Water Borne Adhesives Market - Forecast(2024 - 2030)

Water Borne Adhesives Market Overview

Water Borne Adhesives Market size is forecast to reach $28.98 billion by 2026, after growing at a CAGR of 6.2% during 2021-2026. Water Borne Adhesives or water-based adhesives are considered as environment-friendly and low Volatile Organic Compounds (VOC) as it is mainly compounded with water as a diluent rather than volatile organic solvent. Waterborne adhesives include polyvinylidene chloride, styrene-butadiene copolymers, and polychloroprene. They are an economical alternative to solvent-based adhesives. Governmental regulations limiting the VOC emissions content in adhesive products are supporting the demand for waterborne products. The major factors driving the market is the growing demand from the Paper and Packaging Industry. The global Water Borne Adhesives Market is anticipated to dominate by Asia Pacific region. High demand from the packaging, construction, and automotive industry is likely to drive the Asia Pacific market growth. China accounts for most of the production in Asia Pacific region.

COVID-19 Impact

The outbreak of a novel coronavirus is not only a threat to public health, but also for economic and business growth Worldwide. The global Water Borne Adhesives Market has slowed down owing to a contraction in demand from most of the industries such as packaging, construction, automotive, and others due to the COVID-19 outbreak. For instance, the pandemic crisis has led to some of the sharpest declines in Packaging industry in recent times in demand for certain types of packaging, however, accelerating growth for others—such as packaging for e-commerce shipments, packaging for groceries and healthcare products are emerging as lifelines in this new world.

Report Coverage

The report: “Water Borne Adhesives Market- Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Water Borne Adhesives Industry.

By Type: Acrylic Polymer Emulsion (PAE), Vinyl acetate-ethylene (VAE), Polyvinyl Acetate (PVAc), Styrene Butadiene (SB) Latex, Polyurethane Dispersion (PUD), and Others.

By Raw Material: Natural Polymer and Soluble Synthetic Polymer.

By End Use Industry: Apparel, Furniture, Tapes & Labels, Paper & Packaging, Woodworking, and Others.

By Geography: By Geography: North America (U.S, Canada and Mexico), Europe (UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and RoW (Middle East and Africa).

Key Takeaways

• Asia Pacific dominates the Water Borne Adhesives Market owing to rapid increase in Paper & packaging and construction sector.
• The market drivers and restraints have been assessed to understand their impact over the forecast period.
•  The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
• The other key areas of focus include the various types and end-use industry in Water Borne Adhesives Market and their specific segmented revenue.
• Due to the COVID-19 pandemic, most of the countries have gone under temporary shutdown, due to which operations of Water Borne Adhesives related industries has been negatively affected, thus hampering the growth of the market.

Figure: Water-Borne Adhesives Market Revenue, By Geography 2020-2026 (US$ Billion)

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Water-Borne Adhesives Market Segment Analysis - By Type

Acrylic Polymer Emulsion held the largest share of 36% in the Water Borne Adhesives Market in 2020. This growth is mainly attributed to the growing demand for Acrylic adhesives in varied applications such as in packaging, textile, automobiles, building, and construction, and others. These adhesives are formulated with a precise blend of water-based polymers and provide superior results when used in water based coatings and printing inks. Due to its excellent water resistance properties, it is highly useful in non-woven fabrics which are in high demand from the healthcare and textile industry. Due to the pandemic, the demands for disposable goods are escalating in the food and packaging industries, Acrylic polymers emulsions are also used for coating fast food bags, wrappers, and paper plates to make the paper oil and grease resistant. Acrylic Polymer Emulsion Industry is projected to have high demands in the forecast period.

Water-Borne Adhesives Market Segment Analysis - By Raw Material

Soluble synthetic polymers dominate the Water Borne Adhesives Market in 2020 growing at a CAGR of 6.2% during forecast period. Water-Borne Adhesives are developed either from natural polymers derived from vegetable sources, protein sources and animal or from soluble synthetic polymers including polyvinyl alcohol, cellulose ethers, methylcellulose, carboxymethylcellulose, and polyvinylpyrrolidone. Water-based adhesive is supplied either in the form of dry powder or pre-mixed solution in which water is mixed by the suppliers

Water-Borne Adhesives Market Segment Analysis – By Application

Paper and packaging [DK1] held the largest share in the Water Borne Adhesives Market in 2020 up to 38%. The Packaging market is witnessing growth, which, in turn is driving the demand for water-based adhesives. Covid-19 may have derailed this growth considerably, however, certain manufacturing sectors, such as pharmaceuticals, packaged food and beverages, functional food and hygienic products have been less affected by the emergency, and have relatively seen a sizeable growth both in demand and in production, raising the demand of packaging. Despite restricted activity in the packaging companies, historically, the last decade has seen the packaging industry emerging as a striking investment avenue for the global players, majorly in the flexible packaging segment. The growing need for added-value packs customization and new selling or shipping units are forcing manufacturers to adapt their production models and supply chains for instance, In June 2021 Sidel, one of the major companies in the packaging industry has introduced a highly flexible Industry 4.0 case-packing platform for shaped containers in wrap-around blanks, trays, and shelf-ready packaging. [nd2] On the other hand, according to the Indian Institute of Packaging (IIP), in 2020 packaging consumption in India increased 200% in the past decade, from 4.3 kgs per person per annum (pppa) to 8.6 kgs pppa. And such development in the packaging industry will indirectly have a positive impact on the Water Borne Adhesives Market

