VINYL ACETATE MONOMER MARKET ANALYSIS

Global Vinyl Acetate Monomer Market was valued at US$ 9.35 Billion in 2022 in terms of revenue, exhibiting a CAGR of 6.1% during the forecast period (2023 to 2030).

Global Vinyl Acetate Monomer Market – Growth Driver

Rising infrastructural investment is fueling market expansion.

Vinyl acetate is one of the most important monomers in making adhesives, and its increased adhesive, fiber-forming, optical, and The market CAGR is being driven by electrical capabilities. It is an important chemical component used in the manufacture of both industrial and consumer items. Consumer and industrial goods created from polymers and copolymers employing VINYL ACETATE MONOMER as a precursor include PVA/PVAc (polyvinyl acetate/polyvinyl acetals), PVOH (polyvinyl alcohol), EVA (ethylene vinyl acetate), and EVOH (ethylene vinyl alcohol). During the projected period, it is predicted that increased infrastructure investment, particularly in developing nations in Asia Pacific and Latin America, would boost demand for paints and coatings, which will be advantageous for the Global Vinyl Acetate Monomer Market. Because they have little adverse effects on the environment, vinyl acetate-ethylene (VAE) copolymers are perfect for coating architectural surfaces. For Instance 2021, Wacker Chemie AG officially ramped up its new production plant for vinyl acetate-ethylene copolymer (VAE) dispersions at its Nanjing site (Jiangsu province, China). With the additional 60,000 metric tons from the second reactor line, the local VAE dispersion capacity is doubling to a total of 120,000 metric tons per year. The plant complex is thus one of the largest of its kind in China.

Increasing demand across a range of end industries

The primary raw material used to make polyvinyl acetate, polyvinyl alcohol, and ethylene vinyl acetate is Vinyl Acetate Monomer. Polyvinyl acetate has excellent adhesive qualities for a variety of materials, including paper, wood, plastic films, and metal. The market is being driven by the rising demand for adhesives from numerous industries, including the furniture and construction sectors. For instance, in 2021, Asian Paints plans to establish a new VINYL ACETATE MONOMER production plant in India, which will have the capacity to produce 100 thousand tons of VINYL ACETATE MONOMER per year. VINYL ACETATE MONOMER produced by that plant will be used as raw material for ethylene-vinyl acetate emulsion (VAE) and other products.

Global Vinyl Acetate Monomer Market – Restraints

Regulatory Challenges

In the rapidly growing global Vinyl Acetate Monomer (VINYL ACETATE MONOMER) market, regulatory challenges emerge as a significant challenge. Stringent government regulations regarding environmental sustainability, worker safety, and product quality standards pose obstacles for manufacturers and suppliers operating in the industry. Compliance with these regulations often requires significant investments in equipment upgrades, waste management systems, and emission control measures, increasing operational costs. Also, obtaining necessary permits and certifications adds complexity and time delays to market entry and expansion. These regulatory hurdles hinder the growth potential of the Global Vinyl Acetate Monomer Market, creating barriers for both domestic players and international investors seeking to capitalize on the country's market opportunities.

Global Vinyl Acetate Monomer Market – Impact of Covid 19

The COVID-19 epidemic had a huge effect on the Vinyl Acetate Monomer business and disrupted the whole sector. Manufacturing processes and supply networks encountered previously unheard-of difficulties as the virus spread and lockdown measures were put in place. Due to decreased automobile and construction activity as well as the temporary closure of several production facilities, the industry experienced a reduction in demand. The import and export of VINYL ACETATE MONOMER were further impacted by trade restrictions. Additionally, manufacturing and distribution were hampered by a lack of labor and logistical challenges, which increased costs and delayed supplies. Despite the industry's ongoing recovery, the COVID-19 pandemic unquestionably had a long-lasting effect on the Vinyl Acetate Monomer (VINYL ACETATE MONOMER)

Global Vinyl Acetate Monomer Market – Market Trend

One of the current industry trends is the manufacturer focusing more on production capacity by building new plants. For instance, in order to build a new Vinyl Acetate Monomer (VINYL ACETATE MONOMER) facility in Hull, INEOS committed US$ 150 million there in February 2020. The facility should be able to generate 300,000 metric tons (m.t.) annually. The new factories support U.K. exports to Europe and the rest of the globe as well as U.K. product manufacture. A rising trend in the market is the supply agreement of catalysts between manufacturers for business growth. For instance, in July 2020, KBR entered into a partnership with Sheng Hong Refining Petrochemical (Lianyungang) Co. Ltd., China, where KBR will supply a proprietary catalyst for a Sheng Hong’s grassroots 300 KTA Vinyl Acetate Monomer (VINYL ACETATE MONOMER). The unit represents the first commercial VINYL ACETATE MONOMER technology license and engineering contract under an alliance agreement between KBR and Showa Denko K.K. (SDK).

Global Vinyl Acetate Monomer Market – Market Segmentation

Asia Pacific region dominated the Global Vinyl Acetate Monomer Market accounting for a 46.2% share in terms of value.

Figure 1: Global Vinyl Acetate Monomer Market Value Share (%), By Region, 2022

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Global Vinyl Acetate Monomer Market – By Application

Figure 2: Global Vinyl Acetate Monomer Market Value Share (%), By Application, 2022

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On the basis of application, polyvinyl acetate segment has accounted for the largest market share of 46.20% in terms of value, followed polyvinyl alcohol and ethylene-vinyl acetate segment respectively.

Global Vinyl Acetate Monomer Market – Recent Development

• In February 2023: Celanese Corporation announced the completion of an ultra-low capital initiative to repurpose existing manufacturing and infrastructure assets to enable extra ethylene vinyl acetate (EVA) capacity at its Edmonton, Alberta site. The development will help the Acetyl Chain's downstream vinyl offering expand significantly.

• In February 2023: Celanese Corporation announced the completion of an ultra-low capital initiative to repurpose existing manufacturing and infrastructure assets to enable extra ethylene vinyl acetate (EVA) capacity at its Edmonton, Alberta site. The development will help the Acetyl Chain's downstream vinyl offering expand significantly.

• In May 2021, Japan Vinyl Acetate Monomer & Poval Co. Ltd. (JVP) is increasing its production capacity tenfold for polyvinyl alcohol (PVA)
• In September 2022, The Mitsubishi Chemical Group (the MCG Group) hereby announces that it has decided to establish a new facility at the Okayama Plant to enhance the production capacity of GOHSENX™ and Nichigo G-Polymer™, specialty brands of polyvinyl alcohol resin (PVOH resin). The facility is scheduled to start operation in October 2024.

Global Vinyl Acetate Monomer Market – Key Companies

Major players operating in the Global Vinyl Acetate Monomer Market include 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 

*Definition: Vinyl Acetate Monomer is an organic compound that is produced by the reaction of ethylene and acetic acid with oxygen by using a palladium catalyst. It is one of the key chemical compounds used to produce various industrial and consumer goods such as polymers and which are further used in coatings, wire, and construction materials.