The revenue generated by the global emulsion polymer market was USD 28.24 billion in 2012, which is expected to grow to USD 41.63 billion by 2019, growing at a CAGR of 5.7% from 2013 to 2019. Acrylics and styrene-butadiene latex accounted for the largest share of the emulsion polymer market in terms of both volume and revenue in 2012. Vinyl acetate polymers and ethylene vinyl acetate emulsion polymers are the other key types used in the market.

Among the various application segments for emulsion polymers, the paint and coating market is a major consumer of EP and high demand of acrylics in this segment is expected to drive market growth in the future. The demand for emulsion polymers in the paint and coating market is expected to grow in the Asia Pacific region due to improved standard of living and stable economic condition in the region, leading to an increase in infrastructure activities. Housing and construction activities have been on a rise in the developed as well as developing countries. With over 30% share in total volume consumed, paints & coatings was the largest outlet for emulsion polymers in 2012. Adhesive industry is expected to be the second fastest application market for emulsion polymers and is expected to exhibit CAGR of 4.7% from 2013 to 2019.

Stringent environmental regulations regarding volatile organic compounds (VOCs) in Europe will drive the demand for water based EPs in the region. Environmental Protection Agency (EPA) under the Clean Air Act (1990) set some standards for emission of chemicals such as styrene, methyl chloride, acrylonitrile and toluene, among others. VOCs are toxic in nature and have harmful effects on human health and environment, contributing to respiratory illnesses. In addition, on reaction with nitrogen oxides, VOCs form ground level ozone which reduces visibility and has a harmful effect on crop and vegetation. Water is used as a dispersion medium in water-based EPs, which reduces the VOC content to negligible and hence, water based EPs are expected to outpace solvent based EPs.

Currently, the market for water based paints is driven mainly by acrylic emulsions, accounting for nearly 80 percent of the total paint market for residential purposes, and is fast replacing solvent based polymers. Acrylic emulsion is the major product type accounting for a nearly 37% share in the total water based EPs market and is expected to drive the demand for this segment owing to its increasing use in latex and coatings. Water based EPs are non-toxic, non-flammable, provide excellent chemical resistance and can be used for a wide range of applications including paints, adhesives and coatings, among others.