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Polystyrene Foam Procurement Category Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld Inc.

Mar 21, 2015, 04:00 ET

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Los Angeles, California (PRWEB) March 21, 2015 -- Polystyrene foam has a buyer power score of 3.3 out of 5. This score indicates that neither suppliers nor buyers have a distinct advantage in negotiations. Major vendors in the market include Dart Container Corporation, Reynolds Group Holdings and the Dow Chemical Company.

Prices are forecast to rise at a faster in the next three years rate due to strengthening consumer spending and construction activity in addition to anticipated growth in suppliers' input costs

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During the past three years, rising demand has enabled suppliers to raise the price of polystyrene foam, which has hampered buyer power. According to IBISWorld market research analyst, Jeffrey Cohen, "Consumer spending has increased, which has caused retailers, food and beverage container manufacturers, and packaging companies to experience greater demand for their products and services." In response, these buyers have boosted their demand for polystyrene products. Also during this period, the value of private nonresidential construction rose strongly. As the construction sector improved, demand for polystyrene products from construction companies also increased. These trends, along with a rise in the number of businesses, which has also driven up demand for polystyrene foam, has led to suppliers increasing polystyrene product prices.

However, there have been factors that have improved buyer power. "For instance, the world price of crude oil and the price of plastic materials and resin, which are key inputs in the manufacturing of polystyrene products, have declined," says Cohen. Declines in the prices of these inputs have caused suppliers to limit the rate at which they increase product prices. Another factor that boosts buyer power is the high availability of substitutes, which enables buyers to leverage their access to alternatives to negotiate better terms during the negotiation process. Lastly, price volatility has been low during the past three years. As such, buyers are better off purchasing polystyrene products now because prices are anticipated to rise at a faster rate during the next three years. For more information, visit IBISWorld’s Polystyrene Foam procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of polystyrene foam, particularly expanded polystyrene (EPS), which is a rigid and tough closed-cell foam. EPS foam is used to manufacture finished products, such as foam cups and containers, packing materials and building insulation materials. In this report, the term polystyrene products will refer to polystyrene foam as a raw material (EPS foam) and as finished products. Key buyers of polystyrene products include food and beverage container manufacturers, construction companies and packaging suppliers. The primary types of suppliers are manufacturers and wholesalers. Polyurethane foam is excluded from the scope of the report.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]

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