Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 1.40 Billion |
| Market Size (2028) | USD 1.75 Billion |
| Growth Rate (2024 - 2028) | 5.72% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Canada Adhesives Market Analysis by Mordor Intelligence
The Canada Adhesives Market size is estimated at 1.40 billion USD in 2024, and is expected to reach 1.75 billion USD by 2028, growing at a CAGR of 5.72% during the forecast period (2024-2028).
The Canadian adhesives industry is experiencing significant transformation driven by broader economic and industrial developments. The construction sector remains a cornerstone of the economy, contributing approximately 7% to the country's GDP, creating substantial demand for specialized construction adhesives solutions. As part of the 'Investing in Canada Plan,' the government has announced plans to invest nearly USD 140 billion in major infrastructure developments by 2028, which is expected to create extensive opportunities for construction adhesives applications in construction and related sectors. The aerospace industry has also emerged as a significant consumer of advanced industrial adhesives, with Canada ranking first globally in civil flight simulator manufacturing and third in civil engine production.
Technological advancements and shifting consumer preferences are reshaping the adhesives industry landscape. The rise of e-commerce has fundamentally altered packaging requirements, with online retail sales projected to reach USD 90.59 billion by 2025. This growth has spurred innovation in packaging adhesives, particularly in sustainable and efficient bonding solutions. Water-borne adhesives have gained significant traction, with approximately 48,000 tons consumed in the packaging industry alone, driven by their cost-effectiveness and superior bonding properties for various substrate materials.
The automotive sector is witnessing a paradigm shift toward electric vehicles, with sales expected to grow at a remarkable rate of 28% through 2030. This transition is driving demand for specialized industrial adhesives capable of meeting the unique requirements of electric vehicle assembly, including thermal management and lightweight construction. The industry is responding with innovations in structural adhesives that can withstand extreme conditions while contributing to vehicle weight reduction and improved performance.
Environmental sustainability and regulatory compliance have become central themes in adhesives development and application. Manufacturers are increasingly focusing on developing eco-friendly formulations with reduced volatile organic compound (VOC) emissions. The healthcare sector represents another area of significant growth, with the medical adhesives market expected to register a volume CAGR of 4.9% through 2028. This growth is driven by increasing demand for medical device assembly, wound care products, and other healthcare applications requiring specialized medical adhesives solutions that meet stringent safety and performance standards.
Canada Adhesives Market Trends and Insights
Rapid growth of the food and beverage industry and plastic recyclability advancements to boost the packaging demand
- The demand for quick and on-the-go packaged items has been increasing due to consumers' busier lifestyles, greater spending power, and related factors in the country. Due to the COVID-19 pandemic, the nationwide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including disruptions in supply chains and imports and exports trade. As a result, the country's packaging production declined by 6% in 2020 compared to the previous year, significantly affecting the market.
- The Canadian packaging industry has majorly been driven by the rapid growth of the food and beverages industry in recent years. Sales through retail food and beverage stores increased in 2021 and amounted to around USD 143.66 billion in 2021 compared to USD 142.1 billion in 2020.
- Packaging production is majorly driven by paper and paperboard production in the country, which accounted for around 38% of the packaging in 2021. Canada's wrapping paper, packaging paper, and board production capacity in 2021 was 2.45 million ton and is forecast to grow to around 2.8 million ton by 2024. However, with the advancement of plastic recyclability, the plastic production segment is likely to register the fastest CAGR of about 4.37% during the forecast period.
- The growing interest in public health, along with the emerging e-commerce activities across the nation, is likely to continue boosting the growth of the food processing industry and further drive the packaging demand over the coming years.
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Rising investments from OEMs in Electrical Vehicle production in the country is likely to fuel the automotive production
- Canada is the 11th-largest vehicle manufacturing country in the world and the second-largest in North America. The automotive sector in the country employs nearly 117,200 people. Canada's automotive manufacturing industry is highly integrated with the United States. Automotive components may cross Canadian-US-Mexican borders as many as eight times before being installed in a final assembly. Vehicles are Canada's second-most exported products, of which 93% were exported to the United States in 2020. The decline in automotive production from 2017 to 2019 was due to a demand drop in US markets because of rising interest rates and demand saturation.
