Emulsion Adhesives Market - Forecast(2023 - 2028)

Emulsion Adhesives Market Overview

Emulsion Adhesives Market size is forecast to reach $20.75 billion by 2026, after growing at a CAGR of 6.3% during 2020-2026. Emulsion Adhesives are formed by the free radical polymerization of ethylene vinyl acetate, acrylic resin, and acetic vinyl emulsified in water. Emulsion adhesives are used on the porous materials. Emulsion Adhesives are generally non-toxic, non-flammable and environment friendly in nature. Water-based polyurethane dispersion (PUD) are an increasingly growing segment of the polyurethane coating industry, thanks to environmental regulations like the Clean Air Act and technical advancements that have made them a viable alternative to solvent-based analogues. They're flexible, environmentally friendly coating materials that come in a variety of hardness and solid quality. Thermoplastic polymer, polyvinyl acetate (PVA) emulsion is commonly used as a paper and woodwork adhesive due to its excellent adhesion and comfort. Metals, plastics, ceramics, wood, leather, and textiles are among the substrates that acrylic polymer emulsions can be used to join. After being repackaged into smaller containers, it is also used as a household adhesive/glue. The growth in the market is due to the increase in the usage of Emulsion Adhesives Market for various applications like paper working, decorative plywood, home decors, tapes and many others in sectors like, automotive, building and construction, packaging, woodworking industry and others.

COVID-19 Impact

Emulsion-based adhesives and sealants account for more than a third of the global adhesives and sealants market and will continue to be the largest segment over the forecast period. The most common applications are in paper and packaging, medical and hygiene, and building. The COVID-19 pandemic has wreaked havoc on the building industry, which is highly susceptible to economic cycles. On the plus side, due to its ability to generate jobs, construction has a lot of potential to promote recovery; in turn, recovery steps will help the sector transition to sustainability and digitalization. Currently the Emulsion Adhesives Market has been affected due to COVID-19 pandemic where most of the industrial activity has been temporarily shut down. This in turn has affected the demand and supply chain as well which has been restricting the growth in year 2020.

Emulsion Adhesives Market Report Coverage

The report: “Emulsion Adhesives Market- Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Emulsion Adhesives Industry.

By Resin Type: Acrylic Polymer, Polyvinyl Acetate (PVA), Ethylene Vinyl Acetate (EVA), Lattices, Polyurethane Dispersion (PUD) and Others.
By Application: Paper Working, Decorative Plywood, Home Interiors and Décor, Automobile Interiors, Tapes and Labels and Others.
By End Use Industry: Automotive Industry, Packaging Industry, Woodworking, Building and Construction, Paper and Pulp and Others.
By Geography: North America (USA, Canada and Mexico), Europe (UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and RoW (Middle East and Africa).

Key Takeaways

• Asia Pacific dominates the Emulsion Adhesives Market owing to rapid increase in automotive industry.
• 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 Emulsion Adhesives Market and their specific segmented revenue.
• Due to the COVID-19 pandemic, most of the countries have gone under temporary shutdown, due to which operations of Emulsion Adhesives Market related industries has been negatively affected, thus hampering the growth of the market.

Figure: Emulsion Adhesives Market Revenue, 2020-2026 (US$ Billion)

Emulsion Adhesives Market Segment Analysis - By Resin Type

Acrylic Polymer held the largest share of 33% in the Emulsion Adhesives Market in 2020. Acrylic Polymer are cross linkable and provide binding product weather and aging resistance as well as the resistance to laundry detergents, water, and solvents. Water based acrylic polymer emulsion is environmentally friendly adhesives which provide a balance between track, peel, and shear. Acrylic polymer adhesives are used in variety of application in automotive interior, paper working, decorative and others.

Emulsion Adhesives Market Segment Analysis - By Application

Automotive interiors and decorative held the largest share of 35% in the Emulsion Adhesives Market in 2020. This rise is mainly due to the growing demand for automobiles. Technology advancement and new R&D initiatives are transforming the automotive industry. The new decorative interiors in automobiles are becoming the trend of the day. Automotive segment is witnessing growth due to the rising penetration from untapped markets. First-mover advantage in untapped regions and relatively low acquisition costs remain key driving forces in this application market. Furthermore, R&D in Emulsion Adhesives Market will support the growth of the Emulsion Adhesives Market.

