Monomer Market Size

Part
01
of nine
Part
01

Industrial Monomer Types

The most widely-used industrial monomers are ethylene, propene, and styrene. Most of their industrial applications are related to plastics, coatings, lubricants, and rubber.

MONOMER 1: ETHYLENE

  • Ethylene is the most widely produced organic compound in the world, with over 150 million tonnes being produced in 2016.
  • An essential, basic building block in a wide range of plastics, solvents, cosmetics, and anti-freeze solutions, ethylene is most commonly used to make polymers, with the production of polyethylene, the most popular plastic in the world, consuming about 60% of the world's ethylene.
  • Additionally, ethylene is used in the production of ethylene dichloride, which is used to make vinyl chloride and then polyvinyl chloride (PVC). PVC is widely used to manufacture pipes, conduits, fittings, windows, roof tiles, fencing and automobile parts, films, sheets, cable coatings, flooring, shower curtains and synthetic leather products.
  • Approximately 16% of ethylene is used to make epoxyethane and then ethane-1,2-diol, which is used to manufacture engine coolants and polyesters. Epoxyethane can also produce various ethanolamines, which are used in textile finishing, cosmetics, soaps, detergents, gas purification processes, and corrosion inhibitors.
  • Ethylene glycol, a product of ethylene, is used as an industrial lubricant and coolant in many forms.

MONOMER 2: PROPENE

MONOMER 3: STYRENE

RESEARCH STRATEGY

Since initial research suggested monomers are usually used to manufacture various polymers instead of having their own direct industrial applications, the monomers with the largest production volume, while not necessarily having the widest range of applications themselves, would be popular due to the versatile range of polymers they're able to produce. Those polymers would, subsequently, have a wide-array of industrial applications.
Part
02
of nine
Part
02

Monomer 1: Market Size

The market size for ethylene in the United States is approximately $8.33 billion per year. The high demand for low-cost feedstocks like ethane is likely to drive the growth of the market.

Consumption and Demand of Ethylene in the US

  • Based on the above statistics, the estimated US market size of ethylene is approximately $8.33 billion per year.

Ethylene Market Growth in the US

Research Strategy

Despite an exhaustive search for the specific US market size of ethylene and projections of future growth, we could not find pre-compiled statistics in industry reports, academic research, statistical databases, or news reports. It's likely that most sources with this specific figure are behind a paywall. As such, we decided to triangulate the market size based on available information.
To estimate the US market size of ethylene, we looked for the estimated consumption, which we calculated as follows:
The demand (consumption) of ethylene in the US = overall production x demand rate
= 19.49 million

We then multiplied the estimated ethylene demand (19.49 million) by the estimated price per metric ton ($427.15) to arrive at a market size of $8.33 billion.

Part
03
of nine
Part
03

Monomer 2: Market Size

The market size for Propylene (Propene) monomer industry in the United States is estimated to be approximately $157.64 million as of 2018.

United States Propylene Monomer Industry Overview

Research Strategy

To provide the requested information regarding the market size of the Propylene monomer market in the United States, your research team consulted multiple market reports published by reputable research firms like Persistence Market Research, Statista, S&P Global, Research and Market, Ameri Research Inc, and GlobalData as well as authoritative agencies and media sources such as US Energy Information Administration (EIA), Market Watch, and Washington Post. While the current size for the market is publicly not available (that is in paid reports), we were able to find the quantity of Propylene used in 2018 for nonfuel application on EIA's database as well as the price of ploymer-grade propylene in 2018 and projected growth rate of the market from 2020 to 2025 after an exhaustive and wide-reaching search through the sources above.
We leveraged these data points to estimate the market size as outlined below:
Firstly, we converted propylene used for nonfuel applications in 2018 reported in barrels to metric tons using 1.00 barrel = 0.086 metric tons (1 metric ton = 11.6 barrels) as the conversion factor.
Nonfuel application of Propylene in 2018 (metric tons) = 2.6 million barrels * 0.086 metric tons = 223,600 metric tons

Market Size Estimation

2018 market size = 223,600 metric tons * $705/mt = $157,638,000

Note: Your research team used the nonfuel segment of the US propylene monomer market to triangulate a proxy for the monomer market because its represent the segment of the market used for production.
Part
04
of nine
Part
04

Monomer 3: Market Size

The market size for styrene in the United States is estimated at roughly $3 billion per year. The use of polystyrene in construction will determine the growth of this market.

