Consisting of a near 10 million dry tonne, $US 30+ billion market, the global synthetic latex polymer (SLP) market is a sizeable one. Although the North American and European markets remain the largest consumers of synthetic latex polymers, claiming some 56% of global volume, strong shifts are being seen in markets as diverse as China, India, and the Middle East.
With growth notably outpacing mature markets, China now claims a quarter of global SLP consumption, while the comparatively smaller markets of India and the Middle East are gaining significantly greater importance and represent among the best performing regions in terms of market growth. While global SLP consumption is expected to grow 2.3% through to 2017 – with both the U.S. and Europe anticipated see growth of less than 2% – China, India and ME are forecast to comfortably exceed this average by growing 7.1%, 12.4%, and 5.4% respectively. While China and India certainly afford impressive potential, it is the Middle East that is becoming a particular area of interest for a growing number of notably European suppliers given the region’s proximity.
The Middle East represents a singular region both in terms of consumption and supply of SLP. SLP consumption differs here in comparison to many regions, with a significant anomaly being that the consumption of styrene butadiene latex is exceptionally low given the near non-existent paper industry within the region. Another Middle Eastern regional singularity can be sourced to the large share of building construction and its related applications (notably Paints & Coatings, and Adhesives & Sealants). After the construction boom of the last decade, and its large slow-down after the global crisis, the industry (notably in the U.A.E. and Saudi Arabia) is recovering and stimulating the growth of SLP consumption.
In terms of product mix, while styrene-acrylics lead SLP type consumption, PVAc at 16% market share continue to represent a significant proportion of the region’s consumption. Claiming a total of 87% of the region’s demand, Egypt, Israel, Saudi Arabia, and the U.A.E. are the major markets within the Middle-East. The supplier landscape is also noteworthy within the Middle East, with a mix of strong local companies competing with multi-national concerns. Despite the threat of geopolitical volatility within this region possibly crimping growth potential, SLP consumption is still expected to see a far above average growth rate of 5.4% growth until 2017 with acrylics and VA copolymers being the fastest growing products, and the Paints & Coatings application sector is expected to enjoy growth of 7.7%.
Kline’s Synthetic Latex Polymers: Middle East Market Analysis and Opportunities, complementing the companion SLP volumes Synthetic Latex Polymers Global Series: Business Analysis and Opportunities, Synthetic Latex Polymers: Brazil Market Analysis and Opportunities, and Synthetic Latex Polymers Eastern Europe: Market Analysis and Opportunities, affords the actionable market intelligence, insight and careful analysis to authoritatively engage within this promising and atypical region.
