Packaging Adhesives Market

Packaging Adhesives Market Size:

The global packaging adhesives market size reached US$ 13.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 19.7 Billion by 2032, exhibiting a growth rate (CAGR) of 4.5% during 2024-2032. The market is expanding rapidly due to the heightening demand from consumer goods, food and beverage, and e-commerce sectors. Moreover, innovations in eco-friendly and sustainable adhesives are further boosting growth, with manufacturers increasingly emphasizing on improving safety, regulatory adherence, and performance in packaging applications worldwide.

Packaging Adhesives Market Analysis:

• Major Market Drivers: The market is majorly driven by magnifying demand for effective and secure packaging, especially in food and e-commerce sectors. In addition, the increasing implementation of stricter regulatory policies regarding sustainability in packaging industry are compelling manufacturers to produce environmentally friendly adhesive solutions. Moreover, accelerating expansion of key industries like logistics and consumer goods are also aiding in market growth. In addition, such sectors demand flexible, robust adhesive products to cater to the evolving packaging needs, further driving advancements and bolstering adoption across diverse industries.
• Key Market Trends: One of the key trends include a notable shift towards bio-based and sustainable adhesives mainly due to increasing regulatory strains and environmental awareness. Another crucial trend is the heightened utilization of flexible as well as lightweight packaging materials, which demand upgraded adhesive solutions. In addition, technological innovations, including smart packaging and cutting-edge adhesive formulations for adapting to temperature fluctuations, are gaining momentum in the market.
• Geographical Trends: Asia Pacific has established itself as the largest regional market for packaging adhesives mainly due to the increasing urbanization, industrialization, and a bolstering e-commerce industry. Countries, particularly India and China, are experiencing increased product demand due to heightened packaging requirement in industries like food and consumer goods. In addition, surge in awareness of sustainability in these markets is fostering the adoption of environmentally friendly adhesives. Moreover, Asia Pacific’s economic development, coupled with expanding manufacturing bases, further fortifies its dominance in the global packaging adhesives market.
• Competitive Landscape: Some of the major market players in the packaging adhesives industry include3M, Arkema Group, Ashland Inc., Avery Dennison Corporation, Dymax Corporation, H.B. Fuller Company, Henkel AG & Co. KGaA, Jowat SE, Paramelt RMC B.V., Sika AG, The DOW Chemical Company, Wacker Chemie AG, among many others.
• Challenges and Opportunities: The market witness challenges like stricter environmental policies and increasing costs of raw materials. Nonetheless, such challenges also provide opportunities for innovations, especially in the manufacturing of recyclable and sustainable adhesives. Moreover, companies can cater to the varying regulatory needs while providing high-performance, cost-efficient solutions to gain profit. In addition, the expansion of consumer goods and e-commerce sectors is constantly offering significant growth prospects for adhesive producers.
   

Packaging Adhesives Market Trends:

Increasing Shift Towards Sustainability

According to the packaging adhesives market report, the escalating demand for eco-friendly packaging is significantly driving the growth. Companies are currently emphasizing on producing adhesives that are water-based, biodegradable, or recyclable to lower environmental impact and landfill pollution, and align with sustainability trend soaring within packaging industry. According to a research article published in the journal Polymers in March 2023, a bio-based adhesive was developed using a blend of shellac, tannic acid, and chitosan. The combination of chitosan and tannic acid in this bio-adhesive showed 30% better tensile strength in comparison to other commercial adhesives, while the blend of chitosan and shellac exhibited a 23% improvement. Moreover, this trend is especially robust in regions where stringent regulations regarding sustainability are implemented, compelling manufacturers to provide greener alternatives. In addition, this intense inclination towards sustainable packaging is offering substantial growth prospects for adhesive producers as they are focusing on innovations to address the regulatory policies as well as evolving customer demands.

Rapid Growth in Retail and E-Commerce Sector

The accelerating expansion of the retail and e-commerce sector is spurring the demand for packaging adhesives. With a magnifying surge in online shopping, the demand for lightweight, secure, and durable packaging has heightened, significantly boosting innovations in adhesives that provide better efficiency and robust bonding. As per industry reports, by 2024, an estimated 2.71 billion customers are expected to shop online. Additionally, the global e-commerce market is projected to reach a value of USD 4.8 trillion by 2024. Moreover, packaging adhesives play a crucial role in ensuring the tamper resistance as well as safety of the product, further supporting their amplified utilization in the shipping and logistics sector. In addition, this rising trend is especially prominent in developing economies with proliferating online retail sector.

