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

Solvent Pressure Sensitive Adhesives Market Overview

Solvent Pressure Sensitive Adhesives Market size is forecast to reach $5.3 billion by 2026, after growing at a CAGR of 4.5% during 2021-2026. Globally, the increasing usage of solvent pressure sensitive adhesives for reduced plasticizer migration, heat, moisture and chemical resistance has raised the growth of the market. The increasing use of pressure sensitive tapes, graphic films, packaging labels from various end-use industries such as automotive industry, building & construction, packaging sector, electronic devices and so on, is anticipated to create new opportunities for the growth of the solvent pressure sensitive adhesives industry during this forecast period. With excellent clarity, pressure sensitive tapes are using day-to-day life for packaging, also rubber based polymers are used in medical sector due to its low toxicity, which had a positive impact on the market growth over the year 2020. For instance, Healthcare market of India is expected to reach US$372 billion by 2022, by India Brand Equity Foundation (IBEF), which increase the use of rubber-based polymers, in turn, contributes to the market growth.

Impact of Covid-19

COVID-19 has had its impact on the packaging section, automotive, construction sector, and others in developing & emerging countries. According to the European Automobile Manufacturers Association (ACEA), passenger car registrations down to a fall of about 25% in 2020. In addition, according to “International Organization of Motor Vehicle Manufacturers (OICA)”, vehicle production in North America fell by 20% in 2021. Hence, closed all production hampering the sustainable growth of the market.

Report Coverage

The: “Solvent Pressure Sensitive Adhesives Market Report – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the solvent pressure sensitive adhesives industry.
By Composition: Rubber Based and Acrylic Based
By Application: Films (Solar Films, Floor Films, Paint Protective Films, and Others), Tapes (Polymeric Tape, Foam Tapes, Transfer Tapes, and Others), Labels (Food Packaging, Battery Labels, Industrial Hard and Good Labeling, and Others), Medical Dressing, and Others
By End Use Industry: Building & Construction (Commercial Sector, Residential Sector, Others), Packaging (Food & Beverage Packaging, Metals Packaging, and Others), Automotive (Light Weight Commercial Vehicles, Heavy Duty Commercial Vehicles, Passenger Vehicles), Electrical & Electronics {Consumer Devices (Smart Phones, Tablets, Wearable Devices, Others), Semiconductors, and Others), Personal Care, Medical Sector (Medical Devices, Drug Delivery, Medical Tapes, Imaging Equipment, Others), and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia, Taiwan, Indonesia, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle east and Africa)

Key Takeaways

• Increasing the adoption of rubber-based polymers as pressure sensitive tapes due to have low shear strength and suffer from creep and are therefore used for unstressed joints, is increased the market demand for solvent pressure sensitive adhesives.
• Increasing usage of graphic films for vehicles wrapping and increasing consumption from the packaging sector for medical packaging will exhibit growth of the solvent pressure sensitive adhesives market during this projected era.
• According to the World Health Organization (WHO), around 422 million peoples are diabetic patients in the world, thus increasing the demand for penicillin, which is growing medical packing market, thereby, contributing to the growth of the market.
• North America dominated the market of solvent pressure sensitive adhesives due to increasing automotive production in this region. Graphics films are used to wrap car, trucks, and marine vehicles.

Figure: North America Solvent Pressure Sensitive Adhesives Market Revenue, 2021-2026 (US$ Billion)

Solvent Pressure Sensitive Adhesives Market Segment Analysis - By Composition

Rubber based composition held the largest share of more than 55% in the solvent pressure sensitive adhesives Market in 2020. Rubber based polymers are inexpensive, which makes them ideal for short-term tape applications such as masking tapes, pressure-sensitive labels, as well as general purpose duct tapes. Also, this rubber based polymer are widely used in the manufacture of pressure sensitive tapes. Furthermore, removable rubber based polymers tend to increase in adhesion throughout the life of the label and could possibly become permanent. Rubber based adhesive is providing great adhesion on plastic items and in indoor situations, where there is less of a chance of drastic temperature change. Thus, all such factors are boosting the growth of solvent pressure sensitive adhesives market over the forecast period.

Solvent Pressure Sensitive Adhesives Market Segment Analysis – By Application

Tape segment held the largest share of more than 35% in the solvent pressure sensitive adhesives market in 2020. Globally, the increasing usage of tapes from packaging sector is anticipated to create new opportunities for pressure sensitive tapes. Pressure sensitive tapes are thin and light, which making them easy to work with various applications like construction sector, electronic devices, and personal care products. Hence, tapes are used in day-to-day life, for various purposes, ranging from packaging. According to “India Brand Equity Foundation (IBEF)” the packaging industry is expected to reach US$204.81 billion by 2025 from US$ 50.5 billion in 2019 at 26.7% annually. Food processing is the largest consumer of packaging at 45%, followed by pharmaceuticals (25%) and personal care products (10%). Thus, increasing demand from pressure sensitive tapes from packaging sector will create a huge potential growth for the solvent pressure sensitive adhesives market.