Styrene Consumption and Demand in the United States

Market Growth

  • Growth of styrene consumption worldwide is expected to be flat, with only a 2% average annual growth from 2017 to 2022.
  • The primary driver of the US styrene market is the use of polystyrene in the construction industry.

Research Strategy

  • Despite an exhaustive search for the specific US market size of styrene and projections of future growth, we could not find it in industry reports, academic research, statistical databases, or news reports. It's likely that most sources with this specific figure are behind a paywall.
  • To estimate the US market size of styrene, we looked for the price per metric ton ($910 to $920), as well as the estimated consumption (3.3 million metric tons.) We then multiplied these numbers to arrive at approximately $3 billion.
Part
05
of nine
Part
05

Dow Coatings & Performance Monomers

Dow's Coatings & Performance Monomers business unit had estimated sales of $4.11 billion in 2014 which decreased to $3.99 billion in 2018. Although Dow's business unit experienced a slight decrease in sales over the past 5 years, the EBITDA growth for Coatings & Performance Monomers from 2015 to 2017 was 65% which amounted to $0.5 billion in 2017. The key products are acrylates and the architectural coatings, while the region with the largest sales is North America.

2014 Performance

  • According to the Dow 2014 annual report, Dow Coating Materials and Performance Monomers were a part of the Infrastructure Solutions segment, which had sales of $8.43 billion in 2014.
  • The sales volume of Performance Monomers business unit decreased in 2014 compared to 2013 due to the maintenance of one of their major products (vinyl acetate monomers), market conditions and the closure of one of their plants.
  • During the same period, Dow Coating Materials reported an increase of sales in all geographic areas as a result of increased demands for different types of coatings.
  • The estimated sales for the Dow Coating Materials and the Performance Monomers business units was $4.11 billion in 2014 (Calculated)

2015 Performance

  • In 2015, both the Dow Coating Materials and the Performance Monomers businesses had an increase in sales volumes due to higher demands for different types of products. The total sales for these business units amounted to $3,86 billion in 2015.
  • The volume for the Performance Monomers increased compared to 2014 as a result of "improved asset utilization" and higher demand for their monomer products, while the sales for the Dow Coating Materials increased due to higher demands for their coatings in North America and EMEAI (Europe, Middle East, Africa and India) regions.

2016 Performance

  • The total sales for the Coating Materials and the Performance Monomers decreased to $3.36 billion in 2016, due to lower sales of Performance Monomers, which was a result of Dow's business strategy aimed to reduce the "merchant sales of acrylic monomers" and the consumption of acrylates.
  • Meanwhile, Dow Coating Materials expanded into new markets and had a strong innovation pipeline which led to growth in all regions (except Latin America).

2017 Performance

  • According to the 2017 annual report, the "increasing commoditization in coatings markets and competition" and other factors such as "customer consolidation in end markets" affected the financial performance of the Coating Materials and Performance Monomers business units.
  • In 2017, the Coatings & Performance Monomers business unit had total sales of $3.76 billion, which was a 12% YOY sales increase.
  • The operating EBITDA for the year 2017 was $0.5 billion, while the operating EBITDA margin was 13%. Coatings & Performance Monomers also improved the EBITDA margin and the ROIC by more than 500 bps, while the EBITDA growth was 65% from 2015 to 2017.
  • The majority of the sales for these business units were from acrylates and the architectural coatings, with each of these products having more than 50% share of the company's sales in their respective segments.
  • North America (NAA) was the region with the largest sales volumes for both the Coatings and the Performance Monomers businesses.

2018 Performance

  • The total sales of the Coatings & Performance Monomers business unit were $3.99 billion in 2018, which was 6.6% (calculated) of the company's total net sales.
  • In the first quarter of 2018, Coatings & Performance Monomers had high sales growth due to the increase of local prices in all geographic areas, while in the second quarter net sales decreased as a result of lower local prices and volumes.
  • The demand for Coatings in the Q2 2018 declined as a result of wet weather in Europe and the United States and shipping restrictions had an impact on the sales of the Performance Monomers.
  • After the decrease in sales in the previous quarter, the costs of raw material grew in the third quarter of 2018 which increased local prices in all geographic areas and led to "double-digit sales growth" of Coatings & Performance Monomers.

