Polyvinyl Acetate Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Polyvinyl Acetate Category Overview

The polyvinyl acetate (PVA) category is anticipated to grow at a CAGR of 5% from 2023 to 2030. The growth of the category is attributed to the rising consumption of PVA as an adhesive in construction, wood, paper, and architectural coatings. According to Invest Saudi 2021 report, around 80% of total PVA consumption is utilized in construction, wood, architectural coating, and paper adhesives. Rising demand from such end-use industries, along with increasing infrastructural development and urbanization, is anticipated to drive the demand for PVA.

Rising environmental concerns are driving the demand for eco-friendly adhesives, and PVA adhesives adhere to the criteria as they are water-based and have low VOC emissions. Water-based PVA is used in the thermoplastic polymers in wood and wood products. Companies such as Henkel Corporation, Celanese Corporation, and others provide water-based adhesives. However, volatility in raw material prices and regulatory constraints present critical challenges in category expansion.

Germany, India, China, and Saudi Arabia are the top polyvinyl acetate exporting countries. In 2022, Germany exported 25,254 tons of polyvinyl acetate. Followed by India, which exported over 6,303 tons of the category in 2022. Similarly, China exported around 4,401 tons of the product, and Saudi Arabia exported 3,402 tons. In Germany, the price of polyvinyl acetate increased slightly to USD 3,267 per metric ton in Q4 of 2022. The polyvinyl prices in China were around USD 2,343 per metric ton in Q4 of 2022, which witnessed a decline of 22% from the previous quarter. In India, the prices were around USD 2,740 per metric ton in the fourth quarter of 2022. The prices of the category are mainly influenced by the prices of raw materials and demand from the end-use industries.

China, India, and Saudi Arabia are preferred countries for sourcing the category due to large production, abundant availability of raw materials, and cheap labor. Saudi Arabia is the largest chemicals producer across the globe, accounting for 10% of total global output. The construction industry is expected to rise in Al Jubail, Saudi Arabia, which will drive the demand for paints and, in turn, will benefit PVA produced in Al Jubail. On the other hand, rising construction work due to urbanization in China is expected to boost the category in the construction industry.

Buyers in the category, such as paints & coatings, construction, and packaging companies, have moderate bargaining power due to the presence of numerous suppliers and standardized products. However, top suppliers such as Dow, Celanese, Henkel, and others have a strong brand presence through unique product offerings, which can mitigate buyers' bargaining power.

Raw material (ethylene, oxygen, acetic acid), labor, machinery, energy, packaging, transportation, and others are some of the cost components involved in the production of the category. Polyvinyl acetate is prepared from polymerization of vinyl acetate. It can be produced through various processes, such as polyvinyl acetate by emulsion, suspension, and solution polymerization. Various machineries are used during the process, such as a PVA dissolving tank, initiator tank, condenser, control cabinet, and others. Raw materials, labor, and machinery account for a major part of the total costs.

In terms of polyvinyl acetate production, the hybrid model is a popular engagement model in the category, combining in-house and full-service outsourcing. Some suppliers opt for a partial outsourcing model. Companies outsource raw material procurement and transportation services. Companies such as Celanese purchase raw materials from third parties to use in the production of the category. Top manufacturers of polyvinyl acetate have a complete in-house production line from converting raw materials to vinyl acetate and further to polyvinyl acetate and quality testing, packaging, and transportation. Developing a strong relationship with suppliers of raw materials (ethylene, oxygen, and acetic acid) and ensuring the consistency and traceability of the supply chain is key to cost-effective and adequate utilization of the resources in the production of the category.

Polyvinyl Acetate Procurement Intelligence Report Scope