The pressure-sensitive adhesives market is expected to reach $9,351.8 million by 2024 and demonstrate a CAGR of around 4% during 2019–2024. One of the most-significant factors pushing this market toward prosperity is the growth in the e-commerce industry across the globe. Moreover, due to the changing preferences of consumers and increasing purchasing power, the demand for packaging materials, such as paperboards, is rising. This is itself due to the booming e-commerce industry, the share of which in global retail sales is increasing every year.
Lately, online sales of fast-moving consumer goods, stationery products, and electronic goods have increased. FMCG products create a high demand for packaging, which has been steadily rising since the introduction of e-commerce. Hence, the rapid growth of the e-commerce industry across the globe is propelling the pressure-sensitive adhesives market by driving the demand for packaging. This is because governments mandate FMCG companies to provide explicit product details on the packaging and due to the simple fact that effective packaging makes product transportation easier.
Among the categories in the formulation segment, silicone is expected to demonstrate the fastest growth in the coming years because of the advance of the hygiene product and healthcare industries. Silicone-based adhesives are widely used on multiple healthcare and hygiene products, such as sanitary napkins, medical tapes, and baby diapers. In this regard, the COVID-19 pandemic has somewhat driven the consumption of pressure-sensitive adhesives by propelling the sale of sanitary napkins and other general hygiene products.
Furthermore, based on application, tapes are expected to lead the pressure-sensitive adhesives market in the coming years. It is ascribed to the extensive use of pressure-sensitive tapes in packaging, construction, automobiles, and other applications. Globally, this will present lucrative opportunities for market players, such as Toagosei Co. Ltd., Hitachi Chemical Company Ltd., Franklin Adhesives & Polymers, Pidilite Industries Ltd., BASF SE, Exxon Mobil Corporation, and Jowat SE, who are already launching new products and expanding their geographical presence.
There are several industries in which such bonding agents are used, among which the packaging category held the largest share in the pressure-sensitive adhesive market in the past. It was due to the large-scale utilization of adhesives on cartons for packaging, with this practice booming with the growing e-commerce sector. With an increasing number of people purchasing smartphones and gaining access to the internet, e-commerce sales are skyrocketing, which is leading to a huge requirement for cartons and other packaging materials and, in turn, of adhesives.
Across the globe, APAC and Europe dominated the pressure-sensitive adhesives market by holding the first and second-largest shares, respectively, during the last few years. These regions are also expected to have the largest combined market share in 2024. It can be ascribed to the growing automotive, FMCG, and construction industries. Similarly, Turkey, South Africa, Saudi Arabia, Nigeria, and many other countries within the MEA region are displaying the development of the FMCG and construction industries, which will lead to an increase in the requirement for pressure-sensitive adhesives.
In addition, India is expected to witness significant growth in the pressure-sensitive adhesives market in the coming years. This will be due to the growth of industries such as healthcare, packaging, construction, and electrical and electronics. With the government efforts to boost domestic manufacturing, especially under the Make in India initiative, the number of manufacturing plants is rising and the logistics network is widening. Further, the growing online sales are pushing up the requirement for packaging materials and bonding agents.
Hence, the sale of pressure-sensitive adhesives will soar worldwide in the coming years owing to the rising need for them in various industries for wall coverings, graphical films, floor tiles, tapes, and labels.