Polyacrylate Market

Polyacrylate Market Analysis

The Polyacrylate Market is expected to register a CAGR of greater than 4% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Polyacrylate is used as a thickening agent in paints, coatings, and adhesives to change the rheological properties of the respective material. Considering the pandemic scenario, the construction activities were stopped during the COVID-19 lockdown, thus decreasing the consumption of paints, coatings, and adhesives, which negatively impacts the demand for thickeners and polyacrylate.

• Over the short term, the increasing demand for paints and coatings from the construction sector is expected to drive the market's growth.
• On the flip side, the availability of biodegradable alternatives like thermal poly aspartate is likely to hinder the market's growth.
• The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Polyacrylate Market Trends

Soaring Demand from the Paints and Coatings Segment

• The paints and coatings segment is the major consumer of the polyacrylate market. The increasing construction activities across the world are boosting the demand for polyacrylate in the coatings sector.
• The increasing middle-class population, coupled with their increasing disposable income, has facilitated the expansion in the middle-class housing segment, thereby driving the residential construction.
• In 2019, the total value of new construction put in place was about USD 1365 billion in the United States and reached about USD 1430 billion in 2020, with a growth rate of about 4.5%, which, in turn, increases the consumption of polyacrylate.
• According to Eurostat, the construction production of EU-27 member countries increased by 22.1% in May 2020 compared to the previous month, considering the unprecedented decline in months of March and April due to the COVID-19 impact. Furthermore, the construction production decreased by 3.3% in December 2020 compared to November month.
• The United Kingdom monthly construction output was decreased by 2.9% in December 2020 compared with the previous month, decreasing to about USD 18.76 billion, registering a first monthly decline in growth since the unprecedented fall of 40.7% in April 2020, which in turn likely to impact the market demand for polyacrylate in the near future.
• The Asia-Pacific region is expected to witness the highest growth in new residential construction projects due to the expanding housing construction market in developing countries, like China, India, and ASEAN countries.
• In North America and Europe, with the increase in the government regulations related to VOC emissions, there has been an increase in water-borne coatings from the past few years due to their zero/low solvent content coupled with desired characteristics.
• Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region dominated the market during the forecast period primarily due to the rising construction sector.
• China, India, and Japan are the major contributors to the increasing demand for polyacrylates across the region as well as the globe.
• According to deliberations on the 14th five-year plan (2021-26), China has intended to increase the permanent urban residents to 65% by 2025, with no specific GDP growth target set for the period under this plan.
• China was leading in the construction industry with market size of USD 1092.9 billion in the year 2019, registering a growth rate of 14.71% compared to the previous year, thus increasing the demand for polyacrylate used in the construction industry material such as coatings and adhesives.
• Also, the Indian government has been actively boosting housing construction, as it aims to provide a home to about 1.3 billion people. The country is likely to witness around USD 1.3 trillion of investment in housing over the next seven years and is likely to witness the construction of 60 million new homes in the country. The availability of affordable housing in the country is expected to rise by around 70% by 2024.
• In Japan, in 2019, a sudden rise in residential construction and projects related to the Tokyo Olympics 2020 prompted the construction industry's growth. However, with the outbreak of coronavirus, the Tokyo Olympics is further postponed to 2021.
• The total new construction in Japan was accounted for about 127.55 million square meters in 2019 and reached about 113.74 million square meters in 2020, with a decline rate of about 10.5%, thus led to a decrease in consumption of polyacrylate from the construction segment used in products such as paints, coatings, and adhesives.
• Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.

Polyacrylate Industry Overview

Most of the players in the market captively consume polyacrylate to produce various products such as dispersions and polymethyl methacrylate (PMMA). The market studied is partially consolidated among the top players. The key players include BASF SE, Kao Corporation, Arkema, LG Chem, and Dow, among others.

Polyacrylate Market Leaders

Polyacrylate Market News

• In September 2020, Sulzer Chemtech installed crystallization equipment for LG Chem to enhance the acrylic acid production to 160 kilotons annually at LG Chem's complex in Yeosu of South Korea.
• In January 2020, BASF SE enhanced the flexibility of its water-soluble polyacrylate production plant along with slight capacity expansion at its Ludwigshafen site in Germany for application in household and commercial cleaning products and chemical formulation, thus, in turn, strengthens its polycarbonate business.