TAGS: Waterborne Adhesives Sealants Hot-melt Adhesives
Data Bridge Market Research (DBMR) anticipates that the water-based adhesive market is expected to reach USD 87.74 billion by 2030, which is USD 37.26 billion in 2022, registering a CAGR of 11.30% during the forecast period of 2023 to 2030.
Market Drivers
High Usage of Water-Based Adhesive in Packaging Adhesive Tapes
Widespread use of water-based adhesives in applications including heavy-duty carton sealing, gift wrapping, and decoration, these adhesives are in high demand. These adhesives are used for the production of tapes and labels.
Packaging for medicine delivery systems, shipping packaging for building materials, packaging for automotive and logistics, and packaging for consumer and industrial goods contribute to the market's growth. Therefore, the packaging adhesive tapes market is one of the major factor for the growth of market.
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Surging Production and Sales of Chemical Goods
The surging sells and production of chemical goods is expected to increase the demand for water-based adhesive and drive the market growth rate during the forecast period. Huntsman Corporation was purchased by Indian adhesives manufacturer Pidilite Industries for $ 28.55 billion in November 2020. With this acquisition, Araldite will strengthen Pidilite Industries' existing robust portfolio of adhesives and sealants and add to its line of retail products. American company Huntsman Corporation produces and sells chemical goods to both industrial and retail clients.
Opportunities
Increasing adoption of internet of Things (IoT) technology
In order to get real-time data and locate gaps in the manufacturing process, many adhesive firms are implementing Internet of Things (IoT) technology to connect machinery and smart devices. Plant managers and senior management process, analyse, and interpret the data to improve quality and reach ideal production levels.
For instance, smart systems provide data on the operation and performance of chemical reactors with embedded analytics capabilities to alert plant managers and operators of potential machine failures. Examples of significant businesses implementing IoT include The Dow Chemical Company, BASF SE and H.B. Fuller. Therefore, increasing adoption of internet of Things (IoT) technology is expected to create numerous opportunities for the growth of the market during the forecast period.
Restraints/ Challenge
Slower drying nature of water-based adhesives
The main problems with water-based adhesives are their slower drying tendency at low temperatures. The drying process requires a lot of time and could cause a delay in the work process because water is so volatile. For instance, Henkel and other businesses produce Technomelt adhesives, which are hot melt adhesives utilized in the furniture and automobile industries because they dry quickly. As a result of this, the development of water-based adhesives is being constrained by their shorter drying period.
Related Read: Water-based Adhesives: Achieving High Performance with Rheology Modifiers
Recent Development
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In 2021, H.B. Fuller, a well-known American manufacturer of industrial adhesives, introduced two new compostable adhesive products that sell products under the FlextraTM Evolution brand worldwide. These products deliver many remarkable advantages regarding sustainability objectives and manufacturer benefits.
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In 2021, according to the statement, Innovative Chemical Products, a specialized platform firm in the sealants, coatings, adhesives and elastomers (CASE) sector, will purchase Choice Adhesives, a pioneer in offering customized adhesive solutions for several sectors.
Highest Growth in Asia Pacific Region
Asia-Pacific is expected to dominate the water-based adhesive market in terms of revenue growth and market share because of the fastest-growing consumer markets of India, China and other Asia-Pacific countries. This large population is expected to become a progressively important driver for industries such as building and construction, paper and packaging, woodworking and automotive and transportation in this region.
North America is expected to be the fastest developing region during the forecast period of 2023-2030 owing to the increasing need for non-residential development and growing consumer spending on home furnishings in this region.
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Source: Data Bridge Market Research (DBMR)