The packaging adhesives market plays a crucial role in protecting products and enhancing the shelf life of packaged goods across various industries. Packaging adhesives serve as effective alternatives to welding and mechanical fastening for joining packaging components together while maintaining product integrity. They bond packaging layers such as paper and paperboard, plastics, foil, and wood.
The Global Packaging Adhesives Market is estimated to be valued at US$ 9.81 Mn in 2024 and is expected to exhibit a CAGR of 4.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in The Packaging Adhesives are Solvay, Sakai Chemical Industry, Quimicos Aragonesas, Jinyan Strontium Industry, Joyieng Chemical, Hongkong XinRunDe Chemicals, Huaqi Fine Chemical, Barium & Chemicals, American Elements, ABASSCO. Rapid industrialization and mounting pressure to reduce waste have encouraged manufacturers across industries to adopt sustainable packaging solutions, driving the demand for packaging adhesives. The global packaging adhesives market is witnessing lucrative prospects in developing economies of Asia Pacific and Latin America owing to their strong manufacturing base and rising consumption of packaged goods.
Market Key Trends
One of the prominent trends prevailing in the packaging adhesives market is the rising demand for bio-based and recyclable adhesives. Concerns regarding environmental protection and sustainability have prompted adhesive producers to develop bio-based and recyclable adhesive technologies. These novel solutions enhance recyclability and enable the production of packaging from renewable resources, meeting sustainability goals of end-use industries. They extend the application outlook of packaging adhesives in industries aiming to reduce carbon footprint.
Porter’s Analysis
Threat of new entrants: Low economies of scale and high switching costs in the market pose a barrier for new players.
Bargaining power of buyers: Adhesive manufacturers have bargaining power over buyers due to their strong market presence.
Bargaining power of suppliers: Commodity nature of raw materials and availability of substitutes limits suppliers’ bargaining power.
Threat of new substitutes: Although new substitute technologies exist, they have not yet achieved the required qualities and functionalities of adhesives.
Competitive rivalry: The market structure is fragmented with many local and global players globally engaged in an intensive competition.
Geographical Regions
North America holds the leading share of the global packaging adhesives market, both in terms of value and volume. This is attributed to high demand from food, medical, and industrial end-use industries in the U.S. and Canada.
The Asia Pacific region is expected to be the fastest growing market for packaging adhesives during the forecast period. Robust growth of end-use industries such as food and beverages, personal care, pharmaceutical, construction, and transportation is driving the demand in the region. Furthermore, business expansion by foreign players in developing Asian countries is supporting regional market growth.
Geographical Regions
The packaging adhesives market in Europe is led by countries including Germany, France, Italy, the UK, Spain, and Russia. This is owing to stringent regulations regarding food safety and presence of major end-use industries. Packaging adhesive manufacturers are innovating new product ranges to meet consumer demands and government standards in the region.
