WATERBORNE ADHESIVES MARKET ANALYSIS

Regional Analysis

Asia Pacific is projected to be the largest market for waterborne adhesives over the forecast period. This can be attributed to high growth potential of emerging economies of China and India. According to the Institution of Civil Engineers, China and India were the largest and fourth largest markets for construction, in 2017. India is projected to overtake Japan and become the third largest construction market by 2025. Waterborne adhesives are commonly employed in construction applications such as roofing, flooring, and binding of wood components in buildings among others. This coupled with a growing retail industry has bolstered use of waterborne adhesives in packaging applications.

North America is expected to be the second largest market for waterborne adhesives over the forecast period. This is primarily due to high demand in the U.S., which is the world’s second largest construction market. According to U.S. Department of Commerce, the construction market in the U.S. grew by 2.4% in 2017 over the previous year. This growth trend is expected to continue over the forecast period, due to high government infrastructure spending policies. The redevelopment and/or development of public infrastructure such as airports, rail stations, pipelines among others across the country will boost growth of the market for waterborne adhesives. Also, strict regulations and recommendations by the government regulatory authority, U.S. Environmental Protection Agency has boosted the utilization of waterborne adhesives in the country. VOC content in adhesives, in most applications must be below 850g/liter according to EPA regulations. Also, imported products, which utilize adhesives also have to comply with the local regulations. Hence, strict regulations in the U.S. has led to exporting countries adopting waterborne adhesives in favor of solvent borne adhesives.