Acrylic Emulsion Market

Acrylic Emulsions Market

The global acrylic emulsion market is valued at USD 11.5 billion in 2023 and is projected to reach USD 16.6 billion by 2028, growing at 7.6% cagr from 2023 to 2028. Acrylic emulsion serves as a foundational building block extensively utilized in diverse sectors, including paints, coatings, adhesives, textiles, and construction. This adaptable substance embodies a range of characteristics such as adhesion, durability, and flexibility, crucial for crafting high-caliber products that excel in meeting stringent performance standards while adhering to environmentally conscious principles.

Attractive Opportunities in the Acrylic Emulsion Market

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Acrylic Emulsion  Market Dynamics

Driver:Growing automotive industry in Asia Pacific

The thriving automotive industry in the Asia Pacific region is a significant driving force behind the growth of the acrylic emulsion market. With countries like China, India, Japan, and South Korea emerging as key players in automotive manufacturing, the demand for high-quality coatings and finishes has surged. Acrylic emulsions play a pivotal role in this scenario, as they offer exceptional properties such as durability, gloss retention, and weather resistance that are crucial for automotive coatings. As consumers in the region seek vehicles with superior aesthetics and longevity, manufacturers rely on acrylic emulsions to provide the desired finish and protection.

Furthermore, the shift towards eco-friendly practices in the automotive sector aligns perfectly with the characteristics of acrylic emulsions. These water-based formulations have lower levels of volatile organic compounds (VOCs) compared to solvent-based alternatives, thus contributing to better air quality and reduced environmental impact. As environmental regulations tighten and consumer preferences for sustainable products grow, the use of acrylic emulsions becomes more appealing for automotive manufacturers aiming to meet these requirements.

In essence, the rapid expansion of the Asia Pacific automotive industry creates a robust demand for top-quality coatings that enhance both the visual appeal and durability of vehicles.

Restraint: Substiution of acrylic emulsions by polyurethane dispersion especially in coating application

The substitution of acrylic emulsions by polyurethane dispersions, particularly in coating applications, presents a notable restraint to the growth of the acrylic emulsion market. Polyurethane dispersions offer specific performance advantages such as enhanced durability, chemical resistance, and superior adhesion, making them an attractive alternative in certain scenarios. As industries seek advanced solutions that meet evolving demands, the appeal of polyurethane dispersions can impact the market share of acrylic emulsions, particularly in segments where specialized properties are prioritized.

Opportunity: Emerging trend towards water-based emulsion

The escalating demand for water-based acrylic emulsions in emerging markets presents a significant growth opportunity for the acrylic emulsion market. As economies in these regions undergo rapid development, there is an increasing emphasis on sustainable and environmentally-friendly solutions. Water-based acrylic emulsions, with their low VOC content and alignment with stringent regulations, perfectly cater to this demand. The trend towards urbanization, coupled with a rising middle class, propels sectors like construction, automotive, and consumer goods - all of which can benefit from the advantages offered by water-based acrylic emulsions.

Challenge: Fluctuations in raw material cost

Raw material costs are a pivotal concern within the acrylic emulsion market due to their inherent volatility. The market dynamics governing the pricing of key components used in acrylic emulsion formulation are subject to intricate influences, including global supply chain disruptions, geopolitical shifts, and fluctuating demand-supply equilibrium. These variables can engender substantial variability in the cost structure of raw materials, exerting a direct impact on the production expenditure incurred in the synthesis of acrylic emulsions.

Acrylic Emulsion Market Ecosystem

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

Polymer & co-polymer type was the largest segment for acrylic emulsion market in 2022, in terms of value.

The acrylic emulsion market is characterized by two distinct categories: polymer acrylic emulsions and co-polymer acrylic emulsions. Polymer acrylic emulsions are derived from individual acrylic monomers, resulting in coatings and products with specific performance attributes tailored to particular needs. Conversely, co-polymer acrylic emulsions are synthesized by combining various monomers, allowing for the customization of properties to suit a wide range of applications. This segmentation offers an expansive spectrum of choices, empowering industries like paints, coatings, adhesives, and textiles to select emulsions that precisely align with their unique requirements.

"Adhesives & sealants  application was the second largest application for acrylic emulsion market in 2022, in terms of value."

The adhesives and sealants market is a pivotal sector spanning diverse industries. Adhesives create strong material bonds, while sealants provide leakage protection. This market thrives in construction, automotive, packaging, and manufacturing. Acrylic emulsions play a strategic role here. Known for robust adhesion, they create secure bonds and act as sealant foundations, offering flexibility and resilience. Amid the pursuit of sustainable bonding solutions, demand for acrylic emulsion-based adhesives and sealants is surging, intertwining their growth with the adhesives and sealants market's expansion.

"Asia Pacific was the fastest growing market for acrylic emulsion in 2022, in terms of value."

Asia Pacific was the fastest growing market for global acrylic emulsion market, in terms of value, in 2022. China is the largest market in Asia Pacific. It is projected to witness the highest growth during the forecast period considering of high usage of acrylic emulsion in the region for various application.

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Acrylic Emulsions Market Players

The key players in this market BASF SE (Germany), Dow Inc. (US), Arkema S.A. (France), Synthomer PLC (UK), Celanese Corporation (US), Avery Dennison (US), Covestro AG (Germany), DIC Group (Japan), Henkel (Germany), H.B. Fuller (US), Mallard Creek Polymers (US) Nippon Shokubai Co., Ltd. (Japan) and The Lubrizol Corporation (US).Continuous developments in the market—including new partnership, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of acrylic emulsion have opted for investment & expansion to sustain their market position.

Acrylic Emulsions Market Report Scope

This report categorizes the global acrylic emulsion market based on type, application, and region.

Based on type, the acrylic emulsion market has been segmented as follows:

• Polymer & co-polymer
• Pure Acrylic

Based on application, the acrylic emulsion market has been segmented as follows:

• Paints & coatings
• Adhesives & sealants
• Construction additives
• Paper coating
• Others

Based on region, the acrylic emulsion market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In March 2023, BASF SE has started construction a new production complex at its Verbund site in Zhanjiang, China, that includes plants for glacial acrylic acid (GAA), butyl acrylate (BA) and 2-ethylhexyl acrylate (2-EHA). 
• In february 2023, Celanese Corporation has announced the completion of an ultra-low capital project. This move supports significant growth in the acetyl chain’s downstream vinyl portfolio.
• In August  2022, Arkema S.A. introduced new acrylic polyol emulsion for industrial paints. It offers significantly lower VOC capabilities and performs well in 2K or 1K stoving systems.
• In August 2021 ,  Arkema S.A. acquired Ashland’s Performance Adhesives business, a first-class leader in high performance adhesives for industrial applications in the United States with a unique and innovative product portfolio. This move is perfectly aligned with the Group’s ambition to become a pure Specialty Materials player by 2024.
• In April 2021, Synthomer PLC has launched the Asia Innovation Center at Johar Bahru. This facility is fully operational and started to provide leadership in research and development for both Performance Elastomers and Functional Solutions business units which cover a wide range of industries including healthcare and protection, foam, carpet, paper, automotive, coating, construction, adhesive and textile

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