Global lamination adhesives for flexible packaging market to surpass $2600million by 2027
The global lamination adhesives for flexible packaging market is projected to surpass US$2600million by the end of 2027, in terms of revenue, growing at CAGR of 6.6% during the forecast period of 2020 to 2027, according to Coherent Market Insights’ market study.
Growing spending on packaged food across developed, as well as developing regions, is expected to propel the market growth of lamination adhesive for flexible packaging. According to the United States Department of Agriculture Economic Research Service, in 2018, U.S. consumers, businesses, and government entities spent $1.71 trillion on food and beverages in grocery stores and other retailers and on away-from-home meals and snacks. Thus, growing spending by the consumer on packaged food is projected to augment the market growth of lamination adhesive for flexible packaging.
Developing markets, such as BRICS (Brazil, Russia, India, China, and South Africa) are projected to experience a surge in GDP growth over the forecast period. This is projected to, ultimately, increase in the manufacturing industry, which is expected to propel the market growth of lamination adhesive for flexible packaging. Moreover, the increase in the foreign direct investment coupled with the increasing initiatives by the government is further anticipated to augment the market growth.
Regionally, Asia Pacific dominated the global Lamination Adhesives for Flexible Packaging market in 2019, reporting 37% market share in terms of revenue, followed by North America and Europe, respectively.
The high cost of adhesives due to the fluctuating price of raw materials used in the manufacturing of lamination adhesive is expected to hinder the market growth of lamination adhesive for flexible packaging. This is due to the rise in prices of oil which has affected the production process.
Rising concern over energy consumption the production of adhesive is an energy-intensive process that is expected to hamper the market growth. Moreover, the process is time-consuming which is also expected to restrict the market growth of lamination adhesive for flexible packaging.
Rising demand for solvent-less adhesives is expected to offer an enormous potential opportunity to the market of lamination adhesive for flexible packaging. For example, in July 2019, Uflex Limited has introduced a general performance, single component solvent-less PU adhesive – FLEXBON OC512. The moisture curing adhesive is designed for laminating film with printed and un-printed board or paper, with an average coating weight of 3 to 5 GSM.
The growing focus of manufacturers to develop bio-based laminated adhesives is expected to present major growth opportunities to the market of lamination adhesive for flexible packaging. A growing population coupled with the increasing disposable income of the people across the developing region is further anticipated to fuel the market growth of the lamination adhesive for flexible packaging over the forecast timeframe.
According to Coherent Market Insights, the growing demand for laminate adhesives from the automotive industry is projected to augment market growth over the forecast period. Laminate adhesive provides strong bonding that conventional technology which makes them ideal for automotive application such as fenders, body panels, heat shields, grille opening reinforcement (GOR), headlamp reflectors and picks up boxes. Thus, emerging application of laminate adhesives across the automotive industry is expected to propel the market growth.
Growing demand for flexible packaging across various end-user industries is expected to be a major trend in the market. This is primarily attributed to the rising disposable income of the consumer due to economic growth. All these factors are expected to propel the market growth of the lamination adhesive for flexible packaging.
On the basis of product type, solvent-based dominated the global Lamination Adhesives for Flexible Packaging market in 2019 with around 42% of market share in terms of revenue, followed by solventless and heat/cold seal, respectively.
Key players are operating in the global Lamination Adhesives for Flexible Packaging market are H.B. Fuller, Henkel AG & Co. KgaA, The Dow Chemical Company, 3M, Flint Group, Arkema Group, Ashland Inc., COIM Group, Morchem, DIC Corporation, and Chemline India Ltd