World emulsion polymers demand forecast to reach 11.4 million metric tons in 2008.

The worldwide demand for emulsion polymers is forecast to increase 4.5% per year through 2008 to 11.4 million metric tons as a result of healthy economic growth prospects in much of the world, according to a new study, "World Emulsion Polymers," published by The Freedonia Group, Inc., Cleveland, OH.

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The study reports that market value is forecast to rise 6.1% per year through 2008 to over $24 billion, benefiting from shifts in product mix toward higher priced emulsions, particularly acrylics. Though emulsion polymers are highly versatile and used throughout the industrial economy, Freedonia predicts that the market will remain closely linked to a relatively narrow group of products, most prominently water-based paints, paper coatings, and general-purpose adhesives.

While the study forecasts a worldwide demand, it states that North America and Western Europe accounted for 65% of the global demand for emulsions polymers in 2003. These regions dominate the worldwide output of key emulsion-containing products such as latex paints, coated paper, and general-purpose adhesives, and the regions' suppliers have made great efforts to improve the environmental compatibility of their offerings. Yet, Freedonia maintains that the most rapid growth in emulsion polymer demand through 2008 will arise in developing regions, especially Asia. Rapidly developing countries such as China and India have only recently begun to move from solvent- to water-based paints.

In addition, the study forecasts that the demand for emulsions in paints and coatings will rise 4.7% annually, well in excess of paint industry shipments. According to Freedonia, emulsions, particularly acrylics, will find greater use in various industrial and special-purpose coatings, such as motor vehicle finishes, general industrial coatings, and traffic paints. Demand for emulsion polymers in adhesives are also forecast to benefit from a solid demand in the paper and paperboard packaging materials sector, as well as in the tapes and labels sectors. Volume demand reportedly will continue to be dominated by low-cost polyvinyl adhesives used in high-speed packaging processes, particularly paper-board cartons. However, the study reports that slow gains in carpet backing applications, where solventborne latexes are used predominantly, will hinder the segment. Among the remaining markets for emulsion polymers, the strongest gains are forecast for printing inks, which are shifting to water-based formulations, as well as sealants and caulks.

The study, "World Emulsion Polymers," is available for $5100. For additional information, contact Corinne Gangloff at The Freedonia Group via 440.684.9600 or [e-mail]; www.freedoniagroup.com.