act like reinforced elastic rubbers under standard application conditions.

In addition, SBS is used in the modification of various polymers that include High Impact Polystyrene (HIPS), General Purpose Polystyrene (GPP), Acrylonitrile Butadiene Styrene (ABS), and bulk molding compounds. The outlook for SBS in polymer modification is expected to be positive due to the stable growth of automotive production in developed regions, such as North America and Europe, coupled with the increasing requirements for home appliances in developing regions, such as Southeast Asia and the Middle East. Styrene Ethylene Butadiene Styrene (SEBS), Styrene-ethylene Propylene Styrene (SEPS), and Styrene Isoprene Butadiene Styrene (SIBS) fall under the hydrogenated SBC category.

The presence of double bonds in the midblock structure of SIS and SBS makes them vulnerable to oxidative and thermal degradation. Hydrogenated SBCs, such as SEPS, SEBS, and SIBS, have more stability compared to unsaturated SBCs, thereby exhibiting an improved weathering resistance, thermal resistance, and the ability to withstand exposure to harsh outdoor environments. SEPS has excellent UV and heat resistance and is flexible & simple to process. By partially and selectively hydrogenating styrene-isoprene-styrene copolymers (SIS), SEPS can be produced. The hydrogenation process also increases thermal stability, weathering, and oil resistance along with the ability to withstand steam sterilization. The above-mentioned properties make SEPS useful in applications, such as hot melt adhesives, impact modification for engineering thermoplastics, and paving & roofing.

Application Insights

Adhesives & sealants emerged as the leading application segment and accounted for the maximum share of over 21.0% of the overall revenue in 2022. Hot-melt adhesives based on SBCs, plasticizing oils, and tackifying resins have been used frequently in the production of diapers. They are used to attach lightweight materials, such as polypropylene or polyethylene substrates to non-wovens, tissue, fabric, and paper, or to themselves. The narrow molecular weight distribution helps SBCs develop solubility more quickly and without the need for additional processes. SBCs also produce solutions with lower viscosities. Formulators can use this to raise the formulation’s solids content and lower the levels of VOC evaporation, making them useful in solvent-borne adhesives manufacturing, which requires higher cohesive strength.

Numerous agencies across the globe are continuously striving to lengthen the service life of pavements. In addition, the introduction of radial truck tires with 125 psi of pressure has increased the burden on existing pavements & highway infrastructures, which can drive the requirement for SBCs in asphalt modification. The increasing geriatric population & the subsequent increase in healthcare facilities have driven the demand for medical equipment, devices & materials with high waterproofing capabilities to reduce the risk of contamination & epidemics. These factors have led to the increasing use of HSBC in medical devices to impart desirable properties, such as long-lasting durability & pathogen resistance.

Regional Insights

Asia Pacific emerged as the regional leader and accounted for more than 34.55% of the overall revenue share in 2022. This is attributed to the strong demand from end-use industries, such as paving & roofing, footwear, adhesives & sealants, and medical devices. Rapid expansion in the construction sector influenced by the growing desire for affordable housing and government schemes promoting basic amenities is driving the growth in emerging economies, such as India, China, and Indonesia. China dominates the SBC market by volume in the Asia Pacific region. Prefabricated buildings are likely to become a major trend in China, with high demand for aesthetically appealing and sustainable materials, such as SBS.

Despite the current slowdown in the Chinese construction sector owing to the declining investment in China’s domestic real estate in 2022, according to the National Bureau of Statistics China, the market is still a lucrative industry to invest in as compared to other Western economies. North America accounted for the second-largest share in 2022. An increase in the adoption of SBCs in food packaging as stretch wrapping films, along with regulatory approval in the U.S. for the use of SBCs in medical applications such as medical tubing, is going to drive the regional market in North America. Strong demand from the footwear industry, coupled with a rise in the number of road development projects, is anticipated to further boost regional growth.

Key Companies & Market Share Insights

The global industry is fragmented and highly competitive with the presence of a number of multinational companies across major economies. Industry players cater to local as well as international markets. The companies lay high emphasis on increasing the area of operation to increase the market share. This provides the company with a different business portfolio that accounts for an increase in sales.

Companies are also seen collaborating with raw material suppliers to develop new products with the aim of strengthening their industry position. For instance, in March 2022, KRATON CORP. collaborated with SABIC to produce ISCC PLUS Certified, CirKular+ReNew Series HSBC at Kraton’s manufacturing facility in Berre, France from SABIC’s renewable butadiene that is derived from tall oil co-product during the wood pulping process. Some of the prominent players operating in the global styrenic block copolymer market are:

• LCY Group

• KRATON Corp.

• Zeon Europe GmbH

• Asahi Kasei Corp.

• China Petrochemical Corp.

• INEOS Styrolution Group GmbH 

• JSR Corp.

• Korea Kumho Petrochemical Co., Ltd.

• TSRC

• En Chuan Chemical Industries Co., Ltd.

• Denka Company Ltd.

• Kuraray Co., Ltd.

• Dynasol Group

• LG Chem

Styrenic Block Copolymer Market Report Scope

Global Styrenic Block Copolymer Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global styrenic block copolymer market report based on product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Styrene-Butadiene-Styrene (SBS)

  • Styrene-Isoprene-Styrene (SIS)

  • Styrene-Ethylene-Butylene-Styrene (SEBS)

  • Styrene-Ethylene-Propylene-Styrene (SEPS)

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Adhesives & Sealants

  • Footwear

  • Paving & Roofing

  • Polymer Modification & Compounding

  • Healthcare

  • Toys

  • Packaging

  • Wires & Cables

  • Paints & Coatings

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • The Netherlands

    • Sweden

    • Belgium

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Malaysia

    • Thailand

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • United Arab Emirates

    • South Africa