Global Adhesives market grew at a CAGR of around 5.0% between 2015 and 2020 and is projected to witness remarkable growth during the forecast period fueled by the rising consumption of long-term bonding agents across versatile sectors such as automotive, packaging and consumer goods backed by sustainable industrialization and fostering innovation sectors. With the emergence of modern lightweight designs in the automotive industry, there has been increasing demand for lighter adhesives for bonding dissimilar materials (metallic or non-metallic). Lightweight vehicle construction as per the industry experts is an important factor to reduce its fuel intake and this is further driving the global adhesives industry as several emerging economies are curtailing their fuel bills.
Increasing demand for epoxy systems and innovative rubber based structural adhesives having glass-transition temperatures of over 90 °C and an attractive cost-benefit ratio makes the automotive and transportation sector the key consumers of global adhesives in the forecast period. Moreover, use of PU-based structural adhesives for joining the automotive components in the vehicle assembly would further support the market growth in the upcoming years. The construction industry also constitutes an important sales market for Adhesives as of FY19 and accounts for more than 26% share of the global demand driven by rising demand for wall and floor coverings, building refurbishment and maintenance, components such as panels, or for thermal insulation. Construction of advanced architectural masterpieces and multi-story apartment houses and increasing time pressure has further propelled the market growth since past few years.
Water based adhesives find preference over solvent based adhesives due to environmental and health related risks associated to the use of the latter despite improved bonding characteristics. Increased adoption of water-based adhesives due to low volatile organic compound (VOC) emissions would drive the market growth prospects in the forecast period. Growing use of water-based adhesives since the Environmental Protection Agency mandated the compliance to VOC regulations by the adhesives and sealants sector in the Unites States, has positively impacted its market share in the global Adhesives market. Maintaining their strong foothold in the global Adhesives market, water-based adhesives are highly suitable for packaging, tape and labelling applications in particular.
By type, Vinyl-based adhesives such as polyvinyl acetate (PVAC) are among the most widely used Adhesives. PVAC is further used to produce Polyvinyl alcohol (PVA), another adhesive widely utilized for binding paper and paper products. High performance characteristics such as fast curing and acid & solvent resistance make Acrylics second most consumed Adhesive type across various end-use industries such as furniture, medical devices, and packaging. Structural Acrylic Adhesives are aesthetic and highly suitable for bonding most plastics, aluminum, steel and oily metal surfaces. Fast and easy to apply, Acrylic Adhesives enable efficient bonding that can replace metal fasteners for both static and dynamic loads.
Regionally, the Asia Pacific region is expected to outpace the demand coming from both US and Europe due to a strong push into manufacturing sector in countries such as China and India. Cheap labour and favourable government policies would further stimulate production facilities in countries like China, India, Thailand, and Vietnam. These factors are expected to stimulate the consumption of Adhesives over the coming years.
The global Adhesive market remained significantly impacted by the headwinds due to the outbreak of COVID-19 which rendered almost double-digit decline in the quarterly financials of almost all the major Adhesives manufacturers across the world. Hit by unprecedented slowdown in the automotive industry and shutting down of several other consuming sectors, the global Adhesives industry faced the double whammy due to demand downturn from both construction and industrial operations. Due to low capacity utilization and muted demand across its glue products, leading German Adhesives maker, Henkel AG & Co. KGaA estimated its Q1FY20 sales to get a Euro 100 million blow in the first quarter. Other major Adhesives manufacturers also reported sharp fall in their operating profits pressured under the market uncertainties throughout the first half of the year. However, the market fundamentals are likely to balance out as nations strive to revive their economic fallout by adopting the ‘new normal’. The DIY (Do-it-Yourself) sector poised a positive outlook as most of the individuals preferred to stay-at-home in compliance with the orders of the government. In longer terms, tremendous growth in the automotive and construction sector would further accelerate the market growth in the forecast period.
Years Considered for this Report:
Historical Years: 2015 – 2019
Base Year: 2020
Estimated Year: 2021
Forecast Period: 2022 – 2030
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Objective of the Study:
• The primary objective of the study was to evaluate and forecast Adhesives capacity, production, demand, inventory, and demand–supply gap globally.
• To categorize Adhesives demand based on type, end use, region and distribution channel.
• To identify major customers of Adhesives globally.
• To evaluate and forecast Adhesives pricing globally.
• To identify and profile major companies operating globally Adhesives market.
• To identify major news, deals and expansion plans globally Adhesives market.
Some of the major players operating global Adhesives market are Henkel AG & Co. KGaA, 3M, DuPont de Nemours Inc., Sika AG, Arkema, Bostik S.A., Evonik Industries AG, Huntsman International LLC, Illinois Tool Works Inc., Akzo Nobel N.V. Global Adhesives market players are leveraging market potential by investing heavily on the latest production technologies and opportunistically aiming for big mergers and acquisitions. In February this year, Henkel AG & Co. KGaA established a 100,000 square meter new state-of-the-art manufacturing facility in Kurkumbh, Pune, India. The move was aimed at increasing the company’s portfolio to serve more downstream sectors such as flexible packaging, automotive, agriculture & construction equipment and metals.
The global Adhesives market has witnessed acute volatility due to strong fluctuations in the raw material and due to lackluster demand as a result of the temporary lockdown across several downstream sectors in various parts of the world. Adhesives prices have started regaining the uptrend in the recent months. The graph depicts the yearly price comparison of Hot melt Adhesives and Ethylene Vinyl Acetate (EVA). Prices were assessed at USD XXX per MT on bulk contract basis in FY20 have been estimated down by about XX per cent compared to its prices in FY19.
To extract data for Global Adhesives market, primary research surveys were conducted with Adhesives manufacturers, suppliers, distributors, wholesalers and end users. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various end user segments and projected a positive outlook for Global Adhesives market over the coming years.
ChemAnalyst calculated Adhesives demand globally by analyzing the historical data and demand forecast which was carried out considering imported styrene prices, a monomer used for production of Adhesives. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience
• Adhesives manufacturers and other stakeholders
• Organizations, forums and alliances related to Adhesives distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as Adhesives manufacturers, distributors and policymakers. The report also provides useful insights about which market segments should be targeted over the coming years to strategize investments and capitalize on growth opportunities.
Report Scope:
In this report, the Global Adhesives market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Market, by Form
Water based, Solvent based Adhesives, Hot Melt Adhesives, Reactive Adhesives, Others
Paper and Packaging, Building & Construction, Automotive & Transportation, Woodworking, Footwear & Leather, Consumer/DYI, Others
Market, by Distribution Channel
Direct/Institutional Sales, Retail Sales, Other Channel Sales
Market, by Region
North America, APAC, Europe, MEA, South America
Market, by Region
North America
United States, Mexico, Canada
APAC
China, India, Japan, South Korea, Singapore, Indonesia, Thailand
Europe
Germany, Russia, France, United Kingdom, Spain, Italy
MEA
Saudi Arabia, UAE, South Africa
South America
Brazil, Argentina, Chile
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