Global Water Based Resins Market By Type (Acrylic, Epoxy, Polyurethane, Vinyl Acetate, Alkyd, Formaldehyde, Others), By Function(Binders, Film Formers, Dispersants, Modifiers, Others), By Application(Paints and Coatings, Adhesives and Sealants, Inks, Others), By End-Use Industry(Automotive, Paper and Pulp, Aerospace, Industrial, Building and Construction, Marine, Leather, Others) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The global water-based resin market size is expected to be worth around USD 112 billion by 2033, from USD 56 billion in 2023, growing at a CAGR of 7.1% during the forecast period from 2023 to 2033.

Water-based resins are eco-friendly polymers used in adhesives and coatings that dissolve in water rather than harmful solvents. This attribute makes them more environmentally friendly by reducing volatile organic compound (VOC) emissions. The primary types of these resins include acrylics, polyurethane dispersions, and epoxy esters, noted for their excellent adhesion, clarity, and durability.

They are employed extensively across multiple industries, from painting and decorating to industrial coatings and packaging, due to their effective performance and easier cleanup processes using just soap and water. Their rising adoption is driven by the global push towards stricter environmental regulations, aiming to reduce the ecological footprint of industrial materials.

In the United States, the trade of water-based resins is meticulously monitored through detailed data collection executed by the U.S. Census Bureau and the International Trade Commission (ITC). Recent import and export data reflect extensive trading activities, with the U.S. importing a substantial value of goods, including a significant share of chemical products like water-based resins.

This comprehensive trade data serves as a crucial resource for businesses and policymakers, providing insights into market dynamics, regulatory compliance, and strategic planning. The data underlines the government’s commitment to supporting industry stakeholders with the necessary resources to effectively manage the complexities of international trade.

This structured approach to trade monitoring ensures that businesses can align their operations with both current market trends and regulatory requirements, facilitating informed decision-making and strategic business planning in a competitive global marketplace.

Key Takeaways

• The water-based resins market is set to grow from USD 56 billion in 2023 to USD 112 billion by 2033, achieving a 7.1% CAGR.
• Acrylic resins held a 32.1% market share in 2023, favored for their durability, transparency, and UV resistance in paints and coatings.
• Binders accounted for over 44.4% of the market in 2023, essential for structural integrity and durability in paints and coatings.
• Paints and coatings led the market with a 39.4% share in 2023, praised for low VOC emissions and durability.
• Asia-Pacific held 39% of the global market in 2023, driven by rapid urbanization and significant industrial growth.

By Type

In 2023, Acrylic Resins held a dominant market position, capturing more than a 32.1% share of the water-based resins market. This prominence is due to their excellent properties such as durability, transparency, and resistance to UV radiation and weather conditions, making them ideal for applications in paints and coatings, adhesives, and sealants across various industries.

Epoxy Resins are also significant players in the market, valued for their superior mechanical properties and high thermal stability. They are commonly used in the coatings industry, particularly for heavy-duty metal applications and floorings, due to their strong adhesion, chemical resistance, and durability.

Polyurethane Resins are noted for their flexibility and performance across a broad range of temperatures, which makes them suitable for applications in both protective coatings and flexible packaging. Their versatility allows them to be used extensively in the automotive, construction, and furniture industries.

Vinyl Acetate Resins are important due to their application in adhesive and paper coatings, where they offer excellent adhesion and fast-setting characteristics. Their usage is prominent in the packaging and woodworking industries.

Alkyd Resins are favored in architectural coatings due to their ease of handling, inherent gloss, and compatibility with a wide range of colors and additives. They are primarily used in decorative paints and varnishes.

Formaldehyde Resins, including phenol-formaldehyde and urea-formaldehyde, are critical in the production of engineered wood products, lending high levels of moisture resistance and mechanical strength, essential for construction and furniture-making.

By Function

In 2023, Binders held a dominant market position within the water-based resins sector, capturing more than a 44.4% share. This segment’s prominence is primarily due to the critical role binders play in formulating paints and coatings, where they help provide structural integrity and durability to the finish, ensuring that pigments and additives remain well dispersed and adhere effectively to surfaces.

