As per the assessment conducted by Market Research Future (MRFR), the Global Polyvinyl Alcohol (PVA) Market is estimated to acquire a market value of USD 1,769.2 Million while expanding at a CAGR of 4.59% by 2023.
The outbreak of COVID-19 has brought a significant change impact on polyvinyl alcohol market growth. The chemical sector’s supply is dependent on the Chinese market, which has been severely impacted due to the outbreak of coronavirus. Besides, the disruption of global supply chains has also been affected adversely.
Growing Demand for Bio-Based PVA Products to Boost the Market Growth
The rising need for bio-based PVA products is expected to be a significant factor that can fuel the global polyvinyl alcohol market structure during the forecast period. PVA finds extensive application in various end-user sectors such as; electronics, coatings, textiles, cosmetics, and others. Among all, the food packaging industry and construction sector are anticipated to make the most significant contribution in augmenting the polyvinyl alcohol market share during the forecast period. In addition, sustainable product packaging is gaining prominence owing to the stringent rules being imposed in various countries, which can grow the market significantly in the assessment period.
Electronics Sector to Offer Significant Opportunity to Expand the Market
The expansion of the electronic sector, especially in developing countries, is expected to offer lucrative opportunities to the polyvinyl alcohol market manufacturers that can expand the market in the assessment tenure.
Toxicity of PVA Products to Hinder Market Growth during the Review Period
The solid waste generation of PVA products may impact human health adversely, which is anticipated to hinder the polyvinyl alcohol market growth during the forecast period.
Imposition of Stringent Rules by Various Regulatory Bodies may hamper the Market Growth
The application of PVA has been restricted by various regulatory bodies that are expected to pose a significant challenge in the polyvinyl alcohol industry during the forecast period.
Cumulative Growth Analysis
As per the assessment, the market is projected to witness decent growth during the review period on account of the growing demand for bio-based PVA products.
The segment analysis of the global market for PVA market is done by end-use and grade.
The grade-based segments of the global market for PVA are partially hydrolysed polyvinyl alcohol and fully hydrolysed polyvinyl alcohol. Among all, the partially hydrolysed polyvinyl alcohol segment is anticipated to acquire the market value of USD 1052.2 million by 2023.
The end-user based segments of the global market for PVA are packaging, electronics, medical, paper, construction, and textile. Among all, the packaging segment is predicted to lead the market during the forecast period. The segment is projected to acquire a market value of USD 695.4 million by 2023.
Based on the region, the global market for PVA is segmented into North America, Europe, Asia-Pacific, and the Rest of the World (RoW).
APAC to Dominate the Market during the Forecast Period
APAC is projected to lead the global market owing to the rapid industrialization and the expansion of the construction sector during the forecast period. Apart from the construction sector, the food and beverages and the cosmetic industry are predicted to add fuel to the development of the regional market. The extensive application of bio-degradable PVA products is expected to be another salient cause that can augment the regional market in the coming period. The growing innovation in the packaging industry is expected to escalate the demand for the product, thereby benefitting the industry in the assessment period. Among all countries of APAC, China is anticipated to make the most significant contribution in strengthening the regional market.
Europe to Acquire USD 394.6 million by 2023
Europe is predicted to be the second most lucrative market during the forecast period. The region is expected to garner a significant market value of USD 394.6 million by 2023. The growing application of PVA in the electronics industry is expected to be a significant factor that can drive the regional market during the assessment period. In addition, the increasing awareness about the advantageous polyvinyl alcohol properties is expected to fuel the regional market in the coming period.
North America to Witness Significant Growth During the Assessment Period
North America is projected to acquire a significant market value during the forecast period owing to the increasing demand for the product as a polymerization aid. Besides, the growing demand for bio-based PVA products is likely to be a crucial factor that can strengthen the market in the coming period. In addition, advantageous properties of PVA are projected to augment the regional market in the review period.
MEA to Display Significant Market Growth during the Forecast Period
MEA is expected to witness significant market growth during the forecast period owing to the rise in the packaging industry. The region is majorly influenced by the contribution of the Middle East countries. The ME countries such as; the UA, Kuwait are projected to make a significant contribution in growing the regional market owing to their economic stability.
The growing acquisitions, increasing R&D activities are some of the key strategies adopted by the key players in the PVA market. The market is highly fragmented, and the competition is likely to grow in the coming period. The end-user sectors like packaging, electronics, construction, textile are expanding relentlessly, which is resulting in a higher demand of the product. The growing demand among consumers is predicted to fuel the competition among the key players.
Key Players Listed in the Report
The details about the global market have been protracted on the basis of vital players, competitive partners, and the revenue generation in the forthcoming period. The report casts light on the established regional, global, and nation-specific players, which makes the global market highly competitive. The other market dynamics have also been analyzed across an array of developments, which provides a solid hold of the market in the assessment period.
PVA Market, By Grade
PVA Market, By End-User
Frequently Asked Questions (FAQ) :
The global polyvinyl alcohol market size can touch USD 1,769.2 million by 2023.
