May 29, 2024
Packaging Adhesives Market

Packaging Adhesives Market Is Expected To Be Flourished By Rising Demand From E-Commerce Industry

Packaging adhesives are bonding materials used to join various components and packages in order to provide structural integrity and prevent tampering. They find wide application in carton closing, case and carton sealing, bottle labelling, and other applications. Major types of packaging adhesives include water-based, solvent-based, hot melt, and reactive. They are used in manufacturing a variety of packaging formats such as cartons, boxes, tubes, bottles, bags and pouches, wraps and labels.

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, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising demand from e-commerce industry: One of the major drivers propelling growth of the packaging adhesives market is rising demand from the e-commerce industry. Packaging plays an important role in the e-commerce business model as it protects products from damage during transportation and storage. This has resulted in increased usage of adhesives for carton closing, case and carton sealing applications in the e-commerce industry. According to statistics, global e-commerce sales grew by over 24% in 2020 due to restrictions on social distancing during the COVID-19 pandemic. This growth in the e-commerce industry further boosted demand for packaging adhesives.

Segment Analysis

The global packaging adhesives market can be segmented into water-based packaging adhesives, solvent-based packaging adhesives and hot melt packaging adhesives. Among these, water-based packaging adhesives dominate the market and account for over 40% share owing to their low volatile organic compound emissions and ease of application. They find wide use in carton sealing and case and carton closing applications.

PEST Analysis

Political: Export and import tariffs on raw materials can influence prices of packaging adhesives. Also, regulations around VOCs emissions impact product formulations.
Economic: Rising disposable incomes fuel demand for consumer packaged goods, driving uptake of packaging adhesives. However, economic slowdowns can negatively impact the market.
Social: Growing environmental concerns push brand owners and consumers towards green and sustainable packaging solutions. This increases preference for water-based or bio-based adhesives.
Technological: Advances in adhesive technologies help develop customized solutions for various substrates and applications. Introduction of adhesion promoting additives and nano-particles improve bonding strength and reliability.

Key Takeaways

The global Packaging Adhesives Market Growth is expected to witness high growth over the forecast period of 2024 to 2031. 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.

Regional analysis

shows Asia Pacific dominating currently with over 35% share due to strong demand from China, India and other developing Asian countries.

Key players operating in the packaging adhesives market include Solvay, Sakai Chemical Industry, Quimicos Aragonesas, Jinyan Strontium Industry, Joyieng Chemical, Hongkong XinRunDe Chemicals, Huaqi Fine Chemical, Barium & Chemicals, American Elements, ABASSCO. Key players are focusing on developing sustainable product formulations to capitalize on rising eco-consciousness among consumers. The market is also witnessing introduction of multi-functional adhesives catering to specific application requirements.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it