Global Pressure-Sensitive Adhesives Market Grows Steadily at a CAGR of 6.04%

Pressure-sensitive adhesives comprise a mixture of high and low polyols and isocyanates used to adhere to two surfaces. Pressure-sensitive adhesives, also known as self-adhesive adhesives, require no external adhesion mechanism, such as heat, water, solvent, or any other agent. Bond strength is determined by the pressure required to apply these adhesives to a surface.

Pressure-sensitive adhesives have become an integral part of daily life, as they are utilized in a massive range of applications, including pharmaceutical labels and packaging, bandages, wound dressings, and electronic devices. Multiple substrates, including paper, plastic, metal, wood, and glass, can be adhered to with pressure-sensitive adhesives.

Market Dynamics

Unprecedented Growth of the E-commerce Market Drives the Global Market

Packaging is one of the greatest consumers of pressure-sensitive adhesives. Increasing disposable income, urbanization, infrastructure development, and population growth in Asia, Europe, the Middle East, and Africa contribute to expanding the global packaging industry. In the packaging industry, pressure-sensitive adhesives are acquiring popularity as a result.

Transit packaging, which involves using corrugated boxes to transport various products, is one of the most vital aspects of the packaging industry. In the next five years, the demand for transit packaging solutions is anticipated to increase significantly due to the expansion of e-commerce. Due to their high durability and non-toxic effects on food products, pressure-sensitive adhesives are widely employed for e-commerce and food packaging. These factors promote market expansion.

High Demand for Bio-based Adhesives Creates Tremendous Opportunities

The increasing demand for adhesives derived from petrochemicals will affect the environment in terms of sustainability and a green future. The demand for eco-friendly alternatives will fuel future demand for bio-based adhesives. Numerous producers of pressure-sensitive adhesives have developed bio-based holt-melt pressure-sensitive adhesives. Depending on the formulation and application, they typically contain between 20 and 50 percent renewable basic materials.

In addition, stringent regulations imposed by regulatory bodies such as the United States Environmental Protection Agency (USEPA) and the Leadership in Energy and Environmental Design (LEED) have compelled market participants to investigate new growth opportunities in bio-based adhesives. Thus, bio-based pressure-sensitive adhesives are now acknowledged globally as a necessity and have demonstrated enormous future potential.

Regional Analysis

Asia-Pacific is the most significant global pressure-sensitive adhesives market shareholder and is estimated to exhibit a CAGR of 6.18% during the forecast period. The availability of low-cost labor and high local demand have encouraged several multinational companies to establish regional manufacturing facilities. These initiatives have allowed these competitors to increase their market share and earnings. Expansions and investments, acquisitions, partnerships, and introducing new products are a few additional strategies that leading competitors in the Asia-Pacific market utilize.

The packaging industry also presents lucrative Asia-Pacific pressure-sensitive adhesives market growth opportunities. Rising demand for packaged consumables, packaging for healthcare products, and flexible packaging are significant market growth drivers. As per the Indian Economic Survey 2021, the value of the domestic pharmaceutical market was USD 42 billion in 2021, rising to USD 6 billion by 2024 and expanding to USD 120–130 billion by 2030. Such opportunities in the packaging industry represent robust growth prospects for the Asia-Pacific market for pressure-sensitive adhesives.

North America is anticipated to exhibit a CAGR of 6.01% over the forecast period. The United States is North America's largest consumer of pressure-sensitive adhesives and will continue to dominate the industry. Demand for low-VOC adhesives, such as pressure-sensitive adhesives, is driven by the stringent regulations regulating the use of harmful chemical compositions in chemically curing adhesives. In addition, the exponential expansion of the construction, automotive, and packaging industries is anticipated to drive demand for pressure-sensitive adhesives. Demand for pressure-sensitive adhesives in building and construction applications has been sparked by increased non-residential construction projects and consumer expenditure on home furnishings. Similarly, North America has the greatest number of airports, valued at over USD 120 billion, currently undertaking infrastructure development and modernization. This sector's opportunities will likely bolster the market significantly on its own.

Key Highlights

• The global pressure-sensitive adhesives market size was valued at USD 16 billion in 2022. It is estimated to reach USD 20.61 billion by 2031, growing at a CAGR of 6.04% during the forecast period (2023–2031).
• Based on technology, the global pressure-sensitive adhesives market is bifurcated into solvent-based, water-based, hot-melt, reactive, and radiation-cured. The water-based segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 6.49% over the forecast period.
• Based on formulation, the global pressure-sensitive adhesives market is segmented into acrylic, polyurethane, rubber, silicone, ethylene vinyl acetate, and others. The acrylic segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 5.67% over the forecast period.
• Based on application, the global pressure-sensitive adhesives market is bifurcated into tapes, labels, graphics, and others. The tapes segment dominates the global market and is predicted to grow at a CAGR of 6.18% over the forecast period.
• Based on end-users, the global pressure-sensitive adhesives market is bifurcated into packaging, automotive and transportation, electrical and electronics, building and construction, medical and healthcare, and others. The packaging segment owns the highest market share and is expected to exhibit a CAGR of 6.38% over the forecast period.
• Asia-Pacific is the most significant global pressure-sensitive adhesives market shareholder and is estimated to exhibit a CAGR of 6.18% during the forecast period.

Market Segments

1. By Technology
   1. Water-Based
   2. Solvent Based
   3. Hot-Melt
   4. Radiation Cured
2. By Formulation
   1. Acrylic
   2. Rubber
   3. Silicone
   4. Ethylene Vinyl Acetate
   5. Polyurethane
   6. Others
3. By Applications
   1. Tapes
   2. Labels
   3. Graphic
   4. Others
4. By End-User
   1. Packaging
   2. Automotive and Transportation
   3. Building and Construction
   4. Electrical and Electronics
   5. Medical and Healthcare
   6. Others