Acrylic Pressure Sensitive Adhesives Market - Forecast(2023 - 2028)

Acrylic Pressure Sensitive Adhesives Market Overview

Acrylic Pressure Sensitive Adhesives Market is forecast to reach $4.5 billion by 2026, after growing at a CAGR of 6.5% during 2021-2026. Acrylic Pressure Sensitive Adhesive is a type of non-reactive adhesive which, when pressure is applied to bind a surface to an adhesive, forms a bond. The particular characteristic of Acrylic Pressure Sensitive Adhesive is that they do not solidify, but remain viscous. As a consequence, they remain permanently tacky and have the ability to get wet on contact surfaces. Pressure Sensitive Adhesive packaging Tape is a type of adhesive tape that is made of a thin, flexible material that has a single or double sided coating. Acrylic pressure sensitive adhesives for packaging tapes were created to provide dependable, secure performance in both general and low-noise tape applications. Duct tapes are less costly than boxes printed with company logos. Due to their ease of adaptability, the increasing use of tapes and labels among the end use industry are in high demand. 

COVID-19 Impact:

The COVID-19 (coronavirus) pandemic has raised macroeconomic uncertainty, hurting consumer spending, company profit, and construction value in 2020. Industry revenue effected in 2020 as a result of the coronavirus's instability. Depending on the end-use sectors, the adhesive producer first experienced a slump in the late first/early second quarter of 2020. Suppliers followed, as demand for materials and equipment fell as a result of different closures and lower demand. Despite the COVID's issues, market conditions in several of these troubled sectors are showing indications of improvement in 2021.

Acrylic Pressure Sensitive Adhesives Market Report Coverage                             

The report: “Acrylic Pressure Sensitive Adhesives Market- Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Acrylic Pressure Sensitive Adhesives industry.

By Type: Solvent Based, Waterborne, Hot-Melt and Others.
By Acrylates: 2-ethylhexyl Acrylate, Butyl Acrylate, Ethyl Acrylate, and Iso-octyl Acrylate.
By Additives: Neutralizing Agents, Surfactants/Wetting Agents, Tackifiers, Plasticizers, Defoamers and Others.
By Application: Tapes, Labels, Films and Laminates, Medical Bandages, and Others
By End Use Industry: Packaging, Automotive, Healthcare, Building and Construction, Electrical and Electronics, Food and Beverages, and Others.
By Geography: North America (US, Canada, and Mexico), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Europe (UK., Germany, France, Italy, Netherland, Spain, Russia, Belgium, and Rest of Europe), APAC(China, Japan India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia and Rest of Asia Pacific), and RoW (Middle East and Africa).

Key Takeaways

• Asia-Pacific dominates the Acrylic Pressure Sensitive Adhesives market owing to automotive and building and construction industry.
• Acrylic Pressure sensitive adhesive (PSA) tapes are commonly used to bond the exterior vehicle skin to the supporting structure in specialized vehicle and transport systems.
• The market drivers and restraints have been assessed to understand their impact over the forecast period.
• The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
• The other key areas of focus include the various applications and end use industry in PVC Additives market and their specific segmented revenue.

Figure: Acrylic Pressure Sensitive Adhesives Market Revenue, 2020-2026 (US$ Billion)

Acrylic Pressure Sensitive Adhesives Market Segment Analysis - By Type

Waterborne held the largest share of 42% in the Acrylic Pressure Sensitive Adhesives market in 2020. Using emulsifiers and water soluble polymerization initiators, waterborne acrylic Pressure Sensitive Adhesives are prepared by emulsion polymerization of acrylate monomers in water. Generally, the resulting polymer emulsion (50-60% solids) is stabilized with a surfactant. From transparent tapes and labels to medical bandages, the benefits of waterborne acrylic Pressure Sensitive Adhesives are used in a wide range of applications. The use of these adhesives in many decorative applications, including exterior automotive decoration and exterior tapes and signs, has been established by their excellent weathering properties.

Acrylic Pressure Sensitive Adhesives Market Segment Analysis - By Acrylates

Butyl Acrylate held the largest share of 44% in the Acrylic Pressure Sensitive Adhesives market in 2020. Butyl acrylate is the largest of the demand-driven acrylates, mainly by coating, adhesives and resin modifier applications. With a push to replace solvent coatings with water-based coatings and strengthen VOC formulations, butyl acrylate has gained. Because of the performance of the butyl acrylate market there has been frequent investment in the capacity in China. Rapid increase in capacity development followed by robust demand is augmenting the market of butyl acrylate.

Acrylic Pressure Sensitive Adhesives Market Segment Analysis - By Application

Tapes has been the primary market for Acrylic Pressure Sensitive Adhesives in 2020 growing at a CAGR of 5.8% during the forecast period of 2021-2026. Due to their ease of use and low cost compared to conventional methods, PSAs in tapes are increasingly used in the packaging and healthcare industries. Regardless of the bonding process, packaging tape operation is uniform. Packaging tapes are used on the seams and joints of various storage receptacles to maintain a tolerance that keeps cargo contained inside the receptacle's confines. Masking tape has a wide range of applications, including general purpose masking, wet painting, stencilling, stoving, spray painting, and sandblasting, as well as high temperature masking tapes for powder coating and printed circuit board manufacturing. As these are simple to use and serve as a replacement for traditional fasteners, glue or other methods of bonding items together, adhesive tapes are more favored alternatives. Adhesive tapes have improved adhesion with a cost-effective approach that is spread through industrial fields.

