Adhesives & Sealants Market To Generate $102,604.3 Million Revenue by 2030

The global adhesives & sealants market is projected to generate $102,604.3 million revenue in 2030, advancing at a CAGR of 4.9% during 2021–2030. The increasing consumer spending and the growing adoption of these products in several industries, including packaging, construction, and automotive, are the strongest forces aiding the market advance.

The COVID-19 pandemic hampered the market growth by reducing the product demand from the automobile, construction, and other industries. Furthermore, the GDP of a few APAC and European manufacturing hubs, such as India, Germany, and Italy, was significantly impacted, thereby affecting the market growth. However, the growth in the healthcare, e-commerce, and packaging industries is expected to drive the market post COVID-19 pandemic.

Paper, Board, and Packaging Will Remain Largest Application Area

On the basis of end user, the adhesives market is categorized into building & construction; paper, board, & packaging; woodworking & joinery; automotive & transportation; footwear & leather; healthcare; electrical & electronics, and others. Among these, the paper, board, and packaging industry accounted for the largest market size in 2021. This was due to the rising disposable income, which is driving the demand for packaged food & beverage products, a trend that is only expected to grow in the coming years.

Furthermore, the expansion in the pharmaceutical industry, driven by the rising healthcare expenditure around the world, is increasing the need for packaging solutions, which is driving the demand for adhesives and sealants. Because of these factors, the packaging industry is expected to be the major application area for these bonding materials in the future.

Furthermore, based on technology, the adhesives market is divided into water-borne, solvent-borne, reactive, hot-melt, and others. Among these, the reactive division is expected to grow at the highest rate over the forecast period. Superior adhesion to a broad variety of materials, excellent low- and high-temperature performance, permanent elasticity and flexibility, high strength, long-lasting bonding, and resistance to many chemicals and solvents make reactive adhesives and sealants popular.

On the basis of product, the sealants industry is categorized into silicone, polyurethane, acrylic, polyvinyl acetate, and others. In 2021, silicone sealants generated more than 40% revenue in the market, primarily due to their wider applications in the building and construction industry.

Geographically, the APAC market is expected to witness the highest CAGR, of more than 5%, over the forecast period. This will be because countries such as India, China, and South Korea, as well as Southeast Asian nations, are luring chemical companies to set up their adhesive & sealant manufacturing facilities. The low labor expenses and an expansion in the region's customer base are other key factors for the industry growth.

Facility Expansions Are Most-Effective Strategic Measures Taken by Key Players

Players in the global adhesives & sealants market have been frequently involved in facility expansions to gain a significant position. For instance, in December 2021, Sika AG announced the opening of a technology center and manufacturing plant for adhesives and sealants in Pune, India.

Similarly, in May 2021, Henkel announced the construction of a new Adhesive Technologies Innovation Center in Shanghai, China, with an investment of approximately $71 million (EUR 60 million).

Major players operating in the adhesives & sealants market include Henkel AG & Co. KGaA, The Dow Chemical Company, Sika AG, PPG Industries Inc., 3M Company, H.B. Fuller Company, Arkema Group (Bostik SA), and Avery Dennison Corporation.