Emulsion polymers are used in paints and coatings, adhesives and sealants, paper and packaging, textiles, nonwovens, and carpets, and construction chemical and material applications. The popularity of emulsion polymers (more than hot-melt- and solvent-based adhesives) and the growth in end-use applications will contribute to industrial growth over the next few years.
• The only challenge emulsion polymers face is that of augmenting the limited profit margins they earn when compared to raw material suppliers and end-use industries.
• Raw material suppliers benefit from their significant R&D expertise and the subsequent limited barriers to entry that their niche business enjoys.
• Likewise, paints and coatings, and adhesive manufacturers exert influence over formulation recipes and application technologies, which translate into higher margins for them. As a result, emulsion polymer manufacturers face a profit margin backlash from both ends of the value chain.
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