Southeast Asia now 4th largest synthetic latex polymers market

SOUTHEAST Asia is currently the fourth-largest market for synthetic latex polymers worldwide after U.S, Europe, and China with an 8% share of global consumption. A strong correlation to the region’s positive GDP growth will continue to boost its synthetic latex polymers market, with the CAGR rate forecast at 6.5% through 2018, according to a recently published report by global consulting and research firm Kline & Company. 

While SEA is significantly smaller than the top three leading global markets, it is still much larger than the developing markets of the Middle East, Brazil, and India.

Malaysia, Thailand, and Indonesia collectively account for 82% of synthetic latex polymers consumption in the region. Acrylonitrile-butadiene (AB nitrile) is the leading product type with a 44.6% share of the region’s total consumption in terms of volume. Styrene acrylics is the second leading product category. 

The huge glove dipping application in Malaysia and Thailand is pushing up demand for AB nitrile, which dominates latex consumption in both countries. In Indonesia, styrene acrylics leads the product mix. Thailand dominates the consumption of pure acrylics, the third-largest type of synthetic latex polymers consumed in the region. 

Nikola Matic, industry manager of Kline’s Chemicals and Materials Practice, said the product split in SEA cannot be compared to any other region in the world. “In other regions, paints and coatings or paper applications usually 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.”

SEA suppliers fall into two categories, namely multinational and regional companies. The first group consists of players such as Synthomer, Dow Chemical, BASF, Archroma, and Dairen. Regional companies include Eternal, Dovechem, Bangkok Synthetics, and Arindo Pacific. The top 10 suppliers account for more than 60% of the market with several production bases available in the region. 

Backed by its strong market position in glove dipping, Synthomer is the largest supplier of synthetic latex polymers, specifically AB nitrile and high solids styrene-butadiene (HS-SB). BASF follows, leading the market for styrene acrylics, 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.