TAGS: Sustainability / Natural Adhesives Waterborne Adhesives Acrylic Adhesives
IndustryARC anticipates that the water-based flocking adhesive market size is estimated to reach $800 million by 2030, growing at a CAGR of 7.2% during the forecast period 2024-2030. The rising demand for water-based adhesives is owing to their eco-friendly and safe properties. The automotive industry is experiencing growing demand for interior components such as dashboards, steering wheels and seats are propelling the water-based flocking adhesive market growth.
Additionally, the construction industry is experiencing growing demand for materials such as concrete, wood and metal which is creating substantial growth opportunities for the water-based flocking adhesive market. These factors positively influence the water-based flocking adhesive industry outlook during the forecast period.
COVID-19/Ukraine Crisis - Impact
The COVID-19 pandemic has caused a decrease in demand for products that use water-based flocking adhesives, such as automotive parts, furniture and textiles. This led to a decline in sales for water-based flocking adhesive manufacturers. Additionally, the pandemic also disrupted the supply chain, making it more difficult for manufacturers to obtain the raw materials such as polyurethanes and polyester needed to produce water-based flocking adhesives. This also contributed to the decline in sales for water-based flocking adhesive manufacturers.
One of the most significant impacts of the Ukraine crisis has been on supply chains. Russia and Ukraine are major exporters of raw materials used in the production of water-based flocking adhesive, such as polyvinyl alcohol (PVA) and acrylics. The conflict has disrupted these supply chains, leading to higher prices for raw materials and longer lead times for orders. The Ukraine crisis has also led to higher prices for energy. Russia is a major exporter of oil and gas, and the conflict has led to higher prices for these commodities. This has increased the cost of production for water-based flocking adhesive, which has put upward pressure on prices.
Fastest Growth Asia-Pacific Region
Geographically, in the global water-based flocking adhesive market share, Asia Pacific is analyzed to grow with the highest CAGR of 8.8% during the forecast period 2024-2030. The growth in Asia Pacific is attributed to the increasing demand for flocked molded parts and surface applications in the automotive, furniture and textiles industries.
Manufacturers are actively developing new products with enhanced performance, such as improved bonding strength, chemical resistance and temperature resistance. Additionally, the region's rapid economic growth is fueling higher consumer spending on goods and services, contributing to the market's expansion in Asia Pacific.
Acrylic to Register the Fastest Growth
In the water-based flocking adhesive market analysis, the acrylic segment is estimated to grow with the highest CAGR of 8.5% during the forecast period 2024-2030 owing to the increasing demand for durable and lightweight materials, the expanding use of acrylic in the healthcare industry and the growing popularity of acrylic paints.
Acrylic water-based flocking adhesives are preferred over solvent-based counterparts due to their lower environmental impact. Water-based formulations are generally considered more eco-friendly as they emit fewer volatile organic compounds (VOCs), contributing to improved air quality and reduced environmental pollution.
Flocking of Formed Parts is Leading the Market
The flocking of formed parts held the largest market share of 35.1% in 2023. The demand for flocked formed parts in automotive, furniture, and electronics industries is rising due to their applications in dashboards, steering wheels, seats, furniture and electronics. This increasing demand is fueling the need for flocking of formed parts.
The market is also witnessing a growing emphasis on sustainability, with water-based flocking adhesives gaining popularity for their eco-friendly nature, lacking volatile organic compounds (VOCs) that contribute to air pollution. This sustainability focus is driving the demand for water-based flocking adhesives.
The growing demand for water-based flocking adhesives is being driven by their eco-friendly and safe characteristics. As awareness of environmental concerns and safety regulations increases, industries are shifting towards sustainable adhesive solutions.
Water-based adhesives offer several advantages, including low VOC emissions, reduced toxicity, and easy clean-up. These advantages make water-based adhesives a preferred choice, which is consequently fueling the growth of the water-based flocking adhesive market.
Rising Demand for Automotive Interior Components
The automotive sector is experiencing a surge in demand for high-quality interior features like dashboards, steering wheels, and seats. Water-based flocking adhesives play a crucial role in enhancing the aesthetics, texture, and comfort of these components. Their ability to provide a velvety or textured surface finish makes them an ideal choice for automotive interior applications. This growing demand for interior components in the automotive industry is a significant factor propelling the growth of the water-based flocking adhesive market.
The water-based flocking adhesive market is facing growth hindrances due to the high cost of raw materials. The primary raw materials used in the production of water-based flocking adhesives are water, resins, and solvents. The prices of these raw materials have been steadily increasing in recent years due to factors such as increased demand, supply disruptions, and environmental regulations. The high cost of raw materials poses several challenges for the water-based flocking adhesive market.
Source: IndustryARC