Bio-Based Adhesives Market Outlook 2022-2027 - Increasing Construction of Low-Carbon Buildings Bodes well for the Sector

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Jan 20, 2023, 14:10 ET

DUBLIN, Jan. 20, 2023 /PRNewswire/ -- The "Bio-Based Adhesives Market - Industry Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.

The global bio-based adhesives market is expected to grow at a CAGR of 4.85% during 2021-2027. The global industry is expected to witness an absolute growth of 32.85% during the forecast period.

Factors like evolving emission regulation across the globe, rapid industrialization across emerging economies, and the stringent regulation to limit the use of formaldehyde material in a wood panels across the world offer impetus to the market growth.

Bio-based adhesives such as proteins, lignin, natural resin, vegetable oils, and starch are vital components in formulating bio-based adhesive products. Bio-based adhesives play a vital role in preserving the environment by preventing the release of harmful chemicals into the environment and are capable of meeting stringent government standards, specifically related to carbon emission, while maintaining high performance.

Globally, the demand and adoption of bio-based adhesives are increasing significantly due to several reasons, such as the increasing environmental concerns to reducing carbon footprint, reducing dependency on fossil fuels, and the existence of strong regulatory bodies.

Regulatory bodies such as the United States Green Building Council, California Air Resources Board (CARB), and European Union have set the regulations and standards such as REACH, CLP, and the circular economy initiative that mandate the use of green adhesive across various applications. The existing and upcoming demand can be broadly classified into product type and application segments.

The established bio-based adhesives markets of Europe and North America are expected to witness high demand for bio-based adhesive products during the forecast period due to the strong regulatory landscape for the bio-based product and unprecedented growth across the packaged food, pharmaceutical, furniture, and residential and non-residential construction industries due to the surge in private investment. Thus, this offers vendors many opportunities during the forecast period.

MARKET TRENDS & DRIVERS

Escalating Demand from Packaging Industry

Increasing purchasing power, an increasing pace of urbanization, rapid growth of the e-commerce industry, and expanding population are driving the packaging industry market worldwide.

The growth is expected to generate significant demand for bio-based adhesives products because it offers strong bonds and adhesion for manufacturing corrugated packaging, paperboard, and case and carton. Such factors create a positive impact on the bio-based adhesives market.

Furthermore, bio-based adhesives also offer transparent packaging while assisting manufacturers in meeting operational budgets and enabling manufacturers to meet the rising demand for antiviral & antibacterial packaging.

Rising Sustainability Aspect

Sustainability has become a significant concern for the consumer and industry as well. It is an evolving trend in the industrial and manufacturing sectors. In the past, adhesives were formulated from fossil fuel-based chemicals such as urea-formaldehyde, Methylene diphenyl diisocyanate, and phenol.

Today, however, with increasing demand for green adhesives, companies are developing environment-friendly production processes and using renewable resources to fulfill the increasing demand for bio-based adhesive that promotes sustainability in the bio-based adhesives market. Production of adhesives from renewable feedstock is helping various industries in reducing their carbon footprint.

Therefore, industries such as paper & packaging, OEMs, construction, and woodworking have decided to implement strategies promoting sustainable development so that companies can maximize profits while adding value to society.

MARKET RESTRAINTS

Stiff Competition from Low VOC Adhesive

The major challenge faced in the global bio-based adhesives market is the high dominance of low VOC adhesives. Low VOC adhesive is user-friendly as a bio-based adhesive because, during its formulation, no safety measure is required. It is environmentally friendly and does not risk human or aquatic life by releasing toxic or odorous fumes.

In addition, stringent environmental regulation mandated by the United States Environmental Protection Association (USEPA), Leadership in Energy and Environmental Design (LEED), and the European standards of EN 16785-1 verifies bio-based content of the product are also driving the demand for low VOC adhesive products.

SEGMENTATION ANALYSIS

INSIGHTS BY FEEDSTOCK

Sugar is one of the essential components in the global bio-based adhesives market under the feedstock segment. It generally includes starch, cane, and beet. The segment is expected to hold the largest global market share and will reach USD 3.87 billion by 2027.

The global glycerol bio-based adhesives market was valued at USD 1,520.71 million in 2021 and emerged as the second-largest segment in the market, with a revenue share of 28.83%. Glycerol is the most important feedstock used in the adhesive industry, not only as a binding agent but also as a sustainability. Vegetable oils and saponification of oils & fats are used to produce glycerol. It is a versatile compound due to its chemical properties and environmental benefits, thus effective in synthesizing polymers and adhesive products.

