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Forecast Period
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2025-2029
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|
Market Size (2023)
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USD 1.78 Billion
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Market Size (2029)
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USD 2.33 Billion
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CAGR (2024-2029)
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4.66%
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Fastest Growing Segment
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Paints and Coatings
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Largest Market
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North America
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Market Overview
Global Vinyl Acetate-Ethylene (VAE) Market was
valued at USD 1.78 Billion in 2023 and is expected to reach USD 2.33 Billion by
2029 with a CAGR of 4.66% during the forecast period.
The Global Vinyl Acetate-Ethylene (VAE) Market is
witnessing robust growth driven by its extensive application across various
industries, particularly in adhesives, paints, coatings, textiles, and
construction. VAE copolymers are valued for their excellent adhesive
properties, flexibility, and resistance to water, making them a preferred
choice in water-based adhesives, low-emission coatings, and nonwoven textiles.
The market is further propelled by increasing construction activities globally,
especially in developing regions, where VAE-based materials are used for
improving the durability and performance of construction products like cement
modifiers, mortars, and sealants. For instance, In September 2024, the U.S.
Commerce Department reported a significant rebound in U.S. single-family
homebuilding in August. However, a modest increase in building permits
indicated that this momentum may not be sustained due to the growing supply of
new homes entering the market. According to the Census Bureau, single-family
housing starts, which represent the majority of homebuilding, rose by 15.8%,
reaching a seasonally adjusted annual rate of 992,000 units. Additionally,
single-family starts were up 5.2% compared to the same month last year. The
rising demand for environmentally friendly and sustainable solutions is
encouraging the shift towards VAE-based formulations, as they are free from
harmful solvents and exhibit low levels of volatile organic compounds (VOCs).
The market is also benefiting from the growing
adoption of VAE emulsions in the packaging industry, particularly in flexible
packaging and lamination, driven by the need for sustainable packaging
solutions. The growing emphasis on green building practices and eco-friendly
construction materials is providing a significant boost to the VAE market. Advancements in polymer technology are enabling the development
of enhanced VAE copolymers with improved performance characteristics, which is
further supporting market expansion. However, fluctuations in raw material
prices, particularly vinyl acetate monomer (VAM), and the availability of
alternatives like ethylene-vinyl acetate (EVA) and polyvinyl acetate (PVA) pose
challenges to market growth. Despite these challenges, the market is expected
to maintain a positive outlook, driven by innovation and the rising demand for
sustainable and high-performance adhesives and coatings across the globe.
Key Market Drivers
Growing Demand from the Construction Industry
The Global Vinyl Acetate-Ethylene (VAE) Market is
experiencing robust growth, primarily fueled by rising demand from the
construction industry. VAE copolymers are highly sought after for their
exceptional properties, including superior adhesion, flexibility, and water
resistance, which make them ideal for various construction applications. These
copolymers are integral components in the formulation of adhesives, sealants,
and coatings, playing a crucial role in enhancing the durability and
performance of construction materials. The rapid pace of urbanization,
particularly in emerging economies such as China, India, and Southeast Asian
nations, is driving the demand for new infrastructure, residential complexes,
and commercial buildings. This urban growth has significantly increased the
consumption of VAE-based products, which are valued for their ability to
improve the structural integrity and longevity of construction projects.
Governments worldwide are channeling
substantial investments into infrastructure projects, with a focus on roads,
bridges, airports, and smart cities, further bolstering the need for advanced
construction materials. VAE copolymers are increasingly favored in these
projects due to their enhanced bonding capabilities, improved crack resistance,
and greater flexibility when used as cement modifiers or in waterproofing
membranes. These properties help in reducing maintenance costs and extending the
lifespan of structures, making them an attractive option for large-scale
construction initiatives.
The shift towards sustainable
construction practices is accelerating the adoption of VAE copolymers. There is
a growing emphasis on eco-friendly building solutions, driven by stricter
environmental regulations and the pursuit of green building certifications.