Research Strategy

To obtain information about the performance of Dow's Coatings & Performance Monomers business unit over the past 5 years, we thoroughly reviewed their news, press releases, annual reports, and other documents. We also scanned various databases and industry publications such as Statista, Nasdaq and news articles such as Business Insider, PR Newswire and Business Wire among others. Although these sources provided us with numerous insights related to the business performance of the Coatings & Performance Monomers unit, we didn't find information about their net sales for 2014. However, since we had data about the Coatings & Performance Monomers sales and the company total sales for 2015-2018, we decided to use this information to calculate the Coatings & Performance Monomers share in total sales for each year. After that, we used the average Coatings & Performance Monomers share for the years 2015-2018 and the total net sales in 2014 to calculate the Coatings & Performance Monomers sales in 2014. The overview of our calculations is presented below.

Calculations

We first calculated the share of the Coatings Materials & Performance Monomers in the total sales for each year from 2015 to 2018.

Coatings Materials & Performance Monomers sales share 2015

Coatings Materials & Performance Monomers sales 2015 = 3,857 million
Total net sales 2015 = 48,778 million

Coatings Materials & Performance Monomers sales share 2015 = (Coatings Materials & Performance Monomers sales 2015 / Total net sales 2015) * 100
Coating Materials & Performance Monomers sales share 2015 = (3,857 million / 48,778 million) * 100
Coating Materials & Performance Monomers sales share 2015 = 0.079 * 100

Coating Materials & Performance Monomers sales share 2015 = 7.9%

Coatings Materials & Performance Monomers sales share 2016

Coatings Materials & Performance Monomers sales 2016 = 3,362 million
Total net sales 2016 = 48,158 million

Coatings Materials & Performance Monomers sales share 2016 = (Coatings Materials & Performance Monomers sales 2016 / Total net sales 2016) * 100
Coating Materials & Performance Monomers sales share 2016 = (3,362 million / 48,158 million) * 100
Coating Materials & Performance Monomers sales share 2016 = 0.0698 * 100

Coatings Materials & Performance Monomers sales share 2016 = 6.98%

Coatings Materials & Performance Monomers sales share 2017

Coatings Materials & Performance Monomers sales 2017 = 3,761 million
Total net sales 2017 = 55,508 million

Coatings Materials & Performance Monomers sales share 2017 = (Coatings Materials & Performance Monomers sales 2017 / Total net sales 2017) * 100
Coating Materials & Performance Monomers sales share 2017 = (3,761 million / 55,508 million) * 100
Coating Materials & Performance Monomers sales share 2017 = 0.0678 * 100

Coatings Materials & Performance Monomers sales share 2017 = 6.78%

Coatings Materials & Performance Monomers sales share 2018

Coatings Materials & Performance Monomers sales 2018 = 3,987 million
Total net sales 2018 = 60,278 million

Coatings Materials & Performance Monomers sales share 2018 = (Coatings Materials & Performance Monomers sales 2018 / Total net sales 2018) * 100
Coating Materials & Performance Monomers sales share 2018 = (3,987 million / 60,278 million) * 100
Coating Materials & Performance Monomers sales share 2018 = 0.066 * 100

Coatings Materials & Performance Monomers sales share 2018 = 6.6%

We then used the calculated percentages for each year to calculate the Coatings & Performance Monomers average sales share 2015 - 2018.

Coatings & Performance Monomers average sales share 2015 - 2018 = (7.9% + 6.98% + 6.78% + 6.6%) / 4
Coatings & Performance Monomers average sales share 2015 - 2018 = 28.26 / 4

Coatings & Performance Monomers average sales share 2015 - 2018= 7.07%

We then used the Coatings & Performance Monomers average sales share 2015 - 2018 to calculate the Coatings & Performance Monomers sales in 2014.

