TAGS: Polyurethane Adhesives Acrylic Adhesives Epoxy Adhesives
Grand View Research (GVR) anticipates that global flock adhesives market, valued at USD 1.98 billion in 2019, to reach USD 2.87 billion by 2027, at a CAGR of 4.7 percent, during the forecast period. Increasing demand from the textile and automotive sectors is the prominent factor in driving the market growth.
Restricted Supply of Raw Materials due to COVID-19
Markets are increasingly adopting flock adhesives in the manufacturing of thermal insulation, garments, furniture, automotive interior, and other mechanical tools, which is likely to open new revenue pockets for industry growth. However, the restricted supply of raw materials and considerably weak demand from end-use industries such as transportation in 2020 owing to the COVID-19 pandemic is likely to cause a significant decline in global demand for the year 2020.
The U.S. dominated the North American market owing to the presence of a significant number of textile manufacturers and large automotive production bases. The U.S. flock adhesives market is predicted to expand at a CAGR of 3.8 percent from 2020 to 2027, owing to the rapid growth of textile manufacturing in the country.
Automotive Industries Hit by COVID-19 Pandemic
According to the National Council of Textile Organizations (NCTO), the U.S. textiles and apparel industry was valued at USD 75.8 billion in 2019. Further, as per the estimates of NTCO, the U.S. is the second-largest exporter of textile-related goods in the globe. Apparel, textile, and fiber exports were combined were valued at USD 29.1 billion in 2019.
The automotive industry in the U.S. has been hit by factory closures, collapse in demand, and supply chain disruption in 2020. This is likely to significantly affect the growth of the flock adhesives market in the short term. In the second half of 2020, automakers are likely to restart production with implementation of certain protocols as advised by the local, federal as well as international bodies.
Polyurethane Adhesives – Largest Market Share
Polyurethane adhesives led the flock adhesives market and accounted for more than 45.0 percent share of the global revenue in 2019. Properties of polyurethanes such as good UV resistance, superior chemical resistance, toughness, durability, and exceptional abrasion resistance make it the most widely used product for flocking.
Acrylic adhesives is estimated to witness the fastest CAGR of 5.1 percent, in terms of revenue, from 2020 to 2027. The durability of the product coupled with its ability to bond to a variety of substrates is expected to drive the segment growth over the forecast period.
Epoxy adhesives are high strength and durable as epoxy chemistry has a special place in adhesives owing to its strength and versatile nature. Epoxy-based products adhere to a wide variety of materials and their superior properties are dependent on the nature of cross-linking polymers.
Textile Industry – Major Share of Global Revenue
Textiles led the market and accounted for more than 37.0 percent share of the global revenue in 2019. In the textile industry, the product is used to enhance the feel of the garment by improving the smoothness of the fabric. Thus, rising demand for garments providing colorful and vibrant appearances is expected to propel the segment growth over the coming years.
In the automotive industry, the product forms a seal around automotive windows and thereby aids in thermal insulation. It is also used for noise reduction between automotive components. It is also used for bonding applications, thereby reducing the weight of an automobile. The rising demand for lightweight automobiles is likely to benefit product demand in the long term.
Paper and packaging are expected to see strong demand. Flocking is mainly used for luxury packaging for jewelry among other applications. The rising demand for jewelry in emerging economies of Asia Pacific is likely to aid to the luxury packaging industry, which is likely to stimulate the demand for flock adhesives.
Highest Growth in Asia Pacific
Asia Pacific dominated the market and accounted for more than 41 percent in 2019. Rising demand from the large textile industry especially in China and India coupled with steady demand from packaging and automotive manufacturers present in the region is expected to drive the regional growth over the coming years.
North America is estimated to expand at a CAGR of 4.1 percent, in terms of revenue from 2020 to 2027. The implementation of the United States-Mexico-Canada Agreement (USMCA) is expected to encourage the domestic manufacturing of textiles in Mexico and Canada over the coming years. This in turn is likely to significantly drive market growth in North America.
Europe was the second-largest market in 2019. According to the European Commission; the textile and clothing sector of Europe plays an important role in the European manufacturing industry and is among the leaders in the world. The European textile and clothing industry generated a turnover of roughly USD 181 billion in 2019. This represents a huge opportunity for the flock adhesive industry.
Source: Grand View Research