Water-based Resins Market by Type (Acrylic, Epoxy, Alkyd, Polyurethane, Vinyl, Polyester), Application (Paints & Coatings, Adhesives & Sealants, Inks), and Region (Asia Pacific, North America, Europe, MEA and South America) - Global Forecast to 2029
Updated on : June 20, 2024
Water-Based Resins Market
The global water-based resins market is valued at USD 56.5 billion in 2024 and is projected to reach USD 73.7 billion by 2029, growing at 5.5% cagr from 2024 to 2029. The market for water-based resins is experiencing notable growth, driven by increasing demand across various applications such as paints and coatings, adhesives and sealants, and inks. This global market expansion is primarily fueled by rising environmental concerns and regulatory pressures to reduce volatile organic compound (VOC) emissions. Water-based resins, which emit minimal or no VOCs, are becoming the preferred choice in many industries over solvent-based alternatives. Key sectors such as automotive, construction, furniture, packaging, textiles, and printing are increasingly adopting water-based resins for applications like paints and coatings, adhesives and sealants, and inks, due to heightened consumer awareness and a push for eco-friendly technologies. This surge in demand is encouraging manufacturers to invest in water-based solutions for a wide range of applications. While solvent-based resins still hold a significant market share in developing economies due to their superior performance, the global trend is shifting towards greener products, offering growth opportunities for water-based resins, especially in emerging applications. However, challenges such as high production costs and lower performance compared to solvent-based options may impede market growth.
Attractive Opportunities in the Water-Based Resins Market
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Water-based Resins Market Dynamics
Driver: Increasing shift toward environmentally friendly products
Water-based resins are becoming popular substitutes for solvent-based resins in applications like paints, coatings, inks, and adhesives due to their environmentally friendly properties. Historically, solvent-based resins with high volatile organic compounds (VOCs) were preferred, but stricter regulations aimed at reducing VOC emissions have curtailed their use. VOCs, found in harmful substances like benzene and formaldehyde, pose significant health and environmental risks. Many countries, including the US, the UK, and Germany, have established stringent laws to regulate VOC emissions. For instance, the US EPA limits indoor coating VOCs to 380 grams per liter. Similarly, China mandates water-based coatings in various applications to reduce VOC emissions, given its significant role in the paints and coatings sector. The European Parliament also regulates VOCs in decorative paints and automotive refinishes. Regulatory bodies such as BPR, EU Ecolabel, BCF, TSCA, CAA, ASTM, and REACH have enacted standards for VOC limits in paints and coatings. These regulations drive the shift from high-VOC solvent based resins to water-based resins, spurring innovation and shaping the market as manufacturers develop products that comply with these environmental standards while maintaining high performance and quality.
Restraint: High cost and low performance of water-based resins
Water-based resins, which utilize water as the primary solvent, are deemed more environmentally friendly than their solvent-based counterparts. However, transitioning to these resins presents significant challenges for manufacturers, primarily due to the high switching costs involved in converting from solvent-based to water-based resin production. The capital expenditure and fixed costs required to adopt the new technology are substantial, leading many small-scale manufacturers, particularly in developing regions, to continue using solvent-based resins due to these prohibitive costs. Furthermore, the market growth for water-based resins is constrained by their relatively lower performance compared to solvent-based resins. Using water as the main solvent introduces certain disadvantages, such as longer evaporation times. Additionally, applying water-based coatings to metals can lead to corrosion in tanks, pipes, and other metallic surfaces. These factors collectively pose significant challenges and are expected to impede the growth of the water-based resins market.
Opportunities: Increasing use of water-based resins in emerging applications.
The development and utilization of water-based resins are gaining significant momentum, presenting substantial growth opportunities. Resin manufacturers are continually exploring innovative applications for these environmentally friendly resins. Notable uses include fireproof coatings, building protection materials, sealants, underwater paints, and flexible coatings for walls and floors, as well as automotive applications. Additionally, the demand for water-based adhesives and sealants is rising in various industries such as automotive, bookbinding, footwear, foam fabrication, and rubber-to-metal bonding. The automotive sector, in particular, is poised for robust growth, further enhancing the market for water-based resins in adhesive and coating applications. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), global vehicle production reached 85.02 million units in 2022, marking a significant 6% increase compared to 2021. This surge in vehicle production is expected to drive the demand for water-based resins in automotive applications.
