ETHYLENE VINYL ACETATE MARKET BY TYPE (VLEVA, LEVA, MEVA, HEVA), APPLICATION (Film, Extrusion, Non- Extrusion, Injection Molding, Coating, Wire & Cable), END-USER (Shoes & Foams, Packaging, Photovoltaic Panels) BY GEOGRAPHY MarketsandMarkets sales@marketsandmarkets.com www.marketsandmarkets.com
MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace & defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets 2
1 EXECUTIVE SUMMARY The global ethylene vinyl acetate industry is witnessing high growth on an account of increasing applications, technological advancements, and growing demand in the Asia-Pacific region. Ethylene vinyl acetate is largely used in industries such as film, extrusion coating, injection molding, compounding and wire & cable, other non-extrusion, and other extrusion. TABLE 1 EVA MARKET SIZE, BY GEOGRAPHY, 2011 2018 (KT) Region 2011 2012 2013 2018 CAGR% (2013-2018) North America Europe Asia-Pacific ROW Total Source: Primary Interviews, Company Reports, and MarketsandMarkets Analysis The global market for ethylene vinyl acetate is estimated to grow from KT in 2012 to KT by 2018, at a CAGR of from 2013 to 2018. The Asia-Pacific region dominated the global ethylene vinyl acetate market and consumed around, followed by North America which consumed around in 2012. The rapidly growing end-user industry demand in these regions is driving the growth of the ethylene vinyl acetate market. The Asia-Pacific region is projected to grow at the highest rate of during the forecast period. MarketsandMarkets 3
2 PREMIUM INSIGHTS 2.1 EVA MARKET, BY TYPE & APPLICATION The figure below reflects the market of each type for 2012. FIGURE 1 EVA MARKET, BY TYPE, 2012 CAGR % (2013-2018) Market Size (KT) Source: Expert Interviews, and MarketsandMarkets Analysis In the above figure, the bubble size shows the percentage of each ethylene vinyl acetate type consumed globally, in 2012. MarketsandMarkets 4
FIGURE 2 EVA MARKET, BY APPLICATION, 2012 VS 2018 KT Film Extrusion Coating 494,629.3 Injection Molding Compounding and Wire & Cable Other Non-Extrusion Other Extrusion Store 2012A Store 2018B Source: Expert Interviews, and MarketsandMarkets Analysis MarketsandMarkets 5
3 MARKET OVERVIEW 3.1 MARKET DYNAMICS 3.1.1 DRIVERS In this section, the drivers responsible for the growth of ethylene vinyl acetate market are discussed and analyzed. FIGURE 3 EVA MARKET: IMPACT OF MAIN DRIVERS Drivers 1 2 years 3 4 years 5+ years HIGH MEDIUM LOW Source: Primary Research, Secondary Research, and MarketsandMarkets Analysis 3.1.1.1 Huge Economic Progress of the Asian Countries Growing economies in the Asia-Pacific region such as China, India, and Thailand are expected to play an important role in ethylene vinyl acetate market segment, with China best-placed to do so. Impressive manufacturing industry in China will largely be responsible for the increase in ethylene vinyl acetate demand in the coming years. MarketsandMarkets 6
China is the most populated country in the world and second biggest economy with a high GDP growth. Its chemical industry accounts for around of the country s GDP with a high industry growth rate. Almost of the global base chemicals demand comes from China. 3.1.2 RESTRAINT There are certain factors prevailing in the market which restrict the growth of the ethylene vinyl acetate industry. FIGURE 4 EVA MARKET: IMPACT OF MAJOR RESTRAINT Restraint 1 2 years 3 4 years 5+ years HIGH MEDIUM LOW Source: Primary Research, Secondary Research, and MarketsandMarkets Analysis This section includes the major market restraints identified for ethylene vinyl acetate market. At present, its impact on the market is moderate. However, innovation and research and development will lower down the impact in the near future. 3.1.2.1 Substitution by LLDPE LLDPE is a linear polymer made by copolymerization of ethylene and alpha-olefins. It has the same properties as ethylene vinyl acetate such as toughness, flexibility, and relative transparency and is fit for applications such as packaging, injection molding, and film applications. LLDPE is used in making cable coverings, toys, lids, buckets, containers, and pipes and it can be used in film application as well. LLDPE, due to its low cost and approximately same properties, may pose a threat to ethylene vinyl acetate in the near future. MarketsandMarkets 7
LLDPE can be proved as a good alternative to ethylene vinyl acetate, which is available at much lower cost in the market. Improvement in the clarity of higher alpha olefins resin has permitted these materials to displace ethylene vinyl acetates in moderate clarity applications, such as ice bags. LLDPE is expected to further displace ethylene vinyl acetate on the basis of improved performance in the long term. Since ethylene vinyl acetate with lower vinyl acetate content has faced competition with metallocene LLDPE, major producers have been focusing more on differentiated or value-added products with higher vinyl acetate content. 3.1.3 OPPORTUNITIES In this section, the opportunities for ethylene vinyl acetate market are discussed and analyzed. The impact of these opportunities at present and in the future can be seen in the table below. FIGURE 5 EVA MARKET: IMPACT OF MAJOR OPPORTUNITIES Opportunities 1 2 years 3 4 years 5+ years HIGH MEDIUM LOW Source: Primary Research, Secondary Research, and MarketsandMarkets Analysis 3.1.3.1 Growing Solar Panel Industry in Asia-Pacific Ethylene vinyl acetate is expected to have a high potential in the solar panel industry. Favorable demand in Asia and growing applications of solar encapsulants are expected to provide an opportunity for ethylene vinyl acetate industry, making the products irreplaceable, especially in the solar modules. Ethylene vinyl acetate holds the major solar encapsulants market within solar panel market, and it has been used in this industry since a very long period. MarketsandMarkets 8
