Waterborne Acrylic Resin Market

Waterborne Acrylic Resin Market Outlook (2024 to 2034)

Fact.MR, in its newly published study, says that the global waterborne acrylic resin market is pegged at US$ 6,243.7 million in 2024. The global market is forecasted to increase at 4.8% CAGR and reach a market value of US$ 9,945.0 million by the end of 2034.

The waterborne acrylic resin market is expected to experience growth opportunities in emerging economies, attributed to the consumer shift towards water based products, including paints and coatings formulated with the waterborne resins, which is a notable trend influenced by changing preferences and a growing awareness of environmental and health considerations.

The waterborne acrylic resins are known for their lower toxicity compared to solvent based alternatives. Consumers are becoming more conscious of the potential health risks associated with exposure to volatile organic compounds and other harmful chemicals present in traditional coatings. Water-based products, including those using waterborne acrylic resins, contribute to improved indoor air quality and reduced exposure to harmful fumes.

Consumers are increasingly concerned about indoor air quality, with a growing emphasis on creating healthier living spaces. Waterborne acrylic resins, being low in VOCs, support the creation of coatings that emit fewer harmful pollutants into indoor environments, which is particularly important in residential settings where occupants spend a significant amount of time.

Report Attributes	Details
Waterborne Acrylic Resin Market Size (2024E)	US$ 6,243.7 million
Forecasted Market Value (2034F)	US$ 9,945.0 million
Global Market Growth Rate (2024 to 2034)	4.8% CAGR
North America Market Share (2034F)	26.4%
Demand Growth in Japan (2024 to 2034)	5.6% CAGR
China Market Value (2034F)	US$ 1,920.4 million
Demand for Paints and Coatings (2034F)	US$ 2,128.2 million
Revenue Share of Packaging Segment (2034F)	19.1%
Key Companies Profiled	Dow Inc.; Arkema SA; Allnex GmbH; Sherwin-Williams; Covestro AG; Lubrizol Corporation; DIC Corporation; Kansai Paint Co. Ltd.; Sika AG; BASF SE

Which Market Trends are Opening New Opportunities for Manufacturers?

“Growing Construction and Infrastructure Development to Fuel the Market Growth”

The growth in construction and infrastructure development worldwide has a substantial impact on the demand for waterborne acrylic resins, particularly in the context of architectural coatings for buildings. Waterborne acrylic resins are a key component in various coating formulations, including paints and finishes, and they offer several advantages that make them popular in the construction industry.

Waterborne acrylic resins are widely used in exterior architectural coatings for buildings. The coatings provide weather resistance, durability, and protection against environmental elements such as UV radiation, moisture, and pollutants, which is crucial for maintaining the aesthetic appeal and structural integrity of buildings over time.

“Increasing Adoption in Automotive Coatings to Accelerate the Market Growth”

The increasing adoption of waterborne acrylic resins in automotive coatings is driven by the automotive industry's commitment to meeting stringent environmental standards and regulations. The automotive industry faces stringent environmental regulations aimed at reducing emissions and minimizing the environmental impact of manufacturing processes.

Waterborne acrylic resins are favored in automotive coatings due to their lower volatile organic compound content compared to solvent-based alternatives. Lower VOC emissions contribute to improved air quality and align with global efforts to promote sustainability in manufacturing.

Waterborne acrylic resins have an inherently low VOC content, making them a preferred choice in the automotive sector, where VOC emissions are closely regulated. The reduction of VOCs is crucial not only for compliance with environmental standards but also for creating a safer working environment for automotive manufacturing personnel.

“Advancements in Technology to Contribute Significantly”

Advancements in technology, particularly in the field of resin technology, have the potential to bring about significant improvements in waterborne acrylic resin formulations. Ongoing research and development efforts aim to enhance various performance characteristics, ultimately contributing to the growth and evolution of the market.

Technological advancements may lead to the development of waterborne acrylic resins with superior durability, which can involve the creation of formulations that resist abrasion, impact, and wear over extended periods. Improved durability is particularly crucial in construction applications where coatings need to withstand harsh environmental conditions and physical stresses.

Which Factor is Restraining the Demand for Waterborne Acrylic Resin?