Moreover, the flexographic printing and packaging industries are recognizing the potential of water-based inks. These inks are increasingly used for printing on folding cartons, plastic grocery bags, department store bags, multi-wall bags, corrugated materials, and envelopes. This trend is anticipated to propel the water-based resins market. Environmental and health regulations are prompting a shift towards eco-friendly products within the industry. Consequently, water-based resin manufacturers are expected to make substantial investments in research and development. This trend is underscored by the efforts of major players such as Dow, BASF SE, The Lubrizol Corporation, and Allnex GMBH. These companies are introducing various water-based resins with enhanced properties aimed at reducing reliance on traditional solvent-based resins. In summary, the increasing focus on R&D, coupled with the discovery of new applications and a growing preference for environmentally sustainable products, is driving the expansion of the water-based resins market.
Challenges Growing use of other environmentally-friendly technologies
Governments worldwide are increasingly prioritizing the reduction of volatile organic compound (VOC) emissions, leading to a decline in the use of solvent-based technologies. This shift is driving a greater focus on environmentally friendly alternatives, such as water-based resins. However, the production of water-based resins can be more expensive, prompting the exploration of other eco-friendly options like high-solid coatings, powder coatings, and radiation-cured coatings.
These emerging technologies are challenging the growth of water-based resins in coating applications. Additionally, in various other applications, alternative technologies such as hot-melt adhesives, ultraviolet (UV) and electron beam (EB) adhesive technology, hybrid solutions, and low-VOC solvents are competing with water-based options. This competitive landscape compels manufacturers to invest heavily in research and development to create cost-effective alternatives to solvent-based resins.
Despite the push toward environmentally friendly solutions, manufacturers face several challenges. These include the high capital costs associated with transitioning to water-based technology, scalability of production, and market acceptance of new products. Consequently, R&D facilities of leading companies are focusing on developing innovative alternatives to solvent-based resins to meet both regulatory requirements and market demands.
Water-Based Resins Market Ecosystem
The arcylic segment is projected to be the larger type segment of water-based resins during the forecast period.
The water-based resins market is categorized into various types including acrylic, epoxy, alkyd, polyurethane, vinyl, polyester, and others. Among these, acrylic resins are anticipated to dominate during the forecast period. This dominance is attributed to the high demand for water-based acrylic resins, which offer superior chemical and physical resistance, thereby extending the lifespan of the materials they coat. Particularly in the paints and coatings sector, water-based acrylic resins are increasingly favored, primarily in architectural coatings, due to their enhanced durability. Moreover, the stringent environmental regulations concerning volatile organic compound (VOC) emissions are expected to accelerate the shift from solvent-based to water-based acrylic resins in the paints and coatings industry.
Paints & coatings segment is the largest application segment of water-based resins market.
The water-based resins market boasts a versatile array of applications, with its primary sectors encompassing paints & coatings, adhesives & sealants, inks, and various other applications. Notably, within the domain of paints & coatings, there has been a discernible surge in demand, particularly in developing economies. This upswing can be attributed to the rapid expansion witnessed in the building & construction industry. Moreover, a significant driving force behind the pervasive adoption of water-based resins across all application domains is the growing imperative for environmentally conscious solutions, characterized by low solvent content. Manufacturers and consumers alike are increasingly cognizant of the detrimental effects associated with volatile organic compound (VOC) emissions, thereby prompting a notable shift away from traditional solvent-based formulations towards water-based alternatives. This shift is particularly pronounced in the realm of paints & coatings, where the environmental benefits and regulatory compliance offered by water-based resins have positioned them as the preferred choice. Consequently, paints & coatings emerge as the foremost application segment within the expansive landscape of water-based resins, propelled by the imperative for sustainability and the quest for eco-friendly solutions in modern industrial practices.
Asia Pacific is estimated to account for the largest market share during the forecast period.
The Asia Pacific region's water-based resins market is experiencing significant growth, primarily propelled by heightened demand within the paints and coatings sector. This surge in demand is not only limited to paints and coatings but extends to other key applications like adhesives, sealants, and inks as well. The region's burgeoning infrastructural development projects are a major catalyst for this demand surge, particularly in the paints and coatings segment. With increased urbanization and industrialization, there's a growing need for construction and renovation activities, further boosting the requirement for paints and coatings. Consequently, the demand for water-based resins, favored for their eco-friendly attributes and low volatile organic compound (VOC) content, is on the rise. This trend is expected to persist as the region continues its trajectory of infrastructural expansion and economic development, underpinning the sustained growth of the water-based resins market in the Asia Pacific.
