TAGS: Sustainability / Natural Adhesives Waterborne Adhesives
Future Market Insights (FMI) anticipates that the global laminating adhesives market size reached a valuation of US$ 3.10 Bn in 2021 and is further set to touch US$ 3.27 Bn in 2022. However, with rising applications of laminating adhesives across diverse end use verticals like packaging, automotive, food & beverages etc., the overall demand for lamination adhesives is slated to grow at a moderate CAGR of 5.8% between 2022 and 2027, totaling over US$ 4.33 Bn by the end of 2027.
Demand from Packaging Industries
Laminating adhesives have become ideal solutions for producing films with new functions by laminating different films. They are being increasingly used in a number of packaging applications that require strong bonding. Growing demand for flexible packaging across various industries is expected to create substantial demand for laminating adhesives during the forecast period.
Similarly, rising production and sales of packaged foods, automotives, medical devices, electronic components etc. across both developed and developing countries is playing a key role expanding the global laminating adhesives market size. According to the United States Census Bureau, retail sales across the country reached 5,570 billion in 2020. This rise in retail sales will continue to boost the growth of laminating adhesives.
By product type, the water-based laminating adhesives segment currently dominates the global market and is forecast to account for nearly 90% of laminating adhesives sales through 2027. These adhesives are preferred due to their ecofriendly and cost-efficient nature. Rising sales of water based laminating adhesives due to growing environmental concerns and implementation of stringent regulations adhesives will eventually expand laminating adhesives market size during the forecast period.
Asia Pacific to Remain at the Epicenter
Regionally, Asia Pacific will continue to remain at the epicenter of laminating adhesives market growth, accounting for over 49.2% of the value share by 2022. Rapid growth of end-use verticals, increasing consumer spending, and rapid growth of flexible plastic packaging market are some of the factors guiding the growth of laminating adhesives market in the region.
Laminating adhesives market is expected to witness a growth rate of 6.1% during the first half of 2022, however the market was projected to witness growth outlook of 5.9% during the same time frame. Increment of 20 bps in the growth rate is attributed to expanding food and medical industries in both emerging and developed nations.
Key Application: Food Packaging
Food packaging to remain key application for laminating adhesives, with significant growth in food and beverage industry and packaged products to create substantial growth opportunities for the market. Further significant rise in the e-commerce business to fuel the growth trajectory of the market.
To comply with the strict environmental laws, major players in the global laminating adhesive market are concentrating on producing unique products with low or no VOC emissions are key recent trends witnessed in the market. Further the demand outlook to remain highly uneven across regions, with India, ASEAN and China to witness a higher sales outlook as compare to the developed countries.
Despite being a significant growth outlook, the market is further subjected to certain challenges, one of the difficulties facing the laminating adhesives market is the health risks provided by the production of primary aromatic amines (PAA).
PAAs may form if the adhesives are not fully dried before the laminate is filled with food. Although, with processing precautions, the laminating adhesives provide certain advantages such as less VOC emission and high wettability, which would bolster the market growth.
2013-2021 Laminating Adhesives Market Outlook in Comparison to 2022-2027 Growth Forecast
The global laminating adhesives market is forecast to grow at a steady CAGR of 5.8% between 2022 and 2027, in comparison to 4.7% CAGR registered from 2013 and 2021. Robust growth of laminating adhesives market is attributed to the rapid growth of flexible packaging industry, growing demand for eco-friendly adhesives, expansion of medical packaging market, and increasing adoption of laminating adhesives across various end-use industries such as automotive, food & beverages, and medical devices.
Laminating adhesives are liquids or thin layers of films used for bonding different substrates such as metal, paper, plastics etc. They improve the performance of the substrate by providing excellent chemical and heat protection and dimensional stability.
In recent years, laminating adhesives have gained wider popularity across various industries due to their ecofriendly and durable nature. They are being increasingly used in the packaging of food products, medicines as well as in laminating of medical devices automotive parts and other surgical equipment. Rising production and sales of these products will therefore continue to spur the growth of laminating adhesives market during the forecast period.
Similarly, implementation of stringent environmental regulations coupled with surging demand for miniaturized electronic products is expected to encourage the adoption of water based laminating adhesives during the forthcoming years.
Country-wise Analysis
Sales of laminating adhesives rising across the U.S.