The global polyvinyl alcohol market stood at USD 1300 million in 2016.
The global polyvinyl alcohol market is expected to expand at 4.59% CAGR from 2018 to 2023.
By ‘grade’, partially hydrolyzed polyvinyl alcohol can dominate the global polyvinyl alcohol market and fetch returns at 4.93% CAGR from 2018 to 2023.
The APAC region can touch USD 791.3 million by 2023 in the global polyvinyl alcohol market.
The Nippon Synthetic Chemical Industry Co., Ltd., KURARAY CO., LTD., OCI COMPANY Ltd., China Petroleum & Chemical Corporation, Sekisui Chemical Co., Ltd., Merck KGaA, Chang Chun Group, Japan Vam & Poval Co., Ltd., and Anhui Wanwei Group are key players of the global polyvinyl alcohol market.
The growing use of polyvinyl alcohol (PVOH) in applications that are witnessing a high demand is expected to sustain moderate growth for the global polyvinyl market during the assessment period. The global market is positioned to witness a CAGR of 4.09%, which projects a sluggish, yet consistent growth. Market valuation of the PVA market was recorded at USD 1.39 billion at the end of 2017 and is expected to reach an approximate evaluation of USD 1.76 billion by the end of the review period.
Polyvinyl alcohol is a petroleum-based biodegradable polymer and is soluble in water; which makes it a good choice for applications that require environmentally friendly materials. Presently, there is a global focus on improving the condition of the environment and reducing the impact of harmful chemicals. Consumers are increasingly demanding products which have a minimal carbon footprint. Amidst this, there is a high demand for conveniently packaged food items along with scrutiny on plastic consumption. As a result, the food & beverage industry is turning to biodegradable plastics in order to meet the high demand for sustainable packaging in a global consumer-centric environment. PVOH has emerged as the prime choice in manufacturing sustainable packaging due to its excellent oxygen barrier properties, solubility in water and biodegradability. Additionally, polyvinyl alcohol is one of the most extensively used polymers in vinyl-acetate based emulsions (VAE) as it acts as a superior emulsifying and dispersing agent. Use of these emulsions drastically enhances end-product properties. For instance, PVOH is used in the manufacturing of adhesives, its addition improves adhesion to hydrophilic substrates, offers better crosslinking, good wet tack, and good heat resistance. Moreover, vinyl acetate-based emulsion applications are not limited to adhesives and are used in paints & coatings, textile, re-dispersable powders and construction products. The wide applications of VAEs are expected to contribute to the growth of the global PVOH market.
Vinyl acetate monomer (VAM) is essential in the production of PVOH and has witnessed lower supply in the last few years, thus driving up the price of the raw material. The increasing prices of VAM are expected to hamper market growth during the review period. Despite this restraint, the market is expected to find ample opportunity for growth in the construction sector due to the increasing construction activities across the globe, particularly in emerging economies. PVOH is used in a wide variety of construction chemicals such as sealants, joint cement, grout, and mortar among others. With the global construction chemicals market, the PVOH market is expected to grow proportionally.
The global polyvinyl alcohol market is segmented on the basis of grade, end-use industry, and region. By grade, the market is segmented into partially hydrolyzed and fully hydrolyzed. Partially hydrolyzed polyvinyl alcohol accounts for the most significant share of the total market due to its high water-soluble nature and low viscosity, making it preferable than the alternative. Presently, the partially hydrolyzed PVOH segment accounted for over fifty percent of the total market and recorded value of USD 788.3 million in 2017. Projections for this segment estimate a value of USD 1.05 billion by the end of 2023 and a CAGR of 4.93% during the assessment period.
By end-use industry, the market is segmented into packaging, paper, construction, electronics, textile, and medical. The packaging segment currently accounts for 38.2% of the total market. The crucial use of PVOH in the production of biodegradable packaging will be a key contributor to the segment maintaining its leading position. However, the textile industry is expected to grow at the fastest CAGR of 5.49%, due to its extensive use for textile warp sizing applications. PVOH is also used to treat textile to maintain colorfastness. The steadily growing demand for textile and global demand for high quality is expected to affect positive growth for the PVOH market directly.
By region, the global market is segmented into North America, Europe, the Asia-Pacific, Latin America and the Middle East & Africa.
The Asia-Pacific accounts for the largest segment with the highest CAGR over the assessment period. The increasing demand from application industries in the region and presence of a huge textile industry is expected to encourage the growth of PVOH market. The region also has increasing use of construction chemicals for construction activities and PVOH's vital role in the production of such chemicals is expected to further contribute growth for the region. Additionally, the region, particularly Japan, has a high concentration of global market leaders in PVOH market. The Asia-Pacific region is expected to value USD 791.3 million by the end of 2023.
Led by Germany, Europe is the second largest regional market due to the presence of several key players in the market and the increasing demand for sustainable packaging.
