Global packaging adhesives market is expected to gain remarkable traction over 2021-2027. This is due to the rising adoption of adhesives in a range of paper bonding applications, including the lamination of printed sheets, corrugated box construction, and packaging material. Likewise, the robust demand for flexible packaging in the food and beverages industry, with eco-friendly and lightweight attributes, will also generate opportunities for industry growth in the upcoming years. Adhesives refer to the non-metallic substances that are capable of joining materials together via surface bonding, with the bond possessing adequate cohesion or internal strength. This substance is considered to be indispensable in the production of food packaging, as a majority of food packaging materials contain adhesives.
Increase in economic growth and the subsequent surge in the intake of packaged foods in developing countries are the prominent trends characterizing the packaging adhesives market outlook over 2021-2027. This substance is widely used in food packaging to avoid food waste and offer better customer experiences. In addition, its escalating usage in flexible packaging of materials across industries, including personal care, is anticipated to further augment market share over the forecast spell. For instance, in 2020, DIC Corporation announced the development of its DICDRY LX-RP series of adhesives, designed for use mainly in the flexible packaging of personal care products.
With regards to application, the packaging adhesives market from the labeling segment will register a high revenue by 2027. This is attributable to the availability of various packaging adhesive solutions for labeling of irregular shaped and wet products. Growth from the segment is further driven by the implementation of stringent rules and regulations to ensure safe and efficient product packaging and labeling. The Uniform Packaging and Labelling Regulation (UPLR), for example, requires manufacturers and importers to include information about packaging contents and sellers, which could amplify the need for adhesive labels across industries.
From a regional perspective, the Latin America packaging adhesives industry is likely to amass considerable gains by 2027, as a result of the growing consumption of ready-to-eat meals in economies like Brazil. In addition, greater interest in frozen foods and the demand for healthier food products, especially during the coronavirus pandemic, will bolster the need for food packaging adhesives across the region.
The competitive landscape of the global packaging adhesives industry consists of companies such as Sika, Jowat Corp., Paramelt, Henkel AG & Co., Avery Dennison, Ashland Global Specialty Chemicals Inc., Wacker Chemie, and Dymax, among others. Innovative substance launches, business expansions, mergers and acquisitions are some of the initiatives being undertaken by these industry players to sustain their strong presence across the global market.
For instance, in August 2021, Arkema entered a deal to acquire Ashland’s Performance Adhesives business, which offers a range of adhesives for flexible packaging, to support Arkema’s ambitious goal to become a core Specialty Materials firm by 2024. In June 2021, Avery Dennison unveiled the latest iteration of its CleanFlake filmic label materials for use in PET packaging in industries, such as food and beverages and personal care. The CleanFlake technology was designed to ensure that the adhesives of the label are not stuck on the packaging and to aid the recycling process for PET plastic.
Growth of e-Commerce During COVID-19 May Impact Packaging Adhesives Market Trends:
The ongoing coronavirus pandemic has asserted a fair share of impact on the packaging industry, due to supply chain disruptions, shortage of labor force, and the implementation of lockdown measures. Several packaging companies furloughed or shut down their businesses during the crisis due to the escalating financial strain. This disruption across the packaging sector may have, in turn, asserted negative impacts on the steady growth of the packaging adhesives industry. However, the shift towards the online sales channel and the burgeoning need for protective packaging, including cardboard boxes, to safeguard foods and electronic products during transport may result in the growing demand for packaging boxes adhesives over the foreseeable future.