VAE-based products are known for their low volatile organic compound (VOC)
emissions, aligning with global sustainability goals. This has led to increased
use of VAE in formulating green adhesives and coatings, making them a preferred
choice for developers and contractors who prioritize environmentally friendly
construction. As the construction industry continues to evolve, the demand for
versatile and sustainable VAE copolymers is expected to remain strong,
positioning them as a key material in the global market.
Rising Adoption of Eco-Friendly Adhesives and
Sealants
The rising adoption of eco-friendly adhesives and
sealants is a significant driver for the Global Vinyl Acetate-Ethylene (VAE)
Market, particularly as industries pivot towards sustainability to meet both
consumer demands and regulatory requirements. VAE copolymers stand out as
water-based alternatives to traditional solvent-based adhesives, which are
known to emit harmful volatile organic compounds (VOCs). This shift is largely
driven by increasing consumer awareness regarding environmental impact and the
tightening of regulations by agencies like the Environmental Protection Agency
(EPA) and the European Union (EU). These bodies have implemented stringent
guidelines to curb VOC emissions, prompting industries to seek greener adhesive
solutions. VAE copolymers, with their low toxicity and minimal environmental
footprint, are becoming the preferred choice across various sectors.
One of the primary applications driving VAE
adoption is in packaging, where the industry is increasingly focused on
sustainability. As companies seek to enhance the recyclability of their
packaging materials, VAE-based adhesives are gaining traction due to their
ability to improve bonding without compromising environmental standards. This
shift is particularly evident in the food packaging sector, where the demand
for non-toxic, biodegradable, and recyclable adhesives is surging. VAE
copolymers not only comply with stringent food safety and environmental
regulations but also offer superior bonding strength, ensuring the integrity of
packaged goods.
Beyond packaging, VAE adhesives are being widely
used in woodworking, paper lamination, and other industries that prioritize
sustainable practices. The woodworking sector, for instance, benefits from
VAE’s strong adhesive properties that do not release harmful fumes, thereby
creating safer working environments. Similarly, in paper lamination, VAE
copolymers support the production of eco-friendly products by facilitating
easier recycling processes. The global push towards achieving
sustainability targets and green certifications is accelerating the shift to
eco-friendly VAE adhesives. As more companies adopt these green solutions to
align with corporate social responsibility (CSR) goals and consumer
expectations for sustainable products, the market for VAE copolymers is set to
expand further. This growing emphasis on sustainability not only strengthens
the market for VAE-based adhesives and sealants but also highlights the
critical role these materials play in reducing the environmental impact across
various industries.
Expansion of the Paints and Coatings Industry
The Global Vinyl Acetate-Ethylene (VAE) Market is
witnessing significant growth, largely driven by the rapid expansion of the
paints and coatings industry. VAE emulsions are becoming a preferred choice in
the formulation of both interior and exterior paints, owing to their excellent
film-forming capabilities, water resistance, and low odor profile. These
attributes make VAE-based paints ideal for enhancing the aesthetic and
protective qualities of surfaces, catering to the rising demand for durable,
high-performance coatings. The ongoing construction boom, especially in
fast-growing economies, coupled with increasing renovation and refurbishment
activities in both residential and commercial spaces, is further amplifying the
need for high-quality paints and coatings. One of the key factors driving the
adoption of VAE emulsions in the paints industry is their superior binding
properties. VAE-based paints offer enhanced flexibility and resistance to
cracking, which are critical for maintaining the longevity and visual appeal of
painted surfaces. These properties are particularly beneficial in regions with
extreme weather conditions, where paint durability is crucial. VAE emulsions are valued for their ability to deliver a smooth finish and
uniform coverage, making them a preferred option among paint manufacturers
aiming to meet consumer expectations for premium quality.
The shift towards sustainable and eco-friendly
paints is also propelling the demand for VAE emulsions. With growing awareness
of the environmental impact of traditional solvent-based paints, there is a
rising preference for low-VOC and water-based formulations that minimize indoor
air pollution. VAE emulsions are well-suited to meet these requirements, as
they align with stringent environmental regulations and support healthier
indoor environments. This trend is gaining traction, particularly in markets
with strict regulatory frameworks, such as North America and Europe, where
there is a strong emphasis on reducing VOC emissions.
The increasing consumer inclination
towards home improvement projects and the popularity of decorative paints are
boosting the demand for innovative and sustainable paint solutions. As
manufacturers focus on developing paints that combine performance with
eco-friendliness, VAE emulsions are set to gain prominence. These emulsions
strike a balance between delivering high-performance characteristics and
adhering to sustainability standards, positioning them as a critical component
in the evolving paints and coatings market. This trend is expected to continue,
driving steady growth in the VAE Market as the demand for sustainable
construction and home improvement solutions rises globally.
 Market 1.jpg)
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Key Market Challenges
Raw Material Cost Fluctuations
One of the significant challenges faced by the
Global Vinyl Acetate-Ethylene (VAE) market is the volatility in the cost of raw
materials used in the production of VAE copolymers. VAE is produced by
polymerizing vinyl acetate with ethylene, both of which are derived from
petroleum-based feedstocks. The prices of these raw materials are highly
susceptible to fluctuations in crude oil prices, which are influenced by
factors such as geopolitical instability, supply chain disruptions, and market
demand for petroleum products. These price fluctuations can cause significant
cost pressure on manufacturers of VAE, impacting their profit margins and
pricing strategies.
When raw material prices rise unexpectedly, VAE
manufacturers may find it difficult to absorb the increased costs, which could
result in higher prices for end consumers. This can lead to reduced demand,
especially in price-sensitive markets or industries where cost-efficiency is
critical. Conversely, if raw material prices decrease, the market may see
overcapacity or increased competition, which can also erode profit margins. Companies that lack a diversified supplier base or those with limited
access to raw material procurement may be more vulnerable to these price
swings. Manufacturers often pass on the cost increases to consumers, which
could harm their competitiveness, particularly in global markets where prices
are a key differentiator. Manufacturers may need to engage in
complex hedging strategies or long-term contracts to mitigate the risk of price
volatility, which introduces a layer of complexity and financial uncertainty in
business operations. The challenge lies in maintaining a balance between
ensuring supply chain stability and managing raw material costs while remaining
competitive in an increasingly globalized market.
Intense Competition from Alternative Materials
The Global Vinyl Acetate-Ethylene (VAE) market is
facing growing competition from alternative materials, particularly those that
cater to the same industries, such as adhesives, coatings, and sealants. In
recent years, bio-based polymers and other environmentally friendly materials
have gained popularity due to increasing consumer and regulatory demand for
sustainable solutions. These alternatives are often positioned as more
eco-friendly and biodegradable, which appeals to industries striving to meet green
building certifications, sustainability goals, and eco-conscious consumer
preferences. For example, bio-based adhesives, often made from renewable
sources like plant-based polymers, offer similar performance to VAE-based
adhesives while reducing reliance on petroleum-derived feedstocks. These
alternatives often claim to have a lower environmental impact, such as reduced
carbon footprint and lower toxicity, making them highly attractive to
environmentally conscious industries, particularly in the construction and
packaging sectors. As a result, VAE producers may face difficulty competing
with these alternative materials, particularly if they are unable to innovate
fast enough or if raw material prices for VAE increase.
Traditional synthetic adhesives that
have been in use for decades are also competing in the market. Although they
may not offer the same environmental benefits as bio-based options, they are
often more established, have a proven track record, and may be offered at a
lower price point. As a result, VAE manufacturers must constantly innovate to
enhance their product offerings and maintain their market share. This includes
developing new formulations that offer better performance, lower environmental
impact, and reduced production costs. Failing to do so may result in reduced
market share as industries increasingly shift toward more sustainable
alternatives.
