According to latest research by FMI, bioadhesives for packaging market is set to witness steady growth during 2021-2031. Demand for bioadhesives for packaging will witness a steady recovery couple of years, with highly optimistic growth outlook in the coming decade.
Muted demand from few industries will mean limited opportunities in near future. However, sales of bioadhesives for packaging for use in cartons will provide thrust. The market is anticipated to grow at a competitive CAGR of 7% over the next 10 consecutive years.
The evolution of the bio-based adhesives for packaging market is fueled by several factors. Growing demand from various sectors such as packaging, pharmaceuticals, woodwork, and construction, among others, is one of the major factors driving the growth of the bio-based adhesives market.
Furthermore, rising oil prices may increase commercial interest in bio-based adhesives over synthetic alternatives. Furthermore, one of the significant reasons driving the growth of the bio-based adhesives market is the increasing number of government policies targeted at limiting the development of petroleum-based products.
The market for bio-based adhesives may be hampered by its short shelf life and continuous use of traditional adhesives. Bio-based adhesives for packaging will have several opportunities for innovation in technology, product, and property enhancement.
The highly transmissible diseases restricted all the business activities and resulted pause in GDP growth rate. All the industries were impacted severely by novel diseases and bio adhesives market is no excuse. Closure of major manufacturing units and muted demand from retail and consumers also drifted apart the market growth and resulted in a contraction of 3% in the year 2020.
The United States is one of the world's largest markets for bioadhesives for packaging. During the forecast period of 2021-2031, the US bioadhesives for packaging market is expected to continue its upward trend.
Demand for bioadhesives for packaging in US and Canada will be led by companies ramping up to be eco-friendly. Commercial applications will account for higher demand post the pandemic. However, this sluggishness will be compensated to an extent by demand from US domestic applications. The US and Canada are spending a huge sum on bio-based adhesive, and this will continue to benefit bioadhesives for packaging companies.
US bioadhesives for packaging sales will also be impacted by the factor concerned with the price of adhesives. Synthetic adhesives being available at lower prices and with easy manufacturing techniques; to enter large markets and overcome the barriers, manufacturers in the region have to focus on providing bio-based products at competitive prices.
The COVID-19 situation has had a significant impact on many EU countries, resulting in a drop in wealth creation. However, as in the United States and Canada, the commercial sector in the EU continues to drive demand for bioadhesives for packaging.
Despite the COVID-19 challenges, most European countries have maintained steady commercial activities in 2020 post the lockdown. Germany, Italy, and France too will increase resources allocation for developing bio-based adhesives for various applications including packaging. The region is creating opportunities for various actors already existing in adhesives market.
For bioadhesives for packaging manufacturers and suppliers, the strong projections for Europe’s commercial use can be offset by fluctuations in consumption from the consumer goods sector. However, refocus on development of high-end adhesives will remain key to steady demand in the long run.
Some of the leading manufacturers and suppliers of bioadhesives for packaging include
Most of the key actors in bioadhesives market have maintained an innovative product portfolio and offer highly exclusive products for various applications in packaging. The manufacturers opt for a mix of straight organic market play with little resourcing for other actors to innovate new products over any other inorganic approach to experience wider consumer engagement and possess a competitive edge over others.
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