By Product Type
The global adhesives market is segmented by product type into acrylic, polyurethane, vinyl, epoxy, styrene, and others. Amongst these, the acrylic segment held a significant market share of 18.3% in the global adhesives market, valued at USD 8,663.5 million in 2019. A wide array of acrylic-based polymers and copolymers are used as a resin material for different adhesives owing to their durability, flexibility, and ability to be used in various applications. Polyurethane segment is among the fastest growing product segments and is expected to grow at a rate of 4.8% during the forecast period. These adhesives are suitable for low and high temperatures and show resistance to chemicals, water, and humidity.CLICK TO DOWNLOAD SAMPLE REPORT
By Formulation Technology
The global adhesives market is segmented by formulation technology into solvent-based, water-based, radiation cured (UV/EB), and hot melt. Amongst these, hot melt segment is the fastest growing segment and is expected to touch USD 12,375.30 million by the end of 2020. It is estimated to grow at a rate of 5.4% during the forecast period on the back of its longer shelf life, ability to be disposed of without any special precautions, and reduced VOC emissions. Water-based segment forms the most significant technological segment valued at USD 18,826.10 million in the year 2019 owing to its non-hazardous and eco-friendly nature.
By End Use Application
The global adhesives market is segmented by end use application into packaging, construction, textile, footwear, furniture, healthcare, and others. Amongst these, packaging is the largest end-use segment in the global adhesives market, valued at USD 15,671.8 million in the year 2019. Adhesives are used in the packaging of various materials ranging from the lamination of printed sheets and construction of corrugated boxes to packaging materials used for different types of consumer products. Also, a diverse range of adhesives is used for flexible as well as rigid packaging applications. Healthcare is the fastest growing end-use segment in the global adhesives market, which is expected to grow at a CAGR of 4.9% during the forecast period. In the past few years, the application of different adhesives in the medical sector is continuously increasing on account of significant benefits offered by these adhesives over the mechanical fastening systems.
The adhesives market in Asia Pacific region accounted for the largest market share in terms of both the value and volume in the global adhesives market in 2019 and is expected to hold this position throughout the forecast period owing to the region’s ever improving macroeconomic factors including population, GDP and per capita income among others, coupled with the increasing sales of automobiles, packed foods, textiles, footwear, and others where adhesives are used massively. The North America adhesives market is significantly growing on account of rising demand for adhesives in construction projects. In tandem with the same, adhesives' usage has been increasing rapidly in applications such as automotive, packaging, aerospace, and others. This has further raised the demand for adhesives in the region.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Rapidly Increasing Demand for Adhesives in Various End-Use Sectors
Rising demand for the different adhesives used in a diverse range of end-use industries is a key factor anticipated to propel the market growth during the forecast period. Adhesives are used in the packaging of various goods and materials and thus facilitate a reliable packaging process. Corrugated cardboard boxes, clear folding boxes, sacks & bags, and cartons are among the few adhesives' packaging applications. As per the International Life Sciences Institute statistics, almost 80% of packaged food contains some form of adhesive. Adhesives composed of polyurethane and acrylic resin are widely used in food packaging applications because of their high flexibility and bonding strength. Furthermore, adhesives based on natural polymers such as casein, starch, and dextrin are also becoming increasingly popular. Furthermore, adhesives find applications in the bonding of wooden laths, bonding of facade elements, flooring underlayment, plaster or insulation boards, and other crucial construction components, which provide structural reinforcement to the buildings.
Growing Material Based and Technological Advancements
The application of adhesives for structural, semi-structural, and non-structural applications has increased significantly over the past few years owing to the advantage which adhesives offer over the conventional assembly processes. The increasing intricacy of modern assembly structures in tandem with the numerous materials used for joining applications has led to the development of advanced structural adhesives. Additionally, continuous research and development in the field of product chemistry has also led to the increased adoption of innovative adhesive materials which is anticipated to drive the growth of the global adhesives market.
High Cost of Raw Materials and Stringent Environmental Regulations
Strict environmental regulations owing to the presence of harmful chemicals and VOC emissions from the adhesives are among the critical limiting factors expected to restrain the market growth throughout the forecast period. Also, several raw materials used in the production of adhesives are sourced from crude oil and its derivatives. Thus, price volatility among the raw materials is another crucial factor anticipated to hamper the market growth in terms of raw material procurement.
Some of the prominent industry leaders in the global adhesives market are BASF SE, Henkel AG & Co.KGaA, The Dow Chemical Company, Beardow Adams, Ashland Global Holdings Inc., Avery Dennison Corporation, Arkema Group, Eastman Chemical Company, H.B. Fuller Company and Nanpao Resins Chemical Group.
June 2019: BASF SE announced that it has built a second production facility in Germany for doubling its manufacturing capacity for UV acrylic hotmelts. From this, the company has strengthened its position among the leading solution provider for sophisticated applications in the adhesives sector.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Rapidly Increasing demand for adhesives in various end-use sectors and growing technological advancements in material formulation are some of the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of 4.6% over the forecast period, i.e. 2020-2028.
Ans: The major players in the market are BASF SE, Henkel AG & Co. KGaA, H.B. Fuller Company, Bostik, Sika AG, RPM International Inc., Royal Adhesives, Huntsman International LLC, Illinois Tool Works Inc., 3M, and others.
Ans: The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The adhesives market is majorly segmented by product type, formulation technology, end-use application and by region.
Ans: Stringent environmental regulations and high cost of raw materials are estimated to act as barriers to the growth of the market.