The South American polymer emulsion market is expected to register a moderate CAGR during the forecasted period, 2018-2023. The market is majorly driven by stringent government regulations regarding emissions. However, the availability of substitutes, such as high solid coatings and powder coatings are hindering the market.
Emulsion polymerization produces polymers with high molecular weight and very little viscosity which reduces VOCs emission. Volatile Organic Compounds (VOC) are the major problem of environmental concerns, therefore governments are enacting stringent policies to either curtail or completely ban them which is driving the market. In Brazil, the government has cooperated with EPA which has resulted in intensifying the regulations on environment degradation which are resulting in production of low VOC paints.
Based on product type, acrylic emulsion has a highest share and is expected to be the fastest growing segment, due to the recovering end-user industries like construction and automotive. This was because of rapid urbanization in countries, like Brazil and Colombia, which has resulted in growing population, rising disposable income, and the increasing residential houses, thereby driving the demand for acrylic emulsion. In Brazil, the government is planning to resume about 7,000 construction projects with an investment of BRL 131 billion. With programs like ‘My House, My Life’, the government is planning to provide affordable housing.
Brazil has the largest share in the South American region, however, Colombia has been witnessing a consistent growth over the period, and depicts huge potential market opportunities in the industry. This is because of the recovering construction sector which is in response to the rising consumer spending and growing investment by the foreign companies in infrastructure sector. In Colombia, the expansion of roads, airport, and ports, along with growing 4G contracts, which are based on the Public Private Partnership (PPP) law with US companies, is increasing the foreign investments in infrastructure sector. Therefore this growing infrastructure in Colombia is expected to drive the studied market in this region during the forecasted period.
Major Players: 3M, Akzo Nobel NV, Arkema SA, BASF SE, Clariant AG, DowDuPont, Synthomer PLC, and Wacker Chemie AG among others.
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