- Automotive production declined by a staggering 26.3% in 2020 compared to 2019 due to operational and supply chain restrictions resulting from the COVID-19 pandemic. The ongoing semiconductor chip shortage, caused by pandemic-related production issues and a surge in demand for electronics, has restricted the growth of automotive production in the country. Due to these constraints, automotive production in Canada is expected to record a CAGR of just 1.46% during the forecast period.
- However, the prospects for electric vehicle production are bright in Canada as the country ranks sixth globally for heavy-duty EV production. With more than 700 suppliers of parts and raw materials and investments from global Original Equipment Manufacturers (OEMs) like Ford (USD 1.5 billion), GM (USD 785 million), and Stellantis (USD 1.14 billion) to establish production lines for EVs as well as for EV batteries in Canada, the automotive industry is expected to grow over the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- With strong Original Equipment Manufacturers (OEMs) and supply chains of international OEMs and Tier1 partners, the country's aerospace industry maintained one of the largest in the world
- Demand for sports footwear is increasing due to rising awareness on fitness among people
- Rapid commercial construction and infrastructure investment of around USD 140 billion by 2028 to boost the construction industry
- Easy purchase and installation of furniture and rising interior spending is increasing the woodworking and joinery demand
Segment Analysis: End User Industry
Packaging Segment in Canada Adhesives Market
The packaging segment dominates the Canadian adhesives market, commanding approximately 37% market share in 2024, driven by its extensive applications across various packaging solutions. This significant market position is attributed to the growing e-commerce sector in Canada, which is projected to reach USD 90.59 billion by 2025, creating substantial demand for packaging adhesives. The segment's strength is further reinforced by the increasing adoption of sustainable packaging solutions, with Canada producing around 3.6 million tons of packaging paper and paperboard. Hot melt adhesives are particularly prevalent in this segment, owing to their economic benefits and efficient bonding properties in plastics and paperboard packaging applications.
Footwear and Leather Segment in Canada Adhesives Market
The footwear and leather segment is emerging as the fastest-growing segment in the Canadian adhesives market during the forecast period 2024-2029. This growth is primarily driven by the expanding athletic footwear market, which is expected to reach USD 1.13 billion by 2027. The segment's rapid expansion is supported by increasing domestic footwear production and the implementation of automation and 3D printing technologies in manufacturing processes. Hot melt adhesives are widely preferred in this segment due to their quick bonding properties and suitability for highly automated manufacturing lines, while reactive adhesives are gaining popularity for their superior handling and rapid curing characteristics.
Remaining Segments in End User Industry
The Canadian adhesives market encompasses several other significant segments, including building and construction, automotive, healthcare, woodworking and joinery, and aerospace industries. The building and construction segment maintains a strong presence due to ongoing infrastructure development projects and the boom in skyscraper construction. The automotive segment benefits from Canada's position as the second-largest vehicle manufacturer in North America, while the healthcare segment is driven by the growing medical device industry. The woodworking and joinery segment is supported by Canada's robust furniture manufacturing sector, and the aerospace segment leverages the country's position as a leading civil aircraft manufacturer.
Segment Analysis: Technology
Water-borne Segment in Canadian Adhesives Market
Water-borne adhesives have emerged as the dominant technology segment in the Canadian adhesives market, commanding approximately 29% market share in 2024. These adhesives are designed as dispersions or emulsions with distributed polymer particles having spherical forms and diameters ranging from 50-300 nm. Their popularity stems from their environmental friendliness, negligible VOC content, and cost-effectiveness compared to other technologies. The segment's strength is particularly evident in woodworking and footwear industries, where these adhesives excel in bonding wood, paper, textiles, leather, and other porous substrates. Manufacturers particularly favor epoxy resin-based water-borne adhesives due to their superior strength characteristics for plastics, offering bond strength of up to 8.5 N/mm2, while maintaining worker safety at manufacturing sites.
Hot Melt Segment in Canadian Adhesives Market
The hot melt adhesives segment is demonstrating remarkable growth potential, projected to expand at approximately 7% CAGR from 2024 to 2029. This growth is primarily driven by their versatility in operating across a wide temperature range from 60 to 200 degrees Celsius, making them suitable for various industrial applications. The segment's expansion is particularly supported by the booming e-commerce industry in Canada, which is projected to reach USD 103.5 billion by 2025, driving increased demand in the packaging sector. The trend of manufacturers shifting away from solvent-borne adhesives towards hot-melt alternatives, due to their lower VOC content, is further accelerating this growth. EVA resin-based hot melt adhesives are gaining significant traction due to their cost-effectiveness, being approximately half the price of other resin-based adhesives.