Total net sales 2014 = $58,167 million

Coatings & Performance Monomers sales 2014 = (Coatings & Performance Monomers average sales share 2015 - 2018 * Total net sales 2014) / 100
Coatings & Performance Monomers sales 2014 = (7.07% * $58,167 million) / 100
Coatings & Performance Monomers sales 2014 = 411,240,69 / 100

Coatings & Performance Monomers sales 2014 = $4,112.40 million
Part
06
of nine
Part
06

Arkema Coating Solutions

A description of sales performance for Arkema Group's Coating Solutions division is provided here, including sales for each year from FY2014-FY2018 and relevant insights related to sales and developments in Arkema's coating division. Sales during that time period have increased by 9.1 percent with the most significant developments occurring in Asia. Calculations used to find the figures are provided in the Research Strategy section below.

Income by Fiscal Year

  • 2014: In FY2014, the coating solutions division reported sales of 1.919 billion Euros.
  • 2015: In FY2015, the coating solutions division reported sales of 1.913 billion Euros.
  • 2016: In FY2016, the coating solutions division reported sales of 1.771 billion Euros.
  • 2017: In FY2017, the coating solutions division reported sales of 1.924 billion Euros.
  • 2018: In FY2018, the coating solutions division reported sales of 2.112 billion Euros.

Insights

  • Between 2014-2018, sales for the coating solutions division increased by 9.1 percent.
  • The FY2017 increase over the previous year was due in part to a better acrylic cycle as well as the group's concerted effort to raise prices across the entire chain, Arkema reported in 2018.
  • In October 2014, Arkema entered a joint venture in China with Jurong Chemical, forming Sunke. This allowed Arkema to begin expanding its Coating Solutions segment in Asia, providing growth over the proceeding years.
  • In July 2017, Arkema entered three investment opportunities in Asia to continue its expansion, including a project in the polyamide 11 chain, a 30 percent production capacity at the Sartomer Nansha facility in China, and a doubling of production capacity of methyl mercaptan at the Arkema thiochemicals site in Malaysia.
  • Asia appears to be the fastest growing market for Arkema, with "Asia and the rest of the world" sales increasing from 10 percent to 31 percent between 2006-2018 (not specific to coating division). Over the same time period, North America's sales increased from 25 to 31 percent and Europe's decreased from 58 to 38 percent.
  • Arkema is now producing coatings for its Sartomer, Coatex, Arkema Coating Resins, Technical Polymers, and Acrylic Monomers business units in China. Per Arkema, these products are adapted specifically for the fast-growing coatings market in China.
  • Increased social media presence: Twitter followers for Arkema increased from 4,340 on 15 Oct 2016 to 9,040 on 15 January 2020 (not specific to coatings division).

Research Strategy

To determine sales for 2018, the overall income from the three separate branches of Arkema Group (High Performance Materials, Industrial Specialties, and Coating Solutions), which is 8.8 billion Euros, was divided by the percentage share the coating division had (24 percent), as follows.
8.8 billion Euros / 0.24 = 2.112 billion Euros

Arkema's sales in the coating division were 4.2 percent lower in FY2015 than in FY2014, according to its report released in 2016. To determine the sales in FY2014, the sales figure given at that time for FY2015, E1,849 million, was divided by 0.042, as follows.
1,842,000,000 x 0.042 = 77,364,000.
1,842,000,000 + 77,364,000 = 1,919,364,000 Euros

With a difference in sales figures in FY2015 between the sales report released in 2016 and the sales report released in 2017, the more recent sales figure is used with the reasoning that it is the most up-to-date. Both reports came from the company itself.

Similarly, with a difference in sales figures in FY2016 between the sale report released in 2017 and the one released in 2018, the more recent sales figure is used.

To find the difference in sales from 2014-2018, the 2014 figure (1,919,364,000) was divided by the 2018 figure (2,112,000,000), as follows:
1,919,364,000 / 2,112,000,000 = ~0.909, or 90.9 percent.
100 - 90.9 percent = 9.1 percent

Information for specific employment information and website traffic for the coating division could not be located following a search of the company's year-end news releases.
Part
07
of nine
Part
07

Monomer Competitors

Mitsubishi Chemicals, Evonik Industries, Eastman Chemical Company, and BASF SE are four key players in the industrial monomer market.

The spreadsheet can be found here.