Key Market Trends
Increasing Demand in the Textile Industry
The textile industry is rapidly emerging as a
significant growth driver for the Global Vinyl Acetate-Ethylene (VAE) Market,
fueled by the increasing demand for high-performance textile finishes. For
instance, As reported by the National Bureau of Statistics of China, the
country's textile output reached 12.4 billion meters in the first four months
of 2022, an increase from 11.8 billion meters during the same period in the
previous year. VAE copolymers are gaining traction in various textile
applications, particularly in nonwoven fabrics, due to their excellent
properties such as softness, elasticity, and durability. These attributes make
VAE copolymers highly suitable for enhancing the performance of textiles used
in both consumer and industrial applications. The surge in demand for hygiene
products, including disposable medical supplies, baby diapers, and feminine
hygiene products, is a key factor driving the use of VAE in nonwoven textiles.
The superior bonding capabilities of VAE ensure strong fabric integrity and
durability, which are essential for these hygiene products, where reliability
and comfort are critical.
In addition to hygiene applications, the fashion
industry’s growing emphasis on sustainability and eco-friendly materials is
boosting the adoption of VAE-based textile finishes. These copolymers are free
from harmful chemicals, aligning with the industry's shift towards sustainable
and non-toxic production processes. As consumers become increasingly conscious
of the environmental impact of their purchases, there is a rising preference
for sustainable fashion and eco-friendly home textiles. VAE copolymers, known
for their ability to provide high-quality fabric finishes without compromising
environmental standards, are becoming a preferred choice for manufacturers
looking to meet these evolving consumer preferences.
The trend towards sustainable production
methods is also influencing the textile industry’s adoption of VAE. This
includes the increased use of nonwoven fabrics in automotive interiors and
geotextiles, where VAE-based solutions provide enhanced durability,
flexibility, and resistance to wear and tear. The automotive sector, in
particular, is leveraging VAE copolymers to produce lightweight, durable
interior components that contribute to fuel efficiency and sustainability.The
expanding applications of VAE in the textile industry are expected to
contribute significantly to the market's growth. As manufacturers explore
innovative uses of VAE for developing eco-friendly and high-performance textile
products, the demand for VAE copolymers is set to rise. This growth is further
supported by regulatory pressures and consumer demand for sustainable
materials, which are pushing textile producers to adopt greener alternatives.
Consequently, the Global VAE Market is poised for robust expansion, driven by its
increasing penetration in the textile segment and its alignment with the global
shift towards sustainability.
Growing Popularity of Flexible Packaging
The flexible packaging industry is experiencing
robust growth, significantly driving the demand for Vinyl Acetate-Ethylene
(VAE) emulsions. VAE copolymers play a critical role in the packaging sector,
particularly in the production of laminating adhesives for flexible packaging
materials used across food, beverages, and consumer goods industries. These
emulsions are highly valued for their excellent adhesive properties,
flexibility, and environmental benefits, making them ideal for applications
where strong bonding and sustainability are essential. As the focus on
sustainable packaging intensifies, VAE-based adhesives are becoming
increasingly popular due to their low volatile organic compound (VOC) emissions
and enhanced recyclability, aligning with the industry's push towards greener
solutions.
The surge in e-commerce and online food delivery
services is a key factor contributing to the rising demand for flexible
packaging. These services rely heavily on durable, high-quality packaging to
ensure product integrity, extend shelf life, and provide safe delivery to
consumers. VAE-based adhesives are particularly suited for these applications
as they offer superior bonding strength and moisture resistance, essential for
preserving the quality of packaged goods during transportation and storage. This
trend is further amplified by the shift towards convenience and ready-to-eat
foods, where flexible packaging solutions are preferred for their versatility
and lightweight characteristics.