Technological Advancements in Smart Packaging

Smart packaging, incorporated with digital technologies such as sensors and QR codes, is rapidly gaining momentum across numerous sectors. Adhesives leveraged in these upgraded packaging must offer advanced performance, including resistance to moisture and temperature changes. Moreover, such innovations in packaging technology are compelling adhesive producers to manufacture specialized solutions that can efficiently address the evolving needs of smart packaging. In addition, this trend is anticipated to further bolster as numerous businesses are currently seeking innovative strategies to enhance transparency in supply chain and improve customer engagement through unique packaging solutions. For instance, in April 2024, DS Smith, a multinational packaging business, announced a strategic partnership with Bioenyzmatic Fuel Cells to upgrade its smart packaging solutions by leveraging recyclable paper.

Packaging Adhesives Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, substrate material type, packaging type, and end-use industry.

Breakup by Type:

• Water-based Adhesives
• Solvent-based Adhesives
• Hot-melt Adhesives
• Other
   

Water-based adhesives account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes water-based adhesives, solvent-based adhesives, hot-melt adhesives, and others. According to the report, water-based adhesives represented the largest segment.

Water-based adhesives are the most leveraged adhesives primarily due to their versatile and eco-friendly profile. Such adhesives, generally utilized in application such as paper packaging, provide resilient bonding while reducing harmful emissions. Moreover, with the increasing focus on sustainability across numerous sectors, water-based solutions are rapidly being preferred over solvent-based adhesives. In addition, they are especially effective in food packaging, where environmental adherence and safety are crucial objectives. Furthermore, the demand for such adhesives is constantly elevating as industries are currently prioritizing low-volatile organic compound (VOC), greener solutions. For instance, in November 2023, researchers of Newcastle University, UK, developed a water-based adhesive that exhibits exceptional adhesion in neutral pH and can be detached by altering the pH level. This innovative adhesive can effectively serve as a recyclable, novel adhesive.

Breakup by Substrate Material Type:

• Acrylics
• Polyurethane
• Polyvinyl Chloride
• Polypropylene
• Others
   

Polyvinyl chloride holds the largest share of the industry

A detailed breakup and analysis of the market based on the substrate material have also been provided in the report. This includes acrylics, polyurethane, polyvinyl chloride, polypropylene, and others. According to the report, polyvinyl chloride accounted for the largest market share.

Polyvinyl chloride (PVC) is an extensively leveraged substrate material in the packaging adhesive industry, chiefly prominent for its cost-efficiency, durability, and flexibility. PVC is generally deployed in numerous packaging applications, including shrink wraps, bottles, and blister packaging, where robust adhesive bonding is requisite. Moreover, its exceptional compatibility with various adhesive types improves its demand across key sectors. In addition, despite environmental issues, the constant advancements in PVC manufacturing and innovations in adhesive formulations maintains its relevance in the packaging industry.

Breakup by Packaging Type:

• Flexible Packaging
• Folding Cartons
• Boxes & Cases
• Labeling
• Others
   

Flexible packaging represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the packaging type. This includes flexible packaging, folding cartons, boxes & cases, labeling, and others. According to the report, flexible packaging represented the largest segment.

Flexible packaging accounts for the leading market segment in the global packaging adhesives market, mainly because of its high durability and lightweight nature. This packaging format has the capability to preserve the freshness of the product, especially in the food and beverage sector. Moreover, adhesives used in this packaging type must provide resilient bonding while offering flexibility requisite in storage, handling, and transportation processes. In addition, as the demand for sustainable and convenient packaging types heightens, flexible packaging continues to strengthen its domination, reinforced by innovations in adhesive technology for heterogenous materials. For instance, in January 2024, Sappi, a sustainable material provider, unveiled its two new flexible packaging papers that are produced from renewable raw material. These papers can be used in food sector for both edible and non-edible products.