“Higher Cost of Production to Restrain the Market Growth”

The higher cost of production associated with waterborne acrylic resins compared to solvent based resins is a significant factor that can impact their market competitiveness, especially in price sensitive markets. Waterborne acrylic resins often use high quality raw materials, which can be more expensive than those used in solvent based resins. Acrylic monomers, water based solvents, and additives designed for waterborne formulations can contribute to the overall cost of production.

The production of waterborne acrylic resins involves more complex manufacturing processes compared to solvent based counterparts. Emulsion polymerization, which is commonly used in waterborne resin production, requires specialized equipment and control measures to achieve the desired properties. The complexity of the process can lead to higher energy consumption, longer production times, and increased maintenance costs.

What Strategy Should Start-ups Incorporate to Enhance Their Market Presence?

“Rising Demand for Decorative and Wood Coatings is Key to Gaining Competitive Edge”

The rising demand for decorative paints and wood coatings in the furniture and flooring industries is a significant driver for the market growth of waterborne acrylic resins. The resins play a crucial role in meeting the requirements of aesthetically pleasing and durable finishes, contributing to the overall enhancement of surfaces in both residential and commercial settings.

Waterborne acrylic resins offer a versatile platform for formulating decorative paints and wood coatings. Manufacturers can customize formulations to achieve a wide range of aesthetic effects, including various finishes, colors, and textures. The versatility allows for the creation of coatings that enhance the visual appeal of furniture, flooring, and other wooden surfaces.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, asserts in its newly published study that North America is predicted to hold a 26.4% share of the global market by 2034.

Growing interest in bio based and renewable raw materials in the coatings industry may drive the development and adoption of bio based waterborne acrylic resins, aligning with the broader trend of sustainability.

What is the Scenario of the Market in the United States?

“Increasing Demand in Construction and Infrastructure to Augment the Growth”

Attribute	United States
Market Value (2024E)	US$ 1,100.2 million
Growth Rate (2024 to 2034)	5.6% CAGR
Projected Value (2034F)	US$ 1,903.5 million

The United States is predicted to account for 72.5% of the North American market by 2034. The country’s construction and infrastructure sectors continue to drive the demand for coatings and resins. Waterborne acrylics, resins commonly used in architectural coatings for buildings, benefit from the growth in residential, commercial, and infrastructure projects.

The trend of renovation and remodeling in the housing sector supports the demand for paints and coatings. Waterborne acrylic resins, used in interior and exterior paints, contribute to the quality and sustainability of coatings applied during renovation projects.

The automotive industry in the United States is a significant consumer of coatings, and waterborne acrylic resins find applications in automotive coatings. The industry's focus on water-based technologies aligns with the demand for more sustainable and compliant coating solutions.

What is likely to Propel Demand for Waterborne Acrylic Resin in China?

“Advancements in Coating Technologies in China to Fuel the Demand”

Attribute	China
Market Value (2024E)	US$ 1,138.6 million
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 1,920.4 million

China is slated to hold a 57.3% share of East Asia market revenue by 2034. Ongoing advancements in coating technologies, including the formulation of waterborne acrylic resins with improved performance characteristics, contribute to the growth of the market. Innovations in durability, adhesion, and curing properties enhance the appeal of these resins.

The robust manufacturing sector in China, including consumer electronics and goods production, drives the demand for coatings. Waterborne acrylic resins find applications in coatings for electronics and various consumer goods.

Investments by key players in the waterborne acrylic resin industry to expand production capacity and improve supply chain logistics can positively impact market growth. Increased production capabilities support the rising demand in China.

What is projected to Propel Demand for Waterborne Acrylic Resin in Japan?

“Automotive Industry Demand to Enhance Market Prospects”

Attribute	Japan
Market Value (2024E)	US$ 571.2 million
Growth Rate (2024 to 2034)	5.6% CAGR
Projected Value (2034F)	US$ 988.7 million

Japan is anticipated to hold a 29.5% share of East Asia market revenue by 2034. Japan is home to a prominent automotive industry, and waterborne acrylic resins find applications in automotive coatings due to their environmental compliance and performance characteristics. The growth of the automotive sector contributes to the demand for these resins.