Remaining Segments in Technology
The other significant technology segments in the Canadian adhesives market include reactive adhesives, UV-cured, and solvent-borne adhesives. Reactive adhesives are particularly valued in high-tech applications requiring substantial permanency and high-strength adherence, especially in the automotive and construction sectors. UV-cured adhesives, while representing a smaller market share, offer unique advantages in terms of precise curing control and environmental benefits, being 100% reactive with no volatile losses during curing. Solvent-borne adhesives, despite facing regulatory challenges due to their VOC content, maintain their relevance in specific applications where their fast drying time and high strength characteristics are essential, particularly in automotive and aerospace applications.
Segment Analysis: Resin
Polyurethane Segment in Canada Adhesives Market
Polyurethane adhesives dominate the Canadian adhesives market, holding approximately 25% market share in 2024. These adhesives are widely preferred across multiple industries due to their exceptional versatility and performance characteristics. The segment's prominence can be attributed to polyurethane adhesives' superior bonding capabilities with both porous and non-porous surfaces, including substrates like glass, ceramic, plastic, composites, metals, alloys, and wood. In the automotive sector, polyurethane adhesives are extensively used for manufacturing high-resilience foam seating, rigid foam insulation panels, B-pillars, headliners, suspension insulators, and bumpers. The construction industry particularly values these adhesives for their excellent durability and resistance to extreme temperatures, ranging from -40°C to 100°C, making them ideal for both exterior and interior applications.
Cyanoacrylate Segment in Canada Adhesives Market
The cyanoacrylate adhesives segment is experiencing the fastest growth in the Canadian market, driven by its expanding applications across healthcare, automotive, cosmetics, construction, and woodworking industries. These adhesives are gaining significant traction due to their rapid curing properties, with bonds strengthening within 10 minutes of application and achieving full solidification within 24 hours. The healthcare sector particularly values cyanoacrylate adhesives as alternatives to traditional sutures, offering superior cosmetic results and reduced recovery time for patients. Their effectiveness in drug delivery systems and applications in corneal and retinal surgeries further drives their adoption. The segment's growth is also supported by the minimal adhesive quantity required for forming strong bonds between various substrates, making them both economical and efficient for industrial applications.
Remaining Segments in Resin
The Canadian adhesives market features several other significant resin segments, including acrylic adhesives, epoxy adhesives, VAE/EVA, and silicone adhesives, each serving unique applications across various industries. Acrylic adhesives are particularly valued for their weather resistance and versatility in outdoor applications. Epoxy adhesives have established a strong presence in structural applications due to their high bond strength properties. VAE/EVA adhesives are predominantly used in packaging and construction applications, offering excellent adhesion and cost-effectiveness. Silicone adhesives have carved out a niche in applications requiring extreme temperature resistance and flexibility, particularly in aerospace and electronics industries. These segments collectively contribute to the market's diversity and ability to meet specialized bonding requirements across different sectors.
Competitive Landscape
Top Companies in Canada Adhesives Market
The Canadian adhesives market is characterized by continuous product innovation and strategic expansion initiatives by major players. Companies are focusing on developing sustainable and environmentally friendly adhesive solutions while strengthening their distribution networks across the country. Operational agility has become crucial, with manufacturers investing in R&D facilities and advanced manufacturing capabilities to meet evolving customer demands. Strategic partnerships and collaborations with raw material suppliers are becoming increasingly common to ensure supply chain resilience and develop innovative solutions. Companies are also expanding their presence through investments in production facilities and distribution centers, while simultaneously focusing on developing industry-specific specialty adhesives solutions for sectors like automotive, construction, and packaging.
Consolidated Market Led By Global Players
The Canadian adhesive industry exhibits a partially consolidated structure dominated by global chemical and specialty materials conglomerates. These multinational companies leverage their extensive R&D capabilities, broad product portfolios, and established distribution networks to maintain their market positions. The presence of local specialists is limited, with most focusing on niche applications or specific end-user industries. The market is characterized by strong brand recognition and customer loyalty, particularly in industrial bonding applications where product performance and reliability are crucial.