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Water-Based Resins Market Players
The Water-based resins market comprises key manufacturers such as are BASF SE (Germany), the Lubrizol Corporation (US), Dow (US), Covestro AG (Germany), Westlake Corporation (US), Arkema (France), DIC Corporation (Japan), Allnex GMBH (Germany), ADEKA CORPORATION (Japan), and Olin Corporation (US), are the top manufacturers covered in the water-based resins market. Expansions, mergers & acquisitions, new product launches and deals were some of the major strategies adopted by these key players to enhance their positions in the water-based resins market. A major focus was given to the expansions and deals.
Water-Based Resins Market Report Scope
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Report Metric |
Details |
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Market size available for years |
2022–2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
Value (USD Million) |
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Segments covered |
Type, Application, and Region |
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Geographies covered |
North America, Asia Pacific, Europe, South America, and Middle East & Africa. |
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Companies covered |
BASF SE (Germany), the Lubrizol Corporation (US), Dow (US), Covestro AG (Germany), Westlake Corporation (US), Arkema (France), DIC Corporation (Japan), Allnex GMBH (Germany), ADEKA CORPORATION (Japan), and Olin Corporation (US) are the top manufacturers covered in the water-based resins market. |
This research report categorizes the water-based resins market based on type, application, and region.
Water-based Resins Market, By Type
- Acrylic
- Epoxy
- Polyurethane
- Alkyd
- Polyester
- Vinyl
- Other Types
Water-based Resins Market, By Application
- Paints & Coatings
- Adhesives & Sealants
- Inks
- Other Applications
Water-based Resins Market, By Region
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
Recent Developments
- In February 2024, Covestro AG launched a new range of high-performance resins called Waterborne and Waterborne UV, tailored for industrial coating purposes in sectors like wood furniture, cabinetry, and building products.
- In March 2023, Westlake launched its new Azures product line, specifically at the European Coatings Show in Nuremberg, Germany. The Azures product line from Westlake Epoxy presents epoxy resins, modifiers, and curing agents devoid of SVHC- and CMR-labelled components, providing eco-friendly options for coatings, civil engineering, and adhesives that maintain high-performance standards.
- In April 2023, Arkema launched the Incellion range of sustainable waterborne acrylic solutions designed for high-capacity anodes, cathode primers, and ceramic-coated separators in electric vehicle (EV) and energy storage system (ESS) batteries. These products, marketed under the INCELLION brand, include acrylic-based binders, dispersants, and rheology modifiers to enhance battery performance.
- In July 2022, Arkema, a specialty chemicals company, has finalized the acquisition of Polimeros Especiales, a well-established Mexican producer of high-performance waterborne resins. The acquisition strengthens Arkema's position in solvent-free solutions and its presence in the fast-growing Mexican market.
- In February 2022, Westlake Corporation announced the successful completion of its acquisition of Hexion Inc.'s global epoxy business. With this strategic acquisition, Westlake Corporation further strengthens its position in the industry and expands its capabilities in manufacturing and developing specialty resins, coatings, and composites.
Frequently Asked Questions (FAQ):
What are water-based resins?
Water-based resins are polymers that use water as a solvent or dispersion medium instead of traditional organic solvents, commonly employed in various coating, adhesive, and paint applications due to their environmental friendliness and low toxicity.
What are the major types of water-based resins?
Acrylic, epoxy, polyurethane, alkyd, polyester, fluoropolymers and vinyl are the major types of water-based resins.
What are the major applications of water-based resinses?
The major applications of water-based resinses include paints & coatings, adhesives & sealants, inks, and others (floor care).
What are the major drivers of the water-based resins market?
The major driver of water-based resins is the Increasing shift toward environmentally friendly products.
What are the upcoming opportunities in the water-based resins market globally?
Upcoming opportunities in the water-based resins market include Increasing use of water-based resins in emerging applications. .
