Emulsion Polymers

SUMMARY

US demand to reach five billion pounds in 2006

Emulsion polymer demand in the US is projected to grow 2.8 percent annually to five billion pounds in 2006. Market value is forecast to rise 4.4 percent per year to $4.3 billion, aided by shifts toward higher priced emulsions, particularly acrylics.

Emulsion polymers are waterborne dispersions of plastic polymer particles. Demand will benefit from their good environmental profile, particularly in the area of volatile organic compound emissions. Emulsions also offer low cost, easy clean-up, good adhesion and flexibility, and abrasion resistance.

SB latex to remain dominant type

Styrene-butadiene (SB) latex will remain dominant and present the best prospects in light of rebounding demand for high quality printing and writing papers and paperboard packaging. SB latex demand will expand at a three percent annual pace to 1.7 billion pounds in 2006, fueled by opportunities in paper and board and specialty applications. Paper and board growth will result from greater demand for high quality printing and writing papers such as label stock and glossy commercial printing grades, as well as paperboard packaging. However, faster advances are expected in specialty applications such as roofing felts, sheathing, paper saturation e.g., abrasive papers) and asphalt modification.

Acrylic emulsions demand will benefit from compatibility with waterborne products in applications such as coatings, adhesives, and paper and textile finishes. Acrylic emulsions are already widely used in the production of architectural paints, where product reformulation has nearly reached saturation levels. Consequently, opportunities will be centered in industrial and specialty coatings where reformulation has lagged due to higher performance requirements.

Demand for vinyl acrylics will benefit from cost advantages over acrylic emulsions in paint end uses and greater use in paper coatings, packaging adhesives and nonwovens.

Paint, paper & board top markets

Paint and paper/paperboard will continue as the leading emulsion polymer markets, together accounting for half of total demand. Paint will remain the leading emulsion polymer market with opportunities anticipated in industrial paint uses based on the replacement of traditional solvent-borne interior trim, industrial and high gloss exterior paints. Paper and board coating markets will be stimulated by needs for high quality glossy and other papers, as well as enhanced graphic capability for cartons and other board products used to package beverages and food products. Other areas of opportunity include packaging adhesives, construction adhesives, nonwovens and printing inks.

Industry trends

The US emulsion polymer industry is consolidating and commodity-driven in light of slower growing end uses and price sensitivity. Producers have responded by increasing production efficiency and expanding globally via mergers and acquisitions. Leading producers are also backwards integrated into feedstocks production, enhancing their competitive position. Emulsion polymer companies are strengthening their strategic position in this fairly mature, highly competitive industry by tailoring new products to specific niche applications and broadening the range of synthetic polymers offered.

Study coverage

Emulsion Polymers, a new Freedonia study presents details on these and other key findings. This study of the US industry presents historical data through 2001, plus forecasts to 2006 and 2011 by major type, function and market. Emulsion polymer demand is analyzed in the context of technological developments, markets, competitive materials, pricing structures and international activity.

The industry structure section evaluates market share data and discusses the impact of mergers and acquisitions, research and development activity, and other competitive variables. It also profiles key US firms such as Air Products and Chemicals, BASF, Dow Chemical, OMNOVA, Rohm and Haas, and Reichhold.

TABLE OF CONTENTS

EXECUTIVE SUMMARY

MARKET ENVIRONMENT

• General
• Macroeconomic Environment
• Consumer Income & Spending Trends
• Demographic & Household Trends
  • Age Distribution Patterns
  • Other Demographic Trends
• Emulsion Technology
• Competitive Materials
• Historical Trends
• Pricing
• Regulatory Considerations
• International Activity

TYPES

• General
• Styrene-Butadiene Latex
  • Paper & Paperboard Coatings
  • Carpets & Rugs
  • Other Applications
  • Suppliers
• Acrylics
  • Coatings
    • Paint
    • Textile Coatings
    • Paper & Paperboard Coatings
  • Adhesives
    • Labels & Tapes
    • Caulks & Sealants
    • Other Adhesive Uses
  • Other Applications
  • Key Suppliers
• Vinyl-Acrylics
  • Coatings
  • Other Applications
  • Key Suppliers
• Polyvinyl Acetate
  • Coatings
  • Adhesives
  • Other Applications
  • Key Suppliers
• Vinyl Acetate-Ethylene
  • Adhesives
  • Other Applications
  • Key Suppliers
• Other Emulsion Polymers

