Laminating Adhesives Market - Forecast(2023 - 2028)

The Laminating Adhesives Market size is estimated to reach US$3.1 billion by 2027 after growing at a CAGR of 5.9% during the forecast period 2022-2027. There are several laminating processes that are generally classified as either wet or dry laminating processes. The basic categories of laminating adhesives used are water-based, solvent-based, ultraviolet curable and hot melt adhesives. The basic resin systems widely used in the laminating adhesives industry are polyurethane, acrylic, ethylene, vinyl acetate, silicone and polyolefins. Most of the water-based adhesives are acrylics or acrylic hybrids and polyurethane dispersions. These laminating adhesives dominate the market owing to their Food and Drug Authority (FDA) compliance which makes them the preferred choice for food packaging applications. As per the World Packaging Organization (WPO), the turnover of the global packaging industry is more than $500 billion, in which food packaging is an important area. The growth of flexible packaging drives the Laminating Adhesives market.

Laminating Adhesives Market Report Coverage

The “Laminating Adhesives Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Laminating Adhesives industry.

By Technology: Water Based, Solvent Based, Hot Melt, Electron Beam Curing, Ultraviolet Curable and Specialty Laminating Adhesives.
By Resin: Acrylic, Polyurethane, Ethylene, Rubber, Silicone, Vinyl Acetate, Polyolefin and Others.
By Process: Dry Lamination and Wet Lamination.
By Type: One Component and Two Component.
By Application: Packaging (Fresh Food Packaging, Dry Food Packaging, Ready Meal Packaging, Medical & Pharmaceutical Packaging, Cosmetic Packaging, Bottle Labels and Others), Automotive (Solar Control Window Film, Sound Damping, Thermal Insulation and Others), Construction (Insulation Facing, Roofing, Floor Coverings and Others), Industrial and others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Denmark, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

• The Asia-Pacific region dominates the Laminating Adhesives Market on account of the stellar growth of e-commerce in the region. As per India Brand Equity Foundation (IBEF), India’s e-commerce sector is expected to reach US$111.4 billion by 2025.
• Lamination is a major process used to produce packaging products. Based on technology, the various laminating adhesives can be categorized into water-based, solvent-based, electron beam curing, ultraviolet curable and hot melt adhesives. Out of these, water-based technology dominates the market.
• The increasing focus on sustainability in the packaging industry is increasing the demand for solvent-free Laminating Adhesives.
• The major opportunity for this market is the shift towards bio-based Laminating Adhesives.

Figure: Laminating Adhesives Market Revenue Share, by Geography, 2021 (%)

Laminating Adhesives Market Segment Analysis – by Technology

The water-based segment held a dominant Laminating Adhesives Market share in 2021 and is expected to grow at a CAGR of 6.8% during the forecast period of 2022-2027. Water-based adhesives contain water as their carrier which is dried after application (dry bond lamination), leaving the active resin system on the substrate to be bonded to a secondary substrate to make the lamination. The primary components in water-based laminating adhesives are vinyl acetate, ethylene vinyl acetate and acrylic resins. These adhesives can be used on a variety of film substrates as well as foil and paper. Water-based laminating adhesives provide fast cure time and low foaming properties. In 2021, online sales of packaged food & beverages reached US$109 billion, according to the Food Industry Association. The rising need for water-based laminating adhesives for food & beverage packaging applications, such as snack food packaging, bottle labels, as well as microwaveable and boil-in-bag packages, boosts the laminating adhesives market as these adhesives are FDA compliant. Therefore, the water-based segment is anticipated to dominate the Laminating Adhesives market.

Laminating Adhesives Market Segment Analysis – by Resin

The polyurethane segment held a dominant Laminating Adhesives Market share in 2021 and is expected to grow at a CAGR of 4.9% during the forecast period of 2022-2027. Polyurethane laminating adhesives are used in a number of packaging applications that require strong bonding holds and quick curing times. These adhesives are used predominately in packaging, automotive and consumer product manufacturing industries since they can be applied to a number of different substrates. They are recommended for applications that would undergo sterilization or long hours in ovens and even for packaging containing chemicals. Polyurethane hot melt adhesives are used in structural, holding and sealing applications in automobiles, particularly in hard-to-bond applications such as seat cushions, door panels, inserts and armrests, load floors and headliners. Germany’s Center for Automotive Research (CAR) predicts that global sales in 2025 would reach 75.4 million vehicles compared to 71.3 million vehicles in 2021. The growth of the automotive segment boosts the demand for polyurethane resin and, in turn, the Laminating Adhesives market.

