The global water-based adhesive market is projected to witness a major upsurge over 2021-2027, owing to the rapid advancements in emulsion technology and subsequent development of water-based inks and adhesives as a sustainable and effective alternative to solvent-based systems for flexible packaging. Recent innovations in chemistry and formulations have resulted in the creation of high-performance acrylic emulsions and binders that allow these products to deliver strong resistance properties to wear-and-tear, blocking, water, and chemicals, thus bolstering the demand for water-based adhesive formulation.
Water-based adhesives are versatile, non-metallic substances developed through the combination of additives, polymers, and water. The product is ideal for porous and non-porous substrates and provides advanced bonding of materials to meet their demanding applications in a range of end-use markets.
Robust focus on the development of sustainable and environment-friendly products, alongside the escalating adoption of water-based contact adhesives in packaging, footwear, and other end-use industries, are the major trends characterizing the market outlook. This form of adhesive has low VOC content and comes along with reduced health risks, as it does not discharge odorous or toxic fumes. Rubber-based adhesives, which is one of the common water-based adhesive chemistries, also offer high versatility, flexibility, and water-resistant properties, thereby resulting in their increased applications in manufacturing of footwear and clothing as well as reinforcing the backing of floor rugs and carpets.
With regards to the application spectrum, the global water-based adhesive market from the construction segment is set to hold a commendable share by 2027. This is attributable to varied factors including rapid urbanization, increased demand for green building, and the accelerating usage of water-based adhesives like acrylic dispersion adhesives in construction activities to bond decorative floor coverings & ceramic tiles adhesives.
From a regional perspective, the North America water-based adhesive industry is expected to register a remarkable revenue over the forthcoming years, on account of the mounting construction activities due to the positive trends in the residential sector, especially in South Atlantic and Pacific regions across the United States. In addition, the introduction of various regulations and policies to ensure sustainability and green living across the region will further impel the consumption of environment-friendly products such as water-based adhesives for construction and other applications over the foreseeable future.
Prominent companies in the water-based adhesive market include Franklin International, 3M Company, LLC, Illinois Tool Works, Huber Group, Evonik (RAG-Stiftung), Dow Silicones Corporation (formerly Dow Corning), and DIC Corporation, among others. These market participants are focusing on varied efforts including new product launches and M&A to expand their portfolio and presence across the global market.
For instance, in August 2020, Bostik announced the launch of Aquagrip 3720, its innovative water-based adhesive, designed to make it ideal for bonding rigid substrates, low surface energy, closed-cell foam, & foam-backed materials for automotive interior assembly applications.
The ongoing coronavirus pandemic has led to a severe economic disruption, with devastating effects on global trade, simultaneously impacting households, businesses, infrastructure companies, and industrial establishments. Short supplies and event cancellations due to the extreme lockdown have drastically impacted various industrial sectors such as packaging, which in turn, has created an indirect impact on the water-based adhesive industry dynamics.
However, the rapid increase in demand for pharmaceutical and ready-to-eat food products during the COVID-19 pandemic has resulted in the mounting consumption of shelf-ready packaging solutions. These aforementioned factors, along with the gradual ease of strict lockdown and other restrictions in several economies, may help the industry regain traction over the foreseeable future.