FUNCTIONS

• General
• Coatings
  • Applications
  • Types
• Adhesives
• Other Functions

MARKETS

• General
• Paints
  • Paint Industry Overview
  • Applications
  • Types
• Paper & Paperboard
  • Paper & Paperboard Outlook
  • Paper & Paperboard Coatings
    • Paper
    • Paperboard
  • Types
• Textiles
  • Textile Industry Overview
  • Applications
  • Types
• Carpets & Rugs
  • Carpets & Rugs Industry Outlook
  • Types
• Packaging
  • Packaging Industry Outlook
  • Types
• Consumer
  • Applications
  • Types
• Construction
  • Building Construction Outlook
  • Applications & Types
• Other Markets

INDUSTRY STRUCTURE

• General
• Market Share
• Merger & Acquisition Activity
• Marketing & Distribution
• Competitive Strategies
• Research & Development
• Cooperative Agreements
• Company Profiles

List of Tables & Charts

EXECUTIVE SUMMARY

1 Summary Table

MARKET ENVIRONMENT

1 Macroeconomic Environment

2 Consumer Expenditures

3 Demographic Trends

4 Emulsion Polymer Trends, 1992-2001

Chart Emulsion Polymer Trends, 1992-2001

5 Emulsion Polymer Pricing Trends

TYPES

1 Emulsion Polymer Demand by Type

Chart Emulsion Polymer Demand by Type, 2001

2 Styrene-Butadiene Latex Demand by Market

Chart Styrene-Butadiene Latex Demand by Market, 2001

3 Styrene-Butadiene Latex Demand in Paper & Paperboard Coatings

4 Styrene-Butadiene Latex Demand in Carpets & Rugs

5 Styrene-Butadiene Latex Demand in Other Applications

6 Styrene-Butadiene Latex Capacity by Company, 2001

Chart Styrene-Butadiene Latex Capacity by Company, 2001

7 Acrylic Emulsion Demand by Market

8 Acrylic Emulsion Demand in Coatings by Market

9 Acrylic Emulsion Demand in Adhesives by Application

10 Acrylic Emulsion Demand in Other Applications

11 Vinyl-Acrylic Demand by Application

12 Vinyl-Acrylic Demand in Coatings

13 Vinyl-Acrylic Demand in Other Applications

14 Polyvinyl Acetate Demand by Application

15 Polyvinyl Acetate Demand in Coatings

16 Polyvinyl Acetate Demand in Adhesives

17 Polyvinyl Acetate Demand in Other Applications

18 Vinyl Acetate-Ethylene Demand by Application

19 Vinyl Acetate-Ethylene Demand in Adhesives

20 Vinyl Acetate-Ethylene Demand in Other Applications

21 Other Emulsion Polymer Demand

FUNCTIONS

1 Emulsion Polymer Demand by Function

Chart Emulsion Polymer Demand by Function, 2001

2 Emulsion Polymer Demand in Coatings by Application

Chart Emulsion Polymer Demand in Coatings by Application, 2001

3 Emulsion Polymer Demand in Coatings by Type

4 Emulsion Polymer Demand in Adhesives by Type

5 Emulsion Polymer Demand in Other Functions by Type

MARKETS

1 Emulsion Polymer Demand by Market

Chart Emulsion Polymer Demand by Market, 2001

2 Paint & Coatings Shipments

3 Paint Markets for Emulsion Polymers by Application

4 Paint Markets for Emulsion Polymers by Type

5 Paper & Paperboard Production

6 Paper & Paperboard Coating Markets for Emulsion Polymers

7 Paper Coating Markets for Emulsion Polymers

8 Paperboard Coating Markets for Emulsion Polymers

9 Paper & Paperboard Coating Markets for Emulsion Polymers by Type

10 Textile Mill Product Shipments

11 Textile Markets for Emulsion Polymers by Application

12 Textile Markets for Emulsion Polymers by Type

13 Carpet & Rug Shipments

14 Carpet/Rug Markets for Emulsion Polymers

15 Packaging Shipments

16 Packaging Markets for Emulsion Polymers by Type

17 Consumer Markets for Emulsion Polymers by Application

18 Consumer Markets for Emulsion Polymers by Type

19 Building Construction Expenditures

20 Construction Markets for Emulsion Polymers by Type

21 Other Markets for Emulsion Polymers

INDUSTRY STRUCTURE

Chart Selected US Emulsion Polymer Producers\'Market Share, 2001

1 Selected US Emulsion Polymer Sales by Company, 2001

2 Selected Acquisitions & Divestitures

3 Selected Cooperative Agreements