A number of factors such as the surging agricultural activities, increasing solar PV installation, and burgeoning demand for ethylene vinyl acetate in several industries are expected to drive the ethylene vinyl acetate market at 7.2% CAGR during 2021–2030. According to P&S Intelligence, the industry was valued at $7,060.8 million in 2021, and it will generate $13,149.7 million revenue by 2030. In recent years, the increasing number of mergers and acquisitions among leading players has become a key market trend.
A surge in agricultural activities, on account of the growing population, is expected to drive the demand for ethylene vinyl acetate in the future. As per the UNFPA, the global population will increase from 7.7 billion in 2020 to 9.7 billion by 2050 and could reach approximately 11 billion around 2100. The organization also states that Asia, Africa, Europe, Latin America and Caribbean, North America, and Oceania is home to 4.7 billion, 1.3 billion, 750 million, 650 million, 370 million, and 43 million people, respectively.
Moreover, the increasing PV installation, owing to the surging focus of governments and people on renewable energy, will also support the ethylene vinyl acetate market growth. As solar power is the cleanest renewable energy source and is available in abundance, developed and developing countries around the world are aggressively focusing on the installation of solar power plants. Ethylene vinyl acetate refers to a thermoplastic polymer that is used as an encapsulating agent in solar modules because it offers an insulating and sealing coating over PV cells.
The foam category, within the application segment, accounted for the largest share in the ethylene vinyl acetate industry in 2021. This was primarily on account of the booming end-use industries, such as building and construction, furniture, automotive, healthcare, consumer goods, sports equipment, and electronics, in emerging economies, such as China, India, and Thailand. The growth of these end-use industries can be credited to the economic growth of countries and the surge in disposable income of people. Owing to this factor, the category is expected to witness the fastest growth throughout this decade.
At present, the ethylene vinyl acetate industry is fragmented in nature, due to the presence of numerous players, such as ARLANXEO Holding B.V., Arkema Group, Asia Polymer Corporation, Braskem S.A., Celanese Corporation, Clariant AG, and The Dow Chemical Company. Nowadays, the market players are focusing on product launches to consolidate their position. For example, in August 2021, Braskem S.A. unveiled HD1954M, a new HDPE resin, which delivers rigidity, productivity gains, impact strength, and packaging optimization.
Globally, the APAC ethylene vinyl acetate market generated the highest revenue in 2021, and it is also expected to continue witnessing this trend in this decade. The dominance can be credited to the booming population, increasing urbanization and commercial activities, and mounting disposable income of people. Additionally, the flourishing footwear and packaging industries will also contribute to the market growth in the region. Furthermore, the APAC market is also expected to exhibit the fastest growth in the coming years, due to the burgeoning demand for durable plastic products from the PV panel, footwear, and pharmaceutical sectors.
Thus, the increase in agricultural activities and the wide-scale installation of solar power plants are expected to create a high demand for ethylene vinyl acetate across the world.
