Vinyl Acetate Monomer (VAM) Market is Estimated To Witness High Growth Owing To Rising Demand in Adhesives and Coatings Industries
Vinyl Acetate Monomer (VAM) Market
The Vinyl Acetate Monomer Market is estimated to be valued at US$ 9.35 Bn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Vinyl acetate monomer (VAM) is used mainly in the production of polyvinyl
acetate and ethylene vinyl acetate copolymers. Polyvinyl acetate is used in the
production of adhesives and emulsions for wood coating, wallpaper and paper
coating. Ethylene vinyl acetate is used in the production of films for food
packaging and hot melt adhesives. VAM provides advantages like flexibility,
durability and resistance to moisture and chemicals to the products. Growing
demand from industries like building and construction, packaging and
transportation is driving the VAM market.
Market key trends:
One of the key trends driving growth in the VAM market is rising demand from
the adhesives industry. Adhesives containing VAM polymers exhibit high adhesion
strength even in difficult bonding applications and harsh environments. VAM is
widely used in production of polyvinyl acetate emulsions or redispersible
powders which are primarily consumed in wood flooring and furniture adhesives.
The global wood flooring adhesives market is estimated to grow at a CAGR of 5%
during 2023-2030. Growth in the building & construction industry especially
in Asia Pacific is also fueling demand for adhesives and coatings containing
VAM polymers, thereby boosting the VAM market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the VAM market is
moderate due to high capital requirements and the presence of established
players.
Bargaining power of buyers: The bargaining power of buyers is moderate as VAM
has applications in a wide range of industries and there are a number of
established manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw
materials for VAM such as ethylene and acetic acid are commoditized and
available from numerous suppliers globally.
Threat of new substitutes: The threat of substitutes is low as VAM has
established applications and there are no viable substitute products for its end
uses.
Competitive rivalry: is intense due to the presence of numerous global and
regional players.
SWOT Analysis
Strength: High demand from end-use industries such as construction,
electronics, textiles etc. Established production processes with integration
benefits for players.
Weakness: Fluctuations in raw material prices impact production costs.
Stringent environmental regulations regarding emissions.
Opportunity: Growing construction sector in developing nations driving demand.
Product and application innovations widening addressable market.
Threats: Slowdown in key end-use industries poses demand risks. Trade barriers
enacted by governments impacting supply.
Key Takeaways
The global vinyl acetate monomer market
size is expected to witness high growth, exhibiting CAGR of 8.6% over the forecast period, due to increasing demand
from the construction industry. Asia Pacific dominates the global market with
China being the largest producer and consumer of VAM globally. Key regional
markets include China, Europe, and North America.
The Asia Pacific region is expected to continue dominating the VAM market
during the forecast period, growing at a CAGR of around 9%, owing to robust
growth of end-use industries such as construction and packaging in China, India,
and other emerging economies. China represents over 50% of the global VAM
demand given its dominance in the construction sector.
Key players operating in the vinyl acetate monomer market are Celanese
Corporation Dairen Chemical Corporation, Japan VINYL ACETATE MONOMER &
POVAL Co. Ltd., Kuraray Co. Ltd., LyondellBasell Industries, Ningxia Yinglite
Chemical Co., Ltd., China Petroleum & Chemical Corporation (Sinopec Corp.),
The Dow Chemical Company, Wacker Chemie AG. Players are focusing on capacity
expansions and backward integrations to gain cost competitiveness and meet the
growing demand.
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