The global ethylene vinyl acetate (EVA) market to reach 9 bln by 2020 growing at a CAGR of over 5%, according to a report by Technavio. The analysts highlight the following three factors that are contributing to the growth of the global EVA market:
* Asia as a manufacturing hub of EVA-based footwear
* Growth in photovoltaic applications
* Increased use of EVA in food packaging
According to Chandrakumar Badala Jaganathan, a lead analyst at Technavio for specialty chemicals research, “Many shoe manufacturers are shifting to Asia, mainly China, due to the easy availability of low-cost raw materials and lower labor costs. EVA foam and soles are increasingly used in shoe manufacturing.” In 2015, China dominated the overall production by manufacturing 14 billion pairs of shoes. Despite the ongoing debt crisis in China, it managed to be the leader in manufacturing of EVA-based shoes in 2015. The economic growth in the country is faster than that of India, South Korea, and Japan. Korea and Taiwan were the largest producers during 2005-2010. The economic growth in Asian countries has led to higher disposable incomes of individuals in the region, thus creating a demand for EVA-based flexible foam footwear which in turn is driving the overall consumption of EVA in the footwear manufacturing segment.
Countries are investing significantly in solar energy for generating renewable and sustainable energy. EVA encapsulation materials are gaining popularity in this sector due to their desirable properties such as better transparency and elasticity, excellent melt fluidity, low processing temperature, adhesive property, and reduced costs. EVA accounts for 80% of the encapsulant application in the photovoltaic industry. Increased investments in this sector will spur the consumption of EVA. China, the US, and Japan were the leading countries that installed solar cells in 2015 and accounted for approximately two-third of the overall market. While China is anticipated to remain the leader in the photovoltaic industry, the US is also expected to witness rapid growth because of the expiration of the federal Investment Tax Credit (ITC) in 2016.
The rapid rise in global population is increasing the demand for food. EVA-based food packaging helps keep food fresh for a longer period. In addition, global changes in lifestyle, especially in the urban areas have increased the demand for packaged foods. EVA is also used in the manufacture of hot melt adhesives that are used for sealing in the packaging segment. The market for hot melt adhesives in the food packaging segment (in terms of demand and volume) will grow significantly during the forecast period. The rising disposable income and the rising consumption of packaged commodities, will drive the demand for EVA in this segment. “The use of advanced flexible packaging products in the fish, meat, poultry, snacks and pet food sector will boost the consumption of EVA. Flexible packaging solutions such as microwavable pouches and peel-off lids are in demand due to the growing popularity of convenience foods,” says Chandrakumar.