Water-Borne Adhesives Market Segment Analysis – By End-Use Industry

Building and Construction Industry dominates the Water Borne Adhesives Market in 2020 growing at a CAGR of 9.3% during the forecast period. It is expected to witness significant growth over the forecast period due to industrialization and an upsurge in disposable income. The United States estimated that about 55% of the global population resides in urban cities. The hop of economic and demographic development has to be in synchronization with the demand for commercial, residential, and construction activities. Hence, with the growth of the residential sector, the use of water-borne adhesives is likely to increase during the forecast period. On the other hand, Water-based adhesive market size may witness firm development in the footwear industry as it contains low Volatile Organic Compounds (VOC) which makes it eco-friendly. Higher viscosity certifies its penetration into the material, thus making it suitable for permeable materials. For instance, in 2021 Power Construction Corporation of China Limited (PCCCL) has signed US$354.6 million contracts by the Pakistan Water and Power Development Authority (WAPDA) for civil works of the 1530MW-Tarbela 5th Extension Hydropower Project. And in 2020, the London Crossrail Project, the world’s first underground train system with a construction cost of around US$23 Billion. Such are some of the projects and development that are hugely impacting the demand growth of the Water Borne Adhesives Market.

Water-Borne Adhesives Market Segment Analysis - Geography

Asia Pacific region held the largest share in the Window Films Market in 2020 up to 42% followed by North America and Europe. According to the Population Reference Bureau, the fastest-growing consumer markets of China, India, and other APAC countries had a combined population exceeding 4.3 billion which is 60% of the world’s population (as of 2017). China is presently the foremost consumer of water borne adhesives across the world. The major players of the market are based in China. Fast-rising packaging industry of China for example, S-One Labels & Packaging has introduced Sustainable ByDesign product portfolio for recyclable and bio-based flexible packaging in 2020, and is also likely to enhance the demand for water-borne adhesives. Whereas In India, packaging segments have been observing significant development for instance, COVID-led demand which was seen as the need for stocking up essentials has volumes up by 20% in our overall portfolio of packaging and packing films in 2020. Furthermore, shifting consumer emphasis toward flexible packaging may offer abundant opportunities to the growth of the Asia-Pacific water-borne adhesives market. Hence, Asia-Pacific is likely to dominate the market during the forecast period.

Water-Borne Adhesives Market Drivers 

Water-Borne Adhesives for sustainable bonding

Waterborne Adhesives are a perfect alternative for solvent based systems, as they are not comprised of any Volatile Organic Compounds (VOC), and is lighter in weight and often need less product for forming durable bonds. Being environmentally friendly and low VOC, water-borne adhesive systems are also user-friendlier, unlike other solutions. Additionally, the complete products that are merged using aqueous adhesives are user-friendly, water-borne adhesives do not bring along great health risks, nor do they release toxic or odorous fumes. The market share of water-borne adhesives is becoming even greater since the development has taken a shift towards more sustainable solutions which support health and safety as well as reduce environmental impact. 

Replacement of hazardous pretreatments, volatile solvents, or heavy metals

Water-Borne Adhesives have many advantages over other techniques such as elimination of corrosion, superior aesthetics, quick and cost-effectiveness, and thus, their consumption is high in the manufacturing sector. Waterborne adhesives technology offers excellent corrosion resistance performance without the need for hazardous pretreatments, volatile solvents, or heavy metals and can provide corrosion resistance without significantly increasing the volatile organic compound (VOC) of the system. As a result, the demand for Water Borne Adhesives from the country’s construction and automotive industry is forecast to significantly grow in the coming years. For instance, German-based Henkel Adhesives Technology has invested around 50 million Euros (Rs 400 crores) on its new manufacturing facility in India, a prime consumer of water borne adhesives. The company said that it will invest another 50 million more in the next five years on the same unit and on other projects in India.

Water-Borne adhesives Market Challenges 

Not recommended for direct food contact and poor water resistance.

Some water-borne adhesives include raw materials like dextrin, starch, and casein. These and other ingredients are potential allergens and should be avoided by food packaging manufacturers. Lower water resistance than solvent-based products. water-based adhesives are sensitive to attack by micro-organisms. However, for that reason dispersion adhesives contain small amounts of preservatives for protection purposes. The potential health hazard is the triggering of allergic skin reactions, for example, allergic reactions triggered by natural polymers such as natural rubber and non-modified colophony resins. Yet such limitation can have a negative impact on the growth of the Water-Borne adhesives Market

Temperature Issues

Waterborne adhesives are also delicate to temperature. When things are excessively cold, the adhesive may set too slowly. When the adhesive, or the environment it is in, is extremely hot, then it may set too quickly. This can generate the same bonding issues and affect a waste of adhesive which increases costs. The solution here is to monitor your facility’s temperature and adjust it according to the temperature requirements of your specific adhesive. Or, you may be able to find an adhesive that will work better in your conditions. 

Water-Borne Adhesives Segment Analysis - Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Window Films Market. Major players in the Water Borne Adhesives Market are Henkel, H.B. Fuller (US), Arkema (Bostik) (France), Sika (Switzerland), 3M, Evonik Industries AG, Royal Adhesives & Sealants, Ashland, and Power Adhesives Ltd.

Acquisitions/Technology Launches/ Product Launches

• In March 2021, BASF Opens New Acrylic Dispersions Production Line in Malaysia. The new production line complements the existing set-up and allows the production of new dispersions technologies under Acronal® EDGE, Acronal® PLUS, Joncryl®, and next-generation Acronal® ECO product ranges. BASF’s systems are environmentally friendly, and the new line is equipped with condensate stripping recovery technology that reduces freshwater consumption and wastewater generation.
• In August 2020, Bostik, one of the major global adhesive specialist for industrial, construction, and consumer markets launched a new, innovative water-based adhesive, Aquagrip 3720, for automotive interior assembly applications. This adhesive is Ideal for bonding low surface energy, rigid substrates to the closed-cell foam and foam-backed materials.

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