Low VOC Adhesives Market Research Report: By Technology (Water-Based Adhesives, Reactive Adhesives, Hot-Melt Adhesives, Pressure-Sensitive Adhesives), Resin (Polyvinyl Acetate, Acrylic, Polyurethane, Ethylene-Vinyl Acetate, Epoxy, Styrenic Block), End-Use (Paper & Packaging, Building & Construction, Furniture, Automotive & Transportation, Footwear & Leather, Consumer & DIY, Medical Devices) - Revenue Estimation and Demand Forecast to 2030

Market Overview

The low VOC adhesives market was valued at $47.6 billion in 2021 and it is expected to advance at a CAGR of 6.1% during 2021–2030. The major factor attributing to the growth of the market is the implementation of stringent regulations by governments to limit VOC content in products for environmental safety. For instance, in 2020, China implemented new VOC standards for companies manufacturing products such as adhesives, coatings, cleaning products, and inks. Similarly, United States Green Building Council outlines limits for VOC content in sealants and adhesives.

Investments by companies in developing countries, especially in APAC nations, along with awareness about green and sustainable construction of buildings and shift toward low-carbon emitting vehicles are also driving the market upwards. For instance, in 2021, Henkel announced the construction of a new Adhesive Technologies Innovation Center in Shanghai, China, investing approximately $65 million. The increasing application of adhesives by end-use industries is inflating the demand globally. Thus, encouraging manufacturers to launch low VOC adhesives for multiple industries.

Paper and Packaging Is the Largest End-Use Industry in the Market

The paper and packaging industry is the largest end user of low VOC adhesives, holding more than 30% shares, followed by the building & construction and automotive & transportation industries. This is due to the increasing demand and usage of eco-friendly and sustainable packaging products such as corrugated boxes and cases & cartons. Additionally, the FDA approves low VOC adhesives for food packaging.

Moreover, the green building and construction industry is also playing a significant role in booming the market. The pressure-sensitive adhesive technology is used for flooring purposes such as carpet and vinyl floor tiles. The top five countries with a maximum number of green buildings are the U.S., China, Canada, India, and the U.A.E. Among these, the U.S. led the way with more than 100 thousand buildings in 2021. Leadership in Energy and Environmental Design (LEED) guidelines published by the U.S. Green Building Council provides the sustainability framework for the design, construction, and maintenance of buildings.

Furthermore, the automotive and transportation industry is also one of the major end-use industries, as consumers are demanding better air quality by eliminating VOC emissions within the interior of vehicles, to prevent health issues caused by the exposure to toxic elements. To fulfill the demand, manufacturers prefer hot-melt adhesives as they have stable performance, are environment-friendly, and do not use solvents.

Water-Based Adhesives Technology Dominates the Market

The water-based adhesive technology dominates the market, pertaining to its advantages over solvent-based adhesives such as user-friendly, easy applicability, low activation temperatures, minimum health risks, and no release of toxic fumes. Also, most of the water-based adhesives are based on polyvinyl acetate resin. Applications of water-based adhesives include corrugating, paper lamination, bags and sacks, folding cartons, envelopes, cores and cups, graphic arts, woodworking, and labeling and flooring.

Polyvinyl Acetate Is the Most Popular Resin Used in Formulation of Low VOC Adhesives

Polyvinyl acetate is used as a key synthetic resin in low VOC adhesive formulation. Its properties, which lead to high performance and versatility along with being environment-friendly, have made it the leading chemistry used in the formulation. Polyvinyl acetate is majorly used in the paper and packaging industry as a low-toxic and low-odor adhesive to bond wood, cotton, corrugated carton, and paper.

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APAC Market To Grow Fastest during Forecast Period

The APAC market is expected to register the highest growth during the forecast period. This is because countries, such as India, China, and South Korea, along with other Southeastern nations of the region are attracting manufacturers to set up production units of low VOC adhesives. Moreover, low labor costs and an increase in customer base in the region are other major factors for the same.

Furthermore, higher penetration of online shopping in the region is driven by the rising income levels and the surging consumption power of individuals, which lead to the increasing demand for low VOC adhesives. According to the study conducted by Facebook and Bain, the average online spending in Southeastern countries increased from $238 per person in 2020 to $381 per in 2021. Moreover, in the aerospace and automotive industries, low VOC adhesives are largely used in the region.

Business Opportunities

• The development of eco-friendly and sustainable adhesives is creating opportunities for manufacturing companies operating in the market, as countries are implementing low-carbon emission standards and regulations.
• The introduction of innovative low VOC adhesives for various end-use industries, including paper and packaging, building and construction, and automotive and transportation, offers several market opportunities.

Impact of the COVID-19 Pandemic on the Industry

The market largely relies on its end-use industries; however, during the COVID-19 pandemic, the implementation of lockdowns disrupted activities across industries, resulting in negative effects on the market. However, the paper and packaging industry along with the healthcare industry depicted positive growth, due to online ordering and health problems caused by the spread of COVID-19. Thus, the market offset a proportion of the negative impact during the pandemic time.

Key Strategic Developments of Market Players

In recent years, major players in the low VOC adhesives market have been actively involved in product launches and setting up manufacturing sites to stay ahead of their competitors. For instance:

• In March 2022, Toyochem Co. Ltd., the polymers and coatings arm of Japan’s Toyo Ink Group, launched a new low-odor, low-VOC acrylic pressure-sensitive adhesive (PSA), the Oribain EXK 21-046, for use in enclosed spaces such as vehicles and building interiors.
• In December 2021, Sika announced the opening of a new technology center and manufacturing plant for high-quality adhesives and sealants in Pune city of India. The company would manufacture products for the transportation, construction, and renewable energy sectors.
• In September 2021, Henkel launched a zero VOC adhesive range for rubber lining in partnership with Weir Minerals based on the proprietary formulation under the LINATEX LOCTITE - LINA 88 adhesive range.

Key Players in Low VOC Adhesives Market Are:

• 3M
• Akzo Nobel N.V.
• Ashland Global Holdings Inc.
• H.B. Fuller Company
• Henkel AG & Co. KGaA
• Huntsman Corporation
• Sika Services AG
• Bostik
• Pidilite Industries Ltd.
• PPG Industries Inc.
• Wacker Chemie AG

Market Segmentation

The research offers the market size of the global low-VOC adhesives market for the period 2017–2030.

Based on Technology

• Water-Based Adhesives
• Reactive Adhesives
• Hot-Melt Adhesives
• Pressure-Sensitive Adhesives

Based on Resin

• Polyvinyl Acetate
• Acrylic
• Polyurethane
• Ethylene-Vinyl Acetate
• Epoxy
• Styrenic Block

Based on End Use

• Paper & Packaging
• Building & Construction
• Furniture
• Automotive & Transportation
• Footwear & Leather
• Consumer & DIY
• Medical Devices

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • U.A.E.
  • Saudi Arabia
  • South Africa