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The study involved four major activities for estimating the current size of the global water-based resins market. Exhaustive secondary research was carried out to collect information on the market, the peer product market, and the parent product group market. The next step was to validate these findings, assumptions, and sizes with the industry experts across the value chain of water-based resins through primary research. Both the top-down and bottom-up approaches were employed to estimate the overall size of the water-based resins market. After that, market breakdown and data triangulation procedures were used to determine the size of different segments and sub-segments of the market.
Secondary Research
In the secondary research process, various secondary sources such as Hoovers, Factiva, Bloomberg BusinessWeek, and Dun & Bradstreet were referred to, to identify and collect information for this study on the water-based resins market. These secondary sources included annual reports, press releases & investor presentations of companies; white papers; certified publications; articles by recognized authors; regulatory bodies, trade directories, and databases.
Primary Research
The water-based resins market comprises several stakeholders in the supply chain, which include raw material suppliers, processors, end-product manufacturers, buyers, and regulatory organizations. Various primary sources from the supply and demand sides of the markets have been interviewed to obtain qualitative and quantitative information. The primary participants from the demand side include key opinion leaders, executives, vice presidents, and CEOs of companies in the water-based resins market. Primary sources from the supply side include associations and institutions involved in the water-based resins industry, key opinion leaders, and processing players.
Following is the breakdown of primary respondents
Notes: Other designations include product, sales, and marketing managers.
Tiers of the companies are classified based on their annual revenues as of 2022: Tier 1 = >USD 5 Billion, Tier 2 = USD 1 Billion to USD 5 Billion, and Tier 3= <USD 1 Billion.
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the global water-based resins market. These approaches were also used extensively to estimate the size of various segments of the market. The research methodology used to estimate the market size included the following details:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.
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Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and sub-segments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments of the water-based resins market. The data was triangulated by studying various factors and trends from both the demand- and supply-side.
In addition, the market size was validated by using both the top-down and bottom-up approaches. Then, it was verified through primary interviews. Hence, for every data segment, there are three sources—top-down approach, bottom-up approach, and expert interviews. The data were assumed to be correct when the values arrived at from the three sources matched.
Market Definition
Water-based resins are the types of resins that are dissolved or dispersed in water rather than solvents. These resins, also known as waterborne resins, utilize water as the carrying medium instead of solvents. Water-based resins are available in various forms, such as dispersions, solutions, and emulsions, by dissolving or dispersing them in water. They find applications in numerous sectors, including paints & coatings, adhesives & sealants, and inks. The market features different types of water-based resins, including acrylic, epoxy, polyurethane, alkyd, polyester and vinyl, each offering distinct properties and applications. These resins are preferred for their environmental advantages, such as lower VOC emissions and ease of use. They offer reduced toxicity, enhanced safety, and adherence to strict environmental regulations. The water-based resins market involves the production, distribution, and consumption of these resins across various industries. The growth of this market is driven by the rising demand for eco-friendly products, regulatory mandates to reduce solvent emissions, and technological advancements that improve resin performance. Key industries contributing to the expansion of the water-based resins market include construction, automotive, packaging, and textiles, where water-based resins are increasingly replacing solvent-based alternatives
Key Stakeholders
- Water-based resin manufacturers
- Water-based resin traders, distributors, and suppliers
- End-use market participants of different segments of the water-based resins market
- Government and research organizations
- Associations and industrial bodies
- Research and consulting firms
- R&D institutions
- Environmental support agencies
- Investment banks and private equity firms
Report Objectives
- To define, analyze, and project the size of the water-based resins market in terms of value based on type, application and region.
- To project the size of the market and its segments with respect to the five main regions, namely, North America, Europe, Asia Pacific, Middle East & Africa, and South America
- To provide detailed information about the key factors, such as drivers, restraints, opportunities, and challenges, influencing the growth of the market
- To analyze the opportunities in the market for stakeholders and provide a detailed competitive landscape of the market leaders.
- To analyze the competitive developments, such as new product launches, expansions, and acquisitions, in the water-based resins market
- To strategically profile the key players operating in the market and comprehensively analyze their market shares and core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations as per the specific needs of the companies. The following customization options are available for the report:
Product Analysis:
- Product Matrix which gives a detailed comparison of the product portfolio of each company
Regional Analysis:
- Further breakdown of the Rest of Asia Pacific market
- Further breakdown of Rest of Europe market
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Water-based Resins Market