Ethylene Vinyl Acetate (EVA) Market Research Report: By Grade (Below 18% VA, 18% VA, 28% VA, Above 28% VA), Application (Solar Cell Encapsulation, Adhesive, Film, Foam, Wire and Cable), End Use (Renewable Energy, Packaging, Agriculture, Footwear, Electrical & Electronics), Distribution Channel (Direct/Institutional Sales) – Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global ethylene vinyl acetate market generated $7,060.8 million revenue in 2021, and it is expected to grow at a CAGR of 7.2% during 2021–2030. The key factors responsible for the growth of the industry include increasing solar photovoltaic (PV) installation, surging demand in various industries, and rising agricultural activities.

The covid-19 pandemic has slowed down the progress of the food service industry by 25-30%, which amounted to $925 billion. However, some segments in the industry grew at unprecedented rates, such as online food delivery, which grew by 30% in 2020, compared to the less than 20% growth rate it exhibited in 2019. This propelled the demand for EVA films and adhesives, as they were required in food packaging applications. Hence, it can be concluded that the pandemic had not affected the market much.

Foam and Direct/Institutional Sales Categories Dominated the Market in 2021

The foam category held the largest share in 2021 in the ethylene vinyl acetate market, based on the application segment. This is primarily because of the growing end-use industries, such as furniture, electronics, automotive, and building & construction, in emerging economies like India, Thailand, and China.

The direct/institutional sales category is expected to dominate the market during the forecast period, based on distribution channel. This can be ascribed to the customers' desire to improve their health and appearance and uniquely personalized customer experience provided by distributors, sharing their passion for products.

Renewable Energy and Above 28% VA Group To Witness High Growth

The renewable energy category is expected to witness the fastest growth in the market during the forecast period, based on the end use segment. This will primarily be due to the rising shift from fossil fuels to renewable energy and increasing technological advancements.

Above 28% VA category is expected to witness the fastest growth in the market during the forecast period, based on grade. This will primarily be due to the sudden increase in the demand for foam and solar cell encapsulation. Increasing installations of solar panels worldwide and technological advances improving functionalities of solar modules are also contributing to the industry growth in this category.

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APAC To Lead Market Due to Increase in Commercial and Urbanization Activities

Geographically, APAC is expected to lead the ethylene vinyl acetate market throughout the forecast period. Factors such as increasing commercial and urbanization activities, rising population, and surging disposable income have pushed the industry in the region. Also, the growing regional footwear and packaging industries have triggered the market growth.

Mergers and Acquisitions Are a Key Market Trend

With the growing market for EVA, companies are merging with or acquiring similar firms to broaden their product portfolio, gain new customers, and get access to new marketing and distribution channels.

For instance, in December 2021, Exxon Mobil Corporation acquired Materia Inc., a structural polymer company that offers a range of products for wind turbine blades, electric vehicle parts, sustainable construction, and anti-corrosive coatings. Similarly, in December 2021, Celanese Corporation, a global chemical and specialty material company, acquired the Santoprene TPV elastomers business of Exxon Mobil Corporation, for strengthening its own portfolio. Further, in April 2020, the company had acquired Nouryon’s re-dispersible polymer powder portfolio offered under the Elotex brand.

In addition, in October 2020, LyondellBasell acquired 50% assets of Sasol in Louisiana. The assets, which included a 1.5-million-metric-ton (MMT) ethane cracker, 0.9MMT low- and linear low-density polyethylene (LLDPE) plant, and associated infrastructure, were acquired for a total consideration of $2 billion. The agreement included customary rights for each partner regarding the potential future sale of its ownership interest. Hence, companies are working to guarantee that high-quality EVA products are widely available and affordable.

Increasing Solar PV Installation and Rising Agricultural Activities Boosting the Market Growth

One of the key drivers in the ethylene vinyl acetate market is the surging installation of solar PV panels. Solar power is the cleanest and most abundant renewable energy source currently available. China, Germany, Spain, and the U.S. contain some of the world's most-extensive solar resource projects. Solar energy is being promoted aggressively in both developed and developing countries as a viable alternative to traditional energy. EVA is a thermoplastic polymer that is utilized as an encapsulating agent in solar modules because it produces a sealing and insulating coating over the solar cells when heated and provides good radiation transmission and low degradability in sunlight. According to Stanford University in 2018, there were over 1.47 million solar panels in use across the contiguous 48 states in the U.S.

Over the next 25 years, the global population is predicted to grow by 2 billion, thus necessitating increased agricultural efficiency. Additionally, according to the Economic Survey 2020–2021, the share of agriculture in the worldwide gross domestic product (GDP) reached almost 20% in the last 17 years, growing from 17.8% in 2019–2020. The agriculture sector is the only sector to have witnessed positive growth, of 3.4%, at constant commodity prices in 2020–2021. The growing agriculture sector drives the demand for EVA products.

Market Players Involved in Product Launches to Gain Significant Position

The global ethylene vinyl acetate industry is fragmented in nature with the presence of several key players.

In recent years, the players in the market have been involved in product launches in order to attain a significant position in the market. For instance:

•  In August 2021, Braskem S.A. launched a new HDPE resin, HD1954M, which delivers a combination of rigidity, impact strength, packaging optimization, and productivity gains.
• In February 2021, Braskem S.A. launched a new line of EVA clogs of Dansko Kane, which are made up of 50% of Braskem's renewable I'm green carbon-negative EVA biopolymer.

Key Players in the Ethylene Vinyl Acetate Include:

• Sahara International Petrochemical Company
• The Dow Chemical Company
• Exxon Mobil Corporation
• Formosa Plastic Corporation
• Hanwha Total Petrochemical Co. Ltd.
• Celanese Corporation
• LyondellBasell Industries N.V.
• Braskem S.A.
• ARLANXEO Holding B.V.
• Asia Polymer Corporation
• Clariant AG
• Arkema Group
• Hanwa Solution Chemical Division Corporation

Market Size Breakdown by Segments

The EVA market report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Grade

• Below 18% VA
• 18% VA
• 28% VA
• Above 28% VA

Based on Application

• Solar Cell Encapsulation
• Adhesive
• Film
• Foam
• Wire and Cable

Based on End Use

• Renewable Energy
• Packaging
• Agriculture
• Footwear
• Electrical & Electronics

Based on Distribution Channel

• Direct/Institutional Sales
• Others

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa