Ethylene vinyl acetate (EVA) is a copolymer of ethylene and vinyl acetate which possesses high tensile strength and flexibility compared to general purpose resins like PE and PP. EVA finds major applications in packaging, solar panels, cables and wires and others owing to its sealability, flexibility and transparency properties. The ability of EVA to offer added benefits like moisture barrier, impact resistance and stress cracking makes it an ideal material for various applications.
The global Ethylene Vinyl Acetate Market is estimated to be valued at US$ 1,484.94 Mn or Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends fueling the market growth is rising demand for EVA from packaging industry. EVA offers low permeability to gases like oxygen and carbon dioxide, making it suitable for food and pharmaceutical packaging. It is used for making films, sheets and others for packaging food items, beverages, drugs and others. Furthermore, EVA also finds increasing usage in solar panel application owing to its UV resistance, flexibility and longevity properties. It provides encapsulation as well as moisture barrier to the solar cells from environmental damages thus extending the performance lifetime of solar panels. The growing solar panel installations across commercial and residential sectors is thus leading to augmented demand of EVA.
Porter’s Analysis
Threat of new entrants: The ethylene vinyl acetate market requires high investment in research and development. Stringent regulations also act as a barrier for new players. Thus, threat of new entrants is low.
Bargaining power of buyers: The buyers have moderate bargaining power due to availability of substitutes. However, established players have strong distribution network and brand value.
Bargaining power of suppliers: Major raw materials for ethylene vinyl acetate are petrochemical derivatives whose prices fluctuate regularly. This gives suppliers moderate bargaining power.
Threat of new substitutes: Other polyolefin materials like polyethylene and polypropylene pose threat of substitution. However, superior properties of EVA make it irreplaceable for certain applications.
Competitive rivalry: The global market is consolidated with top players accounting for majority share. Intense competition exists based on product quality, pricing and innovation.
SWOT Analysis
Strength: EVA has excellent adhesive properties, flexibility and resistance to moisture, chemicals and stress cracking. It is recyclable.
Weakness: High production cost. Vulnerable to fluctuations in raw material prices.
Opportunity: Rising use in solar energy sector as encapsulant material. Growth in pipe & cable industry and medical devices will boost demand.
Threats: Stringent environmental regulations. Development of bio-based and recyclable alternatives.
Key Takeaways
The Global Ethylene Vinyl Acetate Market Growth is expected to witness high growth at a CAGR of 4.8% over the forecast period due to increasing demand from pipe & cable industry and solar panels.
Regionally, Asia Pacific dominates the global market and is expected to grow at the fastest pace during the forecast period due to high economic growth and significant presence of end-use industries in countries such as China and India.
Key players operating in the ethylene vinyl acetate market are Arlanxeo, Asia Polymer Corporation, Benson Polymers Limited, Braskem, Celanese Corporation, Clariant AG, Dow, ExxonMobil Corporation, Hanwha, Solutions/Chemical Corporation, Innospec Inc., LyondellBasell Industries Holdings BV, Repsol, Sipchem, SK Global, Sumitomo Chemical Co. Ltd, and Tosoh Corporation.
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