Acrylic Pressure Sensitive Adhesives Market Segment Analysis - By End Use Industry

Packaging has been the primary market for Acrylic Pressure Sensitive Adhesives in 2020 growing at a CAGR of 6.9% during the forecast period of 2021-2026. It has been estimated that by end of 2020, the sustainable plastic packaging industry is expected to be estimated at $89.0 billion. In the coming years, the industry is projected to rise by an annualized 5.6 percent, achieving a volume of $117.3 billion by 2025. Usually, sustainable plastic packaging consists of biodegradable plastics that decompose naturally. Strict regulations imposed by governments and shifting customer tastes have benefited the industry. In the face of the global pandemic, the packaging industry has remained resilient. Several packaging companies were considered an important service and remained open. Many small and medium-sized enterprises have done especially well in food and beverage, pharmaceutical and e-commerce applications.

Acrylic Pressure Sensitive Adhesives Market Segment Analysis - By Geography

APAC dominated the Acrylic Pressure Sensitive Adhesives market with a share of more than 46% in 2020, followed by North America and Europe. The growth is expected to be fueled by China, which was the largest market for Acrylic Pressure Sensitive Adhesives in APAC. This area covers a diverse range of economies and a wide range of industries with various levels of economic growth. Due to the rising needs of the population, the packaging and FMCG sectors are growing at a very fast rate. In this area, the automotive, electronics, and packaging industries are continually boosting the Acrylic Pressure Sensitive Adhesives market. In 2019, the most revenue for online food delivery was generated in China, followed by the United States and then Canada. Restaurant to consumer distribution is the largest portion of the online food delivery market, currently making up about twice the sales of the consumer platform as a segment worldwide. These factors will augment the demand for packaging in the FMCG sector which in turn will augment the demand for tapes and labels. The pet food packaging is projected to grow by an annualized 4.2 percent from 2020 to 2025, reaching a value of $12.5. Geographic expansion into emerging economies provides the greatest opportunities. Further Cosmetic packaging is expected to expand by $60.9 billion in 2025. The main segment of the cosmetic packaging industry is the volume and value segment of bottles. Growing demand for grooming products from younger populations and increasing demand for innovative, sustainable and attractive packaging solutions can largely be attributed to the growth of the industry.

Acrylic Pressure Sensitive Adhesives Market Drivers

Increasing Demand from Packaging Sector will augment the market growth

As a result of improved shipping methods and greater adoption of flexible packaging options, the packaging sector is experiencing upward growth. Because of its use in sealing heavy duty goods, adhesive tape in packaging is gaining greater importance, requiring greater protection from external barriers. The demand for adhesive tapes continues to grow with the growing use of adhesive tapes in the transport of perishable goods, temperature and pressure sensitive goods in order to provide more effective transit. The continuing demand for various adhesive solutions that provide greater protection against leakage and penetration of rigid goods or fluids is also rising the growth of the industry.

Acrylic Pressure Sensitive Adhesives Market Challenges

Cohesion and Foaming related issue in Waterborne can restrict the market growth

The main drawbacks of waterborne acrylic PSAs are that they lack cohesive strength, water resistance, film clarity, adhesion to high temperatures, and adhesion to substrates with low surface energy. They have also been found to have poor wet-out on release liners and to have problems with foaming during application. However, these disadvantages can be minimized or eliminated with adequate formulation.

Regulations Imposed on Adhesive Tapes will restrict the market

The market growth of adhesive tapes has been mainly hampered by the regulations imposed by the regulatory authorities. Because of health hazards associated with these chemicals, restrictions related to the use of chemicals such as toluene, formaldehyde, di-2-ethylhexyl phthalate affect the overall tape-related business. Regulatory agencies have been required to discourage this legislation. Business growth is limited by the growing number of countries implementing tighter regulations.

Acrylic Pressure Sensitive Adhesives Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Acrylic Pressure Sensitive Adhesives market. Major players in the Acrylic Pressure Sensitive Adhesives market are Henkel AG & Company KGAA, The Dow Chemical Company, Avery Dennison Corporation, H.B. Fuller, 3M Company, Adhesives Research, Inc., American Biltrite Inc., Drytac Corporation, LG Chem, Beardow & Adams and Others.

Acquisitions/Technology Launches/ Product Launches  

• In August 2020, Henkel Adhesive Technologies invested in manufacturing facility at the site in Salisbury, North Carolina to meet the increasing demand for sustainable UV Curable adhesives for tapes and label applications. The new facility is expected to be operational by the end of 2021. This expansion of Henkel’s existing site broadens the company’s capabilities to provide more sustainable and innovative pressure sensitive adhesive solutions to the tape, label, medical, and graphic films markets.
• In September 2020, Mallard Creek Polymers, LLC has developed APEO free Rovene 6592 pressure sensitive adhesive (PSA) pure acrylic. Rovene 6592 is a well-balanced, cross-functional low Tg acrylic adhesive base with excellent peel/loop tack and shear balance over a 24-hour period with a mild, but repeatable peel increase. Rovene 6592 is an APEO-free acrylic for thin film coating applications with outstanding film transparency and enhanced latex properties. The excellent mechanical stability makes it possible to formulate the product for use in adhesive applications, including marking, thin packaging, lamination and a range of building adhesives.

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