TAGS: Acrylic Adhesives Sustainability / Natural Adhesives Waterborne Adhesives
Prescient & Strategic Intelligence (PSI) anticipates that the acrylic adhesives market size which stood at $8,964.1 million in 2021 is expected to advance at a compound annual growth rate of 5.8% during 2021–2030, to reach $14,921.4 million by 2030.
Rising Demand for Eco-friendly Acrylic Adhesives
The growth can be primarily ascribed to the rising demand for eco-friendly and technologically upgraded acrylic adhesives in different sectors. These materials have a wide range of usage in packaging, transportation, woodworking, automotive, and many other sectors. The continuous growth of these industries, increasing penetration of composites in the automotive and aerospace sectors, and replacement of conventional fasteners with these agents are key to the market growth.
Acrylic adherents are an evolving area due to their high performance and ability to be used in diverse industries, from construction and packaging to pharmaceutical. Their extensive use in the electronics sector of the Asia-Pacific region is another major reason for their growing consumption.
Rise in Acrylic Adhesive Sales in the US
Moreover, Europe produces acrylic adhesives in high volumes, while the U.S. has a vast potential to import them. Thus, the U.S. could witness a massive rise in product sales in the near future. Economic performance is projected to rally in Europe and North America, thus allowing for the ramping up of investments in manufacturing and R&D, while China and Japan sustain the current industry expansion. Further, the acrylic adhesives market trends, in terms of the allover consumption, are expected to continue to remain positive in APAC.
Industrial activities were widely hit during the COVID-19 pandemic, as governments around the world had passed movement restrictions and social distancing orders. This led to the shuttering of the manufacturing plants of not only acrylic adhesives but also end-use industries. Moreover, carpenters witnessed a massive reduction in the demand for wooden articles at workplaces and homes, which further drove down the consumption of adhesives.
Water-Based Variants Hold Major Share
Water-based variants dominate the market as they are widely used in medical, construction, paper and packaging, and wood and furniture applications.
The expanding footprint of e-retailers, growth in the pharmaceutical sector, presence of major automotive OEMs, and high demand for sophisticated infrastructure are the key drivers of the acrylic adhesive demand in APAC. Within the region, India is expected to grow with a CAGR of about 7.2% during the forecast period. The government support to construct houses for the low-income population and develop standards for green packaging is set to further drive acrylic adhesive demand.
The European food & beverage industry is now subject to a stringent regulatory framework, to curb GHG emission levels. This factor has resulted in a substantial increase in the investments in bio-based products by regional manufacturers. The growing industrialization rate and booming e-commerce sector are also major driving factors. Water-based acrylic adhesives have wood gluing, product assembly, labeling, laminating, bookbinding, foam fabricating, and many more applications.
Many companies offering water-based acrylic adhesives use the urethane technology to make them suitable for boil-in-bag and hot-fill applications, as primers for the adhesion improvement of inks and extrusion lamination, PLA films and lidding, confectionery and snack packaging, and many more applications. Moreover, owing to their lower emissions, water-based variant demand is expected to grow with the highest CAGR, of about 6.2%, during the forecast period.
Highest Growth in Asia-Pacific Region
The APAC region holds the largest portion of the global market because of a significant increase in building activities, rise in the packaging demand from the developing e-commerce sector, and growth of the food & beverage sector.
Due to the rapid growth in internet access in China and India, the e-commerce packaging demand in these nations has the potential to expand even more quickly. The surging demand for food and beverages is leading to the continuous expansion of the paper packaging and rigid packaging industries in these nations.
In addition, these countries’ construction sectors are projected to expand notably throughout the projection period as a result of the rising number of planned and under-execution projects. For instance, according to plans implemented in February 2021, China aims to have 400 airports for passengers and cargo by 2035, a growth of 150 from 2020. In addition, the government has unveiled plans for the relocation of 250 million people to new megacities during the following ten years.
Similarly, the Indian government's goal of spending $120.5 billion to establish 27 industrial clusters is set to drive industrial construction. Another significant government initiative is the Smart Cities Mission, which aims to rapidly urbanize the nation. The mission received an outlay of INR 6,450 crore in the 2018–2019 budget, as opposed to the INR 6,169 crore allocated in the previous year's budget.
Moreover, international investors have shown a lot of interest in India's building sector. According to the Department for Promotion of Industry and Internal Trade, foreign direct investment (FDI) in the construction sector totaled $25.66 billion from April 2000 to March 2020.
Thus, the Asia-Pacific acrylic adhesives market growth is set to be the fastest, at a CAGR of 6.6%, during the forecast period.
Europe is Key Emerging Market
The acrylic adhesive demand is rising in several major industries in Europe, including furniture, construction, packaging, e-commerce, automotive, and FMCG. Thus, the increasing consumer disposable income and rising e-commerce and corrugated packaging spending in this region are likely to complement the growth.
Germany is the largest market for corrugated packaging materials in Europe. The FMCG and packaging sectors are set to remain the largest consumers of acrylic adhesive products in Germany. The massive influx of migrants in Germany is likely to positively impact the FMCG and packaging sectors. Moreover, the country’s dominance in the automotive sector of the continent is another reason for the high-volume consumption of acrylic adhesives, majorly water-based and hot-melt variants, in the country.
Hence, the European market is set to gather $3,281.5 million by 2030, attributed to the continuous industrialization and product advancements by market players.
Source: Prescient & Strategic Intelligence