4 ETHYLENE VINYL ACETATE MARKET, BY TYPES 4.1 INTRODUCTION Ethylene vinyl acetate is a thermoplastic copolymer of ethylene and vinyl acetate. It is produced by the random copolymerization of ethylene and vinyl acetate in a predetermined ratio. By varying the vinyl acetate content, ethylene vinyl acetate copolymers can be designed to meet specific end-use applications. The properties of ethylene vinyl acetate include softness, flexibility, low temperature toughness, stress-crack resistance, and resistance to UV radiations. Based on vinyl acetate content that usually varies from -, ethylene vinyl acetate exhibit different properties. There are various types of ethylene vinyl acetate based on vinyl acetate content such as very low density ethylene vinyl acetate (VLEVA), low density ethylene vinyl acetate (LEVA), medium density ethylene vinyl acetate (MEVA), and high density ethylene vinyl acetate (HEVA) used in applications such as film, injection molding, hot melts, foams, wire & cable, tubes, profiles, extrusion coating, and blow molding. FIGURE 6 EVA MARKET SHARE (VOLUME), BY TYPE, 2012 Mid Low High Very Source: Primary Interviews, Company Reports, News Flows, and MarketsandMarkets Analysis MarketsandMarkets 9
The medium density ethylene vinyl acetate dominated the global ethylene vinyl acetate market in 2012 and accounted for of the global market, in terms of volume. Due to its excellent properties, medium density ethylene vinyl acetate remains the most widely used ethylene vinyl acetate copolymer for the industry. Low density ethylene vinyl acetate is estimated to account for the second largest market share globally, accounting for about share in 2012, in terms of volume. High density ethylene vinyl acetate is estimated to account for the third largest market share globally, accounting for about share in 2012, in terms of volume followed by very low density ethylene vinyl acetate. MarketsandMarkets 10
5 ETHYLENE VINYL ACETATE MARKET, BY APPLICATIONS 5.1 INTRODUCTION Ethylene vinyl acetate is the co-polymer of ethylene and vinyl acetate. The weight of vinyl acetate in ethylene vinyl acetate generally varies from to, with the rest being ethylene. Ethylene vinyl acetate possesses properties such as gloss, stress crack resistance, low temperature sustenance, and resistance to UV radiation. Typical applications involve food & non-food packaging, footwear, photovoltaic cells, display & protective films, hot melt adhesives, foam, and hoses & tubing. FIGURE 7 EVA MARKET SHARE (VOLUME), BY APPLICATION, 2012 Fi Inj Ot Co Ot Ex Source: Primary Interviews, Company Reports, News Flows, and MarketsandMarkets Analysis The film industry dominated the global ethylene vinyl acetate market in 2012. In terms of volume, about of the ethylene vinyl acetate was consumed by the film industry. Injection molding is estimated to be the second biggest consuming market, accounting for about share in 2012. Compounding and wire & cable, extrusion coating, other non-extrusion, and MarketsandMarkets 11
other extrusion are other industries for ethylene-vinyl acetate and they together possess of the global ethylene vinyl acetate market. MarketsandMarkets 12
6 ETHYLENE VINYL ACETATE MARKET, BY GEOGRAPHY 6.1 INTRODUCTION The ethylene vinyl acetate market is vibrant owing to ample scope of applications for different grades of ethylene vinyl acetate across a wide range of industries. North America is expected to be a good market for ethylene vinyl acetate. However, due to the increasing demand from export-based industry development and growing domestic front because of the rise in living standards, the Asia-Pacific region has emerged as a major consumer. Asia-Pacific is one of the key markets for ethylene vinyl acetate producers as it is one of the fastest growing markets with regard to its consumption. FIGURE 8 EVA MARKET SHARE (VOLUME), BY GEOGRAPHY, 2012 A N E R Source: Primary Interviews, Company Reports, and MarketsandMarkets Analysis Asia-Pacific is the main ethylene vinyl acetate market and accounted for almost of the total global demand in 2012. The region is further estimated to show a very high growth in the future, mainly due to high growth potential of the Chinese market. The demand for ethylene vinyl acetate in Europe is growing at a comparatively lower rate. North America had the second MarketsandMarkets 13
largest share in the ethylene vinyl acetate market and the region is projected to grow at a healthy CAGR in the future, mainly driven by cheaper availability of feedstock from shale gas production. The ROW region accounted for of the global ethylene vinyl acetate demand in 2012. 6.2 NORTH AMERICA 6.2.1 OVERVIEW North America is expected to be a good market for ethylene vinyl acetate. The key countries in the North American market are U.S., Canada, and Mexico. Canada and Mexico have shown promising growth for ethylene vinyl acetate consumption, and this trend is expected to continue over the next few years. North America is the second biggest consumer of ethylene vinyl acetate in the world. U.S. dominated the North American ethylene vinyl acetate market, followed by Mexico and Canada. The region is characterized with continuous technical innovations in various segments of the ethylene vinyl acetate industry with the presence of some top regional players such as E.I. Du Pont De Nemours & Co. (U.S.), ExxonMobil Corp. (U.S.), The Dow Chemical Company (U.S.), and Celanese Corporation (U.S.). TABLE 2 NORTH AMERICA: EVA MARKET SIZE, BY COUNTRY, 2011 2018 (KT) Country 2011 2012 2013 2018 CAGR% (2013-2018) U.S. Mexico Canada Total Source: Primary Interviews, Company Reports, and MarketsandMarkets Analysis MarketsandMarkets 14
The U.S., Canada, and Mexico together accounted for of the global demand of ethylene vinyl acetate in 2012. U.S. is the major consumer of ethylene vinyl acetate in the region and consumes about of the region s demand. Mexico is estimated to show the highest growth rate in the region from 2013 to 2018. 6.2.2 U.S. U.S. is the largest consumer of ethylene vinyl acetate in North America, as well as in the world. The country accounted for share of the global ethylene vinyl acetate market in the year 2012. The ethylene vinyl acetate industry in the U.S. is driven by demand from industries, such as automotive, packaging, and electrical & electronics. E.I. Du Pont De Nemours & Co. (U.S.), ExxonMobil Corp. (U.S.), The Dow Chemical Company (U.S.), and Celanese Corporation (U.S.) are the key domestic market participants. The U.S. economy has been very turbulent since 2008-09, and it is expected that as key industries gradually recover, so will the demand for ethylene vinyl acetate. Recently, the industry planned various technological advancement and expansions to correspond with the increasing demand and enhance the profit margins. The future of the industry seems promising due to the availability of cheaper raw materials from the development of shale gas and higher profit margins. MarketsandMarkets 15
TABLE 3 U.S.: EVA MARKET SIZE, BY TYPE, 2011 2018 (KT) Type 2011 2012 2013 2018 CAGR% (2013-2018) VLEVA LEVA MEVA HEVA Total Source: Primary Interviews, Company Reports, and MarketsandMarkets Analysis The MEVA market was the highest contributor in terms of market volume in U.S and is estimated to grow from KT in 2012 to KT by 2018, at a CAGR of. The total market is estimated to increase from KT in 2012 to KT by 2018 at a CAGR of during the review period. Subsequently, VLEVA was the second largest type of ethylene vinyl acetate consumed in the country and accounted for KT of the total demand in 2012. MarketsandMarkets 16
7 ETHYLENE VINYL ACETATE, BY END-USE INDUSTRY 7.1 INTRODUCTION FIGURE 9 EVA MARKET SHARE (VOLUME), BY END-USE INDUSTRY, 2012 Sh Pa Ph Ot Source: Primary Interviews, Company Reports and MarketsandMarkets Analysis Shoes and foams industry dominated the global ethylene vinyl acetate market in 2012. In terms of volume, about of the ethylene vinyl acetate was consumed by shoes and foams industry. Packaging and agriculture was estimated to be the second biggest consuming market, accounting for about share in 2012. Photovoltaic panel industry had of the global ethylene vinyl acetate market share. MarketsandMarkets 17
8 COMPANY PROFILES 8.1 LYONDELLBASELL INDUSTRIES NV 8.1.1 OVERVIEW Established in 2005 and headquartered at Rotterdam, The Netherlands; LyondellBasell Industries NV is a diversified plastics, chemicals, and fuels company. It operates through five business segments including Olefins and Polyolefins-Americas, Olefins and Polyolefins-Europe Asia International, Intermediates and Derivatives, Refining and Technology. The company conducts its EVA business through products by market under Intermediates and Derivatives segment. The company operates globally through its subsidiaries with manufacturing sites in countries. Company at a Glance 2012 Founded : 2005 Headquarters : Rotterdam, The Netherland Employees : 13,500+ Revenue : $ Million Ownership : Public, NYSE:LYB Recent Financials 2010 2011 2012 2013 Total Revenue ($Million) Operating Margin % Industry Segments Revenue Mix O & P-EAI segment Refining segment O & P-Americas segment I & D segment Technology segment Sources: Company Website, Secondary Sources, and MarketsandMarkets Analysis MarketsandMarkets 18
Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to noncustomers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. For information regarding permission, contact: Tel: 1-888-600-6441 Email: sales@marketsandmarkets.com MarketsandMarkets 19