Sustainable Adhesives Market

The sustainable adhesives market is projected to reach USD 3.7 billion by 2029, at a CAGR of 5.2% from USD 2.9 billion in 2024. A major driver for the market demand in sustainable adhesives is found in the increasing consumer market, stringent government mandates, and corporate sustainability initiatives. Consumers today are more aware of the environment and are thus demanding less toxic, non-polluting, biodegradable, and renewable adhesives. Another important factor that pushes industries to turn green is government regulation for limits of volatile organic compounds and hazardous substances. Besides, heightened commitment to CSR and setting sustainability goals by companies, also drive the development and use of sustainable adhesives. Innovations in adhesive technology further drive market growth for sustainable products by improving performance and versatility. The growing interest in the circular economy, highlighting the need for re-use and recycling, has propelled the use of these sustainable adhesives in various processes. Each of these drivers, further underpinned by regulatory frameworks, serves to fuel the sustainable adhesives market.

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Attractive Opportunities in the Sustainable Adhesives Market

Market Dynamics

Driver: Urbanization & infrastructure development coupled with green building initiatives

The key driving forces for the sustainable adhesives market include urbanization, infrastructure development, and green building activities. There is a quick increase in the utilization of construction materials due to population movement from the interior to the towns, as new estates are brought into form. Such growth in construction activities calls forth the utilization of eco-friendly adhesives to meet environmental standards and reduce the ecological footprint of urban development. Moreover, the advancing infrastructure in terms of roads, bridges, and public amenities also calls for sustainable adhesives that, being long-lasting, provide durability to assure the strongest bonds possible. In addition, green building initiatives help to further this demand, promoting sensitive construction-related work to issues like efficiency, sustainability, and overall impact on the environment. Most require the use of materials which result in healthier indoor environment and overall building sustainability, with sustainable adhesives being an important component in many cases. Thus, as market policies coupled with the ever-expanding co-opting of green building certifications and standards by governments and organizations drive the demand for adhesives which meet these environmental goals increases.

Restraints: Complex regulatory compliances and end of life considerations

Complex regulatory compliance and end-of-life considerations poses a huge restraints to the sustainable adhesives market. The intellectual and infrastructural investment that manufacturers have to make in order to successfully negotiate through this intricate maze of regional environmental regulations and standards could become overwhelming. Compliance with strict guidelines on VOCs, hazardous substances, and waste management concerns requires huge investments in research, development, and testing, which makes it cost-prohibitive, especially for smaller companies. This creates a further confounded landscape with end-of-life considerations in mind. Sustainable adhesives have to be formulated for optimizing the recycling and disposal processes, so they do not contaminate or interfere with the recyclability of the bonded materials. Given these requirements, formulating adhesives that meet performance and cost-effectiveness criteria is quite challenging. This may result in inconsistencies and inefficiencies if there are no standardized protocols regarding how adhesives are disposed of and recycled. It is such regulatory and end-of-life complexities that further reduce the speed of market growth, increasing related costs and operational burdens for manufacturers.

Opportunity: Growing demand in emerging end-use industries

Growing application of sustainable adhesives in emerging end-use industries has opened a strong chance for market growth. Growing adoption of sustainable adhesives by renewable energy, electronics, and healthcare industries is driven by enhanced environmental performance characteristics. For example, in renewable energy, sustainable adhesives bond parts of solar panels and wind turbines, enabling green energy and reducing carbon footprints. The electronic industry is also getting ready for a turn towards the use of sustainable adhesives for achieving safer, cleaner, and more environmentally friendly manufacturing processes with improved management of product lifecycle. Stringent health and safety regulations in the healthcare sector, coupled with the demand for nontoxic and biocompatible adhesives for medical devices and associated packaging, are key drivers. In such expanding and innovating sectors, there would be a growing demand for high performance and sustainable bonding solutions. This kind of growth into such diverse sectors not only broadens the market scope of sustainable adhesives but also encourages further technological developments, driving overall market growth and adoption.