The market has witnessed significant merger and acquisition activities as companies seek to expand their technological capabilities and market reach. Global players are actively acquiring local companies to strengthen their presence in the Canadian market and gain access to established customer relationships. These acquisitions are particularly focused on companies with specialized adhesive technologies or strong positions in high-growth application segments. The trend of consolidation is expected to continue as companies seek to achieve economies of scale and expand their product offerings.
Innovation and Sustainability Drive Future Success
For incumbent companies to maintain and increase their market share, focusing on sustainable product development and digital transformation will be crucial. Companies need to invest in eco-friendly adhesive solutions that meet increasingly stringent environmental regulations while maintaining performance standards. Building strong relationships with key end-user industries through customized solutions and technical support services will be essential. Additionally, developing efficient supply chain management systems and expanding distribution networks will help companies better serve their customers and maintain competitive advantages.
New entrants and smaller players can gain ground by focusing on niche markets and developing specialized adhesive solutions for specific applications. Success will depend on building strong technical expertise and offering superior customer service to differentiate themselves from larger competitors. Companies must also consider potential regulatory changes, particularly regarding environmental standards and VOC emissions, which could impact product development and manufacturing processes. The risk of substitution from alternative bonding technologies remains relatively low due to the established nature of adhesive applications in key industries, but continuous innovation in both products and applications will be necessary to maintain market relevance.
Canada Adhesives Industry Leaders
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3M
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Arkema Group
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H.B. Fuller Company
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Henkel AG & Co. KGaA
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Sika AG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- April 2022: ITW Performance Polymers launched Plexus MA8105 as its newest adhesive with fast room-temperature curing, excellent mechanical properties, and a broad range of adhesion.
- February 2022: Arkema Group completed the acquisition of Ashland's Performance Adhesives business. Ashland is a world leader in high-performance adhesives in the United States.
- December 2021: Under the Nuplaviva brand, Arkema introduced a new range of disposable hygiene adhesive solutions formulated with bio-based renewable content.
Canada Adhesives Market Report Scope
Aerospace, Automotive, Building and Construction, Footwear and Leather, Healthcare, Packaging, Woodworking and Joinery are covered as segments by End User Industry. Hot Melt, Reactive, Solvent-borne, UV Cured Adhesives, Water-borne are covered as segments by Technology. Acrylic, Cyanoacrylate, Epoxy, Polyurethane, Silicone, VAE/EVA are covered as segments by Resin.
End User Industry
| Aerospace |
| Automotive |
| Building and Construction |
| Footwear and Leather |
| Healthcare |
| Packaging |
| Woodworking and Joinery |
| Other End-user Industries |
Technology
| Hot Melt |
| Reactive |
| Solvent-borne |
| UV Cured Adhesives |
| Water-borne |
Resin
| Acrylic |
| Cyanoacrylate |
| Epoxy |
| Polyurethane |
| Silicone |
| VAE/EVA |
| Other Resins |
| End User Industry | Aerospace |
| Automotive | |
| Building and Construction | |
| Footwear and Leather | |
| Healthcare | |
| Packaging | |
| Woodworking and Joinery | |
| Other End-user Industries | |
| Technology | Hot Melt |
| Reactive | |
| Solvent-borne | |
| UV Cured Adhesives | |
| Water-borne | |
| Resin | Acrylic |
| Cyanoacrylate | |
| Epoxy | |
| Polyurethane | |
| Silicone | |
| VAE/EVA | |
| Other Resins |
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Market Definition
- End-user Industry - Building & Construction, Packaging, Automotive, Aerospace, Woodworking & Joinery, Footwear & Leather, Healthcare, and Others are the end-user industries considered under the adhesives market.
- Product - All adhesive products are considered in the market studied
- Resin - Under the scope of the study, resins like Polyurethane, Epoxy, Acrylic, Cyanoacrylate, VAE/EVA, and Silicone are considered
- Technology - For the purpose of this study, Water-borne, Solvent-borne, Reactive, Hot Melt, and UV Cured adhesive technologies are taken into consideration.