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

Packaging sector held the largest share of more than 30%in the solvent pressure sensitive adhesives market in 2020 and is analyzed to grow at a CAGR of 5.1% during the forecast period 2021-2026 with the increasing demand of solvent pressure sensitive adhesives from packaging sector for flexible packaging. These are used in various types of packaging such as electronic devices, medical packaging (packaging for drug delivery), and packaging of industrial goods. Pressure sensitive adhesives are used as a labeling adhesive and graphic films adhesives in packaging industry. Thus, the growth of the packaging segment is increasing the demand for pressure sensitive tapes, graphic films, labeling tapes in flexible packaging applications. According to the “India Brand Equity Foundation (IBEF)” the total plastic was export US$507.06 million in 2020. Plastic export stood at US$7.045 billion with the highest contribution from plastic raw material at US$2.91 billion, plastic sheets, films, and plates at US$1.22 billion during 2019-2020. Thus, the rising exportation of plastics for packaging is therefore anticipated to increase the demand for solvent pressure sensitive adhesives market.

Solvent Pressure Sensitive Adhesives Market Segment Analysis - Geography

North America is projected to grow at a significant rate with a CAGR of 3.5%  in solvent pressure sensitive adhesives market during the forecast period. In June 2017, Avery Dennison, United States completed the acquisition of Yongle Tape Company Ltd China, a manufacturer of specialty tapes and related products. The demand for pressure sensitive tape, graphics films, and rubber based polymers is driven mostly by the increasing production of automotive and packaging in emerging economies, such as United States, which has further derived the solvent pressure sensitive adhesives market growth. The U.S is the second largest car manufacturer in the world after China and had a production of 1.9 million cars in 2020, according to “International Organization of Motor Vehicle Manufacturers”. For instance, In March 2019, Toyota announced its decision to invest USD 13 billion in the Unites States over the next five years to increase the production of hybrid versions of the RAV4 and Lexus ES. Thus, the rising production of automotive and developments is anticipated to increase the demand for solvent pressure sensitive adhesive in the forecast period.

Solvent Pressure Sensitive Adhesives Market Drivers

Increasing Adoption of Low-Cost Flexible Packaging Aids

The growth of solvent pressure sensitive adhesives are positively influenced by the increasing adoption of low-cost flexible packaging aids due to ecofriendly, light weight and customizable. The global packaging industry is witnessing rapid growth, owing to the constantly growing demand from the packaging sector for food packaging. Packaged food market in India is expected to grow US$70 billion by 2025, by India Brand Equity Foundation (IBEF). Experts estimate, food products to increase GDP from 8%-35% by the end of 2025 in India. Hence, due to low cost it is more affordable to ship domestically and internationally, which is increasing the demand of flexible packaging aids, also likely to aid the growth for solvent pressure sensitive adhesives in upcoming years.

Rising Consumption for Pressure Sensitive Tapes

Pressure sensitive adhesive tapes are used on the body, under bonnet and exterior & interior trim of the vehicle. Increasing application of tapes & graphic films in lightweight vehicle manufacturing and reducing the fuel consumption will augment the product demand in the coming years. Pressure sensitive tapes offer various advantages such as reduced product weight, improved product durability, enhanced product aesthetics lower production costs, and increased productivity. Packaging tapes are majorly manufactured with plastic as a backing material for its easier tearing ability and superior flexibility. Growth in the production and increasing shipment of consumer goods is translating into greater consumption of packaging products. In addition, low cost coupled with superior packaging performance is likely to drive the market.

Solvent Pressure Sensitive Adhesives Market Challenges

Fluctuation in Raw Material Prices

Increasing raw material prices might pose a challenge to the pressure sensitive adhesives market demand throughout the forecast timeframe. Variation in the crude oil prices will be a key restraining factor for pressure solvent adhesive demand, as several downstream petrochemical products are used as raw materials in pressure sensitive adhesives. US West Texas Intermediate (WTI) crude was down $2.57, or 20 per cent, at $10.21 a barrel in 2020. Thus, volatile price of raw materials and various safety and technological constraints hinder the growth of the industrial adhesives market.

Solvent Pressure Sensitive Adhesives Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the solvent pressure sensitive adhesives market. Major players in the Solvent Pressure Sensitive Adhesives Market top companies are:

1. Dow
2. Henkel AG & Co. KGaA
3. H B Fuller
4. Ashland
5. Avery Dennison
6. Hexion
7. Pidilite Industries Ltd.
8. Royal Adhesives and Sealants
9. Ichemco srl
10. 3M, and among others.

Acquisitions/Technology Launches

• In February 2020, Henkel Adhesives Technologies opened its new production facility in Kurkumbh, India, near Pune. The unit aims to serve the growing demand for high-performance solutions in adhesives, sealants, and surface treatment products in Indian industries. Designed as a smart factory, the new plant also will also help a wide range of Industry 4.0 operations and meet the highest standards for sustainability.
• In September 2019, Arkema showcased and announced a new range of PSAs at the LabelExpo 2019. The new range included products with enhanced performance and sustainability to meet the increasing demand for these adhesives from the packaging, construction, and automotive sectors.
• In April 2019, 3M Company announced that it added 3M Extended Wear Medical Transfer Adhesive, 4075 to its product line of advanced adhesives for medical devices. This product features an extended wear pressure sensitive transfer adhesive and various backing materials.

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