Packaging Adhesives Market

Packaging Adhesives Market Outlook (2023 to 2033)

The global packaging adhesives market is forecasted to advance at a high-value CAGR of 7.5% over the next ten years, growing from its present market valuation of US$ 12.8 billion to US$ 26.5 billion by 2033-end.

Global demand is being driven by the increasing usage of packaging adhesives in the food & beverage industry. Consumers around the world are demanding more packaged food products due to their extended shelf life at ambient temperatures.

In recent years, flexible packaging solutions are gaining popularity across the packaged food industry. Consumers are becoming more aware of the safety of packed food products. In addition, new innovative experiments and safety regulations are projected to contribute to increased demand for efficient packaging solutions. Increasing global population is also projected to drive the demand for various packaged food items, which will further contribute to the growth opportunities in the global packaging adhesives market over the coming years.

Packaging adhesives are created from several raw materials, including silicone, EVA, epoxy compounds, PVAC, PU, styrene blocks, and acrylic resins. The primary applications of packaging adhesives comprise non-rigid bonding in structural use and flexible packaging for assembly operation to provide high bonding strength. Overall, the rising use of adhesives to manufacture packaging solutions is expected to boost market opportunities.

Several emerging markets across the globe along with the increasing application of packaging adhesives in various end-use industries are predicted to create potential opportunities for market growth. Sustainability remains one of the defining megatrends for packaging solutions. Manufacturers of adhesive packaging solutions will generate energy-saving improvements to market products.

Further, initiatives are also being taken to optimize application procedures to reduce the volume of adhesive required. Similarly, research and development activities by industry players to develop new bio-based ingredients that provide lower carbon input costs and match existing performance requirements will be key market growth drivers.

On the flip side, there are various disadvantages, such as adverse environmental impacts that are related to the use of packaging adhesives. Moreover, stringent government regulations have also been imposed to reduce VOC emissions by respective authorities. These factors can impede expansion opportunities in the global packaging adhesives market during the forecasted period.

Report Attributes	Details
Market Size in 2023	US$ 12.8 Billion
Projected Market Value (2033)	US$ 26.5 Billion
Forecasted Market Growth Rate (2023 to 2033)	7.5% CAGR
Canada Market Growth Rate (2023 to 2033)	6.1% CAGR
Germany Market Growth Rate (2023 to 2033)	5.6% CAGR
Key Companies Profiled	Wacker Chemie; Toyochem Co., Ltd.; Jowat Corp; Huntsman Corporation; Paramelt; Hitachi Chemical Company Ltd.; Dymax; Avery Dennison

Why are Packaging Adhesives in Such High Demand?

“Ever-growing Requirements for Packaging Solutions in Food Industry”

Demand for packaging adhesives is increasing in the food industry. Various types of packaging solutions, including rigid, semi-rigid, and flexible packaging are used extensively in the food industry. Further, packaging plays a pivotal role to pack dairy products, ready meals, poultry and seafood, meat, frozen food, and many others.

Adhesives are used to keep the packaging closed and in place. They also create a good bond between two surfaces that are helpful to keep the food fresh for a longer duration. So, increasing demand for adhesive solutions from the industry of food is projected to bolster growth opportunities in the adhesive packaging market.

• The packaging industry in India has been anticipated to reach more than US$ 204 billion by the end of 2025, according to the data proviaded by IBEF (India Brand Equity Foundation). The food processing sector is a huge consumer of packaging solutions.

With the rapid growth in the industry of food processing, the requirement for packaging adhesives is predicted to increase in the coming years.

“Significant Growth of Personal Care and Cosmetics Sector”

At present, the industry for cosmetic and personal care is growing at a significant speed owing to rising consumer inclination for self-care. In addition, the surging disposable income of people is also contributing to increased demand for these beauty products. They are available in the departments of health and beauty at drug and departmental stores.

The majority of products, including deodorants, gels, shampoo, and other make-up products are identified owing to their attractive packaging. Further, the easy availability of different beauty products at e-Commerce platforms is also expected to propel the demand for different packaging solutions. So, the noteworthy increase in the requirement for packaging solutions for the packaging of beauty products will boost the sales of packaging adhesives.

• According to the Personal Care Association of Europe, skincare products, with a value of US$ 24 billion, held the most prominent share of the cosmetics market in Europe in 2020. Italy, Span, the U.K., France, and Germany are key contributors to these growth opportunities.

Thus, based on noticeable growth in the personal care and cosmetics industry, the demand for packaging adhesives is predicted to increase in parallel.

Which Factors Can Pull Back Demand for Packaging Adhesives?

“Certain Disadvantages Related to Application of Packaging Adhesives”

Demand for various packaging adhesives has been growing due to increasing requirements for rigid, semi-rigid, and flexible packaging across different applications. The solutions are subjected to some disadvantages that can put a direct impact on their demand.

There are a few adhesives that stay on the surface of packaging and can end up generating the bond line. They can reduce the aesthetic appeal of packaging products. Further, adhesives with quick bonding features require appropriate application otherwise they can hamper the appearance of product packaging.