Film Formers are another important function of water-based resins, widely utilized to create a continuous film on the surface of painted or coated materials. This function is essential for protecting surfaces against environmental factors and enhancing the aesthetic appeal of the finish.

Dispersants in the water-based resin market facilitate the stable suspension of solid particles within a liquid medium, crucial in paint formulations and ink production to prevent settling and clumping.

Modifiers are used to alter the properties of water-based resins to suit specific application needs, such as improving toughness, flexibility, or chemical resistance. These are especially valuable in customizing products for specialized applications across various industries.

By Application

In 2023, Paints and Coatings held a dominant market position within the water-based resins sector, capturing more than a 39.4% share. This significant share is attributed to the widespread adoption of water-based resins in this segment, where they are favored for their low VOC emissions and excellent environmental profile. These resins are crucial in developing advanced paint and coating formulations that offer durability, quick drying times, and resistance to weathering, making them ideal for both indoor and outdoor applications.

Adhesives & Sealants also represent a key application area for water-based resins, utilizing their strong bonding capabilities and flexibility. These properties are particularly valued in the construction and automotive industries, where effective adhesion is essential for both structural integrity and performance.

In the ink sector, water-based resins are prized for their ability to provide consistent quality and performance in printing applications. They are particularly important in the packaging industry, where the demand for non-toxic and environmentally friendly printing solutions is on the rise.

By End-Use Industry

In 2023, Building and Construction held a dominant market position, capturing more than a 34.3% share in the water-based resins market. This significant share is primarily attributed to the extensive use of water-based resins in this industry for applications such as paints, coatings, adhesives, and sealants, which are essential for both protective and aesthetic purposes in construction materials.

In the Automotive industry, water-based resins are highly valued for their applications in automotive coatings, which enhance the durability and appearance of vehicles while complying with environmental regulations that limit VOC emissions.

The Paper & Pulp sector utilizes water-based resins to improve the quality and performance of paper products, where these resins contribute to strength, gloss, and water resistance, making them crucial for specialty papers and packaging materials.

Aerospace industries adopt water-based resins for their lightweight and strong bonding properties, critical in the production of components that must withstand extreme conditions and stress.

The Industrial segment makes extensive use of water-based resins in a variety of machinery and equipment coatings, providing protection against corrosion, wear, and environmental factors, thus ensuring longevity and efficiency.

In Marine applications, water-based resins are applied to protect ships and other marine structures from harsh marine environments, aiding in the prevention of corrosion and biofouling.

The Leather industry benefits from water-based resins in the form of coatings that enhance the durability, appearance, and texture of leather goods, aligning with increased consumer demand for more sustainable production processes.

Key Market Segments

By Type

• Acrylic
• Epoxy
• Polyurethane
• Vinyl Acetate
• Alkyd
• Formaldehyde
• Others

By Function

• Binders
• Film Formers
• Dispersants
• Modifiers
• Others

By Application

• Paints & Coatings
• Adhesives & Sealants
• Inks
• Others

By End-Use Industry

• Automotive
• Paper & Pulp
• Aerospace
• Industrial
• Building & Construction
• Marine
• Leather
• Others

Drivers

Increasing Demand for Eco-Friendly Products

A key driving factor for the growth of the water-based resin market is the escalating global demand for eco-friendly and sustainable products. This trend is largely driven by stringent environmental regulations and growing consumer awareness regarding the environmental impact of products and their production processes.

The water-based resins market has seen significant expansion due to their lower volatile organic compound (VOC) emissions compared to solvent-based resins. This characteristic makes them particularly appealing in industries like paints and coatings, adhesives, and sealants, where environmental regulations are tightening. For instance, in the construction and automotive sectors, the shift towards more sustainable materials is evident with a continued focus on reducing environmental footprints through the adoption of water-based resin products.

The market is also benefiting from technological advancements that enhance the performance characteristics of water-based resins, making them competitive with traditional solvent-based products in terms of durability and efficiency. Companies are increasingly focusing on innovations to improve the stability and application properties of water-based resins, further driving their adoption across various industries.