OVERVIEW

  • Vinyl acetate monomer, methyl methacrylate, methacrylic acid, modified monomers, and polymerizable monomers are the industrial monomers offered by Mitsubishi Chemicals.
  • The monomers offered by Eastman Chemical Company are typically used in PVC compounds, coatings, paints, textiles, adhesives, sealants, caulks, plastic modifications, wax and oil, elastomers, and low volatile content.
  • BASF SE monomers are used in transportation, agriculture, construction, chemicals, electronics, home care, energy and resources, personal care, paintings and coatings, pharmaceuticals, and textiles.
  • Evonik Industries made €3,976 million in 2018 via its monomer business which is segmented under 'performance materials'. The sales experienced upward trend consecutively for three years (2016 to 2018).
  • In 2016, Eastman Chemical Company's monomer business went down by 10% due to low selling price in the market.

RESEARCH METHODOLOGY

All the required data concerning the four identified key players were readily available in the public domain. The information has been entered into the respective spreadsheet. The key players were identified based on revenue and business model that is similar to Dow's and Arkema's. Except BASF SE, the other three key players have segmented their monomer business into a broad segment or division of their business line such as performance materials, chemicals intermediates, and industrial materials. Also, only Mitsubishi has released its 2019 annual report. The rest of the players are yet to publish theirs. BASF SE has published only a portion of information about their performance in 2019. In order to maintain the consistency we only considered the 2018 annual report. Additionally, we only identified the key players who are similar to Dow's Coating & Performance Monomers and Arkema's Coating Solutions.
Part
08
of nine
Part
08

Monomer Competitors: Comparison, Part 1

Mitsubishi Chemical sells monomers, such as Methacrylic Acid, Methacrylic Esters, while Evonik Industries sells monomers like wet adhesion monomers, specialty intermediates, among others. Explicit details on this request have been entered on this attached spreadsheet. Below is a summary of the request.

Mitsubishi Chemical

Products

Applications

  • Monomers sold by the company can be used as/in paint, adhesive, fiber processing agent, rubber modifier, leather treatment, paper processing agent, lubricant additive, cement mixing agent, manufacturing of plates, rods, and pipe, molding material, ink, adhesive agent, binder, cross-linking agent, plasticizer, among others.

Growth/Decline of Monomer Segment


Evonik Industries

Products

Applications

  • Monomers being sold by Evonik can be used as/in adhesives and sealants, composite resins, coatings, oil and gas, construction, textile, plastics and rubbers, 3D printing, emulsions, personal and health care, surfactants, thickeners, and intermediate for synthesis.

Growth/Decline in Monomer Segment

  • In 2016, the total sales in the resource efficiency segment, which supplies high-performance materials, monomers, to paint, textile, adhesives, construction, among other industries, increased from €4,332 million in 2015, to €4,513 million. This was due to the high demand for oil additive monomers.
  • However, in 2017, the sales revenue increased to €5,441 million, and this was because of the good interaction of research, applications technology, production, and marketing of monomers. Still, in 2018, the revenue increased further to €5,759 million. Here, the increase was due to the saving of resources and developing energy-efficient and environmentally friendly products.

Part
09
of nine
Part
09

Monomer Competitors: Comparison, Part 2

Monomer products offered by Eastman Chemical Company are Acrylic Monomers, Hydrogenated Pure Monomers, Pure Monomers, and Aromatic pure monomers, while BASF SE offers three types of monomer group of products: Acrylate Monomers, Cationic Monomers, and Methacrylate Monomers. Required details related to Eastman Chemical Company and BASF SE have been entered in columns E-F of the attached spreadsheet.

SUMMARY OF FINDINGS

Eastman Chemical Company

  • Monomer Products: Monomer products offered by Eastman are Acrylic Monomers, Hydrogenated Pure Monomers, Pure Monomers, and Aromatic pure monomers.
  • Monomer Applications: Monomers sold by the company can be used in industrial and architectural coatings, hot-melt adhesives, adhesives, coatings, sealants, caulks, rubber, polymer modification, overprint lacquers, and a variety of other applications.
— These products are also used as a modifier of polyolefin polymers and for rubber and plastics modification to fine-tune application properties.
  • Growth/Decline of Monomer Segment: In 2018, the sales revenue of the monomer ('chemicals intermediates') segment of Eastman Chemical Company increased by 4% to $2,831 million due to higher selling prices, "particularly for acetyl derivatives and favorable market conditions.

