April 12, 2024

The Global Packaging Adhesives Market is Primed to Grow owing to Innovations in Green Adhesive Technologies

The packaging adhesives market is an integral part of the packaging industry. Packaging adhesives are used for bonding different packaging materials such as cartons, boxes, tapes, and labels. They help seal packaging and render it sturdy and durable to protect products during transportation and storage. Water-based adhesives are currently gaining traction among manufacturers and brands owing to their environment-friendly composition.

The global packaging adhesives market is estimated to be valued at US$ 9.81 billion in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period from 2024 to 2031.

The market growth can be attributed to the rise in demand for packaged foods and beverages coupled with the increasing penetration of online grocery shopping. In addition, shifting consumer preferences towards sustainable product packaging driven by rising environmental consciousness is fueling innovations in green adhesive technologies.

Key Takeaways

Key players operating in The Packaging Adhesives Market are Solvay, Sakai Chemical Industry, Quimicos Aragonesas, Jinyan Strontium Industry, Joyieng Chemical, Hongkong XinRunDe Chemicals, Huaqi Fine Chemical, Barium & Chemicals, American Elements, and ABASSCO.

The packaging adhesives market provides lucrative opportunities for players engaged in R&D of bio-based and water-based adhesive formulations. Manufacturers are investing in the development of adhesive solutions compatible with recyclable packaging materials to cater to the demands of sustainable packaging.

Technological advancements such as engineered hot melt polyolefin and polyurethane adhesive systems have enhanced product performance characteristics including bond strength and reliability. Development of adhesive applications for active and intelligent packaging formats will further augment market growth.

Market Drivers
Growth of the e-commerce sector: Rising internet and smartphone penetration has boosted online shopping, driving the demand for effective packaging adhesives for securing products during transit.

Focus on sustainable packaging: Regulatory push for green packaging along with evolving consumer preferences is propelling the replacement of conventional adhesives with environment-friendly alternatives.

Current challenges in the Packaging Adhesives Market:
The packaging adhesives market is facing challenges due to rising environmental concerns globally. Strict government regulations regarding the use of toxic solvent-based adhesives are compelling manufacturers to develop sustainable and eco-friendly product offerings. Water-based and hot melt adhesives emit less volatile organic compounds (VOCs) compared to solvent-based variants but have their own production and application challenges. Research on bio-based resins and additives is underway to make adhesive formulations more sustainable without compromising on performance. Apart from this, fluctuating raw material prices due to geopolitical issues and supply chain disruptions are increasing the input costs for manufacturers.

SWOT Analysis
Strength: Packaging adhesives provide excellent bonding strength and durability for various substrates. Water-based and hot melt variants have lower environmental footprint.
Weakness: Development of sustainable formulations without sacrificing attributes is expensive and time-consuming. Adhesion failures can lead to recalls and losses.
Opportunity: Growing e-commerce sector and demand for light-weight packaging offers new areas of application. Bio-based raw materials present opportunities for innovation.
Threats: stringent environmental regulations will make obsolete many existing product lines. Economic slowdowns can negatively impact packaging consumption.

The United States and European markets account for over 60% of the global packaging adhesives consumption, primarily driven by food and beverage packaging. North America dominates due to high per capita food consumption and packaged food sales. China and other Asian countries are the fastest growing regional markets attributable to rising exports, urbanization, and focus on food safety. South East Asian countries showcase lucrative prospects for water-based variants used in packaging flexible films and corrugated boxes.

The packaging adhesives market in the Asia Pacific region is projected to grow at the fastest rate during the forecast period. This is attributed to rapid industrialization, rising disposable incomes, expanding packaging industry and population growth in the region’s emerging economies such as China and India. Additionally, Asia Pacific’s emerging position as the export hub for numerous end-use industries entails higher reliance on packaging of finished goods, thereby driving the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it