The market is semi-fragmented and in the report, analysis of major players include eminent market leaders such as Chang Chun Group., OCI Company Ltd., The Nippon Synthetic Chemical Industry Co. Ltd., Merck KGaA, Sekisui Chemical Co. Ltd., Anhui Wanwei Group., KURARAY CO. LTD., China Petroleum & Chemical Corporation, and Japan Vam & Poval Co. Ltd. among others.
Competitive landscape –Polyvinyl Alcohol Market
The polyvinyl alcohol demand is growing at a sluggish rate. However, the demand in emerging economies is slated to grow moderately. The market is semi-fragmented and is dominated by tier-1 players. Kuraray accounts for the largest market share in the global polyvinyl alcohol market in terms of revenue and capacity. Competition among the players is moderate, and most of the players have a vertically integrated business.
The major players operating in the global polyvinyl alcohol market are Merck KGaA (Germany), OCI COMPANY Ltd.(South Korea), The Nippon Synthetic Chemical Industry Co., Ltd.(Japan), Sekisui Chemical Co., Ltd. (Japan), KURARAY CO., LTD.(Japan), Anhui Wanwei Group.(China), Chang Chun Group.(Taiwan), Japan Vam & Poval Co.,Ltd.(Japan), and China Petroleum & Chemical Corporation (China) among others. Among the aforementioned players KURARAY CO., LTD. is the leading market player with a nameplate capacity of 361 KT; the company has production units in Japan, Singapore, Europe, and the U.S. The company’s main strategy revolves around the expansion of capacities and offer superior quality products at competitive prices. For instance, in 2016, KURARAY CO., LTD inaugurated a new KURARAY POVAL plant in Pasadena, Texas. The plant cost around USD 300 million and would produce 40,000 metric tons of PVOH annually. This capacity expansion helped the company to meet the rising demand for polyvinyl alcohol across North America
In 2016, Kuraray America Inc, a subsidiary of Kuraray Co. Ltd. inaugurated their new La Porte plant with an annual production capacity of more than 40,000 tons of PVOH. This has helped the company to become the world’s largest manufacturer of PVOH with 365,000 tons capacity.
In 2015, Kuraray announced to expand their manufacturing facility of optical use POVAL film at their Saijo, Japan-based location. The company would increase the production capacity by 20 million square meters/year.
Sekisui Chemical Co., Ltd. is involved in the manufacturing of high-performance plastics for automotive, information technology industries, and medical; and provides residential housing construction. The company operates through three business segments namely housing, urban infrastructure and environmental products (UIEP), and high-performance plastics (HPP). The company is one of the leading players operating in the global polyvinyl alcohol market. In 2009, it purchased the polyvinyl alcohol business from Celanese Corporation with a production capacity of 120,000 TPA to address the growing demand for PVA films in the U.S and Europe. The company has production units situated in Calvert City, Kentucky, Pasadena, Texas and Tarragona, Spain. Sekisui has secured its position among the top five manufacturers in the global polyvinyl alcohol market.
In 2013, the company launched five new cosmetic grades polymers under the brand name Selvol Utalux. The newly launched product is equivalent to the Selvol polyvinyl alcohol grades. The newly launched product is in sync with the active ingredients requirements of personal care industry.
Merck KGaA is involved in the manufacturing of chemical products and pharmaceutical. The company operates through three business segment namely healthcare, life science, and performance materials. The life science segment offers laboratory materials, technologies, and services. The performance materials sector comprises of specialty chemicals and materials for demanding applications. The company has its presence across Europe, North America, and Asia Pacific. The company’s main strategy for polyvinyl alcohol includes product launches.
For instance, in 2016, Merck kGaA introduced a new product named as Parteck MXP, a polyvinyl alcohol-based excipient. This product launch helped the company to expand the product portfolio and to meet the rising demand for PVA worldwide
In 2015, Merck kGaA introduced Parteck® SRP 80, a PVA based new functional excipient for oral sustained release formulations. This product launch helped the company to meet the increasing demand for PVA in pharmaceutical applications.
The Nippon Synthetic Chemical Industry Co., Ltd. is involved in the production, processing, and sales of synthetic resin products in Japan and internationally. The company offers gohsenol and numerous specialty polyvinyl alcohol products. The company also offers IT and electronic products comprising OPL film, an indispensable element of LCD displays, which are used in making polarizing films, soarnol, soarlite, and soaresin products. Moreover, the company provides specialty polymers consisting of coponyl, shikoh, nichigo polyester, mowinyl, mowinyl-powder, and other products. The Nippon Synthetic Chemical Industry Co., Ltd. is a subsidiary of Mitsubishi Chemical Corporation.
In 2016, NIPPON GOHSEI, a leading manufacturer of specialty chemicals, expanded the production capacity of Hi-Selon, a water-soluble plastic film made from polyvinyl alcohol at their plant location in Japan. This expansion has helped the company to meet the rising demand for PVA films.