Water-Based Adhesive Market Size, Share & Trends Analysis Report By Resin Type (PVA Emulsion, PAE, VAE Emulsion, SB Latex, PUD, VAA), By Application (Tapes and Labels, Paper and Packaging, Woodworking, Building and Construction, Automotive) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global water-based adhesive market size was valued at USD 18.6 billion in 2022 and is projected to reach USD 35.0 billion by 2031, registering a CAGR of 7.3% during the forecast period (2023-2031). Water-based adhesive market growth is driven by a growing emphasis on producing sustainable and eco-friendly goods, increased acceptance of water-based adhesives in the packaging and footwear industries, and increased use of acrylic dispersion adhesives in the construction industry.

Water-based adhesives are adhesives that contain water as a carrier or solvent. Waterborne adhesives, often solvent-free adhesives, have gained appeal as an environmentally benign alternative to solvent-based adhesives. Due to their versatility, lower amounts of volatile organic compounds (VOCs), and ecologically favorable properties, these adhesives are employed in various industries and applications.

Water-based adhesives' helpful qualities, such as durability, flexibility, and economic efficiency, push the water-based adhesive market to competent growth. Another factor driving market growth is the increased demand for lightweight and low-polluting cars. However, the shortened shelf life, combined with the inability to keep the product longer, has stifled the growth of the water-based adhesive market. Shifting consumer demand for sportswear due to increased sports activities for health and fitness would shortly provide a lucrative development of the water-based adhesive market share.

Market Dynamics

Global Market Drivers

Environmental Regulation

Demand for eco-friendly adhesive solutions is driven by stringent environmental restrictions and a rising emphasis on minimizing volatile organic compound (VOC) emissions. The Environmental Protection Agency (EPA) in the United States and the European Union's REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) have implemented strict regulations to control volatile organic compound (VOC) emissions. The EPA regulates VOC emissions from numerous industries, including adhesives. Water-based adhesives with lower VOC concentration meet EPA guidelines. For example, the National Volatile Organic Compound Emission Standards for Adhesives, Sealants, and Waterproofing Membranes provide emission limits and standards for several adhesive kinds. Similarly, REACH is a comprehensive European Union regulation governing the manufacturing and use of chemical compounds. Water-based adhesives are preferred under REACH because they have a lower environmental and human health effect than solvent-based alternatives.

Furthermore, industry bodies like the Adhesive and Sealant Council (ASC) frequently collaborate with regulatory agencies to develop industry-specific standards. To meet environmental criteria, these regulations may encourage or require the usage of water-based adhesives. As a result, further collaboration among regulatory agencies, industry groups, and manufacturers is expected to define the adhesive landscape, stressing sustainable and low-VOC solutions. Environmental regulations, which influence product development, manufacturing methods, and industry standards, are critical in determining the water-based adhesive market trend. Complying with these requirements has become an important motivator for using water-based adhesives in various applications.

Global Market Restraints

Performance Limitation

When compared to solvent-based adhesives, water-based adhesives may have some performance limitations, particularly regarding early bonding strength and tolerance to harsh environments. In industries such as automotive production or aerospace, where bonding strength is crucial for structural integrity and the capacity to survive extreme conditions, fully converting to water-based adhesives may provide issues. Certain automotive applications, for example, may necessitate adhesives with excellent initial bond strength to survive dynamic stresses and temperature fluctuations.

Furthermore, water-based adhesives dry slower than solvent-based adhesives. As a result, in some applications, water-based adhesives may have lower initial binding strength than solvent-based alternatives. This is especially important when immediate bonding strength is needed, such as in high-speed manufacturing operations. Due to the limitations in initial bond strength and resistance to harsh circumstances, industries may carefully assess the applicability of water-based adhesives for specific applications. While progress is being made to solve these restrictions, industries must consider performance concerns and environmental benefits when selecting adhesive solutions.

Global Market Opportunity

Growing Packaging Industry

The rise of the packaging business, driven by e-commerce and consumer goods, provides significant potential opportunities for water-based adhesives. Water-based adhesives provide a sustainable alternative for bonding paper, cardboard, and labels in various packaging applications as packaging requirements grow. According to Smithers, the demand for sustainable Packaging is increasing, with eco-friendly adhesives playing an important role in reaching sustainability goals. Water-based adhesives emit fewer volatile organic compounds (VOCs) than solvent-based competitors, which aligns with regulatory standards and environmental aims. Due to their compliance with food safety laws, water-based adhesives are frequently preferred in food packaging applications. According to reports from industry associations and regulatory agencies, water-based adhesives are being used in food packaging to maintain compliance with standards such as the US Food and Drug Administration (FDA) requirements.

On the other hand, government rules and initiatives promoting sustainable packaging offer a favorable climate for water-based adhesives. Legal frameworks such as the European Union's Single-Use Plastics Directive and different national programs emphasize the necessity of environmentally friendly Packaging, providing legal incentives for eco-friendly adhesives. The packaging industry's continuous emphasis on sustainability and legislative support for environmentally friendly practices are projected to fuel demand for water-based adhesives in packaging applications. Water-based adhesives are set to play an important role in satisfying the increasing needs of the packaging business as e-commerce and sustainable packaging trends continue.

Regional Analysis

The global water-based adhesive market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global water-based adhesive market shareholder and is estimated to grow at a CAGR of 7.4% over the forecast period. The need for environmentally friendly and sustainable products has expanded across the region in various industries, including Packaging, construction, and automotive. The enforcement of various energy efficiency laws and regulations by the United States and Canadian governments is also expected to spur business growth. The U.S. Green Building Council has set LEED certification requirements for water-based adhesives in construction projects.

Furthermore, some large enterprises in the area are investing in R&D to introduce cutting-edge products and expand their consumer base. The growing trend of e-commerce delivery services and rising demand for packaged food and beverages are expected to boost this market's growth. Manufacturers of water-based adhesives in the United States can explore new options as online shopping becomes more popular. Non-residential development requirements and rising consumer spending on home furnishings will likely drive demand for water-based adhesives in the building and construction industry. In July 2022, a new class of water-based, heat-activated adhesives was developed specifically for use with Santoprene and other Thermoplastic Elastomers (TPEs), eliminating the need for costly surface treatments or primers. Due to these innovative adhesives, manufacturing over-molded items used in automotive, Packaging, medical, appliance, and construction industries will take less time and money.

Europe is anticipated to exhibit a CAGR of 7.8% over the forecast period. The region's well-established construction, Packaging, and automotive sectors are expected to generate the majority of demand for water-based adhesives. Along with the region's stringent legislation limiting the use of chemicals in various industries, increased consumer awareness of green and sustainable products is expected to fuel market expansion. Furthermore, the area is home to several large corporations that spend on R&D projects to produce new products and suit changing consumer expectations. The European Commission has enacted the REACH Regulation, establishing safety standards for water-based adhesives used in consumer products.

Additionally, the German water-based adhesive industry dominated, while the UK water-based adhesive market grew fastest in Europe. The market for water-based adhesives in Europe, driven by the UK, Germany, Spain, and France, may expand rapidly due to increased demand for construction, automotive, and military products. As a result of increased government spending on roads and bridges and increased commercial investments in structures, the German construction sector is anticipated to rise quickly. The market has expanded even further due to the growing urban and immigrant populations. The market for water-based adhesives may increase faster as the UK furniture sector expands due to consumers' access to affordable, high-quality furniture.

The Asia-Pacific market is expected to grow at the fastest CAGR during the forecast period according to water-based adhesive market insights. The region is likely to see a significant increase in demand for water-based adhesives due to the presence of developing economies such as China and India, where the construction and packaging sectors are both rapidly expanding. Major market competitors in the region are expanding their funding for R&D projects to produce new products and expand their client base. Furthermore, the region's access to cheap labor and raw materials will encourage market expansion. 

In addition, China's water-based adhesive market had the biggest market share, while India's was the Asia-Pacific region's fastest expanding. The Packaging, automotive, coating, and paints industries because of the huge potential in growing countries such as China and India. The Asia Pacific area may benefit from tremendous expansion. Opportunities as these countries add weight to the global water-based adhesive market by establishing many installations and production units for diverse end-user industries. Water-based adhesive vendors in the Asia Pacific may have particularly lofty goals for Packaging and construction. The Japanese market for water-based adhesives is expected to develop during the forecast period due to strong growth in end-use industries. Automotive and transportation, building and construction, woodworking, and paper and Packaging are among these industries. Water-based adhesives are being used more frequently in various industries, which is expected to drive the target market in Japan.

Segmental Analysis

The global water-based adhesive market is segmented based on resin type, application, and region.

Resin type is further segmented into PVA Emulsion, PAE, VAE Emulsion, SB Latex, PUD, and VAA.

PVA Emulsion generates the most income. PVA emulsion is a water-based glue that is mostly composed of polyvinyl acetate. It is well-known for its adaptability, ease of usage, and compatibility with various substrates. PVA emulsion adhesives are widely used in woodworking, paper and Packaging, textiles, and general assembly industries. The PVA emulsion category controlled the market. This is mostly because PVA adhesives provide transparent, hard coatings resistant to water, lubricants, oil, and grease. Other features include excellent initial tack, an almost invisible bond line, softening at 30-45 °C, remarkable biodegradability resistance, and low cost. Each resin type is chosen depending on the application's specific requirements. PVA emulsions, for example, may be preferable for general-purpose bonding.

Polyacrylate emulsions, often PAE adhesives, are water-based adhesives in which polyacrylate is the main component. They have good adhesion properties and can be tailored to individual performance requirements. PAE adhesives are used in various industries, including paper and Packaging, construction, and woodworking.

The segment can be bifurcated by application into Tapes and labels, Paper and Packaging, Woodworking, Building and construction, and Automotive.

Paper and Packaging influenced the market growth. Water-based adhesives are widely used in the paper and packaging industries. These adhesives are used in packaging manufacturing to bond paperboard, corrugated cardboard, and other paper materials. Packaging uses include carton sealing, box manufacturing, paper bag production, and laminating. The largest amount of money was made in the paper and packaging segment. This is due to the increased global demand for sustainable and eco-friendly packaging solutions. Water-based adhesives are an ideal choice for Packaging because they are considered environmentally friendly due to low VOC emissions and biodegradability. With their high heat resistance, flexibility, and bonding strength, water-based adhesives are perfect for packaging applications.

Tapes and labels are frequently made with water-based adhesives. These adhesives have high bonding strength and flexibility and often attach well to various surfaces, making them ideal for labeling and taping. Packaging tapes, masking tapes, self-adhesive labels, and medical tapes are all examples of tapes.

Recent Developments

• September 2023- The largest pureplay adhesives producer in the world, H.B. Fuller producer (NYSE: FUL), announced the acquisition of the UK-based Sanglier Limited, one of Europe's leading independently owned manufacturers and fillers of sprayable (aerosol and canister) industrial adhesives.
• October 2023- Avery Dennison entered a binding agreement to acquire Silver Crystal Group.