PARSIPPANY, NJ – September 8, 2015 - Europe and CIS together account for a total 23% of the global synthetic latex polymers market in 2014. While consumption of synthetic latex polymers in CIS remains low, the region offers high growth potential. Import substitution programs implemented by the Russian government along with the strategic development of chemical industry plans across the majority of CIS countries will drive the synthetic latex market in the region, estimated to increase at 2.6% through 2019, finds the recently published analysis of the CIS and European regions from Kline’s Synthetic Latex Polymers: Global Business Analysis and Opportunities report. However, the political and economical instability in the region could decelerate this growth.
The consumption of different lattices varies widely between the two regions, notably due to the contrasting application split. While CIS region styrene acrylics lead by a large amount, followed by polyvinyl acetate, in Europe, carboxylated styrene-butadiene (X-SB) remains the leading synthetic latex polymer in volume terms, and styrene acrylics represent the largest chemistry in terms of value. The product split differs even from one country to another and from one application to another.
Due to environmental and market conditions increasingly pressing for the petrochemical industry, VAE is benefiting from its favorable application mix, competitive pricing, and environmental-friendly profile, expected to be the fastest growing polymer between 2014 and 2019. VAE’s relative low cost is due to the favorable situation in the ethylene market, mainly as a result of the increased extraction of shale gas. The strengthening of VOC regulations in Europe has also bolstered VAE’s growth.
Due to the market’s maturity and large number of active players, rivalry is high on the European synthetic latex polymers market. With the increasing consolidation, the competition is also increasing on the CIS market, which was extremely dynamic in terms of the supplier landscape development over the last four years. Among the changes were an entrance of new, mainly local suppliers, including Novojiazot, Akrilat-Kz, and SWAN, among others, and an increase in production capacities by prominent local suppliers, such as Akrilan and Homa Group.
BASF and Dow Chemical are the two largely present suppliers in both regions where the supplier landscape is fragmented, albeit for the top six suppliers in Europe accounting for two-thirds of the total European market. The variety of products and applications are a key factor explaining this market fragmentation.
As paper production in Europe is decreasing due to the switch to electronic media, paper is no longer the leading application in terms of SLP consumption. Paint and coating applications are currently the leading consumers of synthetic latex polymers in Europe by both volume and value. In CIS, paints and coatings has been by far the most dominant end-use application in 2014, accounting for over 34% of the total consumption. Other important smaller applications are glass fiber and nonwovens.
Different variables will be influencing the growth of leading synthetic latex polymers in Europe and CIS. The European market is mature, and its growth will be affected by the poor performance of some of the large consuming applications. “Although affected by the decline in paper applications in terms of emulsion polymers consumption, overall figures are hiding the growth potential that exists in a wide range of other applications in Europe, driven by favorable macroeconomics in the region,” comments Nikola Matic, Industry Manager at Kline’s Chemicals & Materials Practice. Growth in CIS is favorably affected by various economical measures taken by local governments.
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Covering the complex market of synthetic latex polymers since the 1970s, Kline just published three new regional analyses—Brazil, CIS, and Europe—from its continuous synthetic latex polymers program.
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