Vinyl Acetate Monomer (VAM) is a colorless liquid that is used in the manufacturing of various products such as coatings, adhesives, textiles, and packaging materials. It is primarily produced through the oxidation of ethylene and acetylene, and is one of the key building blocks in the production of polyvinyl acetate (PVA) and other polymers.
According to a report by ChemAnalyst, the global Vinyl Acetate Monomer market is projected to grow at a CAGR of 5.5% during the forecast period of 2021-2026. The market was valued at USD 5.1 billion in 2020 and is expected to reach USD 6.8 billion by 2026.
The increasing demand for food packaging films and the growth of the construction industry are some of the key factors driving the growth of the Vinyl Acetate Monomer market. VAM is used in the production of polyvinyl alcohol (PVOH) which is used in the production of food packaging films. The increasing demand for packaged food has boosted the growth of the packaging industry which, in turn, has resulted in the growth of the VAM market. Additionally, the growth of the construction industry has also increased the demand for adhesives and coatings which are major applications of VAM.
The report further states that the Asia-Pacific region is expected to dominate the VAM market during the forecast period. China, India, and Japan are the major contributors to the growth of the VAM market in the region. This can be attributed to the growing demand for packaging materials and adhesives in the region. Additionally, the growing automotive industry in the region is also expected to boost the demand for VAM.
Another factor that is expected to drive the growth of the VAM market is the increasing use of low VOC (volatile organic compound) coatings. VAM is used in the production of low VOC coatings which are eco-friendly and are preferred over traditional coatings. The growing awareness among consumers about the harmful effects of traditional coatings has resulted in the increasing demand for low VOC coatings, which is expected to boost the growth of the VAM market in the coming years.
However, the growth of the VAM market may be hindered by the rising concerns about the harmful effects of VOC emissions. The increasing regulations by governments across the globe to reduce VOC emissions may result in the slowdown of the VAM market. Additionally, the volatility of crude oil prices is another factor that may affect the growth of the VAM market.
To conclude, the Vinyl Acetate Monomer market is expected to witness steady growth during the forecast period. The growing demand for food packaging films, adhesives, and low VOC coatings are some of the key factors driving the growth of the market. The Asia-Pacific region is expected to dominate the market during the forecast period due to the growing demand for packaging materials and adhesives in the region. However, the rising concerns about VOC emissions and the volatility of crude oil prices may hinder the growth of the market.