European demand for polymer emulsions is likely to sustain a CAGR of about 5.5% between 2015 and 2020 as the result of stringent regulations enacted by governments in relation to curbing VOC emissions. Germany is the largest as wel as, the fastest growing market for polymer emulsions in the region, accounting for an estimated 33% share in 2015. It is envisaged to record a compounded annual rate exceeding 6% during 2015-2020 anlysis period. Though demand for acrylic emulsions in Europe is the largest, growth for vinyl emulsions is likely to surpass other product types by registering a compounded annual rate of about 5.5%. In terms of application, paints & coatings are the largest consumers of polymer emulsions in the region, with prospects for their demand growth also, the fastest.
Emissions of volatile organic compounds (VOCs) has been a constant topic of discussion among the several environmental concerns; as a consequence of which, governments across the world are enacting stringent policies to either curtail or completely ban them. This has led to the emergence of the technique of emulsion polymerization that is capable of producing polymers with high molecular weight and very little viscosity. Polymer emulsions employ a wide variety of ingredients in their production, including monomers, co-monomers, initiators, surfactants and non-surfactant stabilizers, among others. Growing awareness with regard to the adverse effects of VOC emissions which are present in a majority of solvent based products have resulted in generating greater demand for emulsion polymers, which are low in VOC content. Major industries that use polymer emulsions include paints & coatings, paper & paper-board and adhesives, with all of them focusing on reducing VOC emissions.
With the automotive and building & construction industries making a rebound, demand for paints & coatings is also expected to witness growth, in turn, fueling the market for low-VOC polymer emulsions used in their production. Other factors instrumental in driving growth include resurgence in the paper & paperboard industry and greater demand for adhesives & carpet backing.
By product type, acrylic emulsions dominate the global polymer emulsions market, accounting for an estimated share of about 39% in 2014. In terms of growth, the demand for vinyl emulsions is likely to surpass the other segments by recording a robust CAGR of 8.5% over 2014-2020. Several of the major end-uses of vinyl emulsions, such as adhesives, paper & paperboard coatings and paints & coatings would be instrumental in fueling the demand for this category of polymer emulsions. Demand for polyurethane (PU) dispersions is also anticipated to maintain healthy growth during the analysis period. The market is segmented by product type (Acrylics, Polyurethane dispersions, Styrene butadiene latex, Vinyl and other polymer emulsions), by their application (Paper and paper coating, adhesives and carpet backing, paints and coatings and other applications) and regionally (North America, Europe, South America and Asia-Pacific). The key players are 3M Company, Clariant, Royal DSM NV, Nuplex Industries Inc., and Sumitomo Chemicals.
Increasing use in end use industries and an increasing demand for VOC free products.
The raw material prices are very high thus making the end product more expensive.
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