Considering the condition of the weather, the selection of the most suitable adhesives is vital. So, based on the aforementioned factors, the growth opportunities in the market are restricted. However, the involvement of companies to produce environmentally friendly adhesives is estimated to bolster growth opportunities in the market.

Which Region is Anticipated to Provide Lucrative Opportunities for Manufacturers of Packaging Adhesives?

“Increasing Trend of Consuming Packaged Food Products in Asia Pacific”

Asia Pacific is forecasted to hold the most prominent share of the global market throughout the forecasted period. The growth is attributed to the increasing population and growing trend of packaged food items. In addition, growth in the industry of cosmetic and personal care along with surging production of electrical and electronics is also estimated to drive market growth.

Increasing disposable income and rapid urbanization in the region have also been boosting the consumption of various packaged food. Moreover, packaging adhesives play a significant role to pack various products. The wide use of packaging adhesives for industrial purposes, including healthcare, consumer goods, automotive, and others is also contributing to market growth.

• The European Automobile Manufacturers Association, in 2021, provided a report on global vehicle production. According to the report, China produced around 32% of the 74 million cars that were manufactured around the world. Korea and Japan held a share of 16% of total production.

Country-wise Insights

What Makes Japan Stand Out in the Asia Pacific Market?

“Technological Advancements for Development of Unique Packaging Design”

Demand for packaging adhesives in Japan is anticipated to progress at a CAGR of 4.6% through 2033 owing to technological advancements to develop unique packaging designs. In addition, manufacturers are also taking efforts to reduce the overall cost of manufacturing.

They are also planning to design new products with innovative assembly and packaging solutions. High strength, high-temperature resistance, and high tensile are some superior properties of newly designed packaging adhesives in the market.

Will Germany Be an Opportune Market for Suppliers of Packaging Adhesives?

“Significant Growth of Automotive Industry”

Sales of packaging adhesives in Germany are projected to expand at a CAGR of 5.6% from 2023 to 2033. Rapid growth in the automotive and cosmetic and personal care industries is expected to propel the demand for packaging adhesives in the country.

What Makes the U.S. Lead the Market for Packaging Adhesives in North America?

“Increasing Demand for Water-based Packaging Adhesives”

Increasing demand for waste-based in the U.S. is predicted to boost growth opportunities in the market. Further, the introduction of innovative techniques and growing technological advancements will also contribute to the packaging adhesives market growth in the forecast period.

The valuation of the U.S. market had been more than US$ 2.9 billion in the year 2022. Furthermore, the demand for packaging adhesives in Canada is forecasted to advance at a CAGR of 6.1% through 2033.

Category-wise Insights

Why are Water-based Packaging Adhesives Exhibiting High Demand?

“Water-based Packaging Adhesives Beneficial for End-product Manufacturers in Several Ways”

Based on technology, the global market has been divided into water-based, solvent-based, hot melt, and others. The water-based segment is projected to expand at a high-value CAGR of 7.8% through 2033.

Market play a significant role in the industry of paper and packaging. They are used for gluing labels, lining food packages, and laminating paper. Moreover, manufacturers are also inclined to produce sustainable products that cause lesser adverse environmental impact.

Water-based adhesives comprise water as their carrier and offer consistent bonding and strength. In addition, they are considered safe for application in the food industry. They are used in different types of packaging, such as flexible and others.

Owing to the consistency and stability of water-based adhesives, their use is also increasing at a rapid pace. Thus, the adoption of water-based adhesive solutions is attributed to the abovementioned features.

Who Will Remain a Prominent End User of Packaging Adhesives?

“Increasing Transportation Activities Propelling Demand for Cases & Cartons”

The global market is divided into corrugated packaging, cases & cartons, labeling, flexible packaging, folding cartons, specialty packaging, and others based on application. The cases and cartons segment is projected to hold a prominent share of market revenue. These boxes are used at an increased rate in transportation activities so demand for packaging adhesives is growing significantly.

Competitive Landscape

Manufacturers of packaging adhesives are inclining towards new developments to ensure product standards in the global market. Further, these players are also involved in mergers and acquisitions for the efficient supply chain management.

For instance :

• Henkel, in May 2022 launched a novel RE range of coatings and adhesives which are designed specifically for recycling. These newly launched solutions enable the creation of sustainable flexible packaging at the designing phase.
• Arkema, in December 2021, announced the acquisition of Permoseal in South Africa. The former is one of the key players in the global industry that provide solutions for construction, woodworking, and packaging. This acquisition will help the organization to expand its footprint in South Africa.

Prominent suppliers of packaging adhesives are Wacker Chemie, Toyochem Co., Ltd., Jowat Corp, Huntsman Corporation, Paramelt, Hitachi Chemical Company Ltd., Dymax, and Avery Dennison.

Segmentation of Packaging Adhesives Industry Research

• By Technology :

  • Water-based
  • Solvent-based
  • Hot-melt
  • Others

• By Application :

  • Corrugated Packaging
  • Cases & Cartons
  • Labeling
  • Flexible Packaging
  • Folding Cartons
  • Specialty Packaging
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa