Adhesives and sealants market growth curve slopes upward as its end-use industries boom
Niche product requirements supported by product development innovations will likely drive adhesives and sealants market growth, says Frost & Sullivan
SANTA CLARA, Calif. — Frost & Sullivan’s recent analysis, Global Industrial Adhesives and Sealants Growth Opportunities, finds that the increasing consumption of adhesives and sealants by end-use industries—packaging, electrical and electronics, industrial machinery, and metal and glass processing—is inflating their demand globally. By 2027, the global adhesives and sealants market is estimated to garner US$21.52 billion in revenue from US$14.43 billion in 2020, an uptick at a compound annual growth rate of 6%. However, with supply chain disruptions across industry verticals due to the COVID-19 impact, the market performance declined incrementally in 2020.
Nevertheless, the ongoing growth of eCommerce, fast-moving consumer goods, packaged food and beverages, medical packaging, and electrical and electronics will drive the adhesives and sealants market to pre-COVID levels in 2021.
“Adhesives and sealants are increasingly preferred over mechanical fastening, welding, and other conventional joining methods in various industrial applications as these products offer seamless bonding between surfaces and help reduce manpower and manufacturing costs,” said Ganesh Dabholkar, Chemicals, Materials and Nutrition Research Analyst at Frost & Sullivan in a prepared statement. “Developing breakthrough chemistries and application methods will be key to achieving customer satisfaction by industrial adhesive and sealant manufacturers.”
Dabholkar added: “Growing demand for premium products across end-use industries that demonstrate higher bonding and sealing performance, biodegradability, end-product longevity, ease and higher speeds of application, and reduced equipment maintenance is expected to contribute to a rise in product prices and propel market growth. Additionally, as major end-use industries of adhesives and sealants are dominant in the Americas and Asia-Pacific (APAC), both regions will concurrently dominate in terms of volume consumption and revenue contribution during the forecast period, with annual volumes and revenue expected to exceed 2 million tons and US$7.45 billion for each of the two regions.”
The surging demand for adhesives and sealants from various end-use industries presents lucrative growth prospects. Market participants should consider:
- Increasing popularity of sustainable packaging is expected to fuel demand for biodegradable adhesives: Packaging adhesive manufacturers need to focus on developing chemistries that meet high bonding standards and are compostable for developing sustainable packaging.
- High-performance elastic adhesives for electrical & electronic applications are creating fresh adhesive demand: Electronic adhesive manufacturers need to focus on developing adhesive product portfolios that demonstrate multiple and high levels of elasticity and flexibility.
- Strategic acquisition of key businesses: Adhesive and sealant manufacturers need to focus on leveraging their inorganic growth capabilities to expand and compete effectively in newer markets.