Rising preference for packaged food products to push sales of laminating adhesives in the U.S. As per FMI, the U.S. is projected to do7minate the North America laminating adhesives market during the assessment period, owing to rising consumption of packaged food products, expansion of medical device packaging market, and presence of leading market players.
In recent years, there has been a rapid surge in the demand for ready-to-eat food and beverage products across the U.S. due to fast lifestyle, increasing disposable income, and increase in the number of fast-food outlets. This in turn, is creating space for the growth of laminating adhesives market.
Companies often use advanced packaging solutions such as Dow laminating adhesive products for packaging dry fruits, biscuits, cookies, beverages, medical devices, industrial equipment, and numerous other products due to their durable and ecofriendly nature.
A revenue share of 20.8% has been predicted by FMI for the North America market led by the U.S. in 2022.
Demand Outlook for the Germany Laminating Adhesives Market
Rising demand from automotive sector augmenting market growth in Germany According to Future Market Insights, the laminating adhesives market in Germany is expected to register robust growth during the forecast period between 2022 and 2027, owing to the rising production and sales of luxury vehicles, surging demand for automotive laminating adhesives, and expansion of optically clear adhesives market. According to a report published by the French Institute of International Relations, in 2019, car manufacturers based in Germany produced around 70% to 85% of premium cars.
Laminating adhesives find application in the automotive industry where they are used in interiors and on the exterior body of cars to provide a shiny finish to luxury cars. Thus, increasing production and sales of premium cars is expected to boost the growth of laminating adhesives market during the forecast period.
Based on the aforementioned factors, the European laminating adhesives market spearheaded by Germany is anticipated to account for over 20.2% of the global laminating adhesives sales by 2022.
Factors are Driving Growth in the India Laminating Adhesives Market
Rising demand for packaged food products and medical devices favoring growth in India. With growing popularity of laminating adhesives in packaging applications and expansion of end-use verticals, India is forecast to emerge as a highly lucrative market for laminating adhesives during the forecast period. Emerging trends show that Asia Pacific which accounts for around 49.2% of the revenue share will be dominated by India in 2022.
Rising demand for packaged food products along with rapid expansion of industrial electronics packaging market and medical devices industry across India is likely to generate lucrative opportunities for the manufactures of laminating adhesives during the forecast period.
The flourishing healthcare sector across the country is creating demand for hospital equipment, pouches, medical devices, respirators, etc. This in turn is expected to boost the sales of high performance and flexible packaging solutions like laminating adhesives during the forthcoming years.
Category-wise Insights
Why Water-based Laminating Adhesives More Preferred?
Rising inclination towards low voc emission adhesives encouraging the adoption of water based laminating adhesives. Based on product type, the global laminating adhesive market is segmented into solvent based laminating adhesives and water based laminating adhesives. Among these, water based laminating adhesives are often preferred over solvent-based ones on account of their various benefits including ecofriendly nature, high wettability, less toxicity, and cost efficiency.
Factors such as rapid expansion of water based laminating adhesives market, implementation of stringent regulations and laws pertaining to VOC emission, and rising awareness among consumers about the benefits of waster based laminating adhesives will favor the growth water-based segment during the forecast period.
FMI has predicted water-based laminating adhesives to account for over 90% of the overall sales in the global laminating adhesives market through 2027.
Most Lucrative Application for Laminating Adhesives
Demand for laminating adhesives to remain high in food packaging industry. As per FMI, food packaging segment is expected to account for a significant share of the global laminating adhesives market during the forecast period between 2022 and 2027. Rapid growth of frozen food packaging market, favorable regulations on the use of laminating adhesives in food packaging, and fast-track approvals from regulatory bodies such as the Food and Drug Administration (FDA) are some of the major factors augmenting the growth of this segment.
Furthermore, increasing usage of water based laminating adhesive in the food packaging industry due to its various advantages such as high wettability and less VOC emission will further aid in the growth of this segment.
Competitive Landscape
Leading players operating in the global laminating adhesive market are focusing on developing novel products with less or zero VOC emission to cope with the stringent environmental regulations. Besides this, they have adopted growth strategies like partnerships, acquisitions, mergers, collaborations, and adoption of online sales platforms to expand their global footprint. For instance, in December 2020, DIC Corporation developed DICRRY LX-RP, a new series of ecofriendly dry laminating adhesives called for flexible packaging made from recovered PET bottles. This will help the company to expand their customer base.
Source: Future Market Insights