Market Trends of Vinyl Acetate Ethylene (VAE) Industry
This section covers the major market trends shaping the Vinyl Acetate Ethylene (VAE) Market according to our research experts:
Blooming Demand in the Adhesives segment
- Vinyl acetate-ethylene (VAE) can be formed into adhesives for a range of applications, including paper and packaging (food packaging, envelope production, film lamination onto paper), wood (film lamination onto wood, 3D membrane pressing, EPI systems), and flooring (textile flooring, flexible coverings), among others.
- VAE adhesives have processing qualities comparable to PVA'c but bind better to non-porous surfaces, such as coatings, plastic laminates, vinyl, metals, glass, aluminum, and others.
- Copolymeric adhesives based on VAE also provide a more flexible adhesive sheet, higher water resistance, and superior processing qualities. VAE adhesives provide great temperature resistance, plasticizers, and strong adherence to a variety of supports.
- The expansion of e-commerce and retail sales is predicted to enhance the demand for VAE-based adhesives. These adhesives are also utilized in packaging, woodworking, furniture, and automotive applications.
- According to a report published by Packaging Machinery Manufacturers Institute (PMMI), an association for packaging and processing technologies, growth in the global packaging industry reached USD 42.2 billion in 2021, up from USD 36.8 billion in 2016, owing to the rising population, growing sustainability concerns, increased spending power in developing regions, rising demand for smart packaging, and other factors.
- The domestic or home market and the commercial or office market are the primary sources of demand for the furniture industry. Furthermore, wood accounted for around 65% of all furniture markets in India.
- China is the world's second-largest user of wood. According to the China Association of Forest Products Industry, the country's wood consumption surged by more than 170% during the last decade.
- Furthermore, commercial construction is the second-largest value supplier for the overall construction industry in the United Kingdom, accounting for nearly 25% of the market share when repair and maintenance are factored in. The rise in wood interior design in office spaces is a major component driving the demand in the market .
- All the aforementioned factors are expected to drive the furniture industry, which may also impact the demand for VAE-based adhesives during the forecast period.
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China to Dominate the Asia-Pacific Region
- China dominates the Vinyl Acetate Ethylene (VAE) market in terms of market share and market revenue. The region is set to continue to flourish in its dominance over the forecast period.
- According to European Coatings, China is home to almost 10,000 coatings manufacturers. The majority of the world's leading coating manufacturers, including Nippon Paint, AkzoNobel, Chugoku Marine Paints, PPG Industries, BAF SE, and Axalta Coatings, have manufacturing facilities in China. Paint and coatings manufacturers have increased their investments in the country.
- The demand for vinyl acetate-ethylene is expected to rise over the projected period because of the rising demand from the construction, packaging, textile, and other end-user sectors.
- Currently, the construction industry is flourishing in China. The country is the world's largest construction market, accounting for 20% of all global construction investments. By 2030, the country will have spent approximately USD 13 trillion on construction.
- According to the National Bureau of Statistics of China, construction output in China was worth approximately CNY 29.31 trillion in 2021. As a result, it has generated significant demand for the market under consideration.
- The country's expansion has been fueled by numerous developments in the residential and commercial construction sectors, which have been aided by the expanding economy. In China, the Hong Kong housing authorities launched several initiatives to begin the construction of low-cost housing. Officials hope to build 301,000 public housing units over the next ten years, until 2030.
- According to the National Bureau of Statistics of China, the amount of textile output in China was 12.4 billion meters in the first four months of 2022, up from 11.8 billion meters at the same time in the previous year.
- Furthermore, the Chinese government envisions Xinjiang as a "hotbed" for textile and clothing manufacturing and has spent USD 8 billion in the region. By 2030, it is expected that China's northwest region will have become the country's most extensive textile production base .
- Thus, all the above-mentioned factors are likely to boost the demand for the vinyl acetate-ethylene market during the forecast period.
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