The laminating adhesive market is expected to reach a USD market size of $4.1 billion by 2026, up from 2.9 billion in 2021, exhibiting high growth potential with a compound annual growth rate (CAGR) OF 6.9%. Growing demand in the automotive & transportation, industrial, and packaging industries are driving this high growth in addition to raised awareness regarding environmentally friendly adhesives, particularly in the largest market in the Asia-Pacific (APAC) region.
Timber Laminating Global Market Trends
One of the largest contributing factors to the timber laminating adhesive growth market in the APAC region is due to changing lifestyles and an increase in urban population. In addition to the increasing urban population, an increase in consumer durables, pharmaceuticals, and e-commerce are driving the laminating adhesives global market. One of the biggest opportunities presented to the laminating adhesive market is the packaging and use industry, exhibiting high growth potential.
One of the largest restraints for growth in the laminating adhesive and many other markets is the volatility of raw material prices.
Pandemic Impact on The Global Adhesives Market
The COVID-19 global pandemic has impacted various industrial and financial sectors, including manufacturing, aviation, travel, and tourism. Economic activities impacted by global shutdowns have left businesses coping with lost revenue and disrupted supply chains. Higher consumption during the recovery fueled higher prices for natural gas and coal due to increasing demand, further affecting economies in APAC, North and South America, and Europe.
Market Dynamics of Laminating Adhesives
The APAC region is driving huge demand for flexible packaging, largely due to a growing middle class, a changing lifestyle, and increasing disposable income. China is the largest consumer of laminating adhesives in the APAC region, with consumer retail sales of over $5 trillion. India is experiencing rapid growth and transformation in infrastructural development, industrial, automobile, and packaged food industries.
Water Based and Solvent Based Adhesives
Water-based and organic solvent-based are the two main classes of laminating adhesives. Drying and curing water-based adhesives takes more time than solvent-based adhesives, and flow properties of waterborne adhesives can change due to humidity levels which can affect the entire coating application. Water does not evaporate as quickly in high humidity, which can result in poor curing and decreased performance. Freezing conditions can also hinder water-based adhesion performance.
Eco-Friendly Policies Driving Increase in Water-Based Adhesives
In spite of the performance issues associated with some water-based adhesives, their use is increasing due to regulatory policies over environmental concerns. Stringent environmental regulations are a significant driving factor in the increase of water-based laminating adhesives. Eco-friendly policies play a vital role in the use of water-based adhesives, with increased concern over the generation of emissions and waste. Innovative adhesive suppliers have developed high-quality and high-performance water-based adhesives to meet the needs of a wide range of laminating adhesive applications.
Regulatory authorities worldwide, including the Environmental Protection Agency (EPA) in North America and Europe, the European Union (EU) registration, the Control of Substances Hazardous to Health (COSHH), and the Globally Harmonized System (GHS) are all placing regulations on the chemical industry. Manufacturers must comply with these policies for the production and usage of laminating adhesives, including limitations on volatile organic compound (VOC) emissions. Some manufacturers are forced to make the change from solvent-based water-based adhesive technology, which requires innovative adhesive solutions to address increased drying and curing time and production costs.
Universal Chemicals & Coatings, Inc., UNICHEM, is a leading supplier of high-performance industrial laminating adhesives, providing solutions to a broad range of market applications for more than 50 years. We offer water-based and solvent-based adhesive technology and partner with our customers to provide the most effective and efficient laminating bonding adhesive. Contact us to learn more about improving your lamination bonding application with customized water-based and solvent-based laminating adhesives.