Significant growth is expected for synthetic latex polymers in the Middle East, according to our latest research.
“Demand for redispersible powders is expected to grow at a relatively high rate due to its benefits in transportation and application, as well as with the growth of infrastructure investments,” says Shilpi Mehrotra, Industry Manager in Kline’s Chemical practice. “More cost-effective emulsion polymers, like styrene acrylics and PVAc, will have a benefit in the cost-sensitive markets of the Middle East. There are also opportunities for high-performance materials that favor emulsions like pure acrylics and PUR, such as in specialty coatings for industrial applications and in more eco-friendly materials for the construction market.”
Meanwhile, end-use applications in construction, paints, and adhesives will present clear growth opportunities for synthetic latex polymers, which to some extent mirrors the economic growth of the region. On the contrary, textile and carpet industries have been slow to recover from the negative impacts of the pandemic.
The current state of the Middle East’s output
Despite its geographical advantage – it has the benefit of being at the center of Western and Eastern industrial development trends, and the region has trade access to most of the important countries of the world — the Middle East has had a relatively small industrial output up to now, oil and gas aside. This translates into a relatively smaller market for synthetic latex polymers. In fact, Mehrotra says, the Middle East is not a regional market of its own but a milieu of numerous country markets, each different in size, economy, consumer behavior, and stage of industrial development.
Mehrotra’s insights come from Kline’s new Synthetic Latex Polymers: Middle East Business Analysis and Opportunities report, which includes Turkey within Middle East — the biggest market of synthetic latex polymers in this part of the world. It is also the most advanced market for synthetic latex polymers with a higher level of industrialization than other countries of the region. Demand is also dynamic with advanced trends in United Arab Emeritus and Saudi Arabia, but most other economies, such as those of Gulf Cooperation Council, are still heavily oil dependent, and some are struggling to overcome political turmoil, such as Lebanon.
How COVID-19 affected the development curve
The COVID-19 pandemic impacted most of the key country markets in 2020, but its impact on Middle East was delayed to 2021 as most end users and suppliers maintained enough stock to last the first wave of the pandemic. In 2021, however, the container crisis that hit the global market did not spare the Middle East region and created huge delays in delivery and rise in freight cost.
“The situation was observed to be improving in 2022, and there is indeed a better future in foresight with many government-driven projects to modernize the industries and to attract investment with the aim of diversifying the industries and reducing economic dependence on oil,” Mehrotra says. “There are also conscious steps in the direction of reducing import dependence from Europe and Asia by increasing domestic production.
A diverse supplier landscape caters to the market
In the market of synthetic latex polymers, the region has a mix of multinational and regional suppliers. Organik Kimya is the biggest manufacturer within the region, sharing the top 5 with Dow, Synthomer, BASF, and Wacker. Iran is an isolated market and houses many local producers of synthetic latex polymers, led by Simab Resins. More than 80 identified suppliers cater to the Middle East synthetic latex polymers market, including a mix of large global multinationals, region-focused manufacturers, local producers or those that focus on specific country markets, as well as big and small suppliers from Asia.
Kline’s Synthetic Latex Polymers: Middle East Business Analysis and Opportunities is currently available. It provides a comprehensive assessment of the market of several different polymer chemistries comprising the water-based emulsions market in a range of end use application industries. It also analyses opportunities and challenges that the synthetic latex polymer suppliers must understand for growth in the Middle East.