The growing emphasis on reducing the environmental
footprint of packaging materials has led manufacturers to explore alternatives
that promote sustainability. VAE copolymers, known for their low environmental
impact, are increasingly being used to develop lightweight packaging solutions
that not only reduce material usage but also minimize transportation costs due
to their reduced weight. This aligns with the broader industry trends of
adopting eco-friendly materials that contribute to cost savings and
sustainability goals. In addition, the push for sustainable packaging is driven
by regulatory pressures and consumer demand for eco-conscious products. VAE
emulsions support these objectives by enabling the production of flexible
packaging that is both high-performance and environmentally friendly. They
facilitate the creation of recyclable and biodegradable packaging options,
which are becoming critical as brands aim to achieve their sustainability
targets and reduce waste. As a result, the growing popularity of flexible
packaging, combined with the industry's focus on sustainability and cost
efficiency, is expected to drive further demand for VAE emulsions. The ability
of VAE-based adhesives to offer a balance between performance and environmental
benefits positions them as a preferred choice for manufacturers looking to
innovate in the flexible packaging space.
Segmental Insights
Application Insights
Based on the Application, the Paints and Coatings
segment is currently dominating the Global VAE Market. This dominance is
primarily driven by the increasing demand for high-performance, eco-friendly
coatings across various industries, including construction, automotive, and
consumer goods. VAE emulsions are widely used in paints and coatings due to
their superior properties, such as excellent adhesion, flexibility, weather
resistance, and low VOC emissions. These attributes make VAE-based coatings
ideal for both interior and exterior applications, where durability and
environmental safety are critical. The growing focus on sustainability and
stricter environmental regulations, such as those governing VOC emissions in
the construction and automotive sectors, has also significantly contributed to
the rising preference for VAE-based paints and coatings. VAE
emulsions offer excellent film-forming properties, which enhance the
performance and longevity of paints and coatings used in a variety of environments.
The expansion of the construction industry,
particularly in emerging economies, has further accelerated the demand for VAE-based
paints and coatings. The need for eco-friendly and durable solutions in both
residential and commercial buildings has made VAE a go-to choice for
manufacturers of architectural coatings. The automotive industry’s
increasing reliance on lightweight, durable coatings for vehicle exteriors is
also contributing to the growth of this segment.
Sales Channel Insights
Based on the Sales Channel segment, the Direct
Sales Channel is currently dominating the Global Vinyl Acetate-Ethylene (VAE)
Market. This dominance is primarily due to the need for manufacturers and
suppliers to establish strong relationships with end-users, ensuring that the
products meet specific technical and quality requirements. Direct sales allow
companies to offer personalized services, customized solutions, and detailed
product information, which is particularly important for industries like
construction, automotive, and paints and coatings, where product performance
and specifications are critical. Through direct sales channels, VAE
manufacturers can provide tailored support to customers, ensuring that the
copolymers meet the necessary standards for adhesion, flexibility, and
durability required for various applications. This close interaction helps in
building customer loyalty and trust, fostering long-term business
relationships. Direct sales enable manufacturers to have better
control over pricing, inventory management, and distribution, which can result
in more efficient supply chains.
Another advantage of direct sales is that it allows
for quicker feedback and a more streamlined process for product development.
Manufacturers can gather direct insights from customers regarding their needs,
enabling them to innovate and improve their offerings. This is particularly
beneficial in sectors such as automotive and construction, where trends are
rapidly evolving, and customers require timely solutions to stay competitive.
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Regional Insights
North America has dominated the Global Vinyl
Acetate-Ethylene (VAE) Market, driven by several factors including the strong
presence of key end-user industries, technological advancements, and stringent
environmental regulations. The region’s robust demand for VAE-based products is
primarily fueled by its widespread use in paints and coatings, adhesives, and
construction additives, which are essential for various sectors such as
construction, automotive, and consumer goods. In the paints and coatings
sector, North America benefits from a growing focus on sustainable construction
and renovation projects, especially with the rise of green building
certifications like LEED. VAE-based coatings are highly valued for their
low-VOC emissions, durability, and water resistance, aligning with the region's
stringent environmental standards. The push towards eco-friendly construction
practices further drives the demand for VAE in both residential and commercial
applications.
