Market Trends of united states adhesives Industry
Rapid growth of the food and beverage industry and plastic recyclability advancements to boost the packaging demand
- Packaging is a fast-growing industry in terms of design and technology for protecting and enhancing products' safety and longevity. The demand for quick and on-the-go packaged items is increasing due to consumers' busier lifestyles, greater spending power, and related factors in the country.
- Due to the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including disruptions in supply chains, imports, and exports. As a result, the country's packaging production declined by 5% in 2020 compared to the previous year, significantly affecting the market.
- The US packaging industry has been driven by the rapid growth of the food and beverage industry in recent years. The sales of packaging products to retail food and beverage stores amounted to around USD 880.3 billion in 2021 compared to USD 850.2 billion in 2020.
- Packaging production is majorly driven by paper and paperboard in the country, which accounted for nearly 22% of the packaging produced in 2021. However, with the advancement of plastic recyclability, the plastic production segment is likely to register the fastest CAGR of around 4.11% 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, which will further drive packaging demand over the coming years.
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Government's United States-Canada-Mexico agreement of having 75% of automobile components produced in these 3 countries will increase the automotive production
- The US automotive industry witnessed a decline in annual production by around 3.5% in 2019 due to multiple factors, such as US sanctions on China and tariffs on steel and aluminum imports, especially from Canada and Mexico, two of the largest sources for imported metals for the US automotive industry. Automotive production fell by around 20% in 2020 compared to 2019 due to operational and supply chain restrictions coupled with worker unavailability resulting from the COVID-19 pandemic and the subsequent lockdowns. The semiconductor chip shortages and other supply chain constraints in 2021, which followed the pandemic, have been holding back automotive production growth.
- In the United States, the percentage of commercial vehicles manufactured increased from 73% in 2017 to 79% in 2020. This was due to the rising demand for pickup trucks and other Light Commercial Vehicles (LCVs) because of their multipurpose utility. This growth in the demand for LCVs is expected to continue in the forecast period.
- The United States is the third largest electric vehicle manufacturer after China and Europe. Seven of the 44 major US assembly plants, representing about 16% of US production capacity, are engaged in producing electric vehicles (EVs). General Motors own three, two are owned by Tesla, and Rivian and Lucid Motors own one site each. Demand for EVs grew 85% from 2020 to 2021, and this continuously increasing demand for EVs in the country is expected to drive production growth during the forecast period as well. The implementation of the United States-Canada-Mexico agreement, which mandates 75% of the cars to be produced in one of the three participating countries to avail zero tariffs, is expected to increase automotive production during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Civil aviation with 65% export share in Aerospace and Defense in 2021 and expected growth in exports is likely to boost Aerospace Production
- Investments and innovations to ensure unique footwear design and greater comfort to grow the footwear production
- Government's' investments such as the Infrastructure for Rebuilding America (INFRA) program of USD 7.25 billion for FY 2022-2026 to increase construction in the country
- Easy purchase and install of furniture and rising interior decorations is increasing the woodworking and joinery demand
