Packaging Adhesives Market Set to Witness an Uptick during 2019 to 2025

Posted by Mrudula Anil Karmarkar on March 16th, 2021

The global packaging adhesives market size is anticipated to reach USD 15.82 billion by 2025, according to a new report by Grand View Research, Inc. expanding at a CAGR of 5.8% over the forecast period. The market is majorly driven by the growing demand from packaged food & beverages industry.

The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics. The report will account for Covid19 as a key market contributor.

The increasing consumer demand for packaged food products is expected to fuel the market growth. The packaged food offers extended shelf life at ambient temperatures which makes easy and convenient consumption. Flexible packaging is gaining popularity in packaged food industry and increasing use of adhesives in its manufacturing is predicted to propel the market over the forecast period.

Flexible packaging is manufactured by combining multiple polymer layers to provide mechanical strength and printability to the end-product. The multiple polymer layers are extruded into a multilayer film in a single operation, thus reducing the production time and manufacturing cost. The aforementioned benefits are likely to propel the demand for flexible packaging over the coming years, which is anticipated to have positive influence on packaging adhesives consumption.

The market in Asia Pacific is highly competitive in nature. In order to reduce manufacturing costs and to look for new design and assembly solutions, manufacturers across this region produce adhesive products with superior properties such as high tensile, high temperature resistance, and high strength bonding on a variety of substrates. Technological advancements and unique packaging designs are the key prominent factors to promote the product usage in the region.

Further key findings from the report suggest:

• Water-based technology segment is projected to register a CAGR of 5.6%, in terms of volume, over the forecast period. The growth rate is attributable to increasing use of water-based products such as gluten, PVA, and starch in flexible packaging.
• Hot melt segment is anticipated to grow at a CAGR of 5.8%, in terms of volume, during the forecast period. Its high growth is due to its superior properties such as thermal stability and fast curing over water-based and solvent-based products.
• Boxes & cases segment held the largest revenue share, accounting for 36.0% in 2018, owing to increasing demand for corrugated boxes in transportation.
• Asia Pacific was the largest regional segment in 2018, accounting for a revenue share of 39.3% of the market. The large share is owing to the rising disposable income and changing lifestyle of the consumers, which is propelling the demand for packaged food and beverages in the region.
• In August 2018, Bostik acquired a business segment of Nitta Gelatin, Inc., and formed joint venture named Bostik-Nitta. Complementing this acquisition, a new adhesives plant will be constructed in Japan, which will focus on non-woven markets.

The key players of the packaging adhesives market such as Henkel AG & Co., Hitachi Chemical Company Ltd, 3M, and Bostik, are engaged in capacity expansion and mergers & acquisitions. For instance, in July 2017, Henkel AG & Co acquired Darex Packaging Technologies from GCP Applied Technologies. The move was aimed at strengthening the former’s adhesive technologies business and the portfolio.

The packaged food & beverage products primarily include convenient ready-to-eat food products, cake mixes, frozen meals, and snacks. The growing demand for these products is projected to propel manufacturers to increase their production capacity, which is likely to fuel the market growth over the forecast period.

Pharmaceutical industry is another major end-user of the market. Technological innovations, increasing consumer concerns about health, and rising disposable incomes have resulted in the rapid growth of the global pharmaceutical industry over the past few decades and this trend is anticipated to continue over the projected period. Packaging plays an important role in the pharmaceutical industry, as, it maintains the sterility of products and offers protection to medicines against contaminants, bacteria, and microorganisms. Growing demand for packaging in the pharmaceutical industry is likely to boost the product consumption over the forecast period.

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Global market is fragmented with many players including Hitachi Chemical Company Ltd, 3M Company, Dow ,H. B. Fuller, Henkel AG & Co., Ashland Inc., TOYOCHEM CO., LTD., Dymax Corporation, and Huntsman Corporation. Major players in the market are characterized by strategies such as mergers & acquisitions, capacity expansion, joint ventures, and long term contracts with the end-users to strengthen their market position.

For instance, in October 2017, H.B. Fuller Company acquired Royal Adhesives and Sealants for USD 1,622.7 million. The company produces various adhesives including water-based adhesives that are used in flexible packaging. The acquisition was aimed to expand the company’s reach in North America, Europe, and China.

Grand View Research has segmented the global packaging adhesives market report on the basis of product, application:

Technology Outlook (Revenue, USD Million; Volume, Kilotons; 2014 - 2025)

• Water-based
• Solvent-based
• Hot melt
• Others

Application Outlook (Revenue, USD Million; Volume, Kilotons; 2014 - 2025)

• Flexible packaging
• Folding cartons
• Boxes & cases
• Labeling
• Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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