Breakup by End-Use Industry:

• Food & Beverages
• Cosmetics
• Healthcare
• Others
   

A detailed breakup and analysis of the market based on the end-use industry have also been provided in the report. This includes food and beverages, cosmetics, healthcare, and others.

The food and beverages is a crucial end-use industry in the global market, primarily driven by the demand for sustainable, secure, and tamper-resistant packaging. Adhesives leveraged in this industry must adhere with strict safety policies while guaranteeing that the packaging can effectively preserve product quality as well as aid in shelf-life extension. Moreover, such adhesives are generally utilized in sealing applications, flexible packaging, and labels. In addition, as customer demand for environmentally friendly and convenient packaging heightens, the food and beverages industry continue to boost innovations in adhesive formulation.

In the cosmetics sector, packaging adhesives are critical for producing both functional and visually appealing packaging that safeguards sensitive cosmetic products. Moreover, adhesives are leveraged in numerous packaging types, such as cartons, tubes, and bottles to promote product safety, brand aesthetics, and durability. In addition, this segment demands adhesives that can provide robust bonding while addressing the sector's customized demands for premium packaging finishes. Furthermore, the increasing emphasis on sustainability as well as luxury packaging in cosmetics packaging is bolstering the demand for upgraded adhesive solutions in this industry.

The healthcare industry is a crucial end-use sector for packaging adhesives, with major applications in personal care products, pharmaceutical products packaging, and medical devices. Adhesives utilized in healthcare packaging must comply with stringent hygiene and safety regulations, ensuring secure seals as well as product safety from contamination. Moreover, this segment requires specialized adhesives for medical labeling, blister packs, and sterilization pouches. Additionally, as safety concerns and healthcare regulatory policies increase rapidly, adhesive technologies are upgrading to cater to the elevated standards of compliance and performance requisite in this sector.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest packaging adhesives market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for packaging adhesives.

Asia Pacific has emerged as the leading regional market principally due to its proliferating e-commerce sector and magnifying industrialization. The increased adhesive demand in consumer goods and food sector is also aiding in market growth. Moreover, the region’s inclination towards eco-friendly packaging and sustainable packaging solutions, combined with fueling urbanization and elevated disposable incomes, further bolster adhesive demand. According to industry reports, 90% of the customers in the Asia Pacific region are willing to spend significantly on sustainable products, with sustainable packaging being one of the major purchasing criteria. In addition, robust economic growth and the increasing development of industrial infrastructure strengthen the region’s leadership in the global packaging adhesive market.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the packaging adhesives industry include 3M, Arkema Group, Ashland Inc., Avery Dennison Corporation, Dymax Corporation, H.B. Fuller Company, Henkel AG & Co. KGaA, Jowat SE, Paramelt RMC B.V., Sika AG, The DOW Chemical Company, and Wacker Chemie AG.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The competitive landscape is represented by a combination of established firms and emerging enterprises that are currently emphasizing on cost-effectiveness, innovation, and sustainability. Moreover, leading producers are heavily investing in research and development to manufacture high-performance, environmentally friendly adhesives, while smaller companies are aiming for niche markets with specialized solutions. In addition, key market players compete on geographic footprint, product pricing, and portfolio, with an increasing focus on regulatory compliance. Also, strategic collaboration, acquisitions, and mergers further amplify competition within this evolving market. For instance, in May 2024, Henkel, one of the major adhesive and coatings companies, announced a strategic partnership with Kraton Corporation, a prominent bio-based products manufacturer, to develop sustainable adhesives and significantly reduce carbon emissions. As per the agreement, Kraton will supply Henkel with its patented REvolution rosin ester technology and bio-based tackifiers. 

Packaging Adhesives Market News:

• In May 2024, Arkema, a major specialty materials company, signed an agreement with Dow Chemical Company, a leading chemical producer, to acquire its flexible packaging laminating adhesives business, with a transaction value of USD 150 million.
• In April 2024, Flow Materials, a prominent chemical manufacturer, launched its new range of adhesives which is particularly formulated for flexible packaging sector. This range includes water-based, solvent-free, and solvent adhesives.

Packaging Adhesives Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the packaging adhesives market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global packaging adhesives market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the packaging adhesives industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.