Emulsion Adhesives Market Segment Analysis - By End Use Industry

Automotive held the largest share in the Emulsion Adhesives Market in 2020 growing with a CAGR of 6.7%. The global consumers are split on benefits of increased vehicle connectivity and consumers in India and China are embracing this idea twice as that of consumers in Germany. Around 80% people in India feel that increase in vehicle connectivity will be beneficial. According to European Automobile Manufacturers Association, European Union automotive investment in R&D has increased by 6.1% to reach €60.9 billion ($69.55 billion) in 2020. The global automotive sector has bounced back after the resumption of industrial activities which was temporarily under shutdown due to COVID -19. Thus, flourishing automotive industry may drive the growth of the Emulsion Adhesives Market.

Emulsion Adhesives Market Segment Analysis - Geography

Asia-Pacific (APAC) dominated the Emulsion Adhesives Market consisting share of 40% in 2020 followed by North America and Europe. APAC as a whole is set to continue to be one of the largest and fastest growing automobile markets globally. Large and more developed markets such China, India, Japan, and South Korea are expected to grow more in the coming years. China is driving much of the Emulsion Adhesives Market demand in Asia-Pacific region followed by India and Japan. Of the five fastest growing regions in automobile sector, other than U.S, all are Asian countries including China and India who majorly drive the demand for automotive investment in these regions. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2020 the vehicle production has decreased by -18.25% where overall vehicles production stood by 77.62 million globally. The number of vehicles that have illuminated Emulsion Adhesives Market is growing sharply in APAC region. Currently the automotive industry has been affected due to COVID-19 pandemic where most of the industrial activity has been temporarily shut down. In in turn has affected the demand and supply chain as well which has been restricting the growth in year 2020. 

Emulsion Adhesives Market Drivers

Rise in Demand for Eco-Friendly Adhesives

Industrialization has led to the increase in demand for Emulsion Adhesives Market in various industries for different purposes. Emulsion Adhesives are gaining popularity because of a great shift from solvent based adhesives to water-based adhesives which are allowing the manufacturers to reduce the emission of the volatile organic compound (VOC). VOC is a major cause for the air pollution and also very harmful to human when inhaled. The emulsion adhesives are having lesser amount of VOC.

Growing Demand from the Paper Converting & Packaging Industry

Emulsion adhesives are used in packaging applications, and the demand for them is expected to rise at the fastest rate over the forecast period. Emulsion adhesives are mainly acrylic, polyvinyl acetates, ethylene vinyl acetate, and polyurethane-based water-based polymer adhesive systems. Emulsion adhesives are non-toxic, solvent-free, and contain few volatile organic compounds. Since emulsion adhesives are FDA approved for use in food-based packaging, the demand is expected to be driven by the growing paper and paper-based packaging, as well as the ban on single-use plastics.

Emulsion Adhesives Market Challenges

Availability of Substitute Can Restrict the Market Growth

In the adhesives industry, bio-based adhesives are a growing segment. The latex-based pressure sensitive adhesive is particularly important. These latex-based adhesive are used in a wide range of applications, from self-adhesive stamps to bandages, but they are derived from petroleum, which is a scarce resource that fluctuates in price. The polymer that results contains up to 60% bio-based material. These monomer chains, unlike other macromonomers, are consistent with well-established manufacturing techniques like traditional emulsion and miniemulsion polymerization.

Emulsion Adhesives Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Emulsion Adhesives Market. Major players in the Emulsion Adhesives Market are 3M, Arkema Group, DowDu Pont Inc, STI Polymer, Henkel Corporation, Wacker Chemie, Ethicon, Inc, Avery Dennison Corporation, Illinois Tool Works Inc., Sika AG and Others.

Acquisitions/Technology Launches/ Product Launches

In October 2020, Pidilite Industries acquired Huntsman Advanced Materials Solutions Private limited (HAMSPL) an Indian subsidiary adding to the great portfolio of adhesives and the sealants and also complementing the retail portfolio of the company.

Related Report:

Emulsion Pressure Sensitive Adhesives Market – 2020-2025

Report Code: CMR 12428

Polymer Emulsion Market – Forecast (2021 - 2026)

Report Code: CMR 0517

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