Furthermore, the market growth is supported by a compound annual growth rate (CAGR) projection, indicating robust expansion in the coming years due to these driving factors. The expected increase in market size is substantial, reflecting the broadening applications and increasing acceptance of water-based resins in global markets.

Restraints

High Production Costs of Water-Based Resins

A significant restraining factor for the growth of the water-based resins market is the high production costs associated with these materials. The manufacturing process for water-based resins often requires specialized equipment and additional processing steps, such as emulsion formation, which can be more complex and costly compared to the production of solvent-based resins. This complexity stems from the need to maintain the stability of the resin in water, which requires precise control over the chemical properties and the production environment.

The financial implications of these higher production costs are particularly challenging for manufacturers, as they can affect profitability and pricing strategies in a competitive market. Additionally, the investment required for the necessary technology and equipment to produce water-based resins can be a barrier for new entrants or smaller companies looking to expand within this sector.

Moreover, while water-based resins offer environmental benefits such as lower VOC emissions, their cost-effectiveness can be impacted by the prices of key raw materials, which are subject to fluctuations in the global market. This volatility can further complicate financial planning and cost management for producers of water-based resins.

These factors collectively pose a significant challenge to the growth and wider adoption of water-based resins, especially in price-sensitive markets where the cost differential may lead customers to opt for less expensive alternatives despite the environmental advantages of water-based products.

Opportunity

Expansion in Emerging Markets

A significant growth opportunity for the water-based resins market lies in its expansion within emerging markets, particularly in the Asia-Pacific region. This region is currently the largest market for water-based resins and is expected to grow at the highest compound annual growth rate (CAGR) between 2021 and 2026. The market expansion in Asia-Pacific is driven by rapid urbanization, increased infrastructure development, and a robust demand from the construction and automotive sectors.

Countries like China and India are leading this growth trajectory, with their governments actively investing in housing and infrastructural projects. For instance, the Indian government’s initiatives to boost housing construction are expected to involve significant investments, potentially reaching around USD 1.3 trillion over the next seven years, with plans to construct 60 million new homes. This substantial investment in construction is anticipated to directly boost the demand for water-based resins, particularly in applications like paints and coatings that are essential for building finishes.

Moreover, the increasing regulatory focus across these regions on reducing volatile organic compound (VOC) emissions is pushing industries to adopt more eco-friendly products like water-based resins. These resins are increasingly preferred due to their lower environmental impact and compliance with stringent environmental regulations.

Trends

Growing Adoption of Water-Based Resins in the Coatings Industry

The coatings industry is witnessing a significant shift towards water-based resins, driven by stringent environmental regulations and increasing consumer demand for eco-friendly products. According to a report from the European Council of the Paint, Printing Ink, and Artists’ Colours Industry (CEPE), the global market for water-based coatings, which predominantly use water-based resins, was valued at approximately USD 66 billion in 2023.

The growth of water-based resins is largely attributed to their lower volatile organic compound (VOC) content compared to solvent-based alternatives. VOCs are a major concern due to their harmful effects on air quality and human health.

For instance, the U.S. Environmental Protection Agency (EPA) has emphasized the need for reducing VOC emissions as part of its air quality management efforts. This regulatory push has led to increased adoption of water-based resins, which can reduce VOC emissions by up to 80% compared to traditional solvent-based resins.

In addition to environmental benefits, water-based resins offer improved safety and ease of application. The National Paint and Coatings Association (NPCA) notes that water-based coatings have become increasingly popular in residential and commercial applications due to their lower flammability and easier cleanup processes.

The global shift is also supported by government initiatives, such as the European Union’s Green Deal, which aims to enhance sustainability across industries, including the coatings sector. The Green Deal has mandated stricter emissions standards, thereby accelerating the transition to water-based products.

Furthermore, technological advancements have enhanced the performance characteristics of water-based resins, making them more competitive with solvent-based options. For example, water-based resins now offer comparable durability and adhesion properties.

