PACKAGING ADHESIVES MARKET ANALYSIS

Adhesives are used in packaging applications such as corrugated box construction, lamination of printed sheets, and production of industrial tubes, among others.

Global packaging adhesives market was valued at US$ 7.57 Bn in 2021 in terms of revenue, exhibiting a CAGR of 6.04 % during the forecast period (2022 to 2030).

Drivers

High demand for packaging in food applications:

Packaging adhesives have rising demand in the food industry. The types of packaging such as flexible, rigid and semi-rigid packaging can be extensively used in the food industry. Packaging plays a crucial role here in the packaging of frozen food, meat, poultry and seafood, ready meals, dairy products and many others. Adhesives are utilized to keep the packaging in a place and closed. They create a good bond between the two surfaces which helps in keeping the food fresh for a longer period of time. Thus, the surge in demand from the food industry is boosting the packaging adhesive market growth. According to the India Brand Equity Foundation (IBEF), the packaging industry in India is expected to reach US$ 204.81 billion by 2025, with food processing being the largest packaging consumer. With the growth in the food processing sector, the demand for packaging adhesives is expected to surge in near future. Thus, the high demand for packaging in food packaging is propelling the growth and is expected to account for a significant share of the packaging adhesives market size.

Growth in the personal care and cosmetic industry:

Currently, the cosmetic and personal care industry is growing significantly with the consumer inclination toward self-care and a surge in disposable income. These products are mainly available in the health and beauty departments of drug and department stores. Major products such as shampoo, gels, deodorants and other make-up products are mainly identified due to their attractive packaging. Moreover, the availability of these products on e-commerce platform further demand packaging solutions. Thus, the growth in demand for packaging boosts the need for packaging adhesives. As per the Personal Care Association of Europe, in 2020, skincare products with a valuation of US$ 23.74 billion value, held the maximum share of the European cosmetics market in major countries like Germany, France, the U.K., Spain and Italy. Thus, the growth in the personal care and cosmetic industry driving the packaging adhesives market.

COVID-19 pandemic has substantially reduced the demand in the market, curtailing the growth opportunities in the market. The stagnant businesses across different industries is expected to inversely influence market expansion. With nations such as China and India that hold major market share, the market in the Asia Pacific is expected to progress at a rapid pace in the coming years.

Figure 1. Global Packaging Adhesives Market Value Share (%), By Region, 2021

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Market Restraints

Disadvantages associated with the use of packaging adhesives:

The demand for packaging adhesives is increasing with the surge in demand for flexible, rigid and semi-rigid packaging in a wide range of applications. The companies are also involved in the production of environmentally friendly adhesives. However, these adhesives are subjected to a few disadvantages which may impact their demand. Few types of adhesives stay on the surface of packaging and end up creating a bond line, reducing the aesthetic appeal of the product. The adhesive that bonds too quickly need to be applied correctly the first time otherwise hamper the look of the product packaging. The selection of suitable adhesives is important considering the weather condition. Thus, the aforementioned factors may hamper the market growth.

Market Trends

Flexible Packaging Application to Witness the Highest Growth Rate

Flexible packaging is growing at an impressive rate, driven by consumer preferences shifting toward new attractive packages, ease of use, sustainability, and conscientious environmental ideals.

Laminating adhesives for flexible packaging are available in a variety of technologies, viscosities, and solids concentrations. There are four basic categories of laminating adhesives that are commonly used. These are waterborne, solvent-based, reactive 100% solid (solventless) liquid, and hot melt.

Solvent-based adhesives used in flexible packaging are generally two-component polyurethane laminating adhesives. These are designed for use in the dry lamination process.

Additionally, flexible packaging is also the biggest application type for VAE adhesives. Another large category is laminating applications due to their flexibility, moisture resistance, and superior substrate adhesion.

With the growing population in countries such as the U.S., China, and India, the requirement for food is increasing, thus resulting in increased demand for flexible packaging worldwide.​

Asia Pacific to Dominate the Market

Asia Pacific accounts for the highest share of the global packaging adhesives market currently owing to the high demand from countries like China, Japan, India, etc.

Figure 2. Global Packaging Adhesives Market value Share (%), By Technology, 2021

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 Recent Developments

• In May 2022, Henkel launched a new RE range of adhesives and coatings which are specifically designed for recycling and enable the creation of sustainable flexible packaging at the design phase.
• In February 2022, Arkema announced the acquisition of Ashland Inc’s performance adhesives business. Ashland provides pressure-sensitive adhesive for decorative and protection purposes. The company offers a wide range of adhesives for flexible packaging.
• In December 2021, Arkema announced the acquisition of Permoseal in South Africa, one of the major players in adhesive solutions for packaging, woodworking and construction. This would help the company to expand its presence in South Africa.

Competitive Section

Major players operating in the global packaging adhesives market include Henkel AG & Company, KGaA, 3M Company, Paramelt B.V., H.B. Fuller Company, Bostik SA, Avery Dennison Corporation, Sika AG, Wacker Chemie AG, Ashland Inc., Dymax Corporation, DowDuPont Inc., and Huntsman Corporation.