Challenge: Availability of raw materials along with performance limitations

The supply of bio-based and renewable raw materials for the production of adhesives may be incoherent, limited, and affected by factors such as fluctuations in agricultural yield, land-use competition, or disruptions to supply chains that could have an impact on price and the availability of the raw material. Furthermore, competition due to demand for renewable resources from different industries may further strain the supply chains and force price increases. Typically, sustainable adhesives must meet rather stringent performance requirements to become a viable substitute for traditional adhesives. With eco-friendly formulations, it will be difficult to achieve the same level of durability, bonding strength, and temperature resistance as is required to withstand all kinds of applications. Some of these sustainable adhesives still lag behind the conventional ones in performance in certain applications, hence their low adoption. More research and development must be conducted so that sustainable adhesives would attain better properties for application in various industries without performance compromise. These challenges further underscore that there is a pressing need for continuous innovation and investment in technologies related to sustainable adhesives in order to bypass raw material bottlenecks and deliver desirable performance characteristics.

Market Ecosystem

A market ecosystem refers to the interconnected network of businesses, consumers, suppliers, and regulators in a particular market, influencing and interacting with each other. The major players in this market are BASF SE (Germany), DuPont (US), Henkel AG & Co. KGaA (Germany), H.B. Fuller Company (US), Jowat SE (Germany), Dow (US), Arkema (France), Avery Dennison Corporation (US), Synthos (Poland), Paramelt B.V. (Netherlands), Artience Co., Ltd. (Japan) etc.

Sustainable Adhesives Market: Ecosystem

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

"Water-based is the largest sub-segment amongst the type segment in the sustainable adhesives market in 2024, in terms of value."

The largest subsegment is contributed by water-based adhesives on account of their eco-friendly composition and wide applicability across various industries. In these adhesives, water serves as a solvent that drastically reduces the emission of volatile organic compounds emitted by the adhesive when compared to the application of solvent-based adhesives, hence being safer both for the environment and people. The non-toxic nature, combined with the ease of use, makes them very attractive to manufacturers and consumers alike in industries such as packaging, construction, and woodworking. In addition to this, water-based adhesives also have good bonding performance and wide applicability, as they can be applied to a wide range of materials, from paper to wood and even textiles. The technological developments of the water-borne adhesives increased their performance tremendously, placing them more competitively with the traditional adhesives. The fact that they are aligned to green manufacturing processes and compliance with regulations further drives their adoption, thereby strengthening their leading position in the largest subsegment of the sustainable adhesives market.

“Recyclable adhesives accounted for the largest type segment of the sustainable adhesives market in 2024” in terms of value.

These recyclable adhesives are at the top of the sustainable adhesives type segment due to their key functionality in pushing forward circular economy strategies and waste reduction. This type of adhesives enables the recycling of bonded materials, notably within the packaging and consumer goods sectors, where pressure for sustainable disposal solutions is most compelling. The tightening of legislation related to waste management and environmental impact makes manufacturers, as well as consumers, more inclined towards recyclable adhesives for easier recovery and material reuse. Enhancing their appeal, these also prove compatible with existing processes for recycling and have less contaminating effect on recyclates. Besides, innovations in adhesive technologies significantly raise the level of performance and versatility of recyclable adhesives, turning them applicable for a wide array of applications without giving away anything in terms of bonding strength or durability. Such makes the segment of recyclable adhesives aligned with both environmental goals and requirements from practical application, thus becoming the top choice in the sustainable adhesives market.

“Packaging accounted for the largest end-use industry segment of the sustainable adhesives market in 2024” in terms of value.

The packaging end-use industry is the largest end-use industry for sustainable adhesives, because it has the greatest demand for green packaging solutions, aided by consumer preference for green products and strict environmental regulations. This is due to the fact that packaging forms one of the biggest generators of waste globally, forcing companies into engaging with sustainable practices like the use of biodegradable and recyclable, and bio-based adhesives. This, in turn, also supports the integrity and recyclability of the packaging materials, therefore contributing to the circular economy. Besides, innovations in adhesive technology have rendered sustainable adhesives more efficient for many packaging requirements related to food safety, durability, and versatility. With this increasing emphasis on sustainability and global volume usage, the packaging industry retains the largest end-use industry for sustainable adhesives.