| Keyword | Definition |
|---|---|
| Hot-melt Adhesive | Hot melt adhesives are generally 100% solid formulations, based on thermoplastic polymers. They are solid at room temperature and are activated upon heating above their softening point, at which stage they are liquid, and hence, can be processed. |
| Reactive Adhesive | A reactive adhesive is made up of monomers that react in the adhesive curing process and do not evaporate from the film during use. Instead, these volatile components become chemically incorporated into the adhesive. |
| Solvent-borne Adhesive | Solvent-borne adhesives are mixtures of solvents and thermoplastic, or slightly cross-linked polymers, such as polychloroprene, polyurethane, acrylic, silicone, and natural and synthetic rubbers (elastomers). |
| Water-borne Adhesive | Water-borne adhesives use water as a carrier or diluting medium to disperse a resin. They are set by allowing the water to evaporate or be absorbed by the substrate. These adhesives are compounded with water as a diluent, rather than a volatile organic solvent. |
| UV Cured Adhesive | UV curing adhesives induce curing and create a permanent bond without heating by using ultraviolet (UV) light or other radiation sources. An aggregation of monomers and oligomers is cured or polymerized by ultraviolet (UV) or visible light in a UV adhesive. Because UV is a radiating energy source, UV adhesives are often referred to as radiation curing or rad-cure adhesives. |
| Heat-resistant Adhesive | Heat-resistant Adhesives refer to those that do not break down under high temperatures. One aspect of a complicated system of circumstances is the adhesive's capacity to withstand disintegration brought on by high temperatures. As the temperature rises, adhesives may liquefy. They can withstand stresses resulting from differing coefficients of expansion and contraction, which might be an additional advantage. |
| Reshoring | Reshoring is the practice of moving commodity production and manufacturing back to the nation where the business was founded. Onshoring, inshoring, and back shoring are further terms used. Offshoring, the practice of producing items abroad to lower labor and manufacturing costs, is the opposite of this. |
| Oleochemicals | Oleochemicals are compounds produced from biological oils or fats. They resemble petrochemicals, which are substances made from petroleum. The oleochemical business is built on the hydrolysis of oils or fats. |
| Nonporous Materials | Nonporous materials are substances that do not permit the passage of liquid or air. Nonporous materials are those that are not porous, such as glass, plastic, metal, and varnished wood. Since no air can get through, less airflow is required to raise these materials, negating the requirement for high airflow. |
| EU-Vietnam Free Trade Agreement | A trade agreement and an investment protection agreement were concluded between the European Union and Vietnam on June 30, 2019. |
| VOC content | Compounds with limited solubility in water and high vapor pressure are known as Volatile Organic Compounds (VOCs). Many VOCs are human-made chemicals that are used and produced in the manufacture of paints, pharmaceuticals, and refrigerants. |
| Emulsion Polymerization | Emulsion polymerization is a method of producing polymers or connected groups of smaller chemical chains known as monomers, in a water solution. The method is often used to make water-based paints, adhesives, and varnishes, in which the water stays with the polymer and is marketed as a liquid product. |
| 2025 National Packaging Targets | In 2018, the Australian Environment Ministry set the following 2025 National Packaging Targets: 100% of the packaging must be reusable, recyclable, or compostable by 2025, 70% of plastic packaging must be recycled or composted by 2025, 50% of average recycled content must be included in packaging by 2025, and problematic and unnecessary single-use plastic packaging must be phased out by 2025. |
| Russian Government’s Import Substitution Policy | The Western sanctions suspended the distribution of several high-tech items to Russia, including those required by the raw material export sectors and the military-industrial complex. In response, the government launched an "import substitution" scheme, appointing a special commission to oversee its implementation in early 2015. |
| Paper Substrate | Paper substrates are paper sheets, reels, or boards with a base weight of up to 400 g/m2 that has not been converted, printed or otherwise altered. |
| Insulation Material | A material that inhibits or blocks heat, sound, or electrical transmission is known as Insulation Material. The variety of insulation materials includes thick fibers like fiberglass, rock and slag wool, cellulose, and natural fibers as well as stiff foam boards and sleek foils. |
| Thermal Shock | A temperature change known as thermal shock generates stress in a material. It commonly results in material breakdown and is especially prevalent in brittle materials like ceramics. When there is a quick temperature change, either from hot to cold or vice versa, this process occurs abruptly. It occurs more frequently in materials with poor heat conductivity and insufficient structural integrity. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: The quantifiable key variables (industry and extraneous) pertaining to the specific product segment and country are selected from a group of relevant variables & factors based on desk research & literature review; along with primary expert inputs. These variables are further confirmed through regression modeling (wherever required).
- Step-2: Build a Market Model: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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