The global ethylene vinyl acetate (EVA) market was worth USD 9.26 billion in 2022 and is estimated to reach an anticipated value of USD 14.61 billion by 2031, registering a CAGR of 5.2% during the forecast period (2023-2031). The thermoplastic resin ethylene-vinyl acetate is produced when vinyl acetate monomer and ethylene are co-polymerized in a high-pressure reactor. Ethylene-vinyl acetate can make films, glues, foams, and solar cell covers, among other things. The growing demand from the packaging industry and rising usage in the solar industry will likely drive the demand for the studied market.
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Growing Demand from the Packaging Industry
Polyethylene and ethylene vinyl acetate (EVA) are typically coextruded. Lowering the softening and melting temperatures of polyethylene films is the primary property of EVA. Additionally, it improves the impact resistance and tears resistance of films. EVA has a mediocre barrier to moisture and a poor barrier to gases. Rubber, tires, and additives are packaged industrially using PE EVA films. Hot-melt adhesives with an EVA base are widely utilized in the packaging sector. They are used with packaging made from substrates like paper, board, and plastic. They are used in bookbinding, paper bag construction, and carton box closing. Additionally, they are utilized while gluing tags and labels and labeling beverage bottles. The increasing organized retail sale, FMCG product sales, processed food products, and e-commerce sales are expected to increase the demand for EVA-based hot-melt adhesives.
Rising Usage in the Solar Industry
Ethylene-vinyl acetate (EVA) is an encapsulant for solar cells or modules. It is essentially a copolymer film that ensures the performance and reliability of photovoltaic solar modules by serving as a sealer. Cross-linkable EVA is the most widely utilized encapsulation in the solar sector. With the help of a laminating machine, sheets of EVA are pressed together with cells between them.
Once EVA sheets are laminated, sheets play a vital role in preventing humidity and dirt from penetrating solar panels. In addition, with the help of EVA sheets, solar cells float between the glass and the back sheet, which helps soften shocks and vibrations further, thus, protecting solar cells and their circuits. These EVA sheets offer a wide range of properties that make them ideal for use in the solar industry. Some of them include the following:
Durability: The EVA films offer excellent durability in difficult weather circumstances, such as high temperature, high humidity, and UV exposure.
Bonding: These EVA films provide good adhesive bonding to solar glass and also bond well to the back sheet.
Optical: These EVA films are known for their excellent transparency, allowing optical transmission and not blocking too much sunshine from reaching the solar cells.
All the properties mentioned above drive market growth.
Unfavorable Conditions Arising Because of the Covid-19 Impact
Owing to the limited demand from various end-user industries. For example, in 2020, Yanshan Petrochemical's plant underwent maintenance until July, while BASF-YPC's plant had production issues. Major players in the market, such as Hanwha, ExxonMobil, and Dow, faced short-term operational issues due to supply chain constraints and lack of site access due to the COVID-19 outbreak.
Overall, even though a few manufacturers have started to resume production at limited levels in several countries, the extent of the situation has badly disrupted the economy. Hence, the negative impact of COVID-19 is expected to restrain the market's growth in the short/mid-term.
Rising Demand from Agricultural Applications
EVA products reduce unit cost through significant down-gauging while maintaining performance at the thinner gauge. They protect and preserve agricultural harvests in all types of weather by maintaining integrity in demanding conditions. This prevents damage in the field and during handling, lowering the risk of waste and spoilage. These films improve moisture retention, manage temperature, and protect crops from environmental elements. They assist farmers in increasing their economic productivity to feed more people while conserving water, nutrients, and fertilizer resources.
Thanks to these films' extremely damage-resistant characteristics, farmers can protect and cultivate their fruits, vegetables, and flowers all year. Some other benefits of these films include low seal-initiation temperatures, strong hot-tack, good impact strength, great optical properties for extrusion film processes, and good transparency for solar cell encapsulation. Therefore, owing to the increasing population, the certainty of agriculture is expected to preserve the demand for agricultural films/plastics, thereby increasing the consumption in the market studied.
The global ethylene vinyl acetate (EVA) market is segmented by grade, application, and region
By Grade, the global EVA market is bifurcated into low-density, medium-density, and high-density. The low-density segment dominated the market and is estimated to register a CAGR of 5.1% during the forecast period. The copolymer of ethylene and vinyl acetate is ethylene vinyl acetate (EVA), also known as polyethylene-vinyl acetate (PEVA). It is possible to replace ethylene with vinyl acetate-modified polyethylene (EVA copolymer) based on a small amount of VA (up to 4%). (having low VA density). It is a copolymer that has undergone a thermoplastic transformation. It enhances softness, flexibility, and shine (necessary for the film). It is frequently thought to be non-toxic. They have a low resistance to chemicals and oil, which causes them to swell significantly in oil despite being very flexible.
The medium-density segment is the second largest. The weight percent of vinyl acetate in ethylene-vinyl acetate (EVA) varies from 10 to 40%. If the weight percent of vinyl acetate in EVA is around 4-30%, it is considered the medium-density grade of EVA. It is also known as the thermoplastic ethylene-vinyl acetate (having medium VA density). The medium-density grade of EVA is used for emulsions and adhesives. These are sturdy and have low-temperature solid characteristics. Hot melt adhesives are made from materials having about 11% VA. The market for EVA is anticipated to rise throughout the forecast period due to the expanding demand for EVA-based adhesives across numerous end-user industries.