"Asia Pacific is the largest market for sustainable adhesives Market in 2024, in terms of value."

There are numerous key factors that makes Asia-Pacific region the largest region in the sustainable adhesives market. Geographically, rapid industrialization and urbanization in the region basically drive high demand for adhesives in industries such as construction, automotive, packaging, and electronics—all of which are shifting their focus to sustainability. Tightening government regulations with regard to the environment in countries like China, India, and Japan and South Korea are facilitating the adoption of eco-friendly products. Also, it is one of the most important regions for manufacturing industries because of the lower production cost and the availability of ample raw material resources. Rising consumer awareness and demand for green products also supports the growth of the market. Investments in research and development for sustainable adhesive technologies are also inclined towards Asia-Pacific, hence leading to innovations that enhance the performance of these products and increase their application areas. The combined factors described above make the Asia-Pacific region the largest and fastest-growing region in the sustainable adhesives market.

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Key Market Players

The key players in this market are BASF SE (Germany), DuPont (US), Henkel AG & Co. KGaA (Germany), H.B. Fuller Company (US), Jowat SE (Germany), Dow (US), Arkema (France), Avery Dennison Corporation (US), Synthos (Poland), Paramelt B.V. (Netherlands), Artience Co., Ltd. (Japan) etc. Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of sustainable adhesives have opted for new product launches and technological advancements to sustain their market position.

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Scope of the Report

Segmentation

This report categorizes the global sustainable adhesives market based on raw material, type, end-use industries and region.

On the basis of raw material , the market has been segmented as follows:

• Water-Based
• Plant-Based
• EVA Based
• Acrylic Based
• Others

On the basis of end-use industries, the market has been segmented as follows:

• Packaging
• Woodworking
• Construction
• Medical
• Automotive
• Consumer Goods
• Others

On the basis of type, the market has been segmented as follows:

• Recyclable Adhesives
• Renewable Adhesives
• Repulpable Adhesives
• Biodegradable Adhesives
• Green Adhesives
• Others

On the basis of region, the market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In May 2024, H.B. Fuller Company, the largest dedicated adhesives company globally, has announced the acquisition of ND Industries Inc. This acquisition enhances their portfolio with specialty adhesives and solutions for fastener locking and sealing, catering to diverse industries including automotive, electronics, and aerospace.
• In March 2024,  Henkel AG & Co. KGaA (Germany) and Kraton Corporation (US) have partnered to advance sustainability in adhesives. Henkel, a global leader in adhesives, sealants, and functional coatings, and Kraton Corporation, a leading global producer of sustainable biobased products derived from pine wood pulping, have announced a multi-year supply partnership.
• In December 2023, Arkema (France) is set to bolster its presence in Ireland's expanding construction adhesives market through the acquisition of Arc Building Products (Ireland). Specializing in tile adhesives, floor preparation systems, and building chemicals, Arc Building Products has established a robust foothold with annual sales of approximately USD 16.23 million (Euro 15 million). With a manufacturing facility located in Arklow, Co. Wicklow, Ireland, the company is renowned for delivering comprehensive system solutions and prioritizing exceptional customer service. Building on its strong position in Ireland for over 60 years, Arkema’s Bostik is poised to leverage significant industrial and commercial synergies through this planned acquisition.
• In April 2023 Dow (US) and Avery Dennison Corporation (US) have co-developed a groundbreaking hotmelt label adhesive that facilitates the mechanical recycling of filmic labels and packaging made of PP/PE together. This innovative olefinic hotmelt adhesive, specifically designed for chilled food applications, is the first of its kind on the market. It has been approved by Recyclass for recycling in the HDPE colored stream in European markets.

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