BASF SE

  • Monomer Products: BASF SE has developed a number of monomer products. The three types of monomer groups of products are Acrylate Monomers, Cationic Monomers, and Methacrylate Monomers.
  • Monomer Applications: Monomers sold by the company can be used in several applications such as coatings, adhesives, personal care, plastics, solventborne high solid coatings, modifier for plastics, crosslinking with isocyanates or melamines, and others.
— These monomers are also used in various application areas of the chemical industry.
  • Growth/Decline of Monomer Segment: In 2018, the total sales of monomer division of the company decreased by 7% to €6,464 million mainly because of the "lower volume and negative currency effects."
Sources
Sources

From Part 03
Quotes
  • "The global propylene market was valued at $79.4 bn in 2016 and is forecast to grow at a steady CAGR of 6.0% between 2015 and 2024, culminating in 2024 global sales of $126.0 bn."
Quotes
  • "US propylene supply has recovered in the first half of 2019, as production from propane dehydrogenation units has improved. This was in line with expectations for the front half of the year, and eventually led to record high inventory levels of 6.459 million barrels in March, according to the US Energy Information Administration."
  • "At the end of June, US inventories stood at 4.960 million barrels, compared with 2.324 million barrels at the end of June 2018."
  • "The overall increase in inventories has pressured US propylene spot prices, leaving them well below 2018 levels. Polymer-grade propylene spot prices hit a low of 32 cents/lb ($705/mt) FD USG in late February before rebounding and then receding again to 32 cents/lb FD USG in mid-June."
  • "According to Eurostat data, imports from the US in the first four months of 2019 averaged 13,600 mt/month, compared with 920 mt/month in the same period in 2018. Meanwhile, imports reached an all-time high in February of 63,760 mt, the data show"
From Part 05
Quotes
  • "The Infrastructure Solutions segment consists of the following businesses: Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions, and Performance Monomers"
  • "Dow Coating Materials volume increased in all geographic areas due to higher demand for architectural and industrial coatings. "
  • "Performance Monomers volume decreased due to long acrylate market conditions, extended planned and unplanned maintenance turnarounds in vinyl acetate monomers, and a plastic additives plant closure which reduced market participation."
Quotes
  • "Dow Coating Materials volume increased due to higher demand for architectural coatings in EMEAI and higher demand for industrial coatings in North America."
  • "Volume increased in Performance Monomers due to higher demand and improved asset utilization for vinyl acetate monomers and acrylic monomers. "
Quotes
  • "Performance Monomers volume decreased primarily due to the business' ongoing strategy to reduce its merchant sales of acrylic monomers as well as increased internal consumption of acrylates. "
  • "Dow Coating Materials experienced volume growth in all geographic areas, except Latin America, with growth in architectural and industrial coatings due to a strong innovation pipeline and expansion into new end markets. "
Quotes
  • "Throughout 2017, the Coatings & Performance Monomers reporting unit did not consistently meet expected financial performance targets, primarily due to increasing commoditization in coatings markets and competition, as well as customer consolidation in end markets which have reduced growth opportunities. "
From Part 06
Quotes
  • "A global manufacturer in specialty chemicals and advanced materials, with 3 business segments – High Performance Materials, Industrial Specialties, and Coating Solutions – and globally recognized brands, the Group reports annual sales of 8.8 billion euros. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries."
Quotes
  • "At €1,924 million, sales for the Coating Solutions division rose 8.6% on 2016, led by a 12.1% positive price effect thanks to a better acrylic cycle as well as measures taken to raise selling prices across the entire chain. "
Quotes
  • "In October 2014, Arkema and Jurong Chemical, China’s leader in acrylic acid, finalized the creation of Sunke, a joint venture in which Arkema has a majority interest, comprising the assets of Jurong’s acrylic acid production site in Taixing in China.This operation enables the Group to accelerate the development of its Coating Solutions segment in Asia."
  • "In July 2017, Arkema announced three investments in Asia that reinforce its strategy of expansion in this zone: A major project in the bio-based polyamide 11 chain; A 30% production capacity increase at Sartomer Nansha facility in China; The doubling of methyl mercaptan production capacity at the Arkema thiochemicals site in Malaysia."
Quotes
  • "These products from our business units Sartomer, Coatex, Arkema Coating Resins, Technical Polymers and Acrylic Monomers are produced in our Chinese plants. They are adapted to the specificities of the Chinese fast growing coatings market."