Liquid Saturated Polyester Resin Market Report

Liquid Saturated Polyester Resin Market Report

Liquid saturated polyester resin is a saturated polyester resin with a saturated polyester backbone. Because saturated polyester resin has a low molecular weight, it can be used as a plasticizer and a major reactant in the production of urethane polymers. When compared to unsaturated polyester resins, these are less reactive. They have excellent durability and adhesion, making them suitable for a wide range of applications including can and coil coating, automotive paints, industrial paints, flexible and rigid packaging, and others.

Growing awareness, strict regulations for VOC emissions, and excellent performance of liquid saturated polyester resin due to its numerous properties are some of the important market factors and trends identified in the liquid saturated polyester resin. Rapid industrialization and urbanisation in both developed and developing countries are expected to propel market growth. Furthermore, rising investment in construction activities for universities, hospitals, stadiums, and residential buildings is expected to drive market growth. Furthermore, rising demand for liquid saturated polyester resin from the packaging industry, which includes containers, cans, and boxes, is expected to drive market growth. The rapid expansion of end-use industries in emerging economies is expected to have a positive impact on demand patterns.

Demand for liquid saturated polyester resin is expected to rise in Asia Pacific countries such as India, China, Malaysia, Vietnam, and Japan due to a growing consumer base and the expansion of various end use industries. Furthermore, rising purchasing power, the ease of access to low-cost raw materials and labour, and a prudent regulatory framework are some of the key factors driving regional liquid saturated polyester resin market growth during the forecast period. Following North America and Europe, Asia Pacific has emerged as the largest market for liquid saturated polyester resin. The liquid saturated polyester resin market in North America is expected to grow moderately due to a solid base for various industrial sectors, as well as increased investments to revitalise general industry.

European countries such as Spain, Italy, Russia, Germany, France, and the United Kingdom have emerged as important consumer markets as a result of rising demand from expanding applications and increased R&D and innovation spending. However, stringent regulations imposed by various government agencies such as REACH and the EPA are expected to dampen demand for liquid saturated polyester resin in Europe and North America. Brazil, Mexico, and Colombia are major contributors to regional Latin America growth, owing to rising consumer spending on automobiles and packaging products.

Liquid Saturated Polyester Resin Market: COVID-19 Outbreak

Because of COVID-19, lockdown regulations, and a lack of workers, production in various industries has decreased, and raw material supply has been disrupted. Paint and coatings are two of the most common uses for saturated polyester resins. The COVID-19 pandemic has impacted paint sales because construction activities have been halted. Berger Paints, India's second-largest paint company, reported a 6.5 percent drop in consolidated net profit to INR 1,032 million for the fourth quarter ended March 31, 2020. Automobile sales have also fallen, which has had a negative impact on automotive paint manufacturers. However, the home decorative paints segment has grown as people have been confined to their homes due to the lockdown.

In the first quarter of 2020, sales of decorative paints fell three percent from the previous year, while sales of industrial coatings fell about eight percent.

Sales are expected to fall by up to 35% in the second quarter of 2020, particularly in the industrial coatings segment, as production volumes in the key automotive and metal processing market segments fall dramatically.

Individual companies exhibit varying growth trends as a result of their segment and regional mix or acquisition activities. Companies with a high proportion of automotive OEM finishes and industrial coatings in their product portfolio have experienced more negative growth.