Water-based Structural Adhesives Market Size (2024 – 2030)

The Water-based Adhesives Market was valued at USD 20 billion in 2023 and is projected to reach a market size of USD 33.62 billion by the end of 2030. Over the forecast period of 2024-2030, the market is estimated to grow at a CAGR of 7.7%. 

Water-based Structural Adhesives are formulated either from soluble synthetic polymers or natural polymers. These structural adhesives may be formulated as dry powders or supplied as solutions. The water-based structural adhesives use an integration of water, additives, and polymers, perfect for both non-porous and porous substrates. The global water-based adhesive market is projected to witness a major upsurge over the next few years, 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 impacted in the creation of high-performance acrylic emulsions and binders that permit these products to deliver strong resistance characteristics to wear-and-tear, blocking, water, and chemicals, thus bolstering the demand for water-based structural adhesive formulation.

Key Market Insights:

• According to the United Nations (UN), around 50% of the global population resides in urban cities, which is estimated to touch 60%, by 2030. The pace of economic and demographic development has to be in harmony with the demand for commercial, residential, and institutional construction work. By 2030, around 40% of the global population is certain to need housing at the rate of over 96,150 houses per day. Hence, with the development of the residential sector, the use of water-borne structural adhesives is likely to grow during the forecast period.

• In the construction industry, adhesives are utilised in concrete, ceramic tiles, carpet laying, flooring underlayment, drywall lamination, joint cement, manufactured housing, pre-finished panels, strong flooring, roofing, and wall covering. Several types of adhesives are used depending on the purposes they serve. The development in green building construction, coupled with the rising issue about the quality of construction, is accelerating the demand for water-borne adhesives.

• Expected support for the market's development is the recovery of commodity prices following a severe decrease in the previous period. Additionally expected for the foreseeable period is consistent growth in developed countries. Moreover, it is anticipated that emerging markets will widen a bit faster during the forecast period than developed markets. The Asian Development Bank, a regional development bank, expects that Asia's share of GDP will increase to 40% by 2030 and to 52% by 2050.

Water-based Structural Adhesives Market Drivers:

Increased demand for water-based structural adhesive in packaging adhesive tapes

With the widespread application of water-based adhesives in applications consisting of heavy-duty carton sealing, gift wrapping, and decoration, these adhesives are in high demand. These adhesives are used for the manufacture of tapes and labels. Packaging for medicine delivery systems, shipping packaging for building raw materials, packaging for automotive and logistics, and packaging for consumer and industrial products contribute to the market's growth. Therefore, the packaging adhesive tapes market is one of the major elements for the growth of the market.

Rising production and sales of chemical goods

The increasing sales and production of chemical goods are estimated to increase the demand for water-based adhesives and drive the market growth rate during the estimated period. Huntsman Corporation was bought by Indian adhesives manufacturer Pidilite Industries for $ 28.55 billion in November 2020. With this transaction, Araldite will strengthen Pidilite Industries' current robust portfolio of adhesives and sealants and contribute to its line of retail products. American company Huntsman Corporation manufactures and sells chemical goods to both industrial and retail clients.

Water-based Structural Adhesives Market Restraints and Challenges:

Slower drying nature of water-based structural adhesives

The main issue with water-based structural adhesives is their slower drying tendency at lower temperatures. The drying process needs a lot of time and could cause a delay in the work process because water is so unstable. For example, Henkel and other businesses manufacture Techno melt adhesives, which are hot melt adhesives applied in the furniture and automobile industries because they dry faster. Resultantly, the growth of water-based adhesives is being restricted by their shorter drying period.

Other factors

• Reduced shelf life and inability to hold goods for a long time are assumed to slow market expansion.

• Costs for vulnerable commodities that are required to manufacture the adhesives are quite high.

Water-based Structural Adhesives Market Opportunities:

Enhanced adoption of Internet of Things (IoT) technology

To get real-time data and locate opportunities in the manufacturing process, many adhesive firms are deploying Internet of Things (IoT) technology to link machinery and smart devices. Plant managers and senior management process, analyze and analyse the data to improve quality and achieve ideal production levels. For example, smart systems offer data on the operation and performance of chemical reactors with embedded analytics potentialities to alert plant managers and operators of potential machine failures. Instances of significant businesses implementing IoT involve The Dow Chemical Company, BASF SE, and H.B. Fuller. Therefore, the growing adoption of Internet of Things (IoT) technology is estimated to create numerous opportunities for the growth of the market during the estimated period.

