VAE Emulsion Market

1.1 Introduction

The global VAE emulsion market is expected to witness significant growth and register a CAGR of 5.44% during the forecast period, 2018 to 2023. The primary factors projected to drive the growth of the global market are increasing adoption of VAE emulsion in the paints and construction industries and widespread use of the product in formulation of adhesives and sealants for packaging, flooring, and construction applications. The rise in the demand for VAE emulsion in construction of green buildings is likely to create lucrative opportunities to the manufacturers operating in the global market. However, the fluctuations in the prices of crude oil-based raw materials are likely to hamper the global market growth during the review period.

With the rising demand for advanced products, the adoption of high-quality, reliable, and high-performance paints and coatings has increased. In addition, the end users are increasingly emphasizing on the eco-profile of the materials used in paints and coatings. VAE emulsion is gaining popularity as binders in the paints and coatings industry, as it is highly efficient formulation with low VOC emission and cost-effective. VAE emulsion features excellent adhesion and cohesion balance, and comprises vital properties such as flexibility, gloss potential, and toughness. The demand for VAE emulsion in low-odor interior paints is increasing significantly owing to its excellent coalescing properties, reduced use of coalescing solvents, and less formulation cost. Less use of solvents enables the formulation of low VOC and odorless paints. Moreover, VAE emulsion offers coating properties such as low-temperature coalescence and mud cracking, without adding to the overall formulation cost of the paint.

Globally, the demand for solutions with minimal VOC is increasing in the coatings market. VAE copolymer emulsion is widely used in the architectural coatings as it has minimum environmental impact. It is developed without the use of alkylphenol ethoxylate (APEO) containing raw materials or formaldehyde donors, and hence contain low VOC. The VAE copolymers also provide considerable resistance to water, acids, and alkalis owing to their low spatial hindrance, high rotation freedom, and stable structure. Furthermore, the surging demand for highly efficient paints that comply with the stringent environmental regulations is likely to favor the growth of the global VEA emulsion market during the forecast period.

The global paints and coatings industry is mature and projected to witness healthy growth in the coming years. This growth can be attributed to high spending on construction activities globally, particularly residential construction. The architectural paints and coatings industry is one of the major consumers of VAE emulsion. The significant growth of the industry in the major economies of Asia-Pacific—such as China, India, and Japan—Europe, and the Americas is likely to boost the growth of the global VAE emulsion market during the review period.

Green buildings are designed to reduce the overall impact of the living and working environment on human health and nature. It can be achieved through efficiently using water, energy, and other resources and by reducing waste, pollution, and environmental degradation. The quality of air is a vital factor in green buildings. To maintain the air quality, it is essential to reduce VOC and other air impurities such as microbial contaminants. Construction materials and interior finishing products such as paints, coatings, and adhesives used during the design and construction of a building are selected accordingly to reduce the emission of toxic compounds and gases, such as VOC and formaldehyde. By avoiding the use of products that emit toxic compounds and considering environmentally friendly products, such as VAE emulsion, the quality of the interior environment in a building can be enhanced. VAE-based products are used as high-quality binders in construction chemicals, plasters, adhesives, engineered fabrics, and largely in paints and coatings applications. VAE emulsion-based products can be used during the construction of green buildings in insulation materials for flooring and roofing, owing to their excellent resistance to water, heat, and creeps. As low to zero VOC emissions are achieved with the use of these products, the demand for VAE emulsion in the sustainable constructions is expected to increase during the forecast period. Furthermore, the stringent environmental regulations by the governments across the globe and rising demand for green buildings are expected to propel the growth of the global VAE emulsion market in the coming years.

The rising concern regarding global warming, surging energy consumption, and stringent emission regulations across the globe are estimated to be the prime factors fueling the demand for green buildings. The rapidly growing construction sector in Asia-Pacific and increasing adoption of green buildings in the emerging economies, such as China, India, Singapore, South Korea, and Australia, are further expected to offer lucrative opportunities to the manufacturers of VAE emulsion during the assessment period.

The major raw materials used for manufacturing VAE emulsion are ethylene and vinyl acetate monomer (VAM), which are derived from crude oil. The growth of the global VAE emulsion market is expected to be mainly affected by the fluctuations in crude oil prices. From 2014 to 2015, the crude oil prices witnessed an approximate 65% decline due to low global demand. In 2016, the Organization of the Petroleum Exporting Countries (OPEC) and its allies decided to reduce crude oil production, which resulted in a continuous rise in the prices of petrochemical materials. In 2016, the crude oil prices increased by 45% to reach USD 53.72 from USD 37.04 in 2015 and again declined by 15% in November 2018. These untimely variations in the crude oil prices directly impact the prices of raw materials, which is likely to hinder the growth of the global market in the coming years.

Acrylic emulsion is one of the prime polymeric emulsions used in the paints and coatings industry. The product finds applications in formulations of adhesives and sealants, paints and coatings, construction additives, and furniture and polished wood, among others. Acrylic emulsion is mainly used as a binder and is an effective alternative to VAE emulsion in the paints and coatings, and adhesives and sealants applications. Acrylic-based emulsion also offers low odor and low VOC. The growing use of acrylic emulsion as an alternative to VAE emulsion is expected to be a major challenge for the manufacturers of VAE emulsion during the forecast period.