The automotive industry in North
America significantly contributes to the demand for VAE, especially in coatings
and adhesives for vehicle manufacturing. With a growing emphasis on lightweight
materials for improved fuel efficiency and the rise of electric vehicles (EVs),
VAE copolymers are increasingly used for bonding lightweight composites and
plastics in automotive manufacturing. The textile and adhesives industries also
play a key role in driving market growth. The region’s increasing preference
for sustainable, eco-friendly adhesives in packaging and textile applications,
such as nonwoven fabrics, supports the rising demand for VAE.
Recent Developments
- In March 2024, Asian Paints Polymers, a fully owned
subsidiary of Asian Paints, launched an advanced manufacturing facility in
Dahej, Gujarat, focused on producing Vinyl Acetate-Ethylene (VAE) emulsion and
Vinyl Acetate Monomer (VAM). The estimated investment for the project was Rs
2,100 crore. To support this initiative, Asian Paints Polymers entered into
strategic agreements with Gujarat Chemical Port (GCPL) for the establishment of
an ethylene storage and handling facility in Dahej, with ethylene serving as a
key raw material in the production of both VAM and VAE.
- In April 2024, Celanese Corporation, a leading
global specialty materials and chemicals company, announced several strategic
initiatives aimed at strengthening the competitive cost position,
sustainability, and operational flexibility of its Acetyl Chain (AC) business
to meet future demand growth. Key milestones include the March 2024 startup of
a new 1.3 million ton acetic acid expansion at its Clear Lake, Texas facility,
which is positioned as the lowest-cost and lowest-carbon footprint acetic acid
plant globally. This achievement complements the recently announced
ISCC-certified carbon capture and utilization (CCU) project, which has
increased the capacity of the Fairway Methanol joint venture with Mitsui &
Co., Ltd. by 130 kt, while capturing 180 kt of CO2 industrial emissions. The
resulting low-carbon methanol is expected to provide customers with ECO-CC AC
and Engineered Materials downstream products, offering sustainable solutions
for a wide range of consumer applications.
- In May 2023, WACKER completed the expansion of its
capacity for vinyl-acetate-ethylene (VAE) copolymer dispersions and VAE
dispersible polymer powders at its facility in Nanjing, China. The expansion
included the installation of a new reactor for dispersions and a new spray
dryer for dispersible polymer powders. The VAE dispersions project was designed
around an advanced dispersion-polymerization process and a safety control
system that meets high industry standards, positioning the process at the forefront
of the field. This capacity expansion more than doubled WACKER's production
capability in Nanjing, allowing the company to meet the increasing demand for
its binders, particularly from China’s rapidly growing construction sector.
Key Market Players
- Celanese Corporation
- Wacker Chemie AG
- Shaanxi Xutai Technology Co., Ltd.
- Dairen Chemical Corporation
- Hexion Inc.
- Suman Chemical Industries
- Arkema Group
- Cheng Lung Chemical Co., Ltd
- China Petrochemical Corporation
- Henan GP Chemicals Co.,Ltd
|
By Application
|
By Sales Channel
|
By Region
|
- Paints and Coatings
- Adhesives
- Construction Additives
- Textiles
- Others
|
- Direct
- Indirect Sales Channel
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Vinyl Acetate-Ethylene
(VAE) Market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
- Vinyl Acetate-Ethylene (VAE)
Market, By
Application:
o Paints and Coatings
o Adhesives
o Construction Additives
o Textiles
o Others
- Vinyl Acetate-Ethylene (VAE)
Market, By
Sales Channel:
o Direct
o Indirect Sales Channel
- Vinyl Acetate-Ethylene (VAE)
Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Egypt
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Vinyl Acetate-Ethylene (VAE) Market.
Available Customizations:
Global Vinyl Acetate-Ethylene (VAE) Market report
with the given market data, TechSci Research offers customizations according to
a company's specific needs. The following customization options are available
for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Vinyl Acetate-Ethylene (VAE) Market is an
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