|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The packaging adhesives market was valued at USD 16,560.21 million in 2021, and it is projected to register a CAGR of 5.63% during the forecast period (2022-2027).
- The factors driving the growth of the market studied are the growing demand from the food and beverage industry and increasing awareness about food safety and avoiding risks of contamination.
- On the flip side, the impact of regulations on various raw materials to be used for manufacturing adhesives may hinder the growth of the market studied.
- However, the rapid growth in e-commerce will further provide opportunities for the market to grow.
- Asia-Pacific accounted for the highest share of the market, and it is likely to continue dominating the market during the forecast period.
Scope of the Report
Packaging adhesives are mainly used for advanced bonding to meet demanding applications in a wide variety of end-use market products such as boxes and cartons. They can be of different types, such as water-based, which are developed using a combination of water, polymers, and additives. The packaging adhesives market is segmented on the basis of technology, end-user industry, and geography. By technology, the market is segmented into water-based, solvent-based, and hot-melt. By application, the market is segmented into flexible packaging, folding boxes and cartons, sealing, labels and tapes, and other applications (corrugated packaging, specialty packaging). The report also covers the market size and forecasts for the packaging adhesive market in 15 countries across the major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
|Folding Boxes and Cartons|
|Labels and Tapes|
Key Market Trends
Flexible Packaging Application to Witness the Highest Growth Rate
- Flexible packaging is growing at an impressive rate, driven by consumer preferences shifting toward new attractive packages, ease of use, sustainability, and conscientious environmental ideals.
- Laminating adhesives for flexible packaging are available in a variety of technologies, viscosities, and solids concentrations. There are four basic categories of laminating adhesives that are commonly used. These are waterborne, solvent-based, reactive 100% solid (solventless) liquid, and hot melt.
- Solvent-based adhesives used in flexible packaging are generally two-component polyurethane laminating adhesives. These are designed for use in the dry lamination process.
- Additionally, flexible packaging is also the biggest application type for VAE adhesives. Another large category is laminating applications due to their flexibility, moisture resistance, and superior substrate adhesion.
- With the growing population in countries such as the United States, China, and India, the requirement for food is increasing, thus resulting in increased demand for flexible packaging worldwide.
- According to the Flexible Packaging Association (FPA), the total US flexible packaging industry registered more than USD 35.6 billion in annual sales by the end of 2020. The flexible packaging industry includes packaging for retail and institutional food and non-food, medical and pharmaceutical, industrial materials, and retail shopping bags, among others. The US food industry is the largest segment for flexible packaging.
- Furthermore, packaging adhesives are also used in lidding films, which are a type of flexible packaging film commonly made by using foils, paper, polyester, polyethylene, and others generally used to seal paperboard pints, plastic containers, and trays for food items, including dairy products such as cottage cheese, sour cream, and others.
- According to Statista, the food industry worldwide is estimated to generate a revenue of USD 8.8 trillion in 2022. The market is expected to register a CAGR of 4.79% during 2022-2027 annually.
- Hence, owing to the above-mentioned factors, waterborne adhesive technology is expected to witness the highest growth rate during the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific accounts for the highest share of the packaging adhesives market currently, owing to the high demand from countries like China, Japan, India, etc.
- China is the leading country in the consumption of packaging adhesives due to growing per capita income, coupled with rising e-commerce giants in the country.
- According to the National Bureau of Statistics of China, the total retail sales revenue of consumer goods accounted for CNY 39,198.07 billion in 2020, which rose to CNY 44,082.34 billion in 2021, thereby enhancing the consumption of adhesives from consumer goods packaging and shipping activities.
- Additionally, China has one of the largest food industries globally. The country is expected to witness consistent growth during the forecast period due to the rise of customized packaging in the food segment, like microwave food, snack foods, frozen foods, and increasing exports. The use of packaging adhesives is expected to increase in the future.
- Furthermore, In India, the food industry is among the largest consumers of packaging adhesives. Some key end-user sectors of packaging adhesives include pharmaceuticals, personal care products, consumer electronics, etc. Increasing demand from these end-user segments is creating a huge potential for the market’s growth.
- In India, the packaging industry is also increasing at a rapid rate. It is the fifth-largest sector in India’s economy and is currently one of the fastest and highest-growing sectors in the country. Amid the e-commerce surge, the Indian packaging industry is witnessing steep growth and is one of the strongest growing segments.
- According to the Indian Institute of Packaging (IIP), packaging consumption in India increased by 200% in the past decade, from 4.3 kgs per person per annum (pppa) to 8.6 kgs pppa.
- Hence, owing to the above-mentioned factors, Asia-Pacific is likely to dominate the market studied during the forecast period.
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The packaging adhesives market is fragmented in nature, as no major company holds a significant share in the global market. The global companies are significantly focusing on R&D and collaborations to develop new technologies to maintain their market presence and foothold. Some of the key players in the market include Henkel AG & Co. KGaA, H.B. Fuller, Dow, Arkema (Bostik), and Avery Dennison Corporation.
- In March 2022, the Confederation of European Paper Industries (Cepi) announced that H.B. Fuller Company joined the 4evergreen alliance, a cross-industry initiative aimed at improving the circularity of fiber-based packaging.
- In January 2021, Avery Dennison acquired the business of Ohio-based ACPO Ltd for USD 87.6 million, subject to post-closing adjustments. With approximately 170 employees, ACPO produces pressure-sensitive overlaminate products for the label and flexible packaging markets.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Growing Demand from the Food and Beverage Industry
4.1.2 Increasing Awareness for Food Safety
4.2.1 Strict Government Regulations
4.3 Industry Value-chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.2.1 Flexible Packaging
5.2.2 Folding Boxes and Cartons
5.2.4 Labels and Tapes
5.2.5 Other Applications
188.8.131.52 South Korea
184.108.40.206 ASEAN Countries
220.127.116.11 Rest of Asia-Pacific
5.3.2 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
5.3.4 South America
188.8.131.52 Rest of South America
5.3.5 Middle-East and Africa
184.108.40.206 Saudi Arabia
220.127.116.11 South Africa
18.104.22.168 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 Arkema Group (Bostik)
6.4.3 AVERY DENNISON CORPORATION
6.4.6 Henkel AG & Co. KGaA
6.4.7 H.B. Fuller Company
6.4.8 Jowat SE
6.4.9 Paramelt RMC B.V.
6.4.10 Wacker Chemie AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Rapid Growth of the E-commerce Industry
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Frequently Asked Questions
What is the study period of this market?
The Packaging Adhesives Market market is studied from 2017 - 2027.
What is the growth rate of Packaging Adhesives Market?
The Packaging Adhesives Market is growing at a CAGR of 5.63% over the next 5 years.
What is Packaging Adhesives Market size in 2017?
The Packaging Adhesives Market is valued at 16560 Million USD in 2017.
Which region has highest growth rate in Packaging Adhesives Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Packaging Adhesives Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Packaging Adhesives Market?
Henkel AG & Co. KGaA , H.B. Fuller Company , Arkema (Bostik), Avery Dennison Corporation, Dow are the major companies operating in Packaging Adhesives Market.