Bio-based adhesives & sealants market size is forecast to reach US$11.6 billion by 2026, after growing at a CAGR of 13.2% during 2021-2026. Adhesives and sealants (AS) are materials that have excellent properties, flexibility, and easy curing mechanisms, and are commonly used in a range of industries, from building to medicine. Due to the fast-growing demand for petroleum-based goods (fossil based materials) and the consequent negative environmental effect (the carbon footprint), there is an increasing need to establish novel and more sustainable sources to procure raw materials. This is particularly driving the demand for biopolymer based adhesives & sealants in various end-use industries. Furthermore, the rising crude oil prices and stringent government regulations are also projected to be a major driver for the bio-based adhesives & sealants industry during the forecast period.
COVID-19 Impact
As the coronavirus epidemic spreads and its humanitarian effect increases, businesses that help meet basic needs, such as getting food and other critical goods to customers safely, are being increasingly impacted. The packaging industry is on the front lines, with food packaging being the main area of operation. The coronavirus epidemic would have a mixed effect on the packaging industry. Packaging for groceries, healthcare goods, and e-commerce transportation would see a major increase in demand. Demand for industrial, luxury, and some B2B-transport packaging can fall at the same time. The coronavirus epidemic has already resulted in some of the sharpest drops in demand for certain forms of packaging in recent memory while accelerating growth for others—such as packaging for e-commerce shipments, which are rapidly becoming lifelines in this new world. The market for biopolymer based adhesives and sealant is also fluctuating as a result of the fluctuating packaging demand. As a result, such changes are posing a range of challenges for bio-based adhesives and sealants manufacturers.
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Bio-based Adhesives & Sealants Market Segment Analysis - By Raw Material
The wax segment held the largest share of more than 25% in the bio-based adhesives & sealants market in 2020. Over recent years, the interest in bio-adhesives over fossil based materials adhesives, including wax based soy protein has increased rapidly. Among natural renewable resources suitable for industrial use, soy is a reasonable choice due to its high production volume and the small use of soy meal-based products for human food consumption. Soy protein can be an ideal raw material for the manufacturing of wood adhesives due to its low cost, high protein content, and easy processing. Concentrated types of soy proteins, such as isolates and concentrates, are also suitable raw materials for adhesive processing, but their prices are higher. Owing to all these advantages associated with soy-based adhesives & sealants its demand increasing during the forecast period.
Bio-based Adhesives & Sealants Market Segment Analysis - By End-Use Industry
The packaging segment held the largest share of more than 30% in the bio-based adhesives & sealants market in 2020 and is growing at a CAGR of 15.8% during 2021-2026. The majority of today's packaging products are made up of a variety of materials that have been laminated together using adhesives. In the packaging industry, bio-based adhesives are increasingly being used in PET container packaging, flexible packaging, corrugated boards, carton side seams, and film-foil laminates. Flexible packaging is the second-largest packaging application category in the overall packaging industry, owing to numerous benefits such as requiring 91 percent less content and 96 percent less space than rigid packaging. Flexible packaging is widely used in the food industry because of its moisture absorption properties, product freshness, and temperature regulation while preserving the product's shelf life. Demand for lightweight and innovative packaging solutions from the food industry is majorly driving the consumption of bio-based adhesives and sealants during the forecast period.
Bio-based Adhesives & Sealants Market Segment Analysis - By Geography
Europe region held the largest share in the bio-acetic acid market in 2020 more than 30% and is growing at a CAGR of 16.4% during 2021-2026, owing to spiraling demand for bio-based packaging in European countries from the food and beverage industry to lower carbon footprint. The usage of bio-based adhesives & sealants is increasing in packaging materials to improve the productivity of the economy and reduce its reliance on fossil fuels. Online grocery shopping is rapidly growing. Italy’s food retail sales reached US$145 billion in 2019, 1 percent more than in 2018. According to the International Trade Administration (ITA), globally, Russia has the eighth largest market for packaged food products with 27.5 million tons of trade volume, as well as beverages (alcoholic and soft) with a trading volume of 26 billion liters. In 2018, food production in Russia increased by 4.7%, while drink production increased by 3%. In 2018, Spanish food retail sales reached US$112.4 billion. Additionally, Spain continues to host record numbers of tourists, which also boosts food demand. With the increasing demand for food and beverages, the demand for packaging materials is also substantially rising. Therefore, owing to this the demand for bio-based adhesives & sealants is anticipated to increase, which will then drive the market growth in the European region during the forecast period.
