Global 2-Ethylhexyl acrylate (2-EHA) Market Study 2016-2032
2-ethylhexyl acrylate (2-EHA) is a commodity acrylate and a key raw material used in the production of adhesives, paints, coatings, and sealants. In pressure-sensitive applications it is used with transparent substrates like polyester films as well as cellulose and vinyl acetate films. It is also employed in the manufacturing of textiles (mainly when a softer feel is desired) and printing inks. In 2021, the 2-ethylhexyl acrylate capacity stood at 1017 kilo tons and it is further expected to reach 1250 kilo tons by 2026 with majority of capacity additions in Asia Pacific.
The 2-ethylhexyl acrylate market is concentrated, with Dow, BASF and Arkema collectively responsible for more than 50% of the global capacity. LG Chem, Nippon Shokubai, Formosa Petrochemical Corp. (FPC), Toagosai, Mitsubishi Corporation, BPCL are other 2-EHA producers operating their plants between range of 10-40 kilo tons. Asia is both the biggest producer and consumer, and the region is a net exporter of 2-ethylhexyl acrylate. In China, there are more than five 2-ethylhexyl acrylate producers with total installed capacity of more than 290 kilo tons. Jiangsu Guojiao Chemical Technology Co., Ltd. is the biggest 2-ethylhexyl acrylate producer in China with installed capacity of 120 kilo tons. Shanghai Huayi is the second biggest 2-EHA producer in China with installed capacity of 60 kilo tons. Jiangxi Ganliang Technological Development, Zhejiang Yonghe and Jiangsu Sandie Chemical Industry Co., Ltd. together operate 2-EHA plant with installed capacity of more than 100 kilo tons. China and the ASEAN region house significant capacity, followed by South Korea, Taiwan, and Japan. Consumption in the region is driven primarily by demand in adhesives & sealants and paints & coatings.
Zhejiang Yonghe started its 40 kilo tons/annum 2-EHA plant during the second quarter of 2019. China is going to witness a significant increase in its supply as BASF recently announced the groundbreaking of its 2-EHA plant at Zhanjiang. With a production capacity of 100 kilo tons/annum, the plant is expected to come onstream by 2025. The plant will be fully backward integrated and is being brought to suffice the increasing regional demand for adhesives & coatings. The company also aims to ensure a reliable supply and shorten the lead time faced by the customers in the region.
In February 2022, BPCL announced the dispatch of its first consignment of 2-ethylhexyl acrylate produced at its Kochi Refinery to Asian Paints and Visen Industries in India. The plant commenced production in 2021 and is currently the sole producer of 2-EHA in India, with a production capacity of 10 kilo tons/annum.
South Korea is a net exporter of 2-EHA, exporting 15.7 kilo tons of supplies in 2022. Shipments are primarily sourced to Netherlands, India, China, Belgium, and Thailand. The country also imports significant volumes, bought from China, Malaysia, and USA. LG Chem is the sole domestic manufacturer in the country, operating its 50 kilo tons/annum plant at Yeosu.
In terms of supply, North America is second biggest 2-ethylhexyl acrylate producer in the world after Asia Pacific. But in terms of 2-ethylhexyl acrylate consumption the region is third biggest consumer of 2-ethylhexyl acrylate. USA is the sole 2-EHA manufacturer in the region, with 245 kilo tons of capacity shared between BASF, Arkema and Dow. The region is a net exporter of 2-EHA, with shipments from USA primarily sourced to Belgium, South Korea, Canada, and Mexico. The country imports small volumes from Formosa Petrochemical (FPC)’s 2-EHA plant in Taiwan. Paints & coatings and adhesives & sealants collectively constitute for more than half the consumption in the region, with adhesives & sealants poised to witness the fastest growth during the forecast.
In terms of 2-ethylhexyl acrylate demand, Western Europe is the second largest market for 2-EHA after Asia Pacific. Manufacturing facilities are in Germany and France, both collectively responsible for the 180 kilo tons/annum production capacity in the region. The plants are operated by BASF at Ludwigshafen and Arkema at Carling. With domestic demand exceeding available supply, the region is a net importer of 2-ethylhexyl acrylates.
BASF is the sole manufacturer of 2-ethylhexyl acrylates in the Central & South American region. Located in Guaratinguetá, Brazil, the company converted its butyl acrylate plant into 2-EHA in 2015, following which production commenced in 2016. 2-EHA market in the region is forecast to grow with a compounded annual growth rate of 4.2% by 2032.
In 2021, Asia-Pacific was estimated to be the largest consumer of 2-ethylhexyl acrylate accounting for over 43% of the global 2-ethylhexyl acrylate market. China accounted for the major demand with strong demand from its paints & coating industry. Other Asian countries including Taiwan, Japan, India, Singapore, and South Korea account for a decent share of the global 2-ethylhexyl acrylate market.
The global 2-ethylhexyl acrylate market is forecast to grow at a CAGR of 2.7% between 2022 and 2032. In most regions of the world, the largest market for 2-ethylhexyl acrylate is paints & coating which are dependent on the growth in the construction industry and overall state of the economy. The other applications that impact the 2-ethylhexyl acrylate market include Adhesives & Sealants and Textile.
With no domestic producers, Central & Eastern Europe and Middle East & Africa regions are net importers of 2-EHA. The regions together accounted for around 3.5% of the global 2-Ethylhexyl acrylate demand which translates to around 30 kilo tons.
Paints & Coatings application dominates the global 2-ethylhexyl acrylate market. The application accounted for around 37% of the global 2-ethylhexyl acrylate market market in 2021 and it is further projected to register a CAGR of 2.9% in the long-term forecast owing to increase in use of 2-EHA in the construction, automotive and other industries. In automotive industry 2-EHA coating & adhesives are used for vehicle body coatings, adhesives for interior components. As the global automotive industry continues to grow, the 2-Ethylhexyl acrylate market in adhesives & sealants is projected to grow at CAGR of 3.1% between 2022-2032.
Building & Construction industry is primary consumer 2-ethylhexyl acrylate as coating & adhesives made from 2-EHA can withstand extreme weather conditions and heavy usage. Increase in residential and commercial construction, population growth, urbanization, green building initiatives, technological advancements and increase in renovation and retrofitting activities will further drive the global 2-ethylhexyl acrylate market in the long-term forecast.