Ethylene vinyl acetate market is estimated to be valued at USD 8.79 Billion in 2024, growing at a CAGR of 4.1% over the forecast period (2024-2031). The market is primarily driven by rising construction activities worldwide and growth in the packaging industry. Furthermore, EVA finds widespread application in solar cells owing to its compatibility with various encapsulation methods, high transparency, flexibility, and excellent resistance to moisture and oxygen permeation.
The growth of the global ethylene vinyl acetate market is determined by two key drivers - the increasing construction activities and rising demand from the packaging industry. The expanding construction industry has significantly driven the consumption of ethylene vinyl acetate (EVA) as it is used in various construction applications such as insulation, glazing, roofing, and housing wires & cables. Moreover, the thriving packaging sector has augmented the market growth owing to the rising usage of EVA in flexible packaging of food & beverages, pharmaceuticals, and personal care products due to properties like puncture resistance and flexibility. EVA provides an excellent balance of mechanical and optical properties, durability, and flexibility, which has resulted in widespread adoption across various end-use industries.
Increasing Demand from Packaging Industry is Driving the Global Ethylene Vinyl Acetate Market
The packaging industry has seen significant growth over the past few years owing to the rise of e-commerce and demand for convenient packaging solutions. Ethylene vinyl acetate (EVA) is widely used in making flexible packaging due to its excellent flexibility, puncture resistance and impact strength. It is used to produce materials like shrink bags, stretch films, barrier films and liners. The growing packaging industry globally is fueling the demand for EVA-based packaging products, thereby propelling the ethylene vinyl acetate market. Between 2020 and 2027, the packaging industry is expected to grow at over 4% annually which will continuously drive EVA consumption.
Growing Demand from Solar Panel Manufacturing is Augmenting the Market Growth
EVA encapsulant sheets are extensively used in the manufacturing of solar photovoltaic modules and panels. EVA protects the solar cell from environmental factors like moisture and helps in binding the solar cells together. The increasing focus on renewable energy sources and rising solar power installations worldwide has substantially increased the demand for EVA in solar panel manufacturing. The global solar panel market is set to grow at around 8% each year till 2027. This rapid expansion of the solar industry will keep driving the consumption of EVA, thus supporting the market growth.
Volatility in Crude Oil Prices Poses a Threat
Ethylene and propylene, the key feedstock used in EVA production, are derivatives of crude oil and natural gas. Fluctuations in crude oil prices can negatively impact the prices of ethylene and propylene. As volatile oil prices drive up the production costs, ethylene vinyl acetate manufacturers are often left with no option but to transfer the additional costs to the consumers. This makes EVA products expensive for end users. Unstable crude oil pricing poses a significant restraint on the consistent growth of the EVA market.
Stringent Environmental Regulations Can Hamper Market Prospects
EVA raises environmental concerns due to the release of toxic vinyl acetate monomer (VAM) during manufacturing and processing. Many countries have imposed stringent regulations regarding VOC emissions from EVA production facilities. Additionally, the use of non-biodegradable EVA in packaging and its incineration creates harmful emissions. Growing environmental awareness and strengthening regulations threaten to slash the EVA demand, especially in the packaging sector. Tighter norms for pollution control may increase the compliance cost for EVA manufacturers and discourage industry growth.
Emerging Opportunities in Medical Device Manufacturing
EVA is gaining popularity in the healthcare sector owing to its biocompatibility. It is replacing older materials like polyvinylchloride (PVC) and latex in medical device manufacturing due to its non-allergenic properties. EVA finds wide application in producing items like blood bags, IV tubing, medical tubing, wraps, and tapes. The booming medical device market presents lucrative opportunities for EVA producers. The market value of EVA used in medical devices is projected to rise at approximately 6% year-on-year until 2027.
Growing Consumption in the Wire and Cable Industry
EVA derivatives are increasingly employed as insulation materials for power cables, communication cables, automotive wire and cable, and building wires. EVA provides benefits like flexibility, heat resistance, and resistance to environmental factors. The rising use of EVA in insulation coatings for low and medium voltage cables boosts its consumption. Meanwhile, the expanding global wire and cable industry aided by power grid improvements and 5G rollout offers potential opportunities. The Asia Pacific region in particular shows high market potential led by countries like China and India.
*Link: https://www.coherentmarketinsights.com/market-insight/ethylene-vinyl-acetate-market-5278
Key Developments
- In 2021, Sinochem Quanzhou Petrochemical inaugurated its Ethylene Vinyl Acetate (EVA) plant.
- In May 2020, Arlanxeo, a leading global manufacturer of synthetic rubber, set up its headquarters in The Hague, Netherlands. This strategic move was aimed at strengthening Arlanxeo's ties with its parent company.
- In February 2020, Dow Inc. revealed plans to increase the capacity of its ethylene production facility in Canada by 130 kilotons. This expansion marked a significant step in Dow Inc.'s growth strategy and commitment to meeting market demands.
- In 2020, Tosoh Corporation commenced the full-scale operation of its new main research building located in Shuangliu, China. This strategic move strengthened Tosoh's research and development capabilities in the region, allowing the company to better serve its customers and drive innovation.
Key Players
Exxon Mobil Corporation, Dow Inc., LyondellBasell Industries N.V., Celanese Corporation, E.I. du Pont de Nemours and Company, Hanwha Chemical Corporation, Braskem S.A. , LG Chem Ltd., Arkema S.A. , Saudi Basic Industries Corporation, BASF SE , Formosa Plastics Corporation , TotalEnergies SE , Eastman Chemical Company, Westlake Chemical Corporation, Tosoh Corporation , China Petrochemical Corporation, Borealis AG (Austria), China National Petroleum Corporation , and INEOS Group AG