Laminating Adhesives Market Segment Analysis – by Geography

The Asia-Pacific region held the dominant Laminating Adhesives Market share of more than 46% in 2021, owing to the growth of e-commerce in the region. The scale and growth rate of e-commerce in Asia really sets it apart from other parts of the globe. Asia accounts for nearly 60% of the world's online retail sales. Asia’s retail e-commerce sales reached US$2.992 trillion in 2021. According to Digital Commerce 360, Asian consumers in 2020 purchased US$2.525 trillion worth of goods on retail websites and multi-merchant marketplaces compared to US$2.118 trillion in 2019. China alone is the largest e-commerce market in the world. Thanks to digital transformation, e-commerce in South Asian countries such as Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam are also growing exponentially. The pandemic-driven surge in e-commerce sales has resulted in an increased number of packages as packaging is a crucial component of the e-commerce industry. Therefore, this region is expected to boost the Laminating Adhesives market size during the forecast period.

Laminating Adhesives Market Drivers

Growth of Flexible Packaging

Flexible packaging is a means of packaging products using non-rigid materials, which allows for more economical and customizable options. Flexible packages are used in industries such as the food & beverages, personal care and pharmaceutical industries. The total global packaging market is approaching $1 trillion annually. According to the Flexible Packaging Association, approximately 2/3 of all packaging is for food & beverages and about 90% of flexible packaging is used for these products. Research by the Flexible Packaging Association shows that shoppers seek packaging that provides convenience, product safety and longer shelf life. 60% of customers are willing to pay more for flexible packaging that offers easy storability, easy to reseal, easy to open and longer shelf life. Laminating adhesives form an integral part of flexible packaging. Therefore, the growth of flexible packaging is proving to be a market booster for the Laminating Adhesives market size.

Increasing Focus on Sustainability in the Packaging Industry

The use of solvent-free Laminating Adhesives has seen remarkable growth in recent years. These adhesives do not contain any solvent and hence have no volatile organic compounds (VOCs) that escape into the atmosphere. This makes solvent-free lamination the first step towards sustainability. Recyclability is also key. In the mechanical recycling of multi-layer flexible structures, the right adhesive can provide safety for consumers and the required performance for food protection, while not impacting the quality of the recyclate. For instance, Bostik offers a laminating adhesive that is fully certified by Recyclass for compliance with the polyethylene film recycling stream. In Europe, regulatory changes with the new Green Deal, ban on single-use plastics legislation and related guidelines are pushing the packaging industry towards sustainability. Thus, the increasing focus on sustainability in the packaging industry drives the Laminating Adhesives market.

Laminating Adhesives Market Challenge

Rising Raw Material Prices:

The major restraint in the Laminating Adhesives Market is the rising prices of raw materials. Throughout the pandemic, shortages, bottlenecks, logistical concerns and volatile oil prices have been increasing the prices of raw materials used in the production of laminating adhesives. Laminating adhesives are based on polyester and polyurethane. They require a range of raw materials from acids, glycols and solvents to make polyesters and isocyanates like toluene diisocyanate (TDI) and methylenediphenyl diisocyanate (MDI) to make polyurethanes. In Q1 2022, feedstock TDI, MDI and polyol prices rose sharply due to a steep rise in petrochemical prices caused by supply shortages of crude oil in the region. Europe experienced a huge price hike for polyurethane during Q1 2021, since high demand outpaced the production levels. The hike in the price was also affected by the freezing weather condition across Europe which halted the supply of feedstock MDI and TDI across the region. The rising raw material prices might stifle the growth of the Laminating Adhesives industry.

Laminating Adhesives Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Laminating Adhesives Market. The top 10 companies in the Laminating Adhesives Market are:

1. Ashland Inc.
2. BASF SE
3. The 3M Company
4. Toyo-Morton, Ltd.
5. Henkel
6. Sika AG
7. Mitsui Chemicals
8. DIC Corporation
9. Bostik
10. H.B. Fuller

Recent Developments

• In August 2022, Toyo-Morton, Ltd. launched the new ECOAD series of polyurethane solvent-free laminating adhesive systems for the food packaging and industrial markets primarily in Asia.
• In July 2022, SONGWON developed new solvent-free laminating adhesives HI-THANE A-7363 + HI-THANE A-6600 for flexible packaging laminates.
• In June 2022, Toyo-Morton, Ltd. developed new bio-based laminating adhesives for dry lamination of films in flexible packaging.

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