Japan's focus on energy efficiency and reducing the environmental impact of various industries contributes to the demand for coatings that align with these goals. Waterborne acrylic resins, with their lower environmental impact, are favored in this context.

The packaging industry in Japan is experiencing growth, driven by factors such as e-commerce expansion and changing consumer preferences. Waterborne acrylic resins, with their adhesion and barrier properties, find applications in coatings for packaging materials.

Category-wise Insights

Based on the end-use industry, global demand for waterborne acrylic resin is projected to rise significantly in paints and coatings, as well as packaging segments. The renovation and remodeling sector, driven by changing lifestyle trends and the desire for aesthetically pleasing living spaces, boosts the demand for paints and coatings.

Waterborne acrylic resins offer excellent adhesion to various substrates commonly used in packaging, such as paper and cardboard. They can be formulated to provide barrier properties, enhancing the protection of packaged goods against moisture and other environmental factors.

Which End Use Industry to Contribute Significantly in the Sales of Waterborne Acrylic Resins?

“Paints and Coatings are expected to accelerate the Demand for Waterborne Acrylic Resins”

Attribute	Paints and Coatings
Segment Value (2024E)	US$ 1,255.0 million
Growth Rate (2024 to 2034)	5.5% CAGR
Projected Value (2034F)	US$ 2,128.2 million

The paints and coatings and the packaging segments of waterborne acrylic resin are forecasted to hold 21.4% and 19.1% of the Waterborne Acrylic Resin Market share respectively by 2034. The growth in residential and commercial construction, driven by urbanization and population expansion, contributes significantly to the demand for architectural coatings. Waterborne acrylic resins are commonly used in interior and exterior paints for buildings due to their low odor, low toxicity, and ease of application.

Increasing awareness among consumers about the potential health hazards associated with solvent based paints has led to a growing preference for water based paints. Waterborne acrylic resins play a crucial role in fulfilling this demand, meeting consumer expectations for safer and more sustainable coating options.

Attribute	Packaging
Segment Value (2024E)	US$ 1,148.8 million
Growth Rate (2024 to 2034)	5.1% CAGR
Projected Value (2034F)	US$ 1,899.5 million

The packaging segment is also emerging as a significant end-use industry for waterborne acrylic resins. Stringent regulations related to packaging materials and the use of chemicals have prompted the packaging industry to seek alternatives that comply with regulatory standards. Waterborne acrylic resins offer a solution by providing coatings that meet regulatory requirements while maintaining performance characteristics.

The packaging industry often utilizes water based inks and coatings for printing on various substrates, including paper and cardboard. Waterborne acrylic resins are compatible with water based formulations, making them suitable for use in inks and coatings applied to packaging materials.

Competitive Landscape

Prominent players in the waterborne acrylic resin sector are employing a range of strategies to achieve their goals. The strategies include fostering innovation, enforcing stringent quality control measures for their products, forging strategic partnerships, streamlining supply chain management systems, and consistently advancing their products and technologies.

Recent Development

• In 2022, Arkema bolstered its presence in the rapidly growing market by successfully acquiring Polimeros Especiales, a prominent manufacturer of emulsion resins based in Mexico. The strategic move is poised to enhance Arkema's standing in the industry, particularly through the incorporation of solvent free aqueous acrylic resins.
• Polimeros Especiales, as a long standing and privately owned Mexican enterprise, specializes in the production of high-performance aqueous resins catering to diverse markets such as architectural, textiles, industrial paints, and construction pressure sensitive adhesives.

Dow Inc., Arkema SA, Allnex GmbH, Sherwin-Williams, Covestro AG, Lubrizol Corporation, DIC Corporation, Kansai Paint Co., Ltd., Sika AG, and BASF SE, are key players in the market.

Segmentation of Waterborne Acrylic Resin Market Research

• By End Use Industry:

  • Building and Construction
  • Automotive
  • Furniture
  • Packaging
  • Paints and Coatings
  • Textiles
  • Adhesives and Sealants
  • Others

• By Region:

  • North America
  • Europe
  • East Asia
  • Latin America
  • Middle East & Africa
  • South Asia & Oceania