By Application, the global EVA market is segmented into films, adhesives, solar cell encapsulation foams, and other applications. The film segment accounted for the largest market share and is estimated to grow at a CAGR of 5.2% during the forecast period. A copolymer of ethylene and vinyl acetate is known as ethylene vinyl acetate or EVA. It is a highly flexible, durable thermoplastic with outstanding clarity, gloss, and low smell. Its use in film applications is particularly appealing since EVA has substantial flex crack and puncture resistance, is relatively inert, attaches well to various substrates, and can be heat-sealed. Despite being utilized in many film applications, EVA is mixed with other film resins rather than being used alone. Due to its average gas and moisture barrier qualities, EVA is not the material of choice for food packaging applications. As a result, in many of these circumstances, metallocene PE is used more commonly in place of EVA. However, EVA is an essential packaging material, and demand is expected to remain high, particularly for non-food applications. EVA is used in many film applications, including shoes, wire and cable insulation, structures for packing meat and dairy products, sealants, and glass lamination for increased impact resistance. Therefore, it is anticipated that during the forecast period, demand for EVA films will increase.
The solar cell encapsulation segment is the second largest. The thermal aging of an ethylene-vinyl acetate (EVA) polymer is used as an adhesive and encapsulant in a photovoltaic module. The EVA is used to bond silicon solar cells to the front glass and backing sheet and to protect the photovoltaic materials from the environment and mechanical damage. EVA materials encapsulate nearly 80% of photovoltaic (PV) modules. EVA has many advantages, such as low processing temperature, excellent melt fluidity, adhesive property, high adhesion strength, and high transparency, with glass-like transmission properties from 400 nm to 1100 nm.nm, In addition, the price is low, which makes it very suitable as a solar cell encapsulation material. In addition, EVA has high electrical resistivity and a relatively low water absorption ratio, all of which point to it being a good choice for a PV module encapsulant.
By Region, the global ethylene vinyl acetate (EVA) market is segmented into Asia-Pacific, North America, Europe, South America, the Middle East, and Africa.
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Asia-Pacific dominated the global ethylene vinyl acetate (EVA) market and is anticipated to register a CAGR of 6.2% during the projected period. The packaging industry in China is the second-largest in the world. Due to the rise of customized packaging for foods such as microwaves, snacks, and frozen foods, as well as rising exports, the nation is anticipated to have steady growth during the projection period. Polyvinyl chloride is no longer the most used resin in packaging applications as ethylene vinyl acetate copolymers (EVA) have taken their place. EVA copolymers have no smell and don't need plasticizer or curing. Because of its advantages over the already utilized traditional packaging plastics, EVA is being adopted in the packaging industry at a phenomenal rate. China is also a center for many manufacturing operations. Therefore it exports a variety of commodities in large and small quantities to many different countries. Consequently, this situation increases the need for EVA in packaging applications nationwide.
North America is the second largest region. It is anticipated to reach an expected value of USD 380 million by 2031 at a CAGR of 3.7%. The US economy depends heavily on the food and beverage sector. Delivery services and e-commerce are becoming more and more popular. Due to the extensive use of the internet and the growing need for convenience, customers are increasingly ordering groceries and other food products online. Customers can purchase fresh veggies without leaving their homes thanks to an increasing number of services, such as Amazon Fresh. Additionally, the bulk of New York food and beverage processing facilities are wineries, food and beverage processing facilities, and facilities for slaughtering and processing animals. To attain a total installed capacity of 77.7 GW—enough to power 14.5 million homes—the United States added 13.3 GW of solar PV capacity in 2019. 40% of all new electric generating capacity added to the grid in 2019 was powered by solar energy. The residential solar sector saw a record-setting installation total, with more than 2.8 GW installed in 2019. A report from the Solar Energy Industries Association (SEIA) said that the total amount of solar power installed in the country would grow by 47% by 2020. The installed solar capacity is expected to double by the end of the forecast period, with annual installations projected to reach 20.4 GW in 2021. This is expected to offer substantial growth opportunities for the EVA market in the country in the next five years. All the factors mentioned above are expected to increase the demand for EVA across various end-user industries, thus, driving the market in the country during the forecast period after the recovery from the COVID-19 outbreak.
Europe is the third largest region. German Plastics Packaging Industry Association (IK) data indicates that the packaging sector saw sales rise by 5.1% and volume rise by 3.9%. During the projection, the industry is expected to grow at about the same rate. There is a growing desire for reduced pack sizes in various packaged food and personal care industries across the nation. This trend, which is expected to get stronger over the next few years, will likely increase the demand for EVA on the market. The food and beverage sector is the fourth largest industry in terms of how much it could grow in the future. The industry is notable for its 6,000 small and medium-sized firm sectors. Growing demand for value and quality-enriched products, including organic, fair trade, and health and wellness goods, indicates a favorable potential demand for EVA. These are approved for use in conjunction with food products. Because Germany is in the middle of the EU, it is an excellent place for logistics hubs and distribution centers. Germany has a prominent position in Europe in terms of the logistics sector, with an annual revenue of about ~EUR 260 billion. This is equal to the combined revenue of the logistics market in France and the United Kingdom, the second and third-largest logistics markets in Europe, respectively. In addition, the country produces approximately EUR 3 trillion in goods and services each year. This factor is expected to augment the demand for EVA in industrial packaging.
The major companies in the global ethylene vinyl acetate (EVA) market are