TAGS: Sealants Acrylic Adhesives
Grand View Research (GVR) has anticipated that the global sealing and strapping packaging tapes market to reach USD 27.1 Bn by 2027, at a CAGR of 4.8 percent, during the forecast period.
The exponentially rising demand for sealing and strapping packaging tapes for securing shipments in developing economies is projected to drive the overall market growth.
E-commerce sector is witnessing rapid advancements supported by the emergence of the digital economy across the globe. In addition, the existence of a larger set of the untapped potential market is expected to positively influence the growth of the e-commerce sector. This growth is anticipated to drive the demand for packaging tapes for e-commerce shipments.
Meeting Demands of E-commerce Sector
The rising e-commerce sector has increased the complexity in the supply chain for direct channels. Thus, indirect to the consumer delivery channel, the e-commerce shipment is expected to be handled around 15 times more than the standard distribution channel. Hence, it will lead to a demand for secondary corrugated packaging, thereby expanding the scope for taping solutions.
The packaging is emerging as one of the most effective marketing channels for brand owners. This has further created a demand for secondary packages from the brand owners to carry their image to the home and not only the retail shops. This factor is expected to drive the demand for sealing and strapping packaging materials in the retail sector over the forecast period.
Advancements in digital printing coupled with a growing appetite for adoption of printing processes and systems in tapes manufacturing is forming tapes into one of the major marketing components for the brand owners. Thus, the added functionality in strapping and sealing packaging tapes is expected to drive its demand in future.
Top players are expanding their international structures in its retail consumer business, with a focus on the Asia Pacific and European economies, to supply their partners with internationally effective and market-driven product lines. In addition, they are involved in acquisitions in relevant markets, thereby improving their growth dynamics.
Growth in Polypropylene and Paper Tapes
The polypropylene tapes segment held the largest share of around 40 percent the sealing and strapping packaging tapes market in 2019. It is likely to expand at a CAGR of 4.1 perecnt in terms of revenue, over the forecast period. Superior impact and abrasion resistance offered by the material is expected to lead to its usage in packaging for complex supply chains of direct sales channels.
In addition, polypropylene packaging tapes also offer superior water resistance and high flexibility. The development of newer products with additional features such as high aging and UV resistance coupled with suitability for manual and mechanical processing is expected to positively influence the demand for polypropylene tapes in the next eight years.
The paper tapes segment is also one of the most popular categories in the market that is likely to expand at a CAGR of 4.5 percent from 2020 to 2027. Exceptional flexibility, lightweight, transparency, and barrier to oxygen offered by the paper tapes were the major factors driving its demand in the overall market.
Industry participants are also involved in the development of advanced materials for the manufacturing of taping solutions. These materials are expected to offer superior properties such as low noise unwinding, high initial tack coupled with a high tear, and shock resistance, which in turn is expected to positively, influence its growth opportunities over the forecast period.
Increased Demands for Rubber-based and Acrylic Adhesive Tapes
Based on adhesive, the market for sealing and strapping packaging tapes is segmented into acrylic, rubber-based, and silicone adhesives. Rubber-based adhesive segment held the largest volume share of more than 45percent in 2019.These adhesives offer clean removal and balanced adhesion on the applied surfaces. The segment is anticipated to witness steady demand due to high adhesive strength offered by the adhesive solution. In addition, it also offers stain resistance to various surfaces. The high shear strength offered by rubber-based adhesive also enable effective reinforcement of heavy corrugated boxed thereby increasing it utility in the packaging industry.
Acrylic adhesives are also one of the most popular categories and is expected to register a CAGR of 4.9 percent over the forecast period. This type of adhesives offers several advantages such as excellent waterproofing and adhesion, which are expected drive its demand over the forecast period. It also finds application across broader range of industries, which in turn is also expected to contribute to the segment growth. The acrylic based adhesive tapes are broadly used in automotive and medical application owing to the exceptional adhesion properties offered by the product.
Application Insights of Sealing and Strapping Packaging Tapes
Strapping and bundling application dominated the overall with a market share of around 60 percent market in terms of revenue and is expected to witness a CAGR of 4.6 percent over the forecast period. The strapping tapes are broadly used for bundling or palletizing loose or packaged goods for transportation.
Strong tapes with sturdy backing allow minimal elongation when exposed to mechanical or environment stress, thereby preventing consignments from slipping, moving and shifting. This in turn reduces the transport damage of freight carriers and enhances the safety for personnel handling the transportation unit.
Carton sealing and inner packaging application is expected to witness the fastest growth over the forecast period with a CAGR of 5.1 percent from 2020 to 2027. The sealing tapes offer high utility in securing shipments as well as reinforcing carton closures, which in turn is expected to boost its market growth in the next eight years.
In addition, sealing tapes offer high utility in wide variety of usages such as sealing smaller boxes, bags and cans. In addition, they are used for packaging single items, food and small industrial parts easily, securely and hygienically. Thus, the emerging ‘home delivery service’ trend is expected to push the demand for these tapes in carton sealing and inner packaging applications.
Highest Growth in Asia Pacific Due to COVID-19
Asia Pacific held the largest volume share of more than 45 percent in 2019 and is expected to witness a rapid CAGR of 7.0 percent over the forecast period. This growth is supplemented by rising penetration of e-commerce retail in emerging economies such as India and Indonesia. However, the contingency regarding the manufacturing trends in the region post COVID-19 pandemic is expected to negatively affect the overall market growth.
Lockdown and social distancing strategies employed by the several economies in Asia Pacific to curb the COVID-19 spread has boosted the direct channel sales in the region. Thus, the rising preference for door delivery services is expected to benefit the demand for sealing and strapping packaging components in the current scenario.
Asia Pacific is also the hub for textile manufacturing, thus the largest textile exporter in the world. The growth of the outdoor and sports apparel industry backed by the rising health awareness among consumers and heightening fitness activities is expected to bolster the textile sector in the region, thereby boosting the demand for taping solutions for textile shipments.
North America and Europe are the two regions most affected by COVID-19 pandemic, thereby putting several economic activities at a halt. However, the rising demand for healthcare supplies and personnel protective equipment in these regions to curb the spread is expected to benefit the demand for packaging tape to secure these healthcare shipments.
Source: Grand View Research