Market Definition
Emulsion polymers are the category of polymers that are widely utilized in various industries, such as paints & coatings, adhesives, textiles, and paper manufacturing due to their numerous benefits. These benefits include being easy to handle, having low viscosity, and high stability, making them highly desirable to use in different applications.
Market Insights
The Saudi Arabia Emulsion Polymers market is projected to grow at a CAGR of around 6.50% during the forecast period, i.e., 2023-28. The factor attributing to the growth of polymers in Saudi Arabia is the rising demand from the end-user industries such as construction & building & several others. The increasing construction activities in the country & the government's emphasis on infrastructure development are boosting the market growth. Saudi Arabia is an oil-rich country, and to diversify its economy, the government is focusing on improving the infrastructure by constructing roads, malls, hotels, smart cities, etc.
Additionally, one of the mega construction projects currently underway in Saudi Arabia is the Neom megacity project, which aims to create a futuristic city in the country's northwest region. Along with this, other notable projects include the King Abdullah Financial District in Riyadh, the expansion of the Grand Mosque in Mecca, and the Red Sea Project. With the initiation of various new projects, the country has been experiencing significant growth in its construction industry. Consequently, facilitating the demand for paints & coating in the country, further upscaling the market in the following years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 6.50% |
| Region Covered | Central, East, West, South |
| Key Companies Profiled | Dow Materials Science Saudi Arabia Limited, BASF Saudi Arabia Co. Ltd., JIFTEX Polymers, Obegi Chemicals Group Group, Biolab Arabia LTD. Co., Celanese Corporation, Wacker Chemie AG, DIC Corporation, Arkema Group, SNF Group, Others |
| Unit Denominations | USD Million/Billion |
Moreover, the emerging partnership between the leading global manufacturers of emulsion polymers & the Saudi-based companies is also contributing to the evolution of the industry in the country. The joint ventures between these companies serve as a prime scheme to facilitate production in Saudi Arabia. This also creates a mutually favorable relationship between the companies since they share their respective expertise to offer end-user industry verticals comprising textiles, consumer goods industry, etc., with the best quality products.
Globally renowned companies provide their knowledge & expertise in the technology related to the manufacturing of polymer, whereas the local companies provide them with market penetration, access to raw materials, and a network of local suppliers & distributors. For instance, in 2020, Al Hejailan Group partnered with the global company DOW to build & operate a new petrochemicals plant, where the production of chemicals like polymers is expected by 2023. Therefore, the growing partnership between the companies would further ease the production of these polymers to cater to the rising demand from the textile & construction industry, hence positively affecting the growth.
Market Dynamics
Key Driver: Extensive Demand from the End-user Industries to Escalate the Market Growth
Saudi Arabia has ample access to raw materials like ethylene, propylene, and vinyl acetate monomer, used in the manufacturing of this polymer. This availability of raw materials has enabled the country to become one of the crucial producers. As a result, industries such as construction, textiles, packaging, etc., are heavily using emulsion polymers for various applications, including adhesives, coatings, and waterproofing materials.
The increasing construction activity in Saudi Arabia has led to a surge in demand for these polymers from the construction industry as they improve the strength, durability, and resistance of construction materials & also protect the building from environmental factors such as water, moisture, and UV radiation. Similarly, the textile industries also used them during dyeing processes to enhance the color uptake of fibers. Hence, the expanded use of these polymers in the end-user industries is boosting the market.
Possible Restraint: Volatility in Prices of Raw Materials & Availability of Alternate Solutions to Restrain Market Growth
Saudi Arabia's economy is heavily reliant on the oil & gas industry, and fluctuations in oil prices can impact the availability & pricing of raw materials during the formation of emulsion polymers, such as ethylene, propylene, and styrene. As a result, the prices of raw materials used are volatile & subject to fluctuations in Saudi Arabia, impacting the profitability of emulsion polymer manufacturers & making it difficult to maintain consistent pricing for customers.
Emulsion polymers face competition from alternative materials, such as solvent-based polymers & other types of coatings & adhesives, that offer similar or even superior performance characteristics & are cost-effective. Hence, the availability of alternate solutions & the fluctuation in the prices of raw materials would impede the revenue growth in the forecast period.
Growth Opportunity: Expansion of Global Companies in Saudi Arabia to Facilitate the Market Growth
The government of Saudi Arabia is focusing on public-private partnerships (PPPs) to achieve its development goals & boost economic growth. These collaborations are a way to leverage private sector expertise, innovation, and resources to deliver public services & infrastructure more efficiently & effectively. Owing to encouragement from the government of Saudi Arabia, global companies are collaborating with local companies in Saudi Arabia to penetrate the Saudi Arabian market & expand their potential consumer reach. For instance,
in 2022, 'The Al-Hejailan Group' announced a joint venture with 'DOW Holding' to design, build & operate a methyl diethanolamine (MDEA) plant in the PlasChem Park in Jubail, Saudi Arabia. The plant is likely to be operational by 2025 & is expected to increase the production of the emulsion polymer, thereby escalating the market growth in the forthcoming years.
Key Trend: Eco-friendly Emulsion Polymers Gaining Traction
Eco-friendly emulsion polymers are made from renewable or biodegradable materials & designed to minimize their environmental impact throughout their lifecycle. These polymers are becoming increasingly popular as consumers & businesses, like manufacturing units, the packaging industry, etc., are becoming more aware of the need to reduce their environmental footprint. Saudi Arabia is facing increasing pressure to reduce its environmental impact in terms of emissions & waste. As a result, the government has laid out stricter regulations & compliance requirements.
Moreover, eco-friendly emulsion polymers offer a more sustainable & environmentally-friendly alternative to the traditional ranges. Owing to this, the end-user industries are gradually opting for them, thereby driving the market in Saudi Arabia. Further, with the rise in the demand for eco-friendly products, there is likely to be increased interest & investment in the formulation of these polymers, leading to further innovation & growth in the industry.
Market Segmentation
Based on Type:
Among them, Acrylic emulsion polymers are versatile & widely used since they offer many benefits in various industries such as construction, textile, and paper. Hence, they acquired a significant share during the historical period. Moreover, these polymers offer excellent adhesion, chemical resistance, and gloss. They also improve the mechanical properties such as adhesion, flexural strength, abrasion resistance, and weather resistance of the building matter & construction materials. Therefore, they are applied for architectural coatings, such as interior & exterior paints.
Hence, the evolving construction industry owing to the rise in the building of malls, hotels, buildings, etc., is increasing the market share of acrylic polymers in the market. In addition, the market share would continue to grow during the forecast period due to its extensive usage in distinct end-user industries like the coatings & adhesive industry.
Based on End User Industry:
Building & Construction acquired a significant market share during the historical period. Emulsion polymers produce polymer-modified mortars & concrete, which offer improved mechanical properties such as adhesion, flexural strength, and abrasion resistance, as well as enhanced durability & weather resistance. As a result, the construction industry is the largest consumer of this polymer in Saudi Arabia due to the extensive use of polymer-modified mortars & concrete in construction projects.
Moreover, the upcoming construction projects in the country, such as King Salman Energy Park, the Red Sea Project, etc., would further propagate the demand during the forecast years. For instance, in 2023, the government of Saudi Arabia announced the plans for a massive new proposed structure in the country's capital Riyadh called New Murabba. The proposed building would have approximately 104,000 residential units, about 9,000 hotel rooms, and more than 980,000 square meters of retail space. Thus, the rise in construction activities in the country would generate the need for emulsion polymers, thereby boosting the market share.
Recent Developments in the Saudi Arabia Emulsion Polymer Market
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Frequently Asked Questions
A. The growth rate or CAGR of the Saudi Arabia Emulsion Polymers Market during 2023-28 would be around 6.50%.
A. Extensive demand from the end-user industries prominent factor that is expected to drive the Saudi Arabia Emulsion Polymers Market during 2023-28.
A. Some of the prominent players in the market are Dow Materials Science Saudi Arabia Limited, BASF SE, JIFTEX Polymers, Obegi Chemicals Group Group, Biolab Arabia LTD. Co., Celanese Corporation, Wacker Chemie AG, DIC Corporation, Arkema Group, SNF Group, and Others (Synthomer Middle East Company Limited, Asahi Kasei Chemicals, etc.).
A. Acrylic Polymers are the leading type in the Saudi Arabia Emulsion Polymers Market.
A. The prevalence of eco-friendly emulsion polymers is the key trend shaping the growth of the Saudi Arabia Emulsion Polymers Market.
A. The industry’s potential end-users are building & construction, automotive, textiles & coatings chemicals, and others (retail & e-commerce, etc.).
A. The expansion of global companies in Saudi Arabia is the growth opportunity driving the Saudi Arabia Emulsion Polymers Market through 2028.
