Laminating Adhesives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Laminating Adhesives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global laminating adhesives market is projected to register a CAGR of over 6% during the forecast period (2021-2026).

The market was negatively affected due to COVID-19 in 2020. Owing to the pandemic scenario, several countries around the world went into lockdown to curb the spreading of the virus. Supply and demand chain disruptions due to lockdowns being practiced had negative effects on various end-user industries such as transportation and packaging. However, the condition is expected to recover in 2021, thereby benefitting the market over the forecast period.

Key Highlights

• Over the short term, rapid growth in the flexible packaging industry and the increasing demand for packed food are expected to drive the market's growth.
• On the flip side, growing concerns regarding plastic disposal and the negative impact of the COVID-19 pandemic are expected to hinder the growth of the market studied.
• The packaging industry dominated the market and is expected to grow during the forecast period, owing to the increasing demand for flexible packaging in the food and beverage industry.
• Asia-Pacific dominated the market across the world, with the largest consumption from the countries, such as China and India.

Key Market TrendsRapid Growth of the Packaging Industry

• Packaging is one of the key factors considered by the firms engaged in the manufacturing industry. With the growing number of manufacturing units, food processing plants, and increasing industrial production, the global packaging industry is witnessing robust growth.
• In the last few years, the packaging industry has been experiencing a transition, where the manufacturing and industrial sector has been adapting to flexible packaging. Owing to this, the rigid packaging industry is losing its share to the flexible packaging industry in the global packaging industry.
• The benefits, such as lightweight, easy handling, less space-consuming, longer shelf life, easy transit, damage resistance, and better printability, have made flexible packaging popular.
• Laminating adhesives are extensively used in flexible packaging. Laminating in flexible packaging is a process where two or more packaging webs are joined together using a bonding agent. These webs can be in the form of films, papers, or aluminum foils. Laminating adhesive is applied to the less absorbent substrate of the web, which is then pressed against the second web.
• This shift in consumer preference for the use of convenient packaging and packaged products has contributed to the growth of packaging in the food and beverage sector. The food-processing sector is the largest user of flexible packaging, accounting for more than 50% of the total demand.
• With the increasing population, rising demand for packaged foods, and numerous market growth opportunities in different regions, many food manufacturing multi-national companies (MNCs) are setting up their manufacturing facilities, which, in turn, is increasing the demand for packaging and boosting the demand for laminating adhesives.
• In North America, the United States is the largest consumer of packaged goods, followed by Canada and Mexico. The changing trends in consumer behavior and manufacturers’ easier convenience are resulting in a faster growth of the packaging market in the country. In the United States, the packaging market is estimated to be worth USD 280.3 billion in 2022. According to Mordor Intelligence, United States packaging market is estimated to witness a CAGR of about 3.5%, in terms of revenue, during 2021-2026.
• Hence, with the increasing demand for packaging, the market for laminating adhesives is also expected to register a noticeable growth in demand during the forecast period.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region dominated the global market share. With growing manufacturing activities and the increasing need for flexible packaging in countries, such as China, India, and Japan, the usage of laminating adhesives is increasing in the region.
• Asia-Pacific is the largest consumer for the packaging industry, owing to the demand for food in major economies, such as China, India, and Japan. Compared to other countries, China is a late starter in the packaging industry, which, however, has grown to a large-scale industry over the decades.
• Additionally, the market competition in China has become increasingly fierce in the food and beverage industry, which has enabled companies to tap into overseas markets, with an aim to seek more resources and business opportunities.
• China has the world’s largest electronics production base. Electronic products, such as smartphones, OLED TVs, tablets, wires, cables, and others, have the highest growth in the electronics segment. With the increase in the disposable income of the middle-class population, the demand for electronic products is projected to grow in the near future, thereby driving the laminating adhesives market in the near future.
• In addition, India’s lucrative growth in industries, such as packaging, electronics, and construction, is likely to continue in the coming years, owing to the growing investments and supportive government policies.
• India is one of the major consumers of packaged foods and beverages. According to the Packaging Industry Association of India (PIAI), the packaging industry is expected to grow at a rate of 22% during the forecast period. However, this growth was affected during 2020, due to the halted manufacturing activities in the first quarter of 2020.
• The demand for frozen foods in India is expected to witness a growth rate of approximately 17% in the next few years. Moreover, with the Indian government focusing on the food processing sector, the supply of processed agri-foods is expected to rise over the next five years, which, in turn, may stimulate the demand for packaging industry in the country and consequently help laminating adhesives market to grow.
• The aforementioned factors, coupled with government support, may contribute to the increasing demand for laminating adhesives consumption in the region during the forecast period.

Competitive Landscape

The market for laminating adhesives is consolidated in nature, and is dominated by major players, including Henkel AG & Co. KGaA, Arkema Group (Bostik), H.B. Fuller Company, Ashland, and 3M. The other major players include Sika AG, TOYOCHEM CO., LTD., and Evonik Industries AG, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

3M
Arkema Group (Bostik)
Ashland
Coim Group (Novacote)
DIC India Limited
DuPont
Evonik Industries AG
H.B. Fuller Company
Henkel AG & Co. KGaA
hubergroup
LD Davis.
Sika AG
Shandong Huacheng High
tech Adhesive Co., Ltd
TOYOCHEM CO., LTD.

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