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Wednesday, 18 September 2019
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Markets & companies, Raw materials market

Study: Southeast Asia is the fourth largest latex polymers market globally

Friday, 2 January 2015

On a global scale, Southeast Asia represents the fourth largest market for synthetic latex polymers, accounting for 8% of the global consumption, according to a new report.

Within Southeast Asia, countries such as Malaysia, Thailand, and Indonesia account for 82% of synthetic latex polymers consumption in the region. Source: Franc Podgorsek/Fotolia
Within Southeast Asia, countries such as Malaysia, Thailand, and Indonesia account for 82% of synthetic latex polymers consumption in the region. S...

Although it is significantly smaller than the leading global markets, such as the United States, Europe, and China, it is still much larger than the developing markets of the Middle East, Brazil, and India. All markets are scheduled to be closely analysed in "Synthetic Latex Polymers: Global Business Analysis and Opportunities" by Kline & Company.

Within Southeast Asia, countries such as Malaysia, Thailand, and Indonesia account for 82% of synthetic latex polymers consumption in the region. Acrylonitrile-butadiene (AB nitrile) is the leading product type, accounting for 44.6% of the total consumption in the region by volume, followed by styrene acrylics.

Product split varies from one country to another

Latex consumption in Malaysia and Thailand is dominated by AB nitrile due to the large importance of the glove dipping application. The product mix in Indonesia is dominated by styrene acrylics. Thailand dominates in consumption of pure acrylics, which is the third-largest type of synthetic latex polymers consumed in the region. "The product split in this region cannot be compared to any other region in the world,” comments Nikola Matic, Industry Manager of Kline’s Chemicals and Materials Practice. "In other regions, paints and coatings or paper applications represent the largest consumers, while the product split in Southeast Asia is strongly affected by the importance of the glove dipping industry in the region.”

Supplier landscape is also very specific

Due to its fragmentation the market is characterised by a high degree of rivalry among existing suppliers. Moreover, the top 10 suppliers account for over 60% of the market with several production bases available in the region. This competition creates various barriers for those looking to enter the market.

Suppliers consist of two tiers of companies: multinational companies, with a diverse regional base; such as Synthomer, Dow Chemical, BASF, Archroma, and Dairen. Regional companies, such as Eternal, Dovechem, Bangkok Synthetics, and Arindo Pacific, complete the competitive landscape.
Due to its strong position in glove dipping, Synthomer is the largest supplier of synthetic latex polymers, specifically AB nitrile and high solids styrene-butadiene (HS-SB). BASF comes in second and is a leading supplier of styrene acrylics in the region, particularly in paints and coatings and construction industries. Kumho Petrochemical is the third largest supplier of synthetic latex polymers and second-largest supplier of AB nitrile and HS-SB in the region.

Due to a strong correlation to the positive GDP growth in these country markets, the Southeast Asian market for synthetic latex polymers is forecast to grow, increasing at a compound annual growth rate of 6.5% through 2018.

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