Potential Demand Promotes Development of PVP

National Functional Polymer Industry Committee

The major water-soluble polymers produced in China include polyacrylamide, polyvinyl alcohol, polyacrylic acid, polyvinyl pyrrolidone, polyethylene glycol, xanthan gum and cellulose ether. Among these, polyvinyl pyrrolidone (PVP) offers excellent water-solubility, filming behavior, moisture retention and biological compatibility, so it is already used extensively in water treatment, oil recovery, papermaking, ore dressing and environmental protection, as well as in the manufacture/processing of medicines, cosmetics, foods, textiles and construction materials; and it still has huge potential for market expansion.
In the design of medicines, PVP is an indispensable sustained/controlled-release agent. Because of its unique physiochemical properties – particularly the fact that it is physiologically inert – research into PVP-based sustained-release medical agents is beginning to unfold. Among nano-scale products, PVP is used to make water-borne nano-balls or nano-capsules for incorporation in functional coatings, color ink-jet printing and electronic pastes, as well as applications in medicine, biotechnology, aeronautics and astronautics. With frequent new developments, the unique properties of PVP are becoming more widely recognized, and its application in medical and other nanometric products is clearly prospective market.
Motivated by the rapid development of PVP, and core technologies have been invented and patented in China. Domestic demand for PVP keeps growing. Twelve thousand tons was consumed in China in 2010. Today’s prominent consumption is all in manufacturing sectors: medicine (29.54%), antiseptics (10.03%), cosmetics (34.45%), beer (7.02%), adhesives (7.25%) and films (4.24%).
PVP products made in China today are generally low-tech, low value-added, energy intensive, so export tends to consist of low-end products, and import tends to consist of high-end products. Around 90% of the PVP produced in China is exported to under-developed countries or used in low-end sectors, while 90% of the PVP needed in the domestic market must be imported. Due to many factors such as branding and quality, the high-end PVP market in China is nearly monopolized by BASF and ISP.
In 2008, global consumption of PVP was around 50 kt. Europe and America were major consuming regions, accounting for 71% of the world total. Owing to the rapid economic development in Asia in the last 12 years or so, Asian consumption of PVP has increased considerably and now accounts for 22.3% of the world total. Motivated by the bright market prospects of PVP, many enterprises in China have vigorously expanded their PVP production capacities. The drastic increase of PVP demand in China has promoted construction of a number of PVP plants. The growth of output and consumption in China is much faster than in the international market.
It is expected that the global market value of polymers will exceed US$30 billion in 2016, and the market prospects are extremely favorable.
(a) Development of new applications will promote consumption
With improving medical care and an increasing incidence of diseases of the elderly, the global market for medicines is expanding constantly. Manufacturers of medicines with water-soluble PVP will enjoy huge demand and handsome profits. R&D and applications of water-soluble polymers in medicines – especially in special applications such as sustained/controlled-release technologies and targeting technologies – will boost technical renovation and technical innovation for traditional medicines while spurring development of new high-tech medicines.
Many new developments in fuel cells, 3D printing, shale gas recovery and sustained/controlled-release fertilizers are closely related to water-soluble polymers. The development of such emerging sectors, water-soluble polymers will surely present greater opportunities and reshape market shares.
(b) Growth of demand for household chemicals around the world is boosting PVP consumption
PVP is extensively used in household chemicals such as high-grade cosmetics and hair lotions. Compared with traditional organic solvents such as benzene and formaldehyde, PVP offers remarkable advantages, including excellent physiological compatibility, nontoxicity and freedom from irritation. It will therefore surely replace traditional organic solvents, bringing about higher consumption.