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Valued at $10,949.9 million in 2018, the global acrylates market is projected to surpass $12,593.8 million by 2024, demonstrating a CAGR of 4.9% between 2019 and 2024.
Among all regions, the demand for acrylate-based products is expected to grow at the fastest pace in Asia-Pacific (APAC), due to the growing population, rapid urbanization, and increasing disposable income. These factors are leading to an ever-increasing downstream demand for paints & coatings, adhesives & sealants, textile chemicals, leather chemicals, and acrylic fibers in the construction, automotive, and chemical industries.
Furthermore, the increasing investments in construction activities in China, Japan, South Korea, and India and other South Asian countries is likely to generate a high demand for acrylic-based paint formulations, which is expected to keep driving the growth of the APAC acrylates market.
Dynamics of Acrylates Market
The key trend being observed in the acrylates market is the growing consumer preference for acrylic-based (water-based) emulsions over oil-based products. This shift is mainly attributed to the advantages of these products including short drying time, color fastness, resistance to wear and water, and environment friendliness. In addition, water-based paints are durable, stable in extreme conditions, and devoid of volatile organic compounds (VOCs), which offers incentives for their application in interior and exterior wall coatings.
Bio-based acrylates hold a huge potential for the players in the acrylates market, in terms of diversifying their product portfolio and augmenting their market share. This can be mainly attributed to the allergic skin diseases associated with major acrylates, such as butyl acrylate, 2-ethylhexyl acrylate, methyl acrylate, and ethyl acrylate. The renewability and non-toxic profile of bio-based variants are expected to create a number of opportunities in the coming years.
Segmentation Analysis of Acrylates Market
When segmented on the basis of type, butyl acrylate was the fastest in the global acrylates market, with a CAGR of 5.6% in 2019-24. As compared to other acrylates, butyl acrylate is more widely used in latex paint formulations containing acrylic polymers, owing to its low-temperature stability and sunlight resistance.
Paints & coatings was the largest application category in the acrylates market, and it is expected to hold 40.3% value share by 2024. This can be mainly ascribed to the projected increase in the demand for acrylate-based emulsions, which act as binders, solvents, pigments, and additives in various types of paints. In addition, acrylic paints are used for interior and exterior coatings, owing to their high gloss and color retention advantages.
Geographical Analysis of Acrylates Market
Globally, APAC was the largest acrylates market in 2018, and it is expected to maintain the trend during the forecast period. This can be mainly attributed to the presence of established players, increase in the demand for water-based paints & coatings, and rise in infrastructure development activities, which has spearheaded the demand for acrylates. Considering the future industry scenario, China is expected to lead the region’s market, generating revenue worth $6,805.0 million in 2024.The country’s high-volume downstream product manufacturing capabilities and rising living standards and per capita income would boost the demand for acrylic formulations, which act as the building blocks for thousands of polymer intermediates used in surface coatings, textiles, adhesives, and plastics.
Competitive Landscape of Acrylates Market
The acrylates market is moderately consolidated in nature and characterized by the presence of established companies, such as BASF SE, Dow Inc., Arkema Group, Formosa Plastics Corporation, and SunVic Chemical Holdings Limited. Other players operating in this market are Jiangsu Sanmu Group, China National Petroleum Corporation, Shenyang Chemical Co. Ltd., and China Petroleum & Chemical Corporation.
Recent Strategic Developments of Major Acrylates Market Players
In January 2018, a joint venture was established by BASF SE, a major player in the acrylates market, and Adani Group, with an investment of about $2.2 billion (EUR 2.0 billion), for a manufacturing complex in Gujarat, India. The planned complex will have plants for propane dehydrogenation, oxo C4 complex, glacial acrylic acid, and butyl acrylate.
Moreover, in August 2018, BASF Petronas Chemicals Sdn. Bhd., a Malaysian joint venture between BASF SE and Petroliam Nasional Berhad, planned to expand the production capacity of acrylic acid and butyl acrylate at its facility in Kuantan, Malaysia. The purpose of this expansion is to meet the demand for acrylic monomers in the APAC region.
Key Questions Addressed