Wednesday, 17 Jul 2019

Adhesive Markets: How It Has Changed Over The Past Five Years

The adhesives industry consists of all types of non-metallic chemical compounds that are used for joining elements together. Chemical adhesives are used in almost every industry and therefore, it grips a considerable market share. Some of the most commonly used industry-grade and non-industry grade adhesives are white craft glue, wood glue, super glue/cyanoacrylate adhesive, hot glue/polymer glue, Pressure Sensitive Adhesives (PSA), pray adhesives, fabric adhesives, epoxy, polyurethane, glue sticks, etc.

Developments in the Adhesive Market in the Recent Past:

The modern adhesive market has become quite dynamic and competitive in nature and a variety of factors are responsible for it.  For more information on how adhesive markets have changed in the past five years, visit the website.

  • The global adhesive market is quite competitive and therefore, it has witnessed a number of Mergers and Acquisitions (M&A) since 2015. The top 6 companies only manage to occupy a total of 40 percent of the market share whereas the rest is captured by many mid-sized and small enterprises.
  • The disposable income of individuals has exponentially increased in the emerging economies and therefore, the food and beverage sector has also witnessed higher demands. This has influenced the adhesive market in the packaging sector. Overall, the demand for adhesives in the flexible packaging has witnessed the fastest growth due to rising demands in the food, beverage, and pharmaceutical industries.
  • Rising global environmental concerns have also affected the adhesive market worldwide. Water-based adhesives have emerged as an eco-friendly and low toxic alternative and these are highly popular in European countries. These adhesives use Vinyl Acetate Monomer (VAM), starch, and Dextrin that have a significantly low volatile organic compound emission. These are majorly used in construction, automobile, paper, and packaging industries.

Adhesive Market Overview:

Since adhesives are used in every industry, the market has been growing at a steady pace alongside other industries in both developed and emerging economies. However, the global adhesive market is highly competitive and fragmented as setting up an adhesive business requires less capital investment. Therefore, many regional and global players are involved in it. In addition, the market is also highly diversified as different industries require specific types of adhesives or application.

  • Adhesive Demand by Industry: Adhesive demand can be segmented into PSA applications, laminates, Woodstock, furnishings, automotive, construction, footwear, and DIY adhesives. PSAs occupy the highest market share of approximately 25 percent whereas the packaging industry occupies the second highest market share of 18 percent. The rest of the market share is scattered among other industries.
  • Adhesives Market as per the Technology: In terms of adhesive technology, the market can be segmented into four categories viz. water-based, solvent-based, hot melt and reactive, and others. Water-based adhesives hold a maximum market share of 45 percent whereas the others obtain 27 percent, 17 percent, and 11 percent respectively.
  • Adhesives by Product Type: This is a highly diverse segmentation as there are a wide variety of adhesives available. Acrylic, Polyvinyl Acetate (PVA), polyurethane, styrenic block, epoxy, Ethylene-Vinyl Acetate (EVA), and silicone-based adhesives are the most commonly used adhesives in a variety of industries. Here, acrylic and PVA hold the maximum market share of 35 percent and 29 percent respectively.

All in all, since the adhesive market largely relies on other industries for growth, it will certainly witness substantial expansion in the near future and the reasons are simple. Increased disposable income of individuals, higher demands in the food and beverage industry, and overall global infrastructural developments are drivers for adhesive market growth.