Report: Glove sector key to growth in SE Asia latex market
11 Dec 2014
Share:
Parsippany, New Jersey – The glove-dipping industry will be an important driver for growth in the Southeast Asia market for synthetic latex polymers, according to a report from Kline & Co.
South East Asia is the world’s fourth largest market for synthetic latex polymers, accounting for 8 percent of global consumption, estimates the study, titled Synthetic Latex Polymers: Southeast Asia Market Analysis and Opportunities
In the report, Kline forecasts the regional market to develop at a compound annual growth rate of 6.5 percent through 2018 – in-line with national GDP growth rates in the region.
Countries such as Malaysia, Thailand, and Indonesia account for 82 percent of synthetic latex polymers consumption in the region, added an 11 Dec release from the US consulting and research firm.
Acrylonitrile-butadiene (AB nitrile) is the leading product type, accounting for 44.6 percent of the total consumption in the region by volume, followed by styrene acrylics.
Latex consumption in Malaysia and Thailand is dominated by AB nitrile due to the large importance of the glove dipping application in these two countries.
The product mix in Indonesia is dominated by styrene acrylics, while Thailand dominates in consumption of pure acrylics – the third-largest type of synthetic latex polymers consumed in the region.
“The product split in this region cannot be compared to any other region in the world,” comments Nikola Matic, industry manager of Kline’s ‘chemicals and materials’ practice.
“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.”
Due to its fragmentation the market is characterised by a high degree of rivalry among existing suppliers. This, said Kline, creates barriers for would-be market entrants.
Moreover, the top 10 suppliers account for over 60 percent of the market with several production bases available in the region.
Suppliers consist of two tiers of companies: multinational companies, with a diverse regional base; such as Synthomer, Dow Chemical, BASF, Archroma, and Dairen. Regional companies, such as Eternal, Dovechem, Bangkok Synthetics, and Arindo Pacific, complete the competitive landscape.
Due to its strong position in glove dipping, Synthomer is the largest supplier of synthetic latex polymers, specifically AB nitrile and high solids styrene-butadiene (HS-SB).
BASF comes in second and is a leading supplier of styrene acrylics in the region, 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.
(Image source: CPI)
This article is only available to subscribers - subscribe today
Subscribe for unlimited access. A subscription to European Rubber Journal includes:
Every issue of European Rubber Journal (6 issues) including Special Reports & Maps.
Unlimited access to ERJ articles online
Daily email newsletter – the latest news direct to your inbox