April 18, 2024

Specialty Adhesives Market Driven by Growth in Packaging Industry

Specialty adhesives refer to adhesives made from synthetic and semi-synthetic polymers that exhibit high strength and versatility for bonding a wide range of materials such as plastics, composites, rubber and metals. They have various advantages like resistance to heat, water and chemicals. Specialty adhesives find applications in construction, medical devices, transportation, electronics and packaging industries. The global packaging industry is witnessing robust growth on account rising demand for packaged food and pharmaceutical products which has increased the use of specialty adhesives in packaging applications.

The Global specialty adhesives market is estimated to be valued at US$ 4.56 Bn in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the Global Specialty Adhesives Market Share  are PerkinElmer, Cardinal Health, Lantheus Medical Imaging, Bracco Imaging, NTP Radioisotopes, JSC Isotope, ANSTO, Nordion, Curium Pharma, IRE. These companies are focusing on new product launches and capacity expansions to gain higher market share.

The demand for specialty adhesives is growing due to increasing use in end use industries like automotive, transportation, medical devices and electronics. The rising need for lightweight and durable bonding in automotive and aviation industries is propelling the market growth.

North America dominated the global specialty adhesives market in 2019. However, Asia Pacific region is expected to witness highest growth during the forecast period owing to rapid industrialization and growth of end use industries in China and India. Key players are expanding their presence in developing countries to leverage growth opportunities.

Market key trends

One of the key trends gaining traction in the specialty adhesives market is development of bio-based and sustainable adhesives. Strict environmental regulations regarding use of solvent-based adhesives is propelling research towards greener adhesive technologies. Key players are focusing on developing adhesives from renewable plant-based resources like soy, corn and rice to reduce dependency on petroleum-based feedstocks. This is expected to drive the specialty adhesives market growth in coming years.

Porter’s Analysis

Threat of new entrants: Specialty adhesives require special processing and raw materials that require significant capital investment limiting threat of new entrants. Bargaining power of buyers: Buyers have moderately high bargaining power as specialty adhesives have substitutes and buyers can negotiate on price and contracts. Bargaining power of suppliers: Suppliers have moderate bargaining power since raw materials require specialized production processes with limited suppliers. Threat of new substitutes: Threat of substitutes is moderately low as specialty adhesives have unique bonding properties suited for specialized applications. Competitive rivalry: Market is fragmented but trending towards consolidation as large players acquire smaller firms to achieve economies of scale.

Geographically, North America currently holds the highest share of the specialty adhesives market in terms of value owing to extensive manufacturing industries and stringent environmental regulations regarding usage of volatile organic compound emitting adhesives. Asia Pacific region is expected to grow at the fastest rate during the forecast period due to rapid industrialization and infrastructure development projects in countries such as China and India.

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