INSIGHTS BY APPLICATION

Based on application, the global bio-based adhesives market is divided into six segments: paper & packaging, construction, woodworking, personal care, medical equipment, and others. Paper & packaging held the largest share in the industry in 2021, and it is also expected to lead the market during the forecast period.

This is primarily due to the increasing demand for ready-to-eat food, microwave-ready meals, and packaging for on-the-go consumption that consumes bio-based adhesives for bonding pouches, sachets, bags, and corrugated board due to their natural composition that adheres well, when applied on high-surface tension substrates and permeable surfaces.

GEOGRAPHICAL ANALYSIS

North America emerged as the leading consumer of bio-based adhesives and accounted for a revenue share of 41% of the global bio-based adhesives market. The region was led by the U.S. and Canada, where the penetration of adhesive products is high, and the market revenue has been increasing steadily.

Factors like the rise in focus on sustainability to reduce carbon footprint, the stringent regulations to restrict the use of formaldehyde in wood panels, and the surge in the growth of the packaged food, medicines, and construction output drives the demand for bio-based adhesives product in North America.

Europe was the second-largest bio-based adhesives market, with a 27% revenue share in 2021. The presence of top-notch manufacturers such as Jowat (Germany), Intercol Industrial Adhesive (Netherland), Henkel (Germany), and Beardow Adams (UK) contributes to the significant growth of the bio-based adhesive market as these companies make use of renewable sources for formulating adhesive. Further, the Asia-Pacific region is projected to be the fastest-growing market for lubricant additives during the forecast period.

COMPETITIVE LANDSCAPE

The global bio-based adhesives market is nascent and expected to accelerate during the forecast period. The market is characterized by a few large and small players such as Jowat (Germany), Bostik (Arkema) (France), TOYOCHEM (Tokyo), and Conagen (U.S.), among others.

The changing market scenario with an emphasis on reducing carbon footprint and promoting sustainability affects vendors as customers expect continual innovations and upgrades. In response to it, several vendors in the market are working closely with the end-use industry players to understand customer expectations while keeping in mind the sustainability aspect. Hence, the bio-based adhesives market will offer significant growth opportunities to the existing and new players.

Key Vendors

Bostik
Beardow Adams
Henkel
Jowat

Other Prominent Vendors

Borregaard
Conagen
Duraxix Industries
Follmann GmbH & Co.
H.B. Fuller
Infinity Bond
Intercol
Kiilto
LD Davis
TOYOCHEM
Weiss Chemie + Technik GmbH & CO. KG

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Premium Insights
6.1 Global Bio-Based Adhesives Market 2021-2027
6.2 Market Dynamics: Key Trends, Drivers, and Restraints
6.3 Segment Analysis

7 Market at a Glance

8 Introduction
8.1 Overview
8.1.1 Export & Import Analysis of Biodegradable Adhesives
8.2 Value Chain Analysis
8.2.1 Raw Material Supplier
8.2.2 Manufacturers
8.2.3 Distributors
8.2.4 End-Use
8.3 Consumer Behaviorial Insights
8.4 Regulation & Labels
8.4.1 The Us Green Building Council
8.4.2 California Air Resources Board
8.4.3 En 16785- Verifies Bio-Based Content
8.4.4 En 13432- Evaluates Biodegradability

9 Market Opportunities & Trends
9.1 Escalating Demand from Packaging Industry
9.2 Increasing Construction of Low-Carbon Buildings

10 Market Growth Enablers
10.1 Increasing Crude Oil Prices
10.2 Continuous Innovation & New Product Launch by Industry Players
10.3 Rising Sustainability Aspect

11 Market Restraints
11.1 Stiff Competition from Low Voc Adhesive
11.2 Issue With Certain Bio-Based Adhesive Feedstock

12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.3 Five Forces Analysis

13 Feedstock
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Sugar
13.4 Glycerol
13.5 Oil & Fats
13.6 Biogas

14 Application
14.1 Market Snapshot & Growth Engine
14.2 Market Overview
14.3 Paper & Packaging
14.4 Construction
14.5 Woodworking
14.6 Personal Care
14.7 Medical Equipment

15 Geography
15.1 Market Snapshot & Growth Engine
15.2 Geographic Overview

For more information about this report visit https://www.researchandmarkets.com/r/7xgf62

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