Adhesives Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Adhesives

• The global market for adhesives is less capital intensive in nature and is highly fragmented and competitive, due to the presence of numerous multinational and regional players
• Global adhesives market has been witnessing a series of M&A since 2015, due to its highly fragmented structure. Henkel is the leading player with around one-fourth the market share in 2017

• Automotive, construction, and food packaging will be the major demand drivers for adhesives
• Increasing regulations and low VOC content will drive the demand for water-based adhesives, whereas hot melt adhesives will witness higher growth rates from the packaging industry

Adhesives – Industry Competitive Landscape

• The global market for adhesives and sealants is less capital intensive in nature and is highly fragmented and competitive, due to the presence of numerous multinational and regional players
• Global adhesives market has been witnessing a series of M&A since 2015, due to its highly fragmented structure. Top six companies account for only 40 percent of the global market with the rest 60 percent being highly fragmented with many mid and small-sized manufacturers

Global Packaging Adhesives Market

• The growth of packaging adhesives is mainly due to the growing demand from food and beverages sector, influenced by the rising disposable income. Growth in flexible packaging, paper & board packaging, and rigid packaging segments will drive the demand for packaging adhesives

• Water base and dextrin/starch based adhesives are the widely used adhesives in the packaging industry, which together occupy more than 70 percent of packaging adhesives. These two are the majorly used adhesives in labeling and corrugated boxes applications especially by food and beverages

• Corrugated packaging is expected to be the major end-use applications for packaging adhesives followed by labeling applications

• Adhesives used in flexible packaging have the fastest growth, due to increasing demand from food and beverages and pharma industries

Adhesives – EMEA Demand by Type and Raw Material

• Waterborne is the major adhesives type used in Europe, which occupies more than 65 percent of total demand followed by hot melt and solvent base
• The major reason for the high consumption of water borne adhesives is due to its characteristics like eco friendly, low toxic, high initial adhesion and variable formulation properties. The major raw materials used in the production of water born adhesives are VAM, Starch, and Dextrin, which are environment friendly with very low volatile organic compounds emission. It is highly used in paper and packaging industry, construction, automobile and shoe industries
• Followed by that, hot melt occupies the major share of 18 percent, which are highly used in industries, such as hygiene, wood, paper packaging industry, etc.
• The demand for solvent base adhesives is decreasing in recent times, due to its high VOC, which are not preferred in various industries
• Acrylic based adhesives occupy the major market share of 35 percent, followed by vinyl based adhesives with around 30 percent