Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Definition of Market/Industry:
Pressure-sensitive adhesives are substances used to create a bond between two surfaces. Pressure-sensitive adhesives are widely used across medical, packaging, automotive, electronic, and other manufacturing industries. These adhesives are easy to use and offer excellent adhesion property. Pressure-sensitive adhesives can be classified into non-reactive adhesives and reactive adhesives.
The global Pressure Sensitive Adhesives market is estimated to be valued at US$ 8,808.7 million in 2021 and is expected to exhibit a CAGR of 5.2 % over the forecast period (2021-2028).
In February 2020, Henkel Adhesives Technologies opened its new production facility in Kurkumbh, India, near Pune. The unit aims to serve the growing demand for high-performance solutions in adhesives, sealants, and surface treatment products in Indian industries. Designed as a smart factory, the new plant also will also help a wide range of Industry 4.0 operations and meet the highest standards for sustainability.
In June 2019, BASF SE, a global leader in manufacturing raw materials for pressure sensitive adhesives, doubled its manufacturing capacity of acResin at its Ludwigshafen site, Germany. AcResin is a UV acrylic hot melt, used in manufacturing of the pressure sensitive adhesives.
In November 2018, H.B. Fuller launched a new product named Swiftmelt 1908, in India at the Labelexpo 2018. The product was customized to meet the unique requirements in India and was designed for providing high adhesion, precise die cutting performance, and clean converting on holographic label stock.
Asia Pacific held dominant position in the Global Pressure Sensitive Adhesives market in 2020, accounting for 40.0% share in terms of value followed by North America and Europe, respectively. This is primarily due to increase in consumption of goods in major developing markets of India and China. This has led to demand in the retail labelling segment.
Figure 1. Global Pressure Sensitive Adhesives Market Value (US$ Mn), by Region, 2020
Growing demand for lightweight and low emission automotive is propelling the market growth of pressure-sensitive adhesives. Polymer-based and hot adhesives are majorly used for panel laminations and trim in the automotive industry. Growing awareness regarding the low weight vehicles with increased fuel efficiency and lower emissions is further expected to drive the demand for such adhesives from the automotive industry. Hence, the growing demand for fuel-efficient vehicles is expected to foster market growth.
The rising popularity of miniaturization of electronic devices such as portable computers, cell phones, and tablets is projected to augment the market growth of pressure-sensitive adhesives. The smartphone is one of the popular examples of miniaturization of electronic devices. Increasing disposable income and growth in the urban population is creating demand for such electronic devices. Thus growing popularity of miniaturization of electronic devices is expected to accelerate the market growth of pressure-sensitive adhesives.
The increasing development of bio-based pressure-sensitive adhesives due to growing environmental concerns is expected to provide potential market opportunities. Bio-based pressure-sensitive adhesives reduce the environmental effects by reducing the level of carbon footprints. They are derived from starch, soy, and vegetable oils and can compete with petroleum-based adhesives. Also, polyols, bio-derived from soybeans is used in the manufacturing of PSA’s. Hence, the growing development of bio-based pressure sensitive adhesives is expected to fuel market growth.
Growing preferences towards silicone-based pressure sensitive adhesives in Asia is projected to bring new market opportunities in the near future. Silicone-based pressure-sensitive adhesives offered benefits such as high performance even at high temperatures, better resistance to chemicals, UV radiations, and moisture. Moreover, silicone-based pressure-sensitive adhesives are also ideal for aerospace, freezer, and cold-weather tapes. Thus, the growing use of silicone-based pressure sensitive adhesives is fueling market growth.
Pressure Sensitive Adhesives Market Report Coverage
||Market Size in 2021:
||US$ 8,808.7 Mn
|Historical Data for:
||2017 to 2020
||2021 to 2028
|Forecast Period 2021 to 2028 CAGR:
||2028 Value Projection:
||US$ 12,555.9 Mn
- Region: North America, Europe, Asia Pacific, Middle East, Africa, and Latin America
- By Product Segment: Water based PSA, Solvent Based PSA, Hot Melt PSA, & Radiation Cured PSA
- By Application: Tapes, Specialty, Labels, Graphics & Others
3M Company, Ashland Inc., Avery Dennison Corporation, BASF SE, Bostik SA, Dow Chemical Company, Ellsworth Adhesives, H.B Fuller Company, Henkel AG & Co. KGaA, and LG Chem
- Rapid urbanization and industrialization
- Technological advancement
|Restraints & Challenges:
- Strict environmental regulations
Acrylic-based PSA is gaining traction in the market. These tapes possess excellent resistance to UV-light & chemical, color stability, high shear strength & hydrolysis resistance, high resistance to different temperatures ranges. They are suitable for durable and long-term applications and have higher thermal stability as compared to rubber-based PSAs. Acrylic-based PSA'a is widely used across automotive, construction, electronics, and aerospace industries, thereby fueling market growth.
Water-based PSAs are experiencing tremendous popularity around the globe and are broadly used across paper and food &beverage industries. Rapid growth in the end-user industries and other manufacturing industries is expected to foster the market growth of the pressure-sensitive adhesives. Also, ongoing urbanization around the globe coupled with the development of the overall economy is again expected to propel the market growth of the pressure-sensitive adhesives over the forecast period.
Figure 2. Global Pressure Sensitive Adhesives Market Share, By Product Segment, 2020
Key Takeaways of the Graph:
- The Water based PSA in product segment held dominant position in the market and accounted for 41.8% share in the global Pressure Sensitive Adhesives market in 2020. The segment is expected to reach US$ 5,491.1 million in 2028.
- The market for water-based PSAs has witnessed growth due to the demand from the medical and packaging industries. Water-based technology finds applications in pressure-sensitive tapes, labels, glue dots, note pads, automobile trims, films & peelable and specialty applications in different industries such as packaging, electrical, electronics & telecommunication, medical & healthcare, and automotive.
An environmental concern associated with the materials used in the pressure sensitive adhesives is expected to restrict market growth. The materials used in the production of PSA possess a potential threat to aquatic as well as terrestrial species. Thus, growing environmental concerns is projected to hamper the market growth.
Strict rules and regulation regarding the production of pressure-sensitive adhesives as it exhibit recycling and various health issues is expected to hinder the market growth. This factor is restricting the adoption of the pressure-sensitive adhesives across various industries, thus hindering the market growth over the forecast period.
- 3M Company
- Ashland Inc.
- Avery Dennison Corporation
- BASF SE
- Bostik SA
- Dow Chemical Company
- Ellsworth Adhesives
- H.B Fuller Company
- Henkel AG & Co. KGaA
- LG Chem
Few Recent Developments
In June 2019, BASF has doubled its manufacturing capacity for UV acrylic hotmelts sold under the brand name acResin by building a second production facility at the Ludwigshafen site in Germany. By taking this move, the company has strengthened its position as the solution provider for sophisticated applications in the adhesives sector