Polyvinyl Alcohol Market

• Growing consumer demand for eco-friendly packaging will boost the Polyvinyl alcohol market growth

Polyvinyl alcohol is a biodegradable polymer made from petroleum soluble in water. Biodegradable polymers are gaining ground in the packaging sector, particularly for food packaging, as environmental scrutiny of plastic usage grows. With changing lifestyles and an expanding working population, packaged meals are becoming more and more popular with customers. This increases the demand for environmentally friendly packaging materials. As a binding and coating agent, polyvinyl alcohol is used in the food business in various ways. It is a film coating agent in applications where moisture barrier/protection capabilities are necessary.

As a result of its outstanding oxygen barrier qualities, water solubility, and biodegradability, Polyvinyl alcohol is becoming a popular packaging material in the food packaging business.

Solutia Inc., in June 2020, collaborated wіth IMCD Group tо exраnd distribution nеtwork fоr sреciality plastics іn Eurоpean, Middle Eastern, аnd Africаn regions (EMEA). They agreed to enlarge the market in 35 countries. Eastman’s specialty polymers/compounds range, together with advanced recycling technologies, targets a wide range of industries that are experiencing technical challenges or face regulatory compliance or sustainability problems. This strategic partnership reflects IMCD’s commitment to offer innovative and sustainable solutions.

The Polyvinyl alcohol market CAGR will be dominated by food packaging. Polyvinyl alcohol is a binding and coating agent, a film coating agent, utilized in the food packaging sector when moisture barrier or protective qualities are required. PVA disguises the taste and odor of the active food ingredients while shielding them from moisture, oxygen, and other environmental elements. It makes handling completed items simple and makes swallowing and consumption easier. Furthermore, because of PVA's viscosity, it is possible to apply Polyvinyl alcohol coating agents to tablets, capsules, and other forms that generally get film coatings at quite high solids.

The market for Polyvinyl alcohol is anticipated to be driven by changing demographics, new consumer expectations, rising purchasing power in emerging nations, an increased focus on sustainable, user-friendly packaging, and trends in out-of-home consumption. While emerging economies like Africa are anticipated to have considerable development throughout the projection period, the United States and China are among the major players in the food packaging business. There are more services like Amazon Fresh that let customers purchase fresh vegetables without leaving their homes.

Furthermore, vineyards, animal slaughter and processing facilities, and bread production make up the majority of the city of New York's food and beverage processing facilities.

Food packaging usage will increase due to the growing demand for organic food. The majority of packaged organic food is consumed in the United States. The nation spent USD 71.40 per person in 2021, accounting for USD 21.3 billion or around 40% of the worldwide Polyvinyl alcohol market. After a significant fall in 2020 caused by the COVID-19 pandemic and the recession, when food spending reached USD 1.81 trillion, food spending by US individuals, corporations, and government bodies reached USD 2.12 trillion in 2021.

China increased its processed paper and cardboard production from 10.74 million metric tonnes in September 2021 to roughly 11.6 million metric tonnes in September 2022. This expansion is linked to rising environmental protection awareness and expanding food packaging usage. In the upcoming years, the value is anticipated to rise, creating expansion in the polyvinyl alcohol market revenue.

In May 2020, Celanese Corporation signed an agreement to supply оf ethylene-based vinyl acetate monomer (VAM) to Wanwei Corporation. Under this agreement, Wanweis methanol unit in the Anhui province of China will be supplied with raw materials required for chemical production, including chemicals, fibers and new materials. Both companies aim to promote eco-friendly solutions and contribute to China's environmental policies.

The Global Polyvinyl Alcohol Market Industry experiences a notable surge in demand due to the increasing need for sustainable packaging solutions. Polyvinyl alcohol is recognized for its biodegradable properties, making it an attractive alternative to conventional plastics. As global awareness regarding environmental issues heightens, companies are increasingly adopting eco-friendly materials. For instance, the packaging sector is projected to contribute significantly to the market, with a valuation of 1.61 USD Billion in 2024. This trend is likely to continue, as the industry shifts towards more sustainable practices, thereby enhancing the growth prospects of the Global Polyvinyl Alcohol Market Industry.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia Pacific Polyvinyl alcohol market accounted for USD 0.64 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. It is also predicted to become the regional market with the quickest growth rate. Polyvinyl alcohol market expansion is anticipated to be fueled by rising product demand from various end-use industries, particularly paper, through 2025.

Another significant reason driving the expansion of the Polyvinyl alcohol market is the existence of the textile industries in China and India, as well as the Region's expanding exports of goods connected to the textile sector. The uses above will provide the oolyvinyl alcohol market with plenty of development potential.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  POLYVINYL ALCOHOL MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe polyvinyl alcohol market accounts for the second-largest market share. Due to the increasing demand for PVA as a polymerization aid and PVA products made from biomaterials, North America dominates the PVA industry. Due to the rise of the packaging business, the Middle East and Africa are predicted to have substantial growth between 2021 and 2028. Moreover, US polyvinyl alcohol market held the largest market share, and the Canada polyvinyl alcohol market was the fastest growing market in the region.

Asia Pacific polyvinyl alcohol Market is expected to grow at the fastest CAGR from 2022 to 2030. Due to the expansion of polyvinyl alcohol use in textile and construction applications, Europe is also anticipated to see a quick revenue rise throughout the projection period. Further, the UK polyvinyl alcohol market held the largest market share, and the Germany polyvinyl alcohol market was the fastest growing market in the region.

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the Polyvinyl alcohol industry. As a result of substantial developments in the sector, such as the introduction of new products, contracts, mergers and acquisitions, increased investments, and cooperation with other businesses, market participants are also undertaking various strategic activities to expand their presence. To grow and remain in a market that is becoming more and more competitive, Polyvinyl alcohol industry competitors must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business tactics used by the Polyvinyl alcohol industry to serve customers and increase the market sector. The Polyvinyl alcohol industry has recently given medicine some of the most important advantages. The Polyvinyl alcohol markets major players such as China Petroleum & Chemical Corporation, Anhui Wanwei Group, OCI COMPANY Ltd., Sekisui Chemical Co. Ltd., KURARAY CO. LTD., Merck KGaA, Japan Vam & Poval Co.Ltd., Chang Chun Group, and Sekisui Chemical, The Nippon Synthetic Chemical Industry Co.

Ltd. and others are working on expanding the market demand by investing in research and development activities.

Named after the Merck Group, which was established in Germany in 1668 and of which it was once the American arm, Merck & Co., Inc. is an American pharmaceutical corporation with its headquarters in Rahway, New Jersey. Outside of the United States and Canada, the corporation trades as Merck Sharp & Dohme or MSD. With the acquisition of Lonza's MAST (Modular Automated Sampling Technology) platform in 2022, renowned science and technology corporation Merck increased the scope of its bioprocessing offerings. MAST is an automated, aseptic bioreactor sampling device that was created in Bend, Oregon, in the USA.

Plastics producer Sekisui Chemical has offices in Osaka and Tokyo. The corporation holds several companies that operate in a wide range of industries. To fulfill the increased demands of its downstream clients, Sekisui Specialty Chemicals (SSC) started the feasibility studies for extending its Polyvinyl Alcohol (PVOH) supply network in August 2022. It might result in a 25% increase in Sekisui's PVOH capacity.