The global Vinyl Acetate Monomer Market Size is projected to grow from USD 13.2 billion in 2022 to USD 21 billion by 2032, registering a CAGR of 4.5%. The rising demand for VAM in the production of polyvinyl alcohol (PVOH), which is further used in photosensitive coatings, packaging films, and thickeners, will further drive VAM demand in the forecast period.

Vinyl Acetate Monomer (VAM) is a colourless organic compound. It is produced by reacting ethylene and acetic acid with oxygen in the presence of a palladium catalyst. These polymers are further reacted to give polyvinyl alcohol and ethylene vinyl alcohol (EVOH). In the last decade, China has witnessed major capacity additions due to its strong polyvinyl acetate and polyvinyl alcohol demand. The global Vinyl Acetate Monomer (VAM) market was estimated to be around 7,200 kilotons and it is further projected to grow at a CAGR of 3.5% during 2023-2032 to cross 9,500 kilo tons.

The total global VAM capacity has been estimated to be 8,570 kilo tons in 2022. Asia Pacific dominates the global Vinyl Acetate Monomer market accounting for more than 65% of the total capacity. In the forecast years, the major capacity additions will be in China as the country plans to be self-sufficient and decrease its imports. Due to major capacity additions in China, Western European and North America manufacturers had to adjust their capacities to remain competitive in the vinyl acetate monomer market. For instance, INEOS and Celanese shut their vinyl acetate monomer plants in United Kingdom and Spain. Celanese, Dow Chemicals, LyondellBasell, INEOS, Dow Chemical, Kurrary, Showa Denko, Lotte Chemicals, Wacker Chemie AG and Dairen Chemical are some of the major vinyl acetate monomers manufacturers in the world. Celanese is the largest VAM producer in world accounting for more than 17% of the global VAM capacity with operational plants in USA, Germany, China, and Singapore. Dairen Chemical is the second largest VAM producer with installed capacity of around 1000 kilo tons.

In 2022, the global demand for vinyl acetate monomer was estimated to be around 7,200 kilo tons. Asia Pacific holds the largest share accounting for more than 60% of the global VAM demand. The rising demand for vinyl acetate monomer in the production of polyvinyl alcohol, which is used in photosensitive coatings, packaging films, and thickeners, is estimated to boost the vinyl acetate monomer demand. In the last decade, China has witnessed capacity additions due to its strong polyvinyl acetate and polyvinyl alcohol demand. Increasing VAM demand in construction and automotive end-use industries, as well as rapid urbanization and infrastructure projects in developing countries will further driver the VAM market in the forecast period

The major end use of Vinyl Acetate Monomer is in production of polyvinyl acetate homo-polymer and copolymer. These polymers are further reacted to give polyvinyl alcohol and ethylene vinyl alcohol (EVOH). Asia Pacific and North America are the leading VAM producer and consumer in the world together accounting for more than 80% of the global VAM demand. Western Europe is net importer of VAM with average imports of around 1,000 kilo tons. The region is expected to be a net importer of VAM in the forecast period and no new major capacity addition is expected to come online in next five years.

Vinyl Acetate Monomer is an important raw material used in the manufacturing of various polymers and resins such as polyvinyl acetate (PVA), polyvinyl alcohol (PVOH), ethylene-vinyl acetate (EVA). PVA has strong adhesive properties for various materials, including paper, wood, metal, and plastic films. It is also an important material in wood glue, school glue, white glue and carpenter’s glue. PVOH is used for adhesive packaging films. The increasing demand for adhesives from various industries such as construction, furniture, etc., is driving the market growth. Vinyl acetate monomer is also used to make polyvinyl butyral (PVB) which is used in laminated safety glass for cars and buildings. There is a high demand for laminated glass in the building and construction industry because of their properties such as less prone to shattering, high strength and soundproofing. Thus, growing demand from various end-use industries such as construction, packaging, textile, paints, and coatings, automotive, etc., are driving the vinyl acetate monomer market.

Vinyl Acetate Monomer (VAM) is produced through ethylene and acetic acid, both of which are petrochemical-based feedstocks. Any variation in the supply chain of these raw materials, such as price fluctuations, limited availability, or geopolitical tensions affecting their sourcing, will further impact the VAM market. Additionally, production process of VAM requires use of catalysts and releases volatile organic compounds (VOCs) into the atmosphere. These VOC emissions can have adverse effects on the environment and human health. Increasing consumer awareness of environmental issues and implementation of more stringent emission regulations may lead to higher compliance cost for VAM manufacturers. This, in turn, has the potential to affect the VAM market in the forecast period.

In early 2023, INEOS & LOTTE has announced to increase the production capacity of VAM from 450 kilo tons to 700 kilo tons by adding a third VAM plant in Ulsan, South Korea. The 250 kilo tons of VAM capacity is expected to come online by the end of 2025.

Reliance Industries Limited (RIL) recently, unveiled its plans to build Asia s single largest Vinyl Acetate Monomer (VAM) facility. Currently the proposed project is under environmental clearance (EC), anticipated to start by 2026. The planned project will have a 700 kilo tons of VAM unit. The raw material required to produce VAM will be sourced from dedicated acetic acid plant having capacity of 1,000 kilo tons. The proposed project is one of the largest petrochemical complex in Asia with dedicated C1 to C8 based units.

In 2019, INEOS invested around £150 million to build a 300 kilo tons VAM plant in Saltend Chemicals Park in Hull, United Kingdom. The plant was expected to come online in the coming years. However due to the unfavourable energy situation in the UK, the company announced its decision not to build a VAM plant in the country.

Celanese is the largest producer of vinyl acetate monomer with a global capacity of around 1,565 kilo tons in 2021. The company also produces Ethylene Vinyl Acetate (EVA) under the brand name Ateva®. The company is planning on expanding its capacity of VAM capacity from 300 kilotons to 400 kilo tons at the Nanjing, China. This expansion is supposed to help in growing the global acetyls business in the region as well as globally.

In early 2023, Asian Paints (Polymers) has approved setting up of a VAM and VAE manufacturing facility in India with proposed investment of around $250 million. The VAM plant with capacity of 100 kilo tons is expected to commence production by 2026.