Competitive Intensity Will Translate Into Tailor Made Chemistry R&D and Application Support
Emulsion polymers are used in paints and coatings, adhesives and sealants, paper and packaging, textiles, nonwovens, carpets, and construction chemical and material applications. The popularity of emulsion polymers (more than hot-melt- and solvent-based adhesives) and the growth in end-use applications will contribute to market growth over the next few years.
The only challenge emulsion polymers face is that of augmenting the limited profit margins they earn when compared to raw material suppliers and end-use industries. Raw material suppliers benefit from their significant R&D expertise and the subsequently limited barriers to entry that their niche business enjoys. Likewise, paints and coatings, and adhesive manufacturers exert influence over formulation recipes and application technologies, which translate into higher margins for them. As a result, emulsion polymer manufacturers face a profit margin backlash from both ends of the value chain.
Styrene-butadiene latexes (SBLs), acrylics, vinyls, alkyds, and others (various nitrile elastomer chemistries combined) are the chemistry types covered in the market study. The key applications considered are paints and coatings, adhesives and sealants, paper and packaging, textiles, nonwovens, and carpets, and construction chemical and material applications. For each of the end-use industry applications discussed, regional volume consumption and regional revenue estimates is analyzed, in addition to revenue and volume estimates by chemistry. The revenue share of the top emulsion polymer manufacturers has been discussed at a global level.
The growing requirement for tailor-made and sustainable, green chemistries is the challenge. Emulsion polymer manufacturers will also have to focus on developing direct sales channels to swiftly sell and cost-effectively distribute products to customers. They will have to either partner exclusively with regional distributors or focus on direct sales to leverage their capabilities for developing business. China, India, Southeast Asia, and LATAM will witness high growth in the next 7 years because of large, fast-growing end-consumer populations. All factors mentioned here will contribute to the demand for emulsion polymers over 5 to 7 years.