Bio-based Adhesives & Sealants Market Drivers
Demand for Lightweight and Innovative Packaging Solutions
Bio-based adhesives are primarily driven by the food industry's demand for lightweight and advanced packaging solutions. Corrugated boxes are one of the most common types of packaging. Food and beverage, automobile, FMCG, pharmacy, household goods, and tobacco are only a few of the sectors that prefer these boxes. Corrugated boxes are in high demand due to the growth of e-commerce and the use of recycled paper. Furthermore, increasing industrial activity, especially in the manufacturing and retail industries, is a major driver of corrugated box demand, as these boxes are used to secure and transport goods. In addition, a lot of research is being done to sort out newer bio-based adhesives for use as tapes in packaging applications. Engineers at the University of Delaware, for example, created a method for producing packaging tapes from lignin in June 2018.
Flourishing Construction Industry Accelerating the Demand for Paints & Coatings
In the building industry, bio-based adhesives and sealants are used to prevent fluids and other substances from moving through material surfaces, joints, or openings. Bio-based adhesives & sealants are typically used to close openings between spaces that are too small for other materials such as concrete, timber or mortar to be used. They are also used to prevent the passage of air, sound, dust, insects, and so on, as well as acting as a fire-stopping component. Governments are heavily investing in expanding the construction sector. For instance, in Birmingham, £165 million (approximately US$194.8 million) has been announced to unlock up to 5,100 homes and to provide the infrastructure to support these new homes. Furthermore, the government has launched a new National Productivity Investment Fund (NPIF) with an allocation of GBP 23 billion (EUR 26.8 billion) (approximately US$31.6 billion), in which GBP 7.2 billion (EUR 8.4 billion) (approximately US$9.9 billion) is to support the construction of new homes. The residential construction in countries, such as Germany, India, and United States has been increasing, and the trend is likely to continue due to the increasing demand for residential dwellings. With this, the demand for bio-based adhesives & sealants is also expected to increase, which will then drive the market growth.
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Bio-based Adhesives & Sealants Market Challenges
Drawbacks Related To Adhesives and Sealants
There are several drawbacks related to bio-based adhesives & sealants. The pitfalls of bio-based adhesives & sealants are relative weakness in bonding large objects with a small bonding surface area, decreasing stability at high temperatures, and making it more difficult to separate objects during testing. Also, the bio-based adhesives & sealants have an average resistance to temperature. Because of their hydroscopic (water absorption) properties, bio-based adhesives and sealants have a short shelf life and have slower cure times. As a result, bio-based adhesives and sealants need more complicated handling and curing procedures. Thus, these drawbacks related to bio-based adhesives & sealants act as a restraint for the bio-based adhesives & sealants market during the forecast period.
Bio-Based Adhesives & Sealants Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the bio-based adhesives & sealants market. Major players in the bio-based adhesives & sealants market are Henkel AG & Co. KGaA, Arkema Group (Bostik SA), H.B. Fuller, 3M, Toyochem Co., Ltd., and Paramelt B.V.
Acquisitions/Technology Launches
In February 2021, Henkel launched Technomelt Supra ECO – a new range of hot melt adhesives that delivers greater sustainability and lower CO2 emissions while maintaining the performance of the Supra range.
In September 2020, Toyochem Co., Ltd., developed a new series of biodegradable pressure-sensitive adhesives (PSAs). Marketed under the Cyabine™ series of polyurethane PSAs, the newly developed product is suitable for materials for the packaging, construction, agriculture, and other industries where the use of biodegradable or recoverable materials are preferred.
Key Takeaways
Europe dominates the bio-based adhesives & sealants market. The growing demand growth in Europe has been driven by the use of bio-based adhesives & sealants in industries such as packaging, construction, healthcare, and more.
In the packaging and construction industries, bio-based adhesives & sealants have widespread applications. Macroscopic factors such as rising population and industrialization lead to the growth of the packaging and construction industries, which in turn flourishes the bio-based adhesives & sealants industry.
Furthermore, rising stringent regulations regulating the use of fossil based materials are also expected to stimulate the market for biopolymer based adhesives & sealants.
However, low shelf life, lower water-resistance, and performance-related concerns related to biopolymer based adhesives & sealants are expected to hinder the growth of the market.
The environmental concerns and decreasing fossil resources discourage the use of fossil based materials. This has led to the development of bio-based adhesives and sealants which work towards reduced carbon footprint while efficiently bonding different substrates.
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