by Vinyl acetate monomer or VAM is an important raw material used in the production of polyvinyl acetate and polyvinyl alcohol. It is used to manufacture adhesives, paints and coatings, textiles, films and foams. Adhesives made using VAM have excellent bonding strength and are water resistant. They are used in woodworking and construction applications. Films produced from VAM are transparent, tough and heat sealable. They have wide application in food packaging. Foams made from VAM have applications as cushioning and thermal insulation materials. The growing construction industry driven by increasing housing and commercial construction projects worldwide is driving demand for adhesives, paints and coatings which in turn is pushing growth of the global vinyl acetate monomer market.
The global vinyl acetate monomer market is estimated to be valued at US$ 9.35 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Strict regulations around the world are pushing manufacturers to reduce the environmental impact of VAM and its end products. Companies are investing in R&D to develop bio-based and recyclable alternatives. They are also working on new production technologies to reduce emissions and waste during manufacturing. Another trend is the growing demand from emerging economies of Asia Pacific and Middle East & Africa. Rapid industrialization and infrastructure growth in these regions driven by rising population and GDP is propelling growth of end use industries such as construction and packaging. This in turn is expected to fuel demand for VAM over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as VAM production requires large capital investments to build manufacturing facilities. Significant R&D is also required to produce VAM efficiently.
Bargaining power of buyers: The bargaining power of buyers is moderate as VAM has applications in various end-use industries. Buyers can negotiate on price to some extent.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials for VAM production like ethylene and acetic acid are produced by major chemical companies globally.
Threat of new substitutes: The threat of substitutes is low as there are limited substitutes for VAM in end-use industries like paints, adhesives, textiles etc.
Competitive rivalry: The competitive rivalry is high due to the presence of major players globally. Players compete on the basis of product quality, price and customer relation management.
Key Takeaways
The Global Vinyl Acetate Monomer Market Size is expected to witness high growth over the forecast period. The global vinyl acetate monomer market is estimated to be valued at US$ 9.35 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
Asia Pacific dominates the global market with major VAM production facilities located in China, India and Japan. Growth in the region is expected to remain high driven by rising demand from the construction and automotive industries. Europe is another major regional market for VAM led by Germany, Italy and France. Strong presence of adhesives, paints, and coatings industries drives the regional demand. North America witnesses moderate growth supported by the United States.
Key players operating in the vinyl acetate monomer market are Celanese Corporation, Dairen Chemical Corporation, Japan VINYL ACETATE MONOMER & POVAL Co. Ltd., Kuraray Co. Ltd., LyondellBasell Industries, Ningxia Yinglite Chemical Co., Ltd., China Petroleum & Chemical Corporation (Sinopec Corp.), The Dow Chemical Company, Wacker Chemie AG. Players are expanding their production capacities and setting up facilities in fast growing regions to strengthen market position.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