WATER-BASED STRUCTURAL ADHESIVES MARKET REPORT COVERAGE:

Water-based Structural Adhesives Market Segmentation: By Resin Type

• Acrylic Polymer

• Vinyl Acetate Polymer

• PU Dispersion

• EVA

• Others

Due to its exceptional properties including strong bonding strength, UV light resistance, and great durability, the Acrylic Polymer segment is expected to observe the highest revenue growth rate over the estimated period. Water-based structural adhesives with an acrylic polymer base are frequently utilised in the packaging, automotive, building, and furniture sectors because they offer better adherence on a variety of substrates, including Plastic, metal, and wood. Furthermore, strict environmental limitations and increasing demand for environmentally friendly adhesives are fuelling the expansion of this market.

Water-based Structural Adhesives Market Segmentation: By Application

• Paper & Packaging

• Leather & Footwear

• Building & Construction

• Others

The Packaging industry is likely to dominate the market in the upcoming years. This is a result of the rising worldwide demand for environmentally friendly and sustainable packaging options. Due to their low VOC emissions and biodegradability, water-based adhesives are meant to be environmentally friendly, which makes them a great choice for the packaging sector. Furthermore, water-based adhesives have high heat resistance, flexibility, and bonding strength, which makes them congenial for use in packaging applications.

Throughout the expected period, the construction segment is anticipated to experience faster expansion. The need for water-based adhesives is being influenced by the expansion of construction activities around the world, particularly in developing economies. In construction, water-based adhesives are widely applied in wall coverings, insulation, and flooring. These adhesives are perfect for construction applications as they have great adhesion to a range of materials, such as concrete, metal, and wood.

Water-based Structural Adhesives Market Segmentation: By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Throughout the estimated period, Asia Pacific is expected to have the greatest revenue share in the global market for water-based adhesives. Due to the existence of rising nations like China and India, where the construction and packaging industries are strengthening quickly, the demand for water-based adhesives in the region is expected to increase exponentially. Numerous key market competitors in the region are deploying more money in R&D projects to produce new items and broaden their client base. Also, the region's approach to cheap labour and raw resources is predicted to boost market expansion. The ask for packaged food and beverages, consumer electronics, and e-commerce delivery services in Asia Pacific are developing quickly, which is likely to grow the need for water-based adhesives in the region.

The global market for water-based adhesives is expected to grow at the fastest rate during the projected period in North America. In most industries, including packaging, construction, and automotive, the necessity for eco-friendly and sustainable products has grown throughout the region. The US and Canadian governments' implementation of various energy efficiency laws and regulations is also predicted to fuel industry expansion. Moreover, several large firms in the region are making capital expenditures in R&D to introduce cutting-edge products and broaden their consumer base. Market expansion in this area is expected to be boosted by the rising demand for packaged food and beverages and the strengthening trend of e-commerce delivery services.

COVID-19 Impact Analysis on the Water-based Structural Adhesives Market:

COVID-19 has led to a severe economic disruption, with devastating effects on global trade, simultaneously affecting households, businesses, infrastructure companies, and industrial establishments. Short supplies and event cancellations owing to the extreme lockdown have drastically impacted several industrial sectors such as packaging, which in turn, has created an indirect impact on the water-based adhesive industry dynamics. However, the rapid rise in demand for pharmaceutical and ready-to-eat food products during the COVID-19 pandemic has impacted in the mounting consumption of shelf-ready packaging solutions. These aforementioned elements, along with the gradual ease of strict lockdown and other restrictions in several nations, may help the industry regain traction over the foreseeable future.

Latest Trends:

Demand for Lightweight and Low Pollution to influence Water-Based Structural Adhesive Market

The market for water-based adhesives is strengthening due to consumer demand for lightweight and low-pollutant goods. Due to their enhanced effectiveness and less environmental impact, light effects are becoming more and more famous. Given that they are often lighter and less detrimental than conventional solvents, water-based adhesives can assist manufacturers in achieving these objectives. Furthermore, water-based adhesives are less difficult to apply and cure, making them a desirable choice for producers trying to streamline their manufacturing techniques. Market expansion for water-based adhesives is also boosted by rising consumer demand for low-pollution goods. Consumers and Producers who care about the environment frequently choose water-based adhesives since they create fewer VOCs and do not contain any dangerous compounds. Additionally, employing water-based adhesives can lessen the impact of industrial processes on the environment because they are simpler to discard and do not present the same health hazards to humans as traditional solvents. As consumers and manufacturers look to reduce their environmental impact in the next years, the movement towards sustainability and eco-friendliness is predicted to fuel demand for water-based adhesives.

Key Players:

1. Henkel AG & Co. KGaA

2. 3M Company

3. H.B. Fuller Company

4. Ashland Inc.

5. Avery Dennison Corporation

6. Bostik SA

7. Dow Inc.

8. Sika AG

9. Huntsman Corporation

10. PPG Industries, Inc.