Ethylene vinyl acetate (EVA) is a copolymer of ethylene and vinyl acetate which offers excellent clarity, flexibility, and heat sealability. It is used in various applications such as hot melt adhesives, film & sheet, injection molding, extrusion coating, and cables & wire. The rising demand for packaged food from developing nations is expected to propel the growth of EVA market size during the forecast period.
The global ethylene vinyl acetate market is estimated to be valued at US$ 1710.66 million in 2024 and is expected to exhibit a CAGR of 3.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The increasing usage of EVA in packaging applications presents a huge market opportunity. EVA is widely used in food packaging owing to its excellent barrier and heat sealing properties. It improves mechanical strength and extends shelf life of packaged food products. Population growth coupled rising disposable incomes in developing countries is fueling the demand for packaged food items. This is expected to significantly drive the consumption of EVA in food packaging application during the forecast period. EVA also finds applications in medical packaging due to its transparency, flexibility, and biological inertness. Growing pharmaceutical industry worldwide will further boost the demand for EVA in medical packaging over the next few years.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the ethylene vinyl acetate market is moderate. High capital requirement for manufacturing plants poses a hurdle for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of players offering substitutes. Buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Players require raw materials like ethylene and vinyl acetate. However, the availability of substitutes reduces suppliers' bargaining power.
Threat of new substitutes: The threat of substitutes is high. Presence of alternative polymers can be used as substitutes which can pose a threat to the ethylene vinyl acetate market.
Competitive rivalry: The rivalry in the market is high due to presence of numerous global and regional players. Players often indulge in price wars to gain market share.
SWOT Analysis
Strength: Ethylene vinyl acetate possesses good flexibility, clarity, toughness and stress crack resistance. It has extensive applications in packaging, photovoltaic, and cables & wire industries.
Weakness: EVA has low melting point, making it unsuitable for high temperature applications. It also exhibits chemical degradation during processing or on long term storage.
Opportunity: Rising demand from photovoltaic backsheet and hot melt adhesives industries offer significant growth opportunities. Increasing renewable energy installations globally will augment photovoltaic backsheet demand.
Threats: Stringent environmental regulations around PVC and presence of substitute polymers like polyethylene can restrict the market growth. Volatility in raw material prices pose major threat.
Key Takeaways
The global ethylene vinyl acetate market size is expected to witness high growth at a CAGR of 3.4% during the forecast period of 2024 to 2031. The market size is projected to reach US$ 1710.66 Mn by 2024.
Regional analysis - Asia Pacific dominates the global market and the region is expected to continue its dominance during the forecast period. China accounts for the largest share in the region backed by presence of numerous manufacturing facilities and rapid industrialization.
Key players - Key players operating in the ethylene vinyl acetate market are Dupont, Arkema S.A., Celanese Corporation, Sinopec Corporation, Exxon Mobil Corporation and LyondellBasell Industries Holdings B.V. These players adopt strategies like mergers, acquisitions and new product launches to strengthen their market position.
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