Water Based Adhesive Market Size

Water Based Adhesive Market Growth Projections and Opportunities

The global vinyl-acetate-ethylene (VAE) emulsion market is poised to experience substantial growth, with a projected high Compound Annual Growth Rate (CAGR) of 5.44% during the forecast period spanning from 2018 to 2023. By the conclusion of 2023, the market's estimated value is anticipated to reach a substantial USD 4,910.1 million. Several key factors contribute to this growth, including the escalating demand for VAE emulsion in the paints and coatings sector and its extensive use as adhesives and sealants in packaging, textiles, and automotive industries.

The paints and coatings segment emerged as a dominant force in the global market in 2017, securing a major share. VAE emulsion is extensively utilized in this segment as a binder for the formulation of environmentally friendly water-based paints. Its application as an adhesive in architectural coatings, owing to remarkable scrub resistance, good hiding characteristics, and gloss and blocking nature, further bolstered its prominence. Additionally, the product offers various advantages in construction applications, including water resistance, lower water uptake, high durability, and adhesion to different substrates.

Despite these positive trends, fluctuations in raw material prices are anticipated to impede the market's growth during the forecast period. Nevertheless, the increasing popularity of green buildings presents substantial opportunities for VAE emulsion manufacturers. The growing emphasis on occupant health and well-being, rising sustainable business practices, and stringent environmental regulations are expected to be key factors driving the growing demand for the product in the manufacturing of various construction materials.

Geographically, the Asia-Pacific market dominated the global market in 2017, capturing a significant share of 43.32%. It is projected to register a robust CAGR of 6.20%, reaching USD 2,221.1 million by the conclusion of 2023. The robust growth of the construction sector and the paints and coatings industry in emerging economies such as India, South Korea, and China is expected to be a pivotal factor driving the global market's growth. Additionally, the increasing utilization of the product in textiles and non-woven applications, coupled with the burgeoning textile industry in Asia-Pacific, is anticipated to propel the global market's growth in the coming years.