Waterborne Adhesives Market - Forecast(2023 - 2028)

Overview

Waterborne Adhesives Market size is forecast to reach $18 billion by 2025, after growing at a CAGR of 5% during 2020-2025, owning to growing demand from packaging industry. Waterborne adhesives are used in flexible laminations, packaging tapes, office tapes and food packaging as they provide improved chemical and heat resistance. Due to non-reactive nature, they are highly preferred for food packaging applications. In addition, growing demand from the automotive industry is also expected to fuel waterborne adhesives market growth. These are used in the automotive industry in interior structures such as dashboards headlining and others.

Report Coverage

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

Key Takeaways

·         The Asia-Pacific region dominated the global market share of water-borne adhesives, owning to factors such as strong growth in construction activities, growing demand for packaging from the expanding e-commerce business platform, and rising production in the food and beverage industry.

·         There are currently several airport construction projects, either in development or in planning stages, in China, such as Chengdu Shuangliu International Airport, Beijing Capital International Airport, Guangzhou Baiyun International Airport, and so on. The growth in construction activities, is creating waterborne adhesives demand in the country.

·         The introduction of bio-based polyol components in water-borne adhesives is likely to create a range of opportunities for the waterborne adhesives market, in the coming years.

Resin Type - Segment Analysis

The acrylic resin held the largest share in the waterborne adhesives market in 2019, owning to their chemical characteristics and unique esthetic properties. Unlike other resins, acrylic provides high strength of bonding without the need for surface preparation. Demand for waterborne acrylic adhesives increases steadily due to high solid content, high initial adhesion properties and low toxicity. There is an increasing demand for miniaturization and automation in the electronics industry, where acrylic adhesives are mainly used for hard disk drives and touchscreen displays. For hard disk drives, pressure-sensitive adhesives are used for permanent and cleanly removable labels, filters and seals, as well as for damping and assembly purposes. They are also used for voice coil motor magnet assembly. The polyvinyl acetate and vinyl acetate-ethylene emulsion resin type are also growing at a faster rate during the forecast period.

End-User Industry - Segment Analysis

Building and construction industry held the largest share in the waterborne adhesives market in 2019 and is growing at a CAGR of 6.4%, as waterborne adhesives are used in concrete, carpet laying, drywall lamination, manufactured housing, resilient flooring, ceramic tiles, flooring underlayment, joint cement, pre-finished panels, roofing and wall covering. In addition, the growth in green building construction, coupled with increasing concerns about the quality of construction is accelerating the waterborne adhesives market growth. As waterborne adhesives have properties such as high adhesion properties, low toxicity, high solid content and eco-friendly properties, they are widely used in the food packaging industry. Factors such as online food delivery and innovation and development in the packaging industry are driving waterborne adhesives market growth.

Geography - Segment Analysis

Asia Pacific held the largest share in the waterborne adhesives market in 2019, up to 30%, owning to growing demand from automotive, packaging and building and construction applications. The developing countries such as India, Brazil, and Malaysia are driven by the automotive industry, giving a boost to the waterborne adhesives market.  According to OICA, in 2018, India, Brazil and Malaysia produced 5174645, 2879809, and 564800 i.e., 8%, 5.2%, and 12.2% higher than the previous year. Asia Pacific is also the largest manufacturer of waterborne adhesive, with the majority of manufacturing plants concentrated in China due to raw material supply and lower cost of production. Construction and packaging sectors in India have seen significant growth in recent years due to growing government investments, which in turn drive demand for waterborne adhesives. In addition, shifting customer focus towards flexible packaging could give numerous opportunities for the growth of the waterborne adhesive market in Asia-Pacific.

Drivers – Waterborne Adhesives Market

• Stringent regulations limiting VOC emission.

Waterborne adhesives are made from natural polymers as well as synthetic ones. These are combined mainly with water as a diluent rather than volatile organic solvent, and can also be considered as low VOC adhesive.  Increasing government regulations that restrict VOC emissions are increasing waterborne product demand. Several organizations such as the United States Environmental Protection Agency and the California Air Resources Board are working towards reducing the use of Volatile Organic Compound (VOC) in coatings and adhesive products. Thus, the demand for solvent based will decline, which will influence waterborne adhesives market growth as they are environmentally friendly as well as economical alternative to solvent based adhesives.

Challenges – Waterborne Adhesives Market

·         Complex formulation.

Compared to solvent-based adhesives, the formulation process for waterborne adhesives is highly complex and the final properties depend on the chemical composition of the polymer base used in the formulation. The complex formulation of waterborne adhesives is therefore expected to hinder market growth .

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Waterborne Adhesives Market. In 2019, the market of Waterborne Adhesives Market has been consolidated by the top five players accounting for xx% of the share. Major players in the Waterborne Adhesives market are 3M, Eastman Chemical Company, Henkel AG and Co. KGaA, BASF SE, AdCo (UK) Ltd., Alfa International Corporation, Arkema Group (Bostik SA), Ashland, Avery Dennison Corporation, Benson Polymers Limited, and HB Fuller Company, among others.