Styrene Butadiene Latex Market - Forecast(2023 - 2028)
Styrene Butadiene Latex Market Overview
The Styrene Butadiene Latex Market size is projected to reach US$9.3 billion by 2027, after growing at a CAGR of 3.1% during the forecast period 2022-2027. Styrene butadiene latex is a type of emulsion polymer commonly used in the production of synthetic rubber. The two primary monomers used in the production of styrene butadiene latex are styrene, which is derived from the reaction of benzene and ethylene and butadiene, which is a byproduct of ethylene production. The styrene and butadiene monomers ensure superior abrasion resistance, crack resistance and better aging characteristics. As a result, styrene-butadiene latex is often utilized in various end-use industries, including automotive, construction and more. The growth of the paper and paperboard industry is fueling the Styrene Butadiene Latex Market size growth. Moreover, the surging building and construction activities at the global level are accelerating the demand for building materials. This, in turn, is driving the Styrene Butadiene Latex Market growth. However, in 2020, the Covid-19 pandemic negatively impacted the styrene butadiene latex industry growth because there was a temporary halt in the production activities related to paper, construction material and others. In 2021, the governments encouraged the surge in production activities. As a result, the surge in production activities benefited the styrene butadiene latex industry growth.
The "Styrene Butadiene Latex Market – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Styrene Butadiene Latex Market.
- Asia-Pacific dominated the Styrene Butadiene Latex Market, owing to the growth of the paper and paperboard industry in the region. For instance, according to the General Statistics Office of Vietnam, in 2020, the production of paper for the newspaper industry in Vietnam was 979.3 billion pages, an increase of 4.3% higher over 2019.
- The restrictions on the usage of plastic bags are fueling the demand for paper and paperboard-related products. This, in turn, is fueling the demand for paper processing materials, which is driving the butadiene latex market growth.
- Moreover, the surging application of adhesives in the automotive and building & construction industry is expected to create an opportunity for the Styrene Butadiene Latex Market growth in the upcoming years.
- However, a growing preference for bio-based latexes is expected to strict the Styrene Butadiene Latex industry growth during the projected forecast period.
Styrene Butadiene Latex Market Segment Analysis – by Application
The paper processing segment held the largest Styrene Butadiene Latex Market share in 2021 and is forecasted to grow at a CAGR of 3.3% during the forecast period 2022-2027. Styrene-butadiene latex, a type of emulsion polymer has several advantages, including superior filler acceptance and tensile/elongation balance. Furthermore, the flexibility of this copolymer allows for a nearly infinite number of mixtures that result in high water resistance and adhesion to difficult substrates. Thus, styrene-butadiene latex is often utilized in paper processing to enhance the binding capability of a pigment, making paper smoother, stiffer, brighter and more water-resistant. Moreover, styrene-butadiene latex also improves the performance and quality of paper and board while increasing production efficiency and lowering costs. Thus, owing to the above-mentioned benefits the adoption of styrene-butadiene latex for paper processing is surging. This, in turn, is driving market growth.
Styrene Butadiene Latex Market Segment Analysis – by End-use Industry
The paper and paperboard segment held the largest Styrene Butadiene Latex Market share in 2021 and is forecasted to grow at a CAGR of 3.5% during the forecast period 2022-2027. Styrene-butadiene latex formulations manufactured from styrene and butadiene monomers are frequently used as a coating in paper products such as magazines, flyers and catalogs to achieve a high gloss, good printability and oil & water resistance. Furthermore, styrene-butadiene latex improves pigment binding power, making paper smoother, stiffer, brighter and more water-resistant. The factors such as the growth of the paper packaging industry, surging demand from the printing and stationery industry and other factors are accelerating the paper and paperboard industry growth. For instance, according to the Confederation of European Paper Industries (CEPI), in the year 2019, the production of paper and paperboard in Germany was 21.39 million tons, which was 25% of the total European paper and paperboard production. Hence, the growth of the paper and paperboard industry is fueling the demand for Styrene-butadiene latex, which, in turn, is propelling the market growth.
Styrene Butadiene Latex Market Segment Analysis – by Geography
Asia-Pacific is the dominating region as it held the largest Styrene Butadiene Latex Market share in 2021 up to 41%. The Asia-Pacific industrial growth is driven by various industries, including, paper and paperboard, building & construction and other such industries. The Asia-Pacific paper and pulp industry are growing due to the development of new facilities, the surge in production and governmental initiatives associated with the paper and pulp industry in the region. For instance, in March 2022, work began on the 33.4 trillion rupiahs (US$2.33 billion) Asia Pacific Resources International Ltd (APRIL Group) paperboard facility in Indonesia, with completion scheduled for the third quarter of 2023. Moreover, according to the General Statistics Office of Vietnam, in the year 2020, the production of paper cover in Vietnam was 2754.2 thousand tons, an increase of about 13.6% when compared with 2019. Also, the Chinese government's initiatives for the clean and sustainable production of pulp and paper are promoting less wastage of water, reuse of wastewater after filtration and other such measures are promoting the sustainable pulp and paper industry. Therefore, the growth of the paper and paperboard industry is boosting the demand for styrene-butadiene latex. This, in turn, is leading to Styrene Butadiene Latex Market size growth.
Styrene Butadiene Latex Market Drivers
Growth of the Construction Activities at the Global Level
Styrene Butadiene Latex, a type of emulsion polymer is employed in the construction products such as concrete, mortar and more to enhance the elastomer property, binding and prevent cracking. The construction products are used for external plastering, waterproofing preparatory works, drain and plumbing shaft plastering and other construction activities. Factors such as robust demand for larger commercial spaces, strong federal government policies for the residential sector and more are aiding the construction activities growth. For instance, according to the United States Census Bureau, in 2020, the total number of new residential construction projects started in the USA was 1,379.61 thousand units and in 2021 it was 1,610 thousand units, an increase of 16.7%. Moreover, in Q3 of 2021, the development of various offices started in Germany, which included, Markisches Zentrum Redevelopment(completion year Q4 2023), Minden Headquarters Building (completion year Q3 2024), Kolbenhoefe Mixed-Use Complex (completion year Q4 2023) and others. Also, according to Invest India, there is a total of 115 future construction projects which are under the planning phase in India and the value of these projects is about US$11.63 million, these projects include the construction of hotels, office buildings, shopping complexes and more. Thus, the growth of construction activities is fueling the demand for construction products such as concrete, mortar and more. This, in turn, is driving market growth.
The Ban on Plastic Bags is Fueling the Demand for Cardboard and Paper for Packaging
The governments of various regions including Europe, Asia, North America and others are imposing restrictions and bans on single-use plastic and materials. For instance, in July 2021, the Single-Use Plastics Directive went into effect in the European Union (EU). Certain single-use plastics that have alternatives are prohibited under the directive. A "single-use plastic product" is made entirely or partially of plastic and is not intended to be used multiple times for the same purpose. Moreover, in January 2021, in China, a plastic ban went into effect, prohibiting restaurants across the country from providing single-use plastic straws and stores in major cities from providing plastic shopping bags. These are some of the restrictions on the manufacture, sale and use of single-use plastic products outlined in a policy document released in January by China's National Development and Reform Commission (NDRC) and the Ministry of Ecology and Environment. Hence, such bans are boosting the demand for paper and paperboard-related materials. As a result, the product activities related to paper and paperboard are surging, which is leading to the growth of the Styrene Butadiene Latex Market growth.
Styrene Butadiene Latex Market Challenge
A Growing Preference for Bio-based Latexes
The growing preference for bio-based latexes is a significant challenge to the global Styrene Butadiene Latex industry. This is because the main raw materials used to make styrene butadiene latex are petroleum products. The fluctuations in crude oil prices affect their prices. For example, in 2020, the global average price of ethylene was around US$697 per metric ton. The average price for that year rose to US$1,014 per metric ton in July 2021, a more than 45 percent increase over the previous year. Crude oil price increases reduce drilling activity, resulting in a demand-supply imbalance for key petroleum-based raw materials. Thus, to induce lower costs the preference for bio-based latex is surging, this factor is restricting the market growth.
Styrene Butadiene Latex Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Styrene Butadiene Latex Market. The top 10 companies in the Styrene Butadiene Latex Market are:
- Asahi Kasei Corp.
- BASF SE
- The Dow Chemical Co.
- EcoSynthetix Inc.
- General Industrial Polymers
- JSR Corp.
- Kumho Petrochemical Co. Ltd.
- LANXESS AG
- Mallard Creek Polymers
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