Polyvinyl Alcohol Market Trends

Growth Drivers

• Growing Pharmaceutical Sector – pharma companies are prospering worldwide with a wave of innovations which has led to the increased spending of their revenues on research & development (R&D). For instance, it was found that the United States (US) pharmaceutical industry spent nearly USD 101 billion in 2021. The rise of the pharmaceutical industry is anticipated to boost the polyvinyl alcohol market as PVOH is safe to use and safe to consume and has a widening scope of expansion in pharmaceutical applications, especially for ophthalmic drug formulations. Moreover, Food and Drug Administration has approved PVOH for use in food packaging and pharmaceutical applications.

• Expanding Construction Industry – the rising number of residential buildings as well as the increasing construction of commercial spaces worldwide together with the escalating demand for PVOH for its utilization in materials, such as joint cement, drywall mud, caulks, and sealants is forecasted to elevate the market growth in the upcoming years. It was found that the construction industry in the United States accounted for around 4.3% of the US GDP as of January 2023 with 1,406,000 new housing units completed, depicting about a 12.5% increase from January 2022.

• Upsurging Packaging Industry –the changing demography worldwide as well as the rising culture of online shopping, and takeaway meals, along with the prospering pharmaceuticals, FMCG, manufacturing industry, and healthcare sector is responsible for the rising demand for sustainable packaging leading to the growth of the packaging industry. PVOH is a synthetic vinylic alcohol polymer and is water-soluble and highly impermeable to gases, which is why it is widely used as a barrier layer for paper or packaging films. This as a result is expected to bolster the market growth over the forecast years. As per findings, the percentage of consumers that now demand sustainable packaging rose to 81%, since January 2023.

• Increasing Sales of Cosmetic Products – the surging production of cosmetics globally as well as the rising demand for low-hazard ingredients in cosmetics is anticipated to boost the market growth. As per a report, each year more than USD 49 billion is generated by cosmetics sales in the United States.

Challenges

• Possibility of Adverse Effect on Environment and Health – The growth of polyvinyl alcohol is hampered owing to the lack of appropriate research worldwide regarding the biodegradability of PVOH, which is still debatable. It is found that PVOH films like detergent pods and sheets are prone to causing pollution when they are discharged directly into the wastewater system. Moreover, the market growth is further hampered owing to a lack of unbiased, dedicated research on its effects on human and environmental health effects, which makes its utilization as unfamous as plastics.
• Fluctuation in the Prices of Raw Materials
• Stringent Regulatory Policies for Synthetic Plastic Polymer