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The global pressure sensitive adhesives market was valued at $7,414.0 million, And the volume market is expected to demonstrate a promising CAGR of 5.3% during the forecast period. In terms of both volume and value, Asia-Pacific (APAC) pressure sensitive adhesives market has shown the highest growth rate in the global market, during the historical period. This significant growth rate is attributed to the continuous rise in packaging industry and other allied industries such as construction, electrical and electronics, automotive, and healthcare. These all industries warrant pressure sensitive adhesives for applications in tapes, labels, graphical films, wall coverings, floor tiles, and several other applications.
Fundamentals Governing Pressure Sensitive Adhesives Market
In recent times, market players in the pressure sensitive market are going through organic strategic growth activities such as production expansions and product launches. This trend is due to stable or increase in growth rate in end-use industries. For instance, in 2019, BASF SE has doubled its manufacturing capacity for UV acrylic hotmelts, which are available under the brand name of acResin. This move is expected to strengthen company’s position in the premium adhesives sector. Further, several small and medium market players are becoming a single entity by M&A activities, thereby, increasing the degree of consolidation in the market. This, in turn, would benefit merged companies gaining a higher market share all together.
Rise in the e-commerce industry is one of the major factors driving the growth of pressure sensitive adhesives market, globally. Global e-commerce industry has been growing rapidly with the changing consumer preferences and increasing purchasing power, which in result in generating additional demand for packaging, majorly paper board. This factor could place an intense focus on increased packaging requirements where it needs to pack customer orders in cartons. As per article mentioned in RetailNews Asia in 2019, global online grocery market is growing rapidly wherein APAC market is alone expected to grow by 196% by 2023. The increasing usage of e-commerce services are creating a demand for packaging materials, thereby creating a demand for pressure sensitive adhesives over the coming years.
Emerging economies, such as India, China, and Brazil, hold huge growth potential for the market players. These countries offer a huge potential for market players with their rapid growth in the construction, fast moving consumer goods (FMCG), electronics, and several other end use industries for these adhesives. Companies are readily joining the bandwagon. For instance, Bostik India Private Limited, the specialty adhesives business line of Arkema Group, had opened a new facility in Gujarat, India, in December 2017 to expand its manufacturing facilities in the country.
Segmentation Analysis of Pressure Sensitive Adhesives Market
On the basis of formulation, silicon-based adhesives are expected to witness the highest growth rate pressure sensitive adhesives during the forecast period, owing to prospective growth in the healthcare and hygiene products market. These silicon-based adhesives find their applications majorly in healthcare and hygiene products such as medical tapes, baby diapers, and sanitary napkins.
Based on the application, tapes segment is expected to dominate the market with the largest share, and this trend is expected to continue during the forecast period. The high-volume usage of pressure sensitive tapes in packaging, automobiles, construction, electronics, and several other applications, is generating the demand for these pressure sensitive adhesives.
Among all industries, packaging industry accounted for the largest market share in the pressure sensitive adhesives market during the historical period, owing to the high adoption of these adhesives in carton packaging, which has been strengthened continuously by the introduction of e-commerce. Additionally, prospective growth in the e-commerce, is expected to further continue the demand for these adhesives during the forecast period.
Geographical Analysis of Pressure Sensitive Adhesives Market
Globally, APAC generated the largest demand for pressure sensitive adhesives during the historical period, and is expected to continue its dominance in the global market during the forecast period. This can be majorly attributed to the region’s packaging, electronics, construction, and automotive industries. Countries such as China, Japan, and South Korea are two of the global leaders for electronics manufacturing; and India and China are two of the global top FMCG consumers. These factors made APAC region to hold leading position in the global market. Further, China is leading the region’s market with accounting for more than 55% during the historical period, and expected to retain its share in the forecast period as well.
Competitive Landscape of Pressure Sensitive Adhesives Market
The global pressure sensitive adhesives market is highly fragmented, wherein top 10 market players accounted for nearly 50% and remaining market share is shared by hundreds of global and domestic manufacturers. The key players in the global manufacturing and sales operations are Henkel AG & Co. KGaA, 3M Company, Arkema Group, H.B. Fuller Co., Avery Dennison Corp., Sika AG, The Dow Chemical Company, Ashland Inc., Huntsman Corporation, and Mapei SPA.
Some of the other market players in the pressure sensitive adhesives market are Exxon Mobil Corporation, BASF SE, TOYOCHEM CO. LTD., Toagosei Co., Ltd., Wacker Chemie AG, Jowat SE, Adhesives Research Inc., Hitachi Chemical Company Ltd., Pidilite Industries Ltd., and Franklin Adhesives & Polymers.
Recent Strategic Developments of Major Pressure Sensitive Adhesives Market Players
In recent times, major players in the pressure sensitive adhesives market have taken several strategic measures such as product launches and geographical expansions to gain a competitive edge in the industry. For instance, in April 2019, 3M Company announced that it added 3M Extended Wear Medical Transfer Adhesive, 4075 to its product line of advanced adhesives for medical devices. This product features an extended wear pressure sensitive transfer adhesive and various backing materials. The introduction of 3M Extended Wear Medical Transfer Adhesive, 4075 is going to strengthen the product line of 3M’s advanced adhesives for medical devices.
In addition, Ashland Inc. had launched Aroset 2100 PSA in May 2018, which is a coater-ready and self-crosslinking adhesive. This adhesive had developed to provide specialty tape and label manufacturers with the capability to manufacture extremely robust tapes for performance design spaces that were previously not available to solvent-based acrylate pressure sensitive adhesives.
Key Questions Addressed in the Report