According to a study published by the American Coatings Association (ACA), advancements in polymer technology have allowed water-based resins to achieve high performance in various applications, from industrial coatings to architectural finishes.

The economic incentives provided by governments also play a crucial role in this trend. In the United States, the Environmental Protection Agency’s (EPA) Green Power Partnership program encourages companies to adopt environmentally friendly technologies, including water-based coatings. This program provides financial and technical support to companies making the transition, further accelerating the adoption of water-based resins.

The market dynamics reflect these trends, with a significant portion of the coatings market now dedicated to water-based products. According to a report by Grand View Research, water-based coatings accounted for approximately 60% of the total coatings market in 2023. This figure is expected to increase as more industries adopt sustainable practices and as technology continues to improve the performance of water-based resins.

Regional Analysis

In the global water-based resins market, regional dynamics are pivotal to understanding market performance and growth trajectories. The Asia Pacific (APAC) region dominates the market, accounting for approximately 39% of the global share, with a market valuation reaching USD 22.2 billion. This dominance is driven by the region’s burgeoning industrial activities, rapid urbanization, and significant investments in the construction and automotive sectors, which have spurred substantial demand for water-based resins due to their environmentally friendly attributes.

North America follows, characterized by a mature market landscape and an increasing preference for eco-friendly materials. The region’s market is supported by stringent environmental regulations and substantial advancements in resin technologies. North America’s market value stands robust, driven by significant contributions from key industries including automotive, aerospace, and coatings.

Europe exhibits strong market activity, bolstered by rigorous regulatory frameworks and heightened environmental awareness. The European market is expanding as industries adopt water-based resins to comply with stringent EU regulations on volatile organic compounds (VOCs). The European market is also supported by significant investments in sustainable technologies and green innovation.

In the Middle East & Africa, market growth is relatively modest but gaining momentum due to increasing infrastructure projects and industrialization. The region’s focus on sustainability and diversification away from oil-dependent economies is likely to enhance market prospects.

Latin America presents a growing but smaller segment, with development primarily driven by rising construction activities and industrial growth. The adoption of water-based resins is expected to increase as the region seeks more sustainable solutions to align with global environmental trends.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

The water-based resins market is characterized by the presence of several key players who drive innovation and market dynamics. BASF SE, a global leader in chemicals and advanced materials, plays a significant role with its extensive portfolio of water-based resins designed for diverse applications, including coatings and adhesives.

DowDuPont, through its specialty products division, offers a range of water-based resins that cater to various industrial needs, supported by its strong research and development capabilities. Allnex Group, known for its expertise in resins, emphasizes eco-friendly solutions and high-performance products, significantly influencing market trends.

Other notable players include The Lubrizol Corporation and Royal DSM N.V., both of which contribute to the market with a focus on sustainable and high-quality water-based resins. Hexion and Arkema are key participants, offering innovative solutions that enhance performance in coatings and adhesives. DIC Corporation and Covestro AG also hold substantial market positions, leveraging their technological advancements to address evolving industry requirements.

Celanese Corporation and Adeka Corporation, along with Belike, Grupo Synthesia, Olin Corporation, Bond Polymers International, and Elantas, further contribute to the market with a range of specialized products and applications. Collectively, these companies drive competitive dynamics and foster advancements in water-based resin technologies, catering to a broad spectrum of industrial and commercial needs.

Market Key Players

• BASF SE
• DowDuPont
• Allnex Group
• The Lubrizol Corporation
• Royal DSM N.V.
• Hexion, Arkema
• DIC Corporation
• Covestro AG.
• Celanese Corporation
• Arkema
• Adeka Corporation
• Belike
• Grupo Synthesia
• Olin Corporation
• Bond Polymers International
• Elantas

Recent Development

In 2023, BASF SE continued to lead the market with innovative water-based resin solutions that cater to diverse industries including coatings, adhesives, and construction.

In 2023, DowDuPont advanced its position by focusing on innovative water-based resin technologies that cater to various applications including coatings, adhesives, and textiles.

Report Scope