PVOH
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Market Outlook on PVOH

• The global demand is expected to grow at 3 percent CAGR through 2016–2021

• Asia will remain the key growth driver, excelling in both supply and demand. PVOH application in construction and infrastructure in regions, such as China, Japan, India, etc., could be a potential demand platform

• Water-soluble PVOH film with green packaging features is expected to drive the demand, in addition to PVB resin, adhesives and coatings. PVB resin is used in automobile components, predominantly in North America and Europe, while in Asia, it is mainly used in polymerization aids, adhesives and coatings

• The increase in utilization rates for biocompatible and nontoxic packaging solutions in the FBT sector is another major growth driver, especially in the US and Europe

Demand Market Outlook

• Asia and North America are the largest producers, with Asia being the biggest demand center
• New applications in green packaging in detergents, agrochemicals (from water soluble PVOH film), PVOH polarizer films in display panels for TV, laptops and mobiles, and bio–degradable thermoplastic elastomers are expected to contribute to a significant portion of the demand

Global Market Size: PVOH

• The global PVOH market was valued at $3.4 billion in 2017 and is estimated to reach $4.2 billion by 2022, growing at a CAGR of 4 percent
• Asia is expected to drive the demand, with its sufficient capacity, followed by Europe and North America
• The global PVOH market is estimated  to grow at a CAGR of 3 percent from 2016 to 2022, with Asia being the center of demand growth and production, owing to its recent capacity additions to meet the rising demand
• New applications meeting bio-degradability and green packaging are expected to drive the demand in North America and Europe in the coming years

Global Capacity–Demand Analysis

• The global PVOH market is expected to grow at a CAGR of 3 percent, and reach 1.63 MMT by 2022, driven by the increasing demand from downstream sectors, such as automobiles, packaging, adhesives and coatings, etc.

• The existing major end users, such as PVB (for automobiles, construction, etc.) and new applications, such as biodegradable thermoplastic elastomers, innovative trends in innovation in packaging with areas of safety, convenience, technology, sustainability etc., are expected to drive the demand in the coming years

• With the strict enforcement of regulations, in terms of bio-degradability and disposability, sustainable packaging is a trending growth

Market Outlook Capacity Dynamics 

• Global PVOH production capacity is expected to increase to 1.65 MMT by 2022, on the account of possible capacity additions, particularly in Asia

Production

• The operating rates are expected to slowly rise to 85–86 percent post 2016 to meet the increase in demand
• Europe has been witnessing low feedstock VAM availability, due to plant closures, leading to lower production volume than Asia and North America

Demand

• Global PVOH demand is estimated to grow at 3 percent and reach 1.63 MMT by 2022 driven by the increasing demand from downstream sectors, such as automobiles, packaging, adhesives and coatings, etc.
• Asia is likely to be the key demand driver, followed by Europe and North America
• With the advent of eco-friendly products and governmental regulations, increased application of PVOH films